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[+2 sentences][(proc text) "to provide for the issue from the Consolidated Fund and the Development Fund of the sums necessary to meet the estimated expenditure for the financial year 1 April 2016 to 31 March 2017", (proc text)] [(proc text) recommendation of President signified; presented by the Minister for Finance (Mr Heng Swee Keat); read the First time; to be read a Second time after the conclusion of proceedings on the Estimates of Expenditure for financial year 2016/2017, and to be printed. (proc text)]
[+2 sentences][(proc text) recommendation of President signified; presented by the Minister for Finance (Mr Heng Swee Keat); read the First time; to be read a Second time after the conclusion of proceedings on the Estimates of Expenditure for financial year 2016/2017, and to be printed. (proc text)]
[+2 sentences][(proc text) "to give effect to the Convention on Choice of Court Agreements done at The Hague on 30 June 2005 and for connected purposes, and to make related amendments to certain other Acts", (proc text)] [(proc text) presented by the Minister for Law (Mr K Shanmugam); read the First time; to be read a Second time after the conclusion of proceedings on the Estimates of Expenditure for financial year 2016/2017, and to be printed. (proc text)] Page: 16
[+12 sentences]Mdm Speaker, firstly, my congratulations to the Finance Minister for his well-delivered maiden Budget speech. I am most impressed with the overall balance of the Budget measures and the clear roadmap articulated in the area of industry transformation. Although there were no new big-ticket items introduced, the Budget actually went into the next level of the nuts and bolts of implementing the various policy measures that were introduced in the last few years. It shows continuity in the policy directions and staying committed to the overall game plan. Here, I would also want to record our thanks to Deputy Prime Minister Tharman, the former Finance Minister, for instituting the timely and necessary shifts in the fiscal policy during his tenure and getting us towards more inclusive growth as well as strengthening our social compact. The Budget, in a way, also reminded us that we do have in place a comprehensive tool kit to deal with the challenges ahead. A number of life-changing measures were introduced in recent years and require steadfast and diligent implementation. I see this as among the important priorities of this year's Budget, which is to implement well the series of far-reaching social and economic programmes and to ensure they remain well-funded and sustained. Clearly, economic transformation is the priority focus for this year's Budget and, indeed, will be in the years to come. That is the "get real" part for us as a country. We are mindful that to achieve better lives and a stronger nation, we need to have the means and the resources to get there. The Industry Transformation Programme is both an exciting roadmap to achieve quality growth as well as a practical organisation of the various efforts to help businesses deepen capabilities, scale up technology adoption and transform through innovation. The $400 million Automation Support Package and the $450 million National Robotics Programme are necessary bold moves.[+2 sentences] Somehow, we cannot run away from tagging dollar values to important initiatives to show solid commitments. I welcome that. The enhanced Risk-sharing Financing Scheme to support scale-ups as well as the upsized Mezzanine Growth Fund to support expansion and internationalisations are useful enablers.[+10 sentences] It goes some way to addressing the funding needs of companies seeking to grow their businesses. These new measures are tilted in favour of businesses that are looking to upscale, innovate and internationalise, the three important key words in the Industry Transformation Programme. And I agree with the approach. It is usual to expect individual businesses to have varying aspirations and perspectives with regard to future growth or expansions. Some companies may be Page: 17 satisfied with the status quo and find no need to take on new risks or seek new growth markets. But for those who are prepared to venture into new frontiers and have good business ideas and are willing to take on investment risks, we should do our utmost to assist them in a meaningful way so as to increase their chances of succeeding. Their successes will add vibrancy to the economy, create better jobs and grow value overall. Digitisation of the economy and the Internet of Things continue to proliferate at a very fast speed around the world. It is no longer just about setting up digital platforms for the purpose of gaining efficiencies and data management. Rather, digital platforms should also spur innovations and co-creation. To this end, developing the National Trade Platform into an open innovation platform where third-party apps and value-adding services can be incorporated is accretive.[+3 sentences] In fact, in many platforms today, it is the apps that drive adoption and utilisations. The global trading system has grown in complexity and we need to continually crowd source innovative solutions so as to stay in-game in the global trade flows. Mdm Speaker, having a vibrant startup scene is an essential part of an innovative and value-creating economy. We need to place-make the ecosystem with the necessary players, the budding entrepreneurs, mentors, venture and private equity funds, among others. Hence, I fully support the set-up of the new entity SG-Innovate, which is the soft infrastructure needed to foster innovation and collaborations. On the other hand, we will also need the second Launchpad @ Jurong Innovation District (JID), which is the hard infrastructure to serve as spaces for entrepreneurs and researchers to design and test-bed their new ideas.[+16 sentences] A key ingredient for a vibrant startup scene is for the barriers to entry to be kept as low as possible, whether it is rental costs, red tape or others. I like the JTC Launchpad at one north – the now famous Blk 71 at Ayer Rajah. It is actually a very modest set-up but a very conducive environment. I would imagine that the maintenance cost for the place would not cost too much. And that is the right approach. So, in developing the next gen JID, we should bear in mind not to allow the cost of land and the cost development to be the de-enabling factor for startups or would-be entrepreneurs. In the last decade, innovation districts have emerged in the Western economies. In many of the United States (US) cities, innovation districts emerged near anchor institutions – the universities – the midtown areas where economy shaping, learning, living and social networking are integrated. It has helped cities move up the value chain of global competitiveness. Creating a new innovation district next to an established technological institute like the Nanyang Technology University (NTU) is an exciting idea. Besides the innovation districts and launchpads, our neighbourhoods are also places where entrepreneurism and innovations can take root. After all, Jack Ma started Alibaba at his humble apartment in Hangzhou. Already in the heartlands, we have seen smart work centres being set up at community locations like the community clubs and libraries. They are meant to promote flexible work arrangements. Nonetheless, these well-equipped and broadband-enabled smart work centres can also serve as initial workspace for budding startups. The Finance Minister spoke about revitalising Housing and Development Board (HDB) shops in his speech. Perhaps, HDB can work with the Infocomm Development Authority (IDA) to set aside shop spaces as smart work centres for Page: 18 heartland startups as well.[+6 sentences] Much has been said about the need for a "more integrated approach" among the different agencies and support schemes, and a "more targeted approach" to develop each industry. These are very much the crux of implementing transformation on a national scale. To transform at the enterprise level is already a formidable challenge. To do it at the economy-wide level, the challenges just multiply. Take the National Robotics Programme. We have seen promising adoption at the hospitals. The Finance Minister mentioned that it could be widely applied to transform sectors, such as construction, manufacturing and logistics, with the aim of providing solutions to small and medium enterprises (SMEs) at reasonable cost.[+11 sentences] This is all very exciting, but I can imagine the various implementation challenges ahead. The first question is whether there will be a champion agency with deep enough knowledge and the leadership to drive and coordinate this programme. How would the robotics programme work along with the various efforts by the other agencies, like the Standards, Productivity and Innovation Board (SPRING), the Building and Construction Authority (BCA), the Agency for Science, Technology and Research (A*STAR), the Workforce Development Authority (WDA), and how will this agency be involved in the research and development (R&D), acquisition, standards and deployment of robotics in the enterprises. Or is this a case where the Government's role is primarily as the grant provider and to "let a thousand flowers bloom", with the hope that it will accelerate the use of robotics in the industry? If so, how do we minimise wastage from duplication in R&D, share the limited robotics expertise and avoid fragmenting the robotics suppliers' industry? As we promote and incentivise the use of technology in enterprises, we should also synergistically grow our local technology providers. The transformation package is an excellent opportunity for our local technology industry to build credentials and expertise, which they can leverage to expand internationally. This should be the second order priority for the National Robotics Programme (NRP). Leveraging on the trade associations and chambers (TACs) to help transform industry is also a logical move. The Government and businesses can work together to develop the industries, identify market failures and work out the most appropriate interventions, be it systemic or otherwise. We should leverage on TACs to build interdependencies among industry participants and encourage the "win-win" culture of mutual harnessing and sharing. Of course, the TACs would also need a little incentivising as well, and, hence, the Local Enterprise and Association Development-Plus (LEAD+) programme is the needed boost.[+1 sentence] However, it becomes trickier if the sector has more than one TAC representing them. Here is where the Government could encourage the setting up of umbrella TACs to coordinate for the entire sector. I applaud the move to second up to 20 public officers to interested TACs to better understand the needs of businesses and to build closer rapport.[+10 sentences] It demonstrates commitment to the task and would help raise the partnership to new high levels. I also read from the news that a team of officers drawn from different agencies will be set up to serve each of the 20-plus sectors. These cluster champions will actively engage the industry to carry out the transformation roadmap. Such facilitation efforts, when backed by necessary Page: 19 resources will help kick-start and fast track the pace of transformation. Clearly, in a Government-led transformation and where the agencies play a hands-on role to facilitate and enable transformation, we need to first get the bureaucracy right for the task. Agencies will have to work in a more integrated and networked rather than the hierarchical manner. Public sector officers will also need to master the art of seeking aligned partnership with enterprises, something that is not written in the Public Service manual. Also, importantly, in innovation-driven transformations, agencies administering the grants will need to move away from key performance indicator (KPI)-driven criteria to more outcome-based criteria in dishing out support. The ticking of boxes approach would not achieve the outcomes that we want. As we seek new ways to grow the economy, it is also timely to take stock and review if the various economic agencies that were set up years ago are still well-positioned to carry out the transformation roadmaps laid out. Agencies like the Economic Development Board (EDB), SPRING, International Enterprise (IE) Singapore, A*STAR, JTC, WDA, IDA, among others, have been excellent and effective organisations in carrying out their respective missions. But as we press on for a decisive shift in our economic growth strategy, we have to examine whether the scope of work of different agencies can be better integrated, and whether we can eradicate overlaps and re-mission the agencies if necessary.[+5 sentences] And whether we need a merger and acquisition (M&A), so to speak, among the agencies? Mdm Speaker, I am glad that the Finance Minister continues to exercise prudence in the Budget, notwithstanding this being an expansionary Budget. It is worth noting that our expenditures have grown to almost two-and-a-half times what they were 10 years ago. And in the years to come, the rate of increase in expenditure will continue to rise. While there are no new measures in this year's Budget to deal with the cyclical downturn, the Budget this year still presents substantial support for firms, especially SMEs. The $1.9 billion Wage Credit Scheme payout this year, the $1 billion extension of the Special Employment Credit (SEC) and the enhanced corporate income tax rebate, among others, actually put money into businesses and would help the cash flow position of companies.[+1 sentence] Although the increase in total expenditure amounts to $5 billion in this year's Budget, the overall injection to the economy is actually much higher if the net investment returns (NIR) contribution is taken into consideration. The NIR contribution (NRIC) of $14.7 billion, versus $9.9 billion in financial year (FY2015), helps to fund the basic deficit of $7.7 billion.[+1 sentence] This net injection into the Budget, which is not funded through taxes or tax leakages, represents a strong stimulus to the economy and helps to support overall growth. While the overall surplus of $3.45 billion may be good news, it may pose potential problems to the Finance Minister. I am sure expectations will rise for the Government to spend more, given the surplus that we have. However, we should note that the increase in NIRC, which is the major balancing item for the Budget, is merely due to changes made to the NIR framework last year.[+18 sentences] Temasek's NIRC is now also based on expected long-term returns, like the Government of Singapore Investment Corporation (GIC) and the Monetary Authority of Singapore (MAS). Some would argue these are Page: 20 just changes to accounting treatment. There is no guarantee that the expected long-term returns would not fall in the years to come, as it really depends on the prevailing yields of the financial markets and the global outlook. Already, we are seeing negative interest rates in countries like Japan and Europe and that we are entering into a world of low returns. Mdm Speaker, notwithstanding the expansionary Budget, we should still monitor very closely how the slowdown would impact businesses in the short term. Uncertainties and downside risks in the global economy have increased. For instance, as China continues with reforms to rebalance the economy, there are concerns that the Chinese economy could slow down more sharply than expected. The services-driven nature of growth in the US and China, as well as the trends of in-sourcing in the two countries, may mean that external demand for our exports will remain subdued. China and the US are our top trading partners. We should watch closely how the lower oil prices would impact the marine and offshore sector as these could have negative spillover effects on other sectors supporting the oil and gas industry. And we should also be concerned about the continuing shrinkage of the manufacturing sector. Mdm Speaker, the Finance Minister had emphasised at length the spirit of partnership in his speech. The Government will lead and act, whether it is economic transformation or social uplifting. But the Government cannot do it alone. We can achieve better and with more sustainable outcomes if the stakeholders are in this together. Last month, The Business Times conducted a pre-Budget poll. One of the questions posed to the chief executive officers (CEOs) participating in the poll was whether businesses should rely less on the Government's help and more on their own efforts. The results were actually surprisingly very encouraging. From the poll, 69% of CEOs think that businesses should be more self-reliant and rely more on themselves and less on the Government to grow their businesses, although I must add that the recent position paper published by the Singapore Business Federation suggests a different sentiment.[+19 sentences] In that paper, almost all the recommendations that were put up asked for the Government to do more. In preparing this speech, I must admit I struggled quite a bit as to the role the Government should play in the next phase of our economic development. In the last five decades, we saw strong and direct involvement by the Government in industrialising the country. We achieved remarkable growth, very much engineered by the state. Government-linked companies, like Singapore Airlines (SIA), Sembawang Corporation (Sembcorp), Keppel, the Port of Singapore Authority (PSA), Singapore Technologies (ST) Engineering, were established which developed world-class capabilities for the economy and created good jobs. The Government's direct hand in the economy has enabled Singapore to progress and thrive. But my intuition tells me that in the next phase of development where the strategy is geared towards innovation, value creating and more entrepreneurship, the Government's hand in the economy should be less direct, though not necessarily less in terms of financial resources or administration. Page: 21 At least in the short to medium term, the Government would have to push urgently the various key horizontal enablers and to facilitate the realisation of a conducive ecosystem where innovation and entrepreneurship flourish. Left to market forces, we may take a long while to transit or may not even get there. Or we may have to do it in a more painful way at a later stage. Ultimately, it is the businesses that must come up with the next "killer" product or services that can sell to the consumers of the world. Businesses should be the trendsetters. The Government can help, but the Government may not always make the right business call. Hence, the ideal state is for the Government to forge and sustain strong partnerships with economic stakeholders and, over time, with the stronger industry players and enterprises emerging, they can take the lead in driving the growth ahead. The gut instinct or the "animal spirit" is still very much needed to bring us to the desired state. Mdm Speaker, in Mandarin, please. (In Mandarin): Mdm Speaker, with the rapid technological development in the world, Singapore is also undergoing a necessary industrial transformation process. What I am most concerned about is how this will directly impact our workers. This is the challenge that many developed countries are facing. A recent survey showed that in the US, close to 47% of the existing jobs could be replaced by technology or digitisation in the next few years. The advances of technology and the Internet have created innovative business models which, in turn, caused products and services to become outdated very fast and their lifespan shortened. This means that the existing skills of workers may not meet the demand of the new jobs, creating a mismatch problem.[+2 sentences] The workers will end up like a "hero who has no place to show his prowess". So, I hope that the Government will pay attention to this issue and give more support. Although we have some comprehensive packages, I believe that, in helping the workers, we can adopt a more proactive, caring and inclusive approach.[+1 sentence] (In English): Mdm Speaker, with that, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Randolph Tan.
Assoc Prof Randolph Tan (Nominated Member)2868 words
[+16 sentences]Thank you very much, Mdm Speaker, for allowing me to participate in this debate. In recent years, some have expressed views that Singapore's early post-Independence economic philosophy had put an overly heavy emphasis on growth. I do not agree. I think it was a choice for Singapore which the founding generation made and for which the founding leaders took responsibility. They decided – correctly, in hindsight – on promoting growth and investment. And because they took early and decisive action, Singapore gained a valuable lead over many other countries that subsequently took the same route. Courageous decisions, not an endowment of natural resources, brought our economy to where it is today. The courage of such decisions bequeaths to later generations an expanded set of choices. Today, instead of tearing everything down to remake the economy, we can choose to do so selectively. And because we can do it with a high degree of penetration facilitated by depth of Page: 22 policy insight, we have more confidence that our economy's edifice will remain secure. Led by our founding Prime Minister, the early generation of leaders emphasised the need for an economy that continually updated itself and checked its relevance. In order to remain updated and relevant, strong growth during the early days of development provided us with the necessary head-start. If Singapore had commenced its pursuit of growth any later or grown any slower, imagine where we would be now in the face of the prevailing state of regional and global competition. The basic principles of Singapore's economic philosophy have remained intact till now, but that can easily change. Just as natural resource endowments can be readily depleted through unrestrained profligacy, later generations of Singaporeans can easily end up with a vacuous foundation on which to erect their future economy if our economic philosophy shifts in the wrong direction. That is why I believe it is important at this point to recall these principles. In my opinion, the principles which characterise the economic philosophy that has guided our economy to its current level of development can be condensed to three basic ones. These are self-reliance, openness and a determination to remain updated and relevant.[+10 sentences] The first can be seen, in many ways, in our approach to economic partnerships within and beyond the region, as well as in our emphasis on communal effort and individual responsibility. The second characteristic of openness is seen in our welcoming approach to foreign investment, both of money and talent, something that occurred from the very early days of Independence. Today, there are few who seriously doubt the need for Singapore to continue to remain open and welcoming, especially to foreign manpower. The disagreement which exists has been about how much and in what manner to accommodate, not in the fundamental principle of being open to investment and talent. There is also openness to trade, which is why Singapore has always been exceptionally progressive in its approach to regulation, regionalism and globalisation, when compared to other economies. Finally, there is the continual push to remain updated and relevant. It is a philosophy which is reflected in our untiring pursuit of upgrading in every aspect of our lives. This last one is also the one which I feel has been most taken for granted. We enjoy good working infrastructure and roads without potholes, but it is also common to see frustration with what some regard as incessant upgrading works. It is not uncommon to come across criticism about such things, without enough appreciation of the actual alternatives we could be presented with if we decide not to pursue continual upgrading. The approach taken in this Budget will, I believe, strengthen our commitment to these same principles.[+1 sentence] Indeed, Mdm Speaker, I believe this Budget goes beyond fiscal initiatives. What it has done is to introduce subtle policy innovations which will expand the options available for managing Singapore as an advanced economy.[+3 sentences] Our development over the last 50 years into an advanced economy means that the policy approaches that were adequate when we were a Newly Industralised Economy (NIE) need to be supplemented with new policy innovations with sufficient penetration to deal with the deep level of sophistication that the economy has achieved. The most significant in this Budget relate to the labour market. Labour market innovations have always played a critical role in Singapore's economy. An early one was the setting up of the Page: 23 National Wages Council in 1972 as a tripartite body.[+7 sentences] That provided the framework for decades of strong labour market performance. Singapore's outstanding record on employment growth, unemployment and income growth over the years is a testament to the efficacy of this and other supporting labour market policy innovations. Of course, we are not alone in these kinds of innovations. Other countries have also introduced innovations which have strengthened their labour market performance substantially. One good example is Germany's introduction of flexible working time accounts. Often, reception to such innovations is mixed, at best. They faced criticism and opposition, and only proved themselves over time, during crises, in particular. Despite the outstanding performance of the labour market, past Governments did not rest on their laurels.[+8 sentences] In 2008, another important labour market innovation was heralded by the introduction of Workfare by then-Finance Minister, Deputy Prime Minister Tharman. By encouraging workers at the lower end of the wage spectrum to seek employment and remain employed, Workfare has proved to be a forward-looking approach that helps the more vulnerable segments of our working population, and it does so in a fashion which is closely aligned to our economic principles. Other labour market innovations include wage support measures, most notable of which was the Jobs Credit Scheme of 2009, the enhanced system of levies and dependency ratio ceilings (DRCs) on foreign manpower, the Jobs Bank and, more recently, the Progressive Wage Model. By contributing to an increased range of policy options, such innovations equip the Government to handle increasingly complex labour market issues. I would like to focus on the system of levies and DRCs. This system is vital for managing our long-term dependency on foreign manpower in a sustainable manner. Since its introduction at the recommendation of the Economic Strategies Committee (ESC), the current comprehensive system of levies and quotas has not been tested by a full-blown downturn. Yet, beginning with last year's Budget, subtle changes have already been taking place in the way this system is applied without requiring recession as a precondition. Last year, in response to the slowing economy, previously announced levy increases for S Pass and Work Permit holders were deferred for all sectors. In justifying the freezing of levy increases for manufacturing for two years, then-Finance Minister Deputy Prime Minister Tharman drew a link to the "progress in productivity" improvement that had been achieved. This year, the Finance Minister cites the moderating demand for Work Permit holders in the marine and process sectors in support of extending the freeze on levy increases for another year.[+8 sentences] Mdm Speaker, unlike the Central Provident Fund (CPF) cuts, the levies are sector-specific and can be deployed to address weakness on a sectoral basis. In this manner, the Government is expanding the application of the system of levies as a policy instrument, allowing it to evolve into what could eventually become a very powerful tool for managing the labour market and one that is definitely more amenable to finetuning according to the degree and area of weakness in the economy. Given the importance of this system of levies and DRCs, I believe it is important also to look out for possible signs of weakness. Where necessary, apart from an expansion in their application, such policy tools may provide improved performance with appropriate reconditioning. This is Page: 24 especially so if there is clear evidence of unintended outcomes. In order for the system of levies to remain reliable and for its policy potential to be fully realised, we should re-examine the issue of whether and how quota restrictions should be imposed on top of the levies. DRCs, which are quantitative restrictions, mean that aside from determining their willingness to pay, employers have to make a further determination of the numbers of workers they are entitled to hire under the quota. Basic contradictions occur when both price and quantity restrictions are required to be fulfilled at the same time. Some of the problems we have observed in the labour market could be manifestations of these contradictions.[+1 sentence] Let me take one common example. There have been complaints about situations where local workers are hired mainly to justify DRC-based eligibility for foreign hirings.[+16 sentences] Practically speaking, it is not possible for pricing and quota decisions to be made simultaneously. Consequently, the likelihood of such unintended outcomes is increased when employers approach their hiring decisions in a two-stage manner. If they begin by determining the price they are willing to pay, one would expect that an employer would then proceed to optimise his entitlement under the quota. In order to reduce the likelihood of such unintended outcomes, it is timely to consider modifications to the system to eliminate the need for such a two-stage decision-making process. Such a two-stage process imposes unnecessary burdens on employers. There are alternatives that could potentially improve such a system. One possible solution is to forcibly reverse the order of the two-stage hiring decision process. In practice, a system that requires employers to decide the quota they want before pricing their entitlement would end up being quite similar to the Certificate of Entitlement (COE) system for vehicles. Of course, this is a suggestion which commentators have raised in the past and which I am sure policymakers would probably have considered. What I would like to point out and urge is a re-examining of its potential at this point in time. I fully recognise that the implications of commoditising manpower services to such an extent should not be taken lightly. Payment for manpower services is not like payments for vehicles, because it affects the livelihoods of workers and the welfare of their families. Auctioning the right to hire also creates uncertainty for employers, possibly to an extent which would wipe out any efficiency gains. But the confidence with which the system is being used, at this point in time, is an encouraging sign that there is scope to alleviate the inherent contradictions that remain. Employers need some certainty in order to carry out forward business planning. Hence, the improvements in information sharing, including warnings about whether they have a weak core of Singaporean workers, are important improvements to our system. Moving forward, would it be possible to expand the policy options for dealing with employers who have a "weak Singapore Core" of workers and whose prospects for moving towards a "stronger Singapore Core" in the short term are actually constrained by the realities of supply?[+7 sentences] Here, let me be explicit about one thing. My concerns about DRCs come from the head and not the heart. In my heart, I have no doubt why there was a need to resort to quantitative controls on top of imposing levies. I believe, for instance, that as a Singaporean worker, I probably benefit directly from such a system. But it is no use to have short-term benefits which diminish our long-term prospects. It is in our interest to ensure that the system remains viable for the long term. Another area of concern which I had spoken about in this Chamber before and which invariably provokes a clash of emotions is prolonged forms of wage support, especially when these Page: 25 are not tied to clear rules for withdrawal. In this Budget, the Finance Minister is expanding SEC for three years up to end-2019.[+7 sentences] Although I am opposed to extended wage support, I have no hesitation in acknowledging the Finance Minister for what can only be a decision made from his heart not to immediately discontinue such schemes. There is no doubt that loss of jobs and the uncertainty associated with job search is an emotionally costly affair on those of our fellow Singaporeans who become affected. In the last few decades since our first recession, there have been many families whose lives have been severely disrupted as unemployment hit them. In the process of searching for a new job, their decision about whether to accept lower paying alternatives or hold out for a similar position, and the anguish as the unemployment duration lengthens for them, are heart-breaking and anxiety-filled, not just for them but also for their family members, if they are the primary breadwinner. Yet, fellow Singaporean workers have remained stoic through each and every ensuing downturn, maintaining their faith in the almost unparalleled capacity of the Singapore economy to create jobs. It is no mean feat to continue to generate jobs in an increasingly sophisticated economy packed into one of the most congested cityscapes in the world. Ultimately, while saving jobs for the present, especially during times when the economy is weak and layoffs are mounting, is good, we should also have an eye for the preservation of the longer-term performance and vitality of the labour market. In a time of disruptive change, it may be better to ensure that the mechanisms for the market-driven reallocation of resources are allowed to function normally than to be slowed. That is why I hope the Finance Minister will reconsider his promise under the Adapt and Grow Initiative of expanded wage support for retrenched workers. What I would urge him to do is to tie any support to specific conditions, such as the job search process.[+14 sentences] Although it is a difficult decision, I am certain that to preserve the policy effectiveness of these and other innovations, the Government must ensure that it is not just creating jobs, but continues to be focused on the more important task of creating longer term employment opportunities of value. Finally, Mdm Speaker, I would like to ask about some challenges that could confront the Industry Transformation Programme. The sector-specific approach that is introduced in this Budget could actually result in complications over time. While customising plans for each sector – whether in terms of manpower projections or business coordination – could potentially improve the fit to the specific needs of each sector, it may result in an entrenchment of sector-based interests and, ironically, could detract from overall coordination at the national level. This type of "spaghetti bowl" phenomenon is not unlike the complex maze of bilateral and multilateral relationships that analysts in trade theory refer to when analysing the impact of trade agreements. I support very strongly the switch away from a broad-based approach to a targeted approach. I would go even further. We should not rule out re-introducing broad-based measures later on. After all, policy tools must be judged solely on the grounds of efficacy, and shying away from promiscuity is an unnecessary self-limitation. Despite that, from a policy perspective, administrative ambitions have to be tempered as well. As this Budget places us on the threshold of a technically more complex era of sector-focused planning, we should also guard against spawning a monstrous array of coordination challenges. Page: 26 My question is: are there adequate assurances that sectors will not retreat into their own narrow outlook and compete for limited resources without an appreciation of national concerns? Let me give an example. The strong support from the Government and other stakeholders notwithstanding, resource constraints are a major factor. If we look at R&D as an example, in terms of R&D spending as a percentage of gross domestic product (GDP), it is well-known that Singapore ranks behind a number of countries. In 2012, the figure of around 2% for us was half that of world leaders Israel and the Republic of Korea.[+8 sentences] But dollar spending has been high. Hence, in terms of the number of R&D personnel per million persons of the population, Singapore's figure, actually, has been consistently above those of the Republic of Korea, Japan, Germany and even the US. Research manpower in Singapore has been growing rapidly, with the number of research scientists and engineers increasing 1.5 times between 1997 and 2012. Such rapid rates of growth are not only difficult to sustain, they affect other sectors that compete for the same limited supply. The Industry Transformation Programme will further increase the scramble for already tight resources in this area. Even as the outcomes from such efforts must be properly measured and assessed in order to justify public expenditures, we should avoid sparking off a chase for measured KPIs. Mdm Speaker, in conclusion, when we were an NIE, our Pioneers remodelled the entire economy and reshaped our physical landscape. They did so, keeping our core philosophy intact. Thanks to them, Singapore is today a thriving metropolis, with the luxury of fully-financed plans chasing after limited manpower and tight space. With virtually no more derelict structures to tear down, we have to choose which good buildings should make way for even newer infrastructure whenever we contemplate a make-over. The choice in this Budget to prioritise restructuring over shorter term concerns has been a difficult one. It is a courageous decision that will fortify us for the journey ahead.[+1 sentence] Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin (Potong Pasir)1451 words
[+9 sentences]Mdm Speaker, I rise to congratulate Minister Heng Swee Keat on his first Budget Statement as Finance Minister. Minister Heng is Singapore's eighth Finance Minister and is Singapore's first Finance Minister who was born after our very first Finance Minister took office in 1959. Our very first Finance Minister needs no introduction in this House. Anecdotes of Dr Goh Keng Swee's frugality and thriftiness are legendary. His penny-pinching habits, including the state of disrepair of his car, have all been well-chronicled. In the context of Singapore today, our younger Singaporeans may not be able to relate to these stories personally and some may even find them laughable or ridiculous. But thriftiness was the hallmark of our founding leaders. Not only Dr Goh, but then Prime Minister Mr Lee Kuan Yew and each and every one of our founding leaders. No exception. Not surprisingly, this sense of thriftiness laid the cornerstone of Singapore's fiscal policy for the past 57 years. This translated into a fiscal policy where we always live within our means and put away as much as we can for a "rainy day".[+16 sentences] We do so to secure the future of our children and grandchildren, just like the Pioneer Generation had secured for us what we have today. Page: 27 Mdm Speaker, this represented one of our core values and was also a reflection of Singapore's early history. The odds were stacked against us then. So, we took nothing for granted. Times have changed. Singapore has done reasonably well. Our fiscal prudence has put us in good stead. Educated guesses on the state of our reserves often arrive at a figure few could fathom or ascertain in an instance, the actual number of numerals involved. I am a chartered accountant by profession and I struggle also! This is, however, a good thing, something we should be rightfully proud of. But this has led to calls from some quarters for the Government to spend more. Calls for more subsidies and Budget goodies. Calls for short-term fixes to stimulate the economy and to make the lives of Singaporeans easier and more comfortable. First Deputy Managing Director of the International Monetary Fund (IMF), Mr David Lipton, warned last month that the global risk of "economic derailment" has grown. If true, this will certainly affect Singapore and calls for our Government to do more, spend more and help more will inevitably get louder and louder. To be fair, the argument to assist those less privileged or to share some of our successes is not an unjust one and our Government has acknowledged this. ComCare, Workfare, MediShield Life, the Pioneer Generation Package, SkillsFuture, Silver Support Scheme are just a few examples of what the Government has done over the years.[+34 sentences] Any further calls for more liberal spending by the Government, however, should be carefully considered and treated with great caution. Madam, the US, Europe and other countries have taught us from recent history that no country, no matter how developed or advanced its economy, is immune to slowdowns or the vagaries of the global economy. Singapore is no exception. If we think we are safe and invulnerable because of the size of our bank balance and, therefore, can and should draw down on it to make our lives "easier" and "better", we are simply deluding ourselves. History is there for us to learn from, not to repeat its mistakes. We should never deviate from our fundamental principle of "living within our means" and being financially prudent, no matter how tempting it might be to simply use money to solve problems that we are facing or will face. In a recent interview with Channel News Asia, I highlighted the distinction between items that are "good to have" and "must have", the point being that the items that fall into the former category can wait while we allocate resources to achieve the latter first. I said it because I believe in it. But it was also a good soundbite for television. But carrying out the proposition is certainly more complex than delivering it on television. In this, I do not envy the job of Minister Heng or any of our Ministers for Finance preceding him. How does one decide the arbitrary line that distinguishes the "good to have" from the "must have"? As Singapore became more successful through the years, naturally, Singaporeans want more. The concept of wanting more is understandable. It is part of achievement and the fruit of hard work and ambition; key attributes to success. The question is: how much more? Time changes. Context and circumstances change. What is a "good to have" in the 1970s may very well be a "must have" today. Terminals 4 and 5 of our airport and their construction costs may seem extravagant to some, but is crucial when looked at in the strategic light of how Singapore Page: 28 hopes to position itself as a hub in this region. Our passenger numbers are increasing. Between 2011 and 2015, they have gone up by almost 10 million. We want it to grow more. It has direct and indirect consequences for our economy. Security is also a key "must have". I am sure we all agree, without it, everything else really does not matter. The world is getting more chaotic. The recent bombings in Jakarta, Paris, Lahore and Brussels reinforce this. We also want a better and more efficient public transport system. We want the convenience of public transport at our doorstep. We want sheltered walkways to take us from our towns to the various transport nubs. The list goes on. Mdm Speaker, it is clearly not an easy task to draw a line between what is a "good to have" and what is a "must have". But looking at the heart of this Budget gives us an indication of a possible yardstick. The yardstick being that any decision must centre around whether something is good for the long-term benefit of Singapore − to ensure that it not only benefits us but is enduring enough to benefit successive generations of Singaporeans − our children and grandchildren. This is further accentuated by the fact that a significant portion of our Budget initiatives goes to "training or upgrading" schemes, such as SkillsFuture, the Adapt and Grow initiative and the Tech Accelerator programme. This Budget also launches a new Industry Transformation Programme.[+1 sentence] This is meant to help firms and industries restructure, create new value and drive growth. This is, again, a future-centric programme for the long-term benefit of our economy. But as with all restructuring exercises, we must expect pain when excess is trimmed.[+1 sentence] Not all firms will survive. Firms should also not expect such grants to be permanent.[+2 sentences] The Government's role, after all, is to assist industries and firms to grow sustainably and succeed on their own accord in the future. Madam, in Mandarin, please. (In Mandarin): In this Budget, the Government also launched the Industry Transformation Programme.[+8 sentences] This means that the Government will help firms and industries to transform, innovate and grow. This is, again, a future-centric development programme, beneficial to the long-term development of our economy. However, with limited resources, the transformation programme will encounter some difficulties. During the transformation process, pain brought about by change and trimming excesses should be expected. In the end, not all firms will survive and firms should not expect such support programmes to be permanent. After all, the Government's role is to help industries and firms to grow steadily. Whether they can succeed in the future will depend on their individual efforts. (In English): Folded into this is our Government's assistance to our SMEs. Higher corporate income tax rebate, SEC and the SME Working Capital Loan Scheme are further initiatives aimed at helping our SMEs succeed amid tough economic conditions and tight labour constraints.[+2 sentences] Again, these policies have been tailored with an eye for the future, to provide a helping hand to our SMEs gain a foothold in their respective industries on their own steam. This will ensure sustainability and longevity. Page: 29 Mdm Speaker, this Budget aims to provide and implement long-term solutions to long-term issues.[+8 sentences] It does not look for short-term fixes. It aims to help those who need it the most but also assists us all in working towards a bright and sustainable and secure future for Singapore. Times will change. Context and circumstances will change. Our needs and wants as a country will change. Our principle of fiscal prudence should not. This is a principle that has been handed down to us by our founding leaders, and I urge all successive generations of leaders to keep to the same. Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Mr Heng Chee How.
The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How)2118 words
[+27 sentences]Mdm Speaker, thank you for allowing me to participate in this debate. I want to begin by stating what I hold to be a hard truth about Singapore's survival and prosperity. And that truth is that Singapore must recognise our innate strengths and weaknesses and find ways to make up for and transcend our weaknesses and, at the same time, figure out approaches to propel ourselves ahead of the other nations. This has been and remains the only viable way to continue to make a good living and secure a bright future for ourselves and our children in an uncertain and turbulent world. For this reason, three things in this year's Budget speech resonated with me strongly. Firstly, that the economic transformation is, in the words of Minister Heng, "urgent and critical"; secondly, that we must "spend right"; and, thirdly, that more than ever, there is a need to do "together" and to go beyond an expectation that it is sufficient for the Government to "do for us". And by "us", I mean the companies or people. It is going to be increasingly important. These three things are not only about specific Budget measures of where the funds and incentives are applied. It is not about where the money is going alone. I think these are three critical mindsets that all of us in Singapore must have, if we are to survive and thrive. Allow me, once again, to quote from our founding Prime Minister Mr Lee Kuan Yew. I think this particular quotation is by now very familiar. He said, and I quote: "This country belongs to all of us. We made this country from nothing, from mud-flats. Over 100 years ago, this was a mud-flat, swamp. Today, this is a modern city. Ten years from now, this will be a metropolis. Never fear!" He said this at a grassroots event in Sembawang in September 1965. Such was the boldness and audacity of the Lee Kuan Yew generation. Never faint-hearted. Always ready to look reality and obstacle in the eye, and then to find and fight a way forward through to victory. We must do likewise. Today's challenges are no doubt different from those of the initial Independence years. That is true. But one must never underestimate the difficulties faced then, or to give ourselves too many excuses now for not driving harder and smarter to change with the times, to adapt and stay relevant – to not only be busy but to mean business − so that we can continue to have a reason to be useful to the world and, thus, a reason to earn a good keep. Page: 30 Our productivity overall, minus the cyclical rebound, has been lacklustre in general.[+1 sentence] To me, this is worrisome. This is why I agree with Minister Heng that economic transformation for us is not only critical; it is urgent. There is no time to lose and a soft economy should not lull us into slackening our resolve. We must press ahead with structural and strategic reforms even as we tackle cyclical pain and strain. If we just march on the spot and productivity continues to be lacklustre, then other countries will surely catch up with us, close the distance and then, eventually, overtake us.[+29 sentences] Should that happen, then it would be a sad case of asking, "Who moved my cheese?" The Government is putting in place both constraints, for example, in a tighter foreign manpower policy, as well as incentives to nudge companies and industries away from overly manpower-intensive approaches towards manpower-lean ways. The Government is also investing very heavily in spurring innovation, technology adoption and process remakes. It is definitely pouring resources into pre-employment and in-employment training, skills upgrading and retraining, through numerous initiatives, including SkillsFuture. This would be money necessarily spent and spent right, provided we elicit the right responses from those who can make things happen. And who are these? Companies and their employees. So, we have to ask: are our companies responding fast enough, with enough hunger, with enough fervour? Are our workers, at whatever level that they are at, clear enough about what they need to know, and fired up enough to take to learning what is required not only for now but for future employment and employability? On top of positioning funds and setting up entities and processes, we must also ask what else must we do to tap constructively into our common imagination and anxiety, to unite our spirit and to unleash its power, to mobilise our people into real and impactful action. I firmly believe that it is the effectiveness of this mobilisation that will ultimately determine our progress and success. The Labour Movement is keenly aware of our role as a social partner in nation-building. To help workers maximise employment, minimise unemployment and have a fair go at good jobs and prospects are our constant goals. Tripartism has been acknowledged as a significant national competitive advantage in attracting investments to create jobs for Singaporeans. The environment is changing. The types of industries and jobs in our economy are changing. The workforce's education profile is changing. The workforce age profile is changing. The nationality mix of the workforce is changing. The technology at work is changing. How people are earning a living – be it salaried, self-employed, hybrid – is changing. The platforms through which goods and services are traded and money is made are all changing. This means that we have to consider our approaches carefully and adapt our ways to ensure that the Labour Movement remains relevant and effective in standing up and speaking up for workers, employees, income earners of all types at all levels. At the same time, we must continue to create this value for working people in ways that concurrently strengthen our national and sectoral tripartism. My fellow Labour Members will elaborate on the respective segments of the workforce that they are championing. For me, I would like to devote the rest of my speech to mature workers, a Page: 31 segment of fellow workers that I have long spoken up for. I would like to begin by drawing attention to the coming workforce and skills shortage. It may appear odd for me to allude to a coming workforce shortage at this point when we are voicing concern about the possible increase in retrenchments and unemployment resulting from slower growth expected this year. However, I have a basis for this. According to Government projections, the local workforce will peak around 2020, that is, four years from now.[+12 sentences] This is because the Baby Boomers leaving the workforce by then are estimated to roughly match the local new job entrants. Beyond 2025, more could be leaving than entering. Add to this is the need to maintain the local-foreign manpower ratio at a socially acceptable level, and you will immediately see that companies have to re-think their manpower strategy. At the minimum, they have to ask themselves two questions. Firstly, where are you going to get your headcount? Secondly, where are you going to get the skill sets you need? Any company that does not ask these questions or figure out good answers to them is doomed to fail. Clearly, if one has to do more with less, then productivity and capability become the lifeblood. And just as clearly, if one has to hunt for headcount, then keeping the capable headcount that one already has becomes an act of self-preservation. Because there is no point losing what you have, or allowing what you have to waste away and then try in vain to recruit that younger person out there who may not be there. This is, to me, pure logic. In this area, I see that the Government is doing its utmost to help companies. First, the Government has earlier announced that it has accepted the tripartite recommendations to raise the re-employment age ceiling from 65 to 67.[+3 sentences] I urge the Minister for Manpower to make the specific announcement of when this will take place at the coming Committee of Supply. Mature workers reaching age 65 working for companies that strictly follow statutory ages will greatly appreciate that. And, by my analysis earlier, I think companies ought to welcome such a move. Second, I applaud the numerous measures announced by Minister Heng in encouraging employers to continue hiring mature workers. These measures include the earlier announced Wage Credit Scheme, the payouts have just been made, the extension of SEC as well as Enhanced Workfare Income Supplement to lower-wage mature workers, so that more may choose to remain in work.[+8 sentences] Referring to what Assoc Prof Randolph Tan has also mentioned just now, when he spoke about these being helpful measures from the heart, but what about the long term. I support this but, at the same time, my next point says that we have to balance these with continued investment in the skill sets of our mature workers. Third, employers must not neglect the continued training and development of their mature employees. Such employees are more likely to want to stay on with the company, compared to the turnover rates that have been observed through surveys amongst the younger cohorts. This means that the effective runway for mature workers actually may not be shorter than that of younger workers. If their skills are kept up-to-date and sharpened, they will be an asset to the company. If they are neglected and rust away, then they lose employability and their companies lose capability. That would be a road that leads to mutual destruction. Page: 32 The 25 Sectoral Tripartite Committees (STCs) are now deliberating and devising Sectoral Manpower Plans to support the capability-building and development of their respective industries.[+3 sentences] I urge every STC to also detail a plan to help their industry sharpen and tap the value of a skilled mature workforce. Each STC must go beyond recommending paying more in the hope of getting additional skilled headcount from somewhere. There is also an STC for HR, and I urge HR STC to consider this demographic reality and see how best to equip and certify HR practitioners to help operationalise this for their companies and their industry. Fourth, efforts to enable workplaces to appreciate and fully tap contributions of mature workers must be stepped up. These include not only how to refine funding programmes, such as WorkPro, but also how to spur the adoption of successful age management methods.[+14 sentences] I cite some examples. These would include the redesign of HR policies. So, for example, where it makes sense, companies can consider retirement ages that are above the statutory retirement age, where it makes sense for the company. There are companies in Singapore already doing that, as a matter of strategic recruitment, retention, redesign of jobs and work processes, use of assistive technologies to help overcome some of the expected physical deterioration with age, considerations of enhanced lighting and safety to minimise unnecessary injuries and, therefore, maximise the ability of the workforce to continue working without mishap and so on. We must make the working environment as ageless or age-neutral as possible, so that mature workers can be enabled to contribute as much as possible, for as long as possible. Many of them want to and companies will increasingly need such employees very much, even if some of them have yet to realise it at this point. Mdm Speaker, I was asked by a friend after Minister Heng delivered his Budget speech whether I thought that the measures he announced are enough to help Singapore's economy transform and whether I had hoped for more incentives in various places. I told this friend that, to me, the Budget had set the direction and positioned resources for companies and people to take advantage of, to help themselves, now and for the future. It is not a question of whether the Government could have doled out more money here or there. It is whether there is enough will; enough will to ride that rainbow and create that better future. Whether there is enough gumption to brave the challenges, and whether there is enough good sense to do it together. On 8 August 1972, speaking at the National Day Rally, founding Prime Minister Lee Kuan Yew said this, and I quote: "A faint-hearted people would have given up long ago. We never gave in, never mind giving up. For that alone, we deserve to succeed. If we press on, in 20 years, we shall build a great metropolis, worthy of a hardy, resilient and stout-hearted people." He is right. And it is now up to us to get it right and show that we can make it.[+1 sentence] Mdm Speaker, I support the Budget Statement.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)2458 words
[+12 sentences]Mdm Speaker, the emphasis on innovation as the third pillar in the Industry Transformation Programme is a right emphasis. This is more than just a good thing to do. As the Minister said in his Budget Statement, it is critical to the programme. If we fail at innovation, we will fail to transform our economy for the next stage of value creation for growth and this will endanger our very existence as a global city and an independent nation. Page: 33 Innovation is not an aspiration; it is a survival imperative. It is, therefore, important to get our innovation policy approach right. In this respect, I have three issues to raise. Accounting for the investments. The first issue is accountability. Significant public monies are being invested by the Government in innovation. I believe most Singaporeans do not object to this necessary investment. However, this does not mean that the Government should not account to Singaporeans that their money is well-spent and there are good results to show from the investment. An amount of $19 billion has been set aside over the next five years for investment in science and technology research under the Research, Innovation and Enterprise (RIE) 2020 plan. Under the plan, $4 billion has been earmarked for industry-research collaboration. The Government is further topping up another $1.5 billion to the National Research Fund (NRF) in this Budget.[+17 sentences] It is crucial, as the Minister said, "to capture the economic and social value of R&D". But the public needs to know exactly how much of the value is being captured for the benefit of the Singapore economy and, I must emphasise, for the benefit of Singapore society, that is, Singaporeans ourselves. The example of the Procter and Gamble Singapore Innovation Centre (SgIC), set up in collaboration with A*STAR and EDB, is well-worn. The question is, as an "open innovation hub", how many Singapore enterprises is the Innovation Centre helping to facilitate research and accelerate product development? We should not begrudge P&G for obtaining a large benefit from the Innovation Centre for their own product development. After all, P&G is promising to share valuable expertise and experience. Nevertheless, Singapore enterprises should have a fair share of the R&D outcomes. As it has been two years since the Innovation Centre was set up, the Minister should be able to give the public a sense of how much of the economic and social value of R&D at the Innovation Centre Singapore enterprises has been and will be capturing. For sure, returns on investment in R&D and also tech startups are long term by nature. In this regard, Infocomm Investments Private Limited, the venture capital subsidiary of IDA, has been around for 20 years now. Surely, the Government will be able to give us much more than a sense of the value Singapore enterprises are capturing through the funding from Infocomm Investments. The Government should be able to give us the actual return on investment (ROI) in innovation for Infocomm Investments. This is important because Infocomm Investments is the foundational model for SG-Innovate, which is a far more ambitious scheme to expand venture funding and accelerator and incubator support to new and emerging sectors. The success of Infocomm Investments should be detailed beyond a few anecdotal examples. On top of accounting for the investments to the public, explaining the ROI for Infocomm Investments would greatly inspire public confidence about the Government's present efforts in innovation and allay general cynicism about Singaporeans' ability to innovate. A more fundamental question then is whether the Government has any framework to measure and evaluate the ROI in innovation and enterprise. Measuring ROI in innovation is fast becoming a norm internationally. Page: 34 A recent report for the United Kingdom (UK) government estimated the median private rates of return to R&D investments are around 20%-25% in terms of economic output or productivity increases, and social returns are typically two to three times larger than private returns. In the UK, public R&D investments have yielded social returns of around 20%.[+14 sentences] This is a ready benchmark for us to adopt. I emphasise that I am referring to the general ROI in innovation and enterprise for the whole R&D sector and for key vehicles like Infocomm Investments, Biopolis and Fusionopolis. Investments in innovation and enterprise are inherently risky and fine-grained ROI with regard to individual investments and grants may stifle R&D instead. If the Government has an internal framework to measure and evaluate the ROI in innovation and enterprise, then it should share this with the public and let Singaporeans know how we are faring vis-a-vis international competitors. If the Government does not have an existing framework, then now is the time to develop a framework to measure ROI in innovation and publicise it. This is not to embroil the Government agencies in the politics of blame and shame. This is to instil basic accountability for good governance as well as to mobilise Singaporeans for the innovation drive, which is a survival imperative. The Singaporean Core in R&D. The second issue is the development of a Singaporean Core in R&D. In order for the economic and social value of R&D to be captured in the long run, we need to make sure R&D funding for scientific research is benefiting Singaporeans directly. While we invest heavily in deepening R&D capabilities, the corresponding focus should be to make sure these capabilities are anchored by a Singaporean Core in the R&D sector. The NRF has been actively trumpeting the latest scientific advances. One such advance featured in the news in 2013, the invention of an invisibility cloak to make things disappear from view, quite literally caught my eye. This is the stuff that makes for the thrill of Harry Potter fantasies and Star Trek science fictions and captures the public imagination. But does it capture the economic and social value of R&D for Singapore and Singaporeans? It was a good scientific advance, but industrial application of the cloak is still very far off, as the materials used were bulky and cloaking was effective only from six perspectives.[+2 sentences] This is understandable. Scientific progress takes time and the translation from science to marketplace is an undertaking that requires patience and commitment. Beyond the medium-term economic value of R&D for Singapore, another concern is the long-term social value of R&D for Singaporeans. It was reported that the research team that invented the invisibility cloak was led by a Singaporean Permanent Resident (PR), a young professor at NTU.[+2 sentences] This is not quite accurate. The team comprised six other collaborators from Zhejiang University in China and the Marvell Technology Group Boston in the US. From the order of names listed as co-authors of the paper of the invention published in a prestigious scientific journal, the Singapore PR professor was listed last and appeared to be a junior member of the team. The team leader appears to be a Zhejiang University professor who conceived the original idea and led in the design of the cloaks and the experiments.[+26 sentences] The global university field is characterised by the mobility of talents. Though probably just a junior member of the team, the Singapore PR professor involved in the invention of the invisibility cloak is a young researcher under the age of 35 and has many decades of breakthrough research Page: 35 work in him yet. We need to attract and retain foreign talents like him. Better still, we need to help him and his family sink roots in Singapore as a citizen, so that he will become a member of the Singaporean Core in R&D. We are making progress in deepening our R&D capabilities, as the invisibility cloak example shows. But the ideal would be that a cloak nearing industrial application be produced by a local industry-university team led by Singaporean scientists. My point and my plea are this: while the Government pumps generous funding into R&D to deepen innovation capabilities, that it does not ignore the social factor. It is not a matter of just plonking talents together and getting them to talk and work with one another. We need to focus on developing more Singaporean innovators as well as retaining non-Singaporeans who would help Singaporeans innovate. We must strengthen and empower the Singaporean Core in R&D. Only then will they continue to create value for the nation deep into the future. Beyond the Innovation Enclave. The third issue is the risk of the innovation enclave. The industrial park model has been successful for us in the last 50 years. It is right we celebrate Jurong and how its success has benefited the country and our countrymen. Mdm Speaker, this is what Jurong means for me: not an industrial enclave, but a focal point for our successful industrialisation, which was replicated in the many satellite industrial estates co-located with HDB towns, such as in Toa Payoh and Hougang, built in the 1970s and 1980s. The network of industrial parks merging into our heartland mobilised a generation of Singaporeans to become workers to transform the country and taught all of us the culture of hard work and perseverance. The Jurong Innovation District looks glamourous. The concept of getting researchers, entrepreneurs, industrialists and investors to live, work and play in the same mega-mall so that chance and choice encounters could produce new ideas, inventions and businesses is very plausible and attractive. But does it really work? Research on science and technology parks and their influence on innovation has seen mixed results. Some studies show that science parks promote interaction between firms and research institutions, while others show that notwithstanding the increased interaction, geographical proximity does not seem to be an important factor for forging formal research links and innovativeness. The question remains for researchers of science park innovation: are these parks "seedbeds" or "enclaves" of innovation? The difference is this. The science park, as "seedbed", would see the science park as providing the right environment to nurture new technology startups benefiting from technology transfer, research spinoffs and the development of innovative products. But depending on a whole host of factors, the science park could very well end up as an innovation "enclave", where enterprises are attracted to the science park due to the status and prestige of being located in the exclusive park. The science park becomes a high-tech island with innovation taking place, separated from the rest of society. We have had science park developments in the Buona Vista area, including Biopolis and Fusionopolis, next to the National University of Singapore (NUS) for two decades now.[+10 sentences] There is, therefore, a precedent for the Jurong Innovation District. It is worthwhile for the Government to make its case to the public that the Buona Vista science parks work as innovation seedbeds and are Page: 36 not an innovation enclave detached from the rest of Singapore. Are the Buona Vista science parks successful by measures of innovation? What is the ROI in innovation for the Buona Vista science parks? Have Singapore enterprises and Singaporean innovators that relocated into the science parks become more innovative? How have Singapore enterprises benefited from these science parks? Are the main beneficiaries vertically integrated foreign multinational corporations (MNCs) which have merely shifted their operations to Singapore? Are the benefits to Singaporeans mainly trickle-down effects rather than improving Singaporeans' innovativeness? Have the science parks trained up a Singaporean Core of R&D professionals? Is the R&D leadership in the science parks still dominated by foreign scientists? Are formal research links between NUS and firms located in the science parks significantly higher than those located outside the parks?[+7 sentences] My concern is that the Jurong Innovation District is going to develop into an enclave enveloping NTU. Such an innovation enclave would mean foreign MNCs and venture capitalists congregating in the enclave with more foreign researchers and managers. They would live, work and play with an exclusive group of local elites selected to interact with them. My concern is that the Jurong Innovation District, by virtue of its exclusive urban design, would become a high-tech island detached from the rest of Singapore, from the heartland estates where Singaporeans and Singapore enterprises are supposed to be beneficiaries of innovation. Are we creating mega-ivory towers, one surrounding NUS and the other surrounding NTU? How would the science parks plug back into Singapore society to diffuse creativity and innovation into the rest of the city? The Singapore Model. Has the Government considered decentralising the industrial district-cum-science park concentration to seed a network of smaller science parks in the heartland estates, so that innovation can tap on the mass creativity of the Singaporean workforce?[+1 sentence] The benefits of this alternative model are these. Instead of focusing only on startups, the innovation drive will also plug into the large body of SMEs to enrich our enterprise base and spread innovation to our local companies.[+9 sentences] Instead of hoping only for foreign know-how to somehow spread to selected local entrepreneurs, the heartland science parks will multiply and synergise local entrepreneurship, so that innovation will take off from a Singaporean base to engage the world. The network of heartland science parks will bring a beneficial diversity to our public housing towns, making them more cosmopolitan than they already are. Conversely, the rich heartland life worlds will expose otherwise isolated researchers to a grounded diversity that could generate interesting and relevant innovations. In time, the different science parks could evolve into diverse specialisations, creating experimental niches that will give local character to the towns. Bedok may well become a fintech powerhouse, while Bukit Batok becomes the cleantech town. A positive side effect is urban renewal of our heartland estates. Our heartland town centres will stay economically vibrant as local businesses provide services to the science park crowd. It will also increase the number of local jobs available in the heartland for those who find it difficult to travel. Overall, it may help solve the problem of ageing estates as older townships continue to Page: 37 attract younger families to move into them due to the heartland science parks. Most importantly, innovation will not be concentrated in two districts but will be everywhere in Singapore, turning the enclaved city into the creative city where innovativeness becomes a cultural norm for everyone in every vocation, from the cleaner to the CEO, from the office clerk to the scientist. This, I believe, is what Jurong was for Singapore in the 1970s. I hope the Jurong Innovation District is just the beginning to create a network of innovation estates all over the island, across the city, through the heartland.[+4 sentences] We are now on the cusp of another industrial revolution. Let us be brave for a brave new world. Seed innovation everywhere in Singapore and empower every Singaporean to pursue innovation. On this note, Mdm Speaker, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Mr Alex Yam.
Mr Alex Yam (Marsiling-Yew Tee)1975 words
[+8 sentences]Mdm Speaker, first, allow me to congratulate the Finance Minister on his first Budget Statement. Minister Heng worked hard at the Ministry of Education to ensure that every school is a good school, and now, with an even heavier portfolio, he has, in his first Budget, made his mark in attempting to make every industry a viable industry, every worker a valued worker, every family a stable family, and every Singaporean an important pillar of Singapore society. His call to Singaporeans to come together to partner for the future is timely as we chart the path towards SG100. Mdm Speaker, our fiscal position for FY2016 seems healthy. It is also reassuring that the Minister seeks to reassure all of us of it being prudent. And we have arrived as a shining red dot because we have had a Government that has been accountable, innovative and yet prudent in our expenditure. Although I am impressed by Budget 2016, please allow me to voice a few concerns. I add my voice to the view that there is a need for long-term fiscal prudence both in Government and also in how society perceives the annual Budget. For FY2016, our total expenditure is $5 billion more than the previous one.[+8 sentences] Although we have endowed future Governments with the creation of large endowments, such as those for the Pioneer Generation package, MediFund and Workfare, we need to keep our eyes on the horizon and ensure that we have enough for our children and our future. Our Pioneers and founding fathers toiled hard to save us from seeing a rainy day. I am concerned that we do not reach the stage that we develop the habit of giving out fish rather than teaching how to fish. In trying to get feedback on the Budget, I received one email that simply said, "This year no ang pow". We cannot expect each Budget to be one bearing gifts aplenty. Unlike Santa Claus, we need to work within the Budget and we certainly do not have an army of elves turning out gifts by magic. So, we need to be wise with what we spend and spend what we do well. Industries and businesses, especially the small and medium enterprises, should take the opportunity offered by this year's Budget to upgrade themselves and stay competitive and Page: 38 productive and be prudent with what they spend on. In terms of wages and productivity, more than 95,000 employers in Singapore will receive about $1.9 billion in Wage Credit Scheme (WCS) payouts by the end of this month and SMEs will be the beneficiaries of about 70% of the disbursed payouts.[+8 sentences] WCS is very much favoured by employers because it extends a lifeline to their businesses and also helps them retain and train their staff. But my concern is: if and when WCS is discontinued, will these businesses, dependent on this scheme, therefore, fold? Should there not be some enterprise on the part of our enterprises to ensure their future survival without just depending on schemes and innovations? I hope proper auditing is carried out to ensure that the money ploughed into this scheme is wisely used for the purposes intended. I, therefore, hope the Minister would be able to enlighten us on the actual number of businesses that have benefited and, most importantly, the number of employees who have benefited from this scheme. Could the Minister share with us the statistics from these companies and the number of employees who were rewarded with larger wages? This scheme, amongst many others, is not meant to be a panacea, but I hope that WCS does not instead become an opium. Will WCS be seen as a wise investment used well or will we be none the wiser on how businesses use the funds? SEC, which has been mentioned by a number of speakers before me, has been extended till 2019.[+6 sentences] Again, it would be helpful for us to have a better in-depth view of how it has been benefiting companies and employees. Mdm Speaker, I ask these questions because some of the employees that I have spoken to, in their haste to retain their jobs, settle for much less while doing the same job or perhaps even more. Some are unable to successfully adjust to the pay cuts and a drop in their status from a change in their job scope. What are the measures therefore taken by employers to retain these workers and how does the Government monitor if the money doled out is properly accounted for? Again, we cannot be penny-wise and pound-foolish. Employees should not be taken for a ride by employers. [restates an earlier point]As the hon Member Assoc Prof Randolph Tan mentioned, sometimes well-meaning policies may not be wise when placed in the hands of unscrupulous employers. I also welcome the lowering of the cash payment rate under the Productivity and Innovation Credit (PIC) scheme and the scheme will also not be extended beyond the Year of Assessment 2018. The PIC scheme saw 142,000 claims in 2015, more than double the claims in 2014.[+21 sentences] But authorities have also warned that false claims are being made. And I am sure everyone has read with interest that a recently convicted online pimp had applied and obtained PIC payouts! Perhaps, very innovative, but productivity? Not entirely sure. The long-term investment by the Government is a wise one. But prudence requires us to ensure that it is used well and not well abused. Deputy Prime Minister Tharman, our former Finance Minister, had always had a very positive outlook in life. His comments made during the recent Singapore Forum with regard to productivity growth were very encouraging. The provision of platforms for industries and businesses to hop onto and overcome the productivity conundrum is timely but the question is, for how long? Prime Minister Lee himself has also weighed in on this issue, saying all measures have been taken to boost productivity and to have more "faith". Page: 39 But again, for how long more? Should 2018 prove insufficient, would more tax dollars have to be spent to address this gap? What would be tangible results for the average Singaporean? They should be explained, too, in layman's terms. Therefore, the onus is also on our businesses to innovate and be productive. If they do not, and if their businesses suffer, who is to blame? We cannot drink water on behalf of the horses. In the name of prudency, we cannot also drink water that does not already exist. I especially like the comments made by the CEO of Qian Hu, Mr Kenny Yap, in a recent interview with 938LIVE. The outspoken ornamental fish exporter was reported to have said that an enterprise that shuns innovation will not survive. Allow me to quote him: "Any enterprise that does not embrace innovation, especially in Singapore, will not survive in the next three to five years. I guarantee you that." My only wish is that there are many more Kenny Yaps out there who would do us proud with their conscientious and competitive approach to business. I also welcome the Enhancement to Revitalisation of Shops Scheme.[+4 sentences] But in this area, my worry is not just about revitalisation. If we simply look around us and our estates, shopping malls are popping up like mushrooms after autumn rains, they are competing for the same consumer pie. And every single mushroom mirrors the other – same type of shop mix. In the news last week was also a big head-on clash between two behemoths on Orchard Road – Ngee Ann City and Takashimaya; even Orchard Road is not unaffected by the challenges of productivity. While we can revitalise shops, spruce them up, what is still of concern is how HDB shop space is fast becoming another battleground for established brands selling the same generic stuff, while local merchants, small specialised merchants who have been there for many years, are being priced out by the competition.[+3 sentences] Resilience in Singaporeans. Apart from the industry-based boost to transform our industries, I welcome the focused support that Budget 2016 offers to the people of Singapore – be it the young, the old, families, the needy or the disabled. There is something for everyone. Investing in SkillsFuture has been one of the best initiatives that our Government has undertaken.[+5 sentences] Lifelong learning is a culture that should take hold in each and every one of us. The costs involved are not small. While the credits only began in January this year, I think we need some sensing on the progress and usefulness of the scheme to date, despite the very short period of time. With a large number of courses being made available, although we say hobbies would not form any part of this scheme, my fear is that some of these courses could become dominant within the course structure. During a recent dialogue session held by the PAP Seniors Group last week, seniors who participated in the session stated that more information is also required on some of the schemes, and more of their key concerns are with the Silver Support Scheme. At the same time, it was also suggested at the same dialogue that the Silver Support Scheme be enhanced to benefit the elderly on a monthly basis, rather than on a quarterly basis.[+7 sentences] With the need to sustain daily living expenses, participants felt that a constant monthly supplement for the elderly is in need and would be more helpful. The same discussion also focused on the establishment of Community Networks to help seniors discover health issues earlier and address them. The seniors in the discussion group urged the Government to pilot it in more than three to five precincts for there to be a better Page: 40 understanding of issues in different estates. Mdm Speaker, one other topic that is close to my heart is the announcement of the Fresh Start Housing Scheme. I am glad the scheme will help such families to own a 2-room flat with a shorter lease. However, the concerns, which I shared before, still remain. I also believe that the flexibility in the scheme for shorter leases will provide the impetus for younger families to upgrade to housing on full leases when they are ready and where possible. I hope that the cost of these flats could be kept low to allow them to regroup and move forward. We would also need more details on the criteria to identify these families that qualify for the Fresh Start Housing Scheme.[+12 sentences] Mdm Speaker, time does not permit me to go into detail and talk about all aspects of the Budget. Overall, to me, this Budget, even if skewed towards the industries, is a welcome and necessary change – a very slow and silent revolution. Businesses and industries fuel our growth and it is only right that we shower them with more care amidst a possible downturn. But I only hope that business owners and industries do not become too dependent on initiatives and funds from the Government. We hope these measures are temporary and wish that they serve as a catalyst for Singapore's growth. "Every School is a Good School" was Minister Heng's mantra when he was our Education Minister from 2011 to 2016. His tenure there left an indelible imprint on the education sector as his vision sought to bring out the best in every child. He has just started his innings at the Finance Ministry and I am sure his vision will also be embedded there. The current Budget runs in a similar vein, ensuring every industry is a viable one, re-emphasising that every worker is a productive worker, and every Singaporean an equal partner in Singapore's growth. And again, with an eye always on prudence, may every Budget be a balanced Budget. Spend well, spend wisely. Mdm Speaker, I support the Budget Statement.
Mdm Speaker3 words
[+1 sentence]Mr Thomas Chua.
Mr Thomas Chua Kee Seng (Nominated Member)1016 words
[+24 sentences](In Mandarin): Mdm Speaker, Members of Parliament, good afternoon. Firstly, let me declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. When delivering the Budget Statement, Minister Heng Swee Keat quoted one sentence that I was particularly struck by. This was: "There is no such thing as a sunset industry, only sunset thinking!" The two points I will be raising today are centred on this sentence. Firstly, enterprises have to be mindful that there is no such thing as a sunset industry, only sunset thinking. In general, people tend to term sunset industries as those deemed to have no future and where profits are not easily forthcoming. As a matter of fact, those so-called sunset industries could thrive as long as they clearly understand market changes, discover changes and address them, and succeed in restructuring and upgrading their industries. In this regard, the local food processing industry, furniture manufacturing industry and garment fashion industry are examples of success. What they share in common is that their industry leaders are united, have vision, courage and determination; they seek a way out amidst changes and have the gumption to try. Not only have they led their industries from the bleak winter into the spring, but they also managed to uplift the image of the entire industry, hence attracting young people to join the industry, bringing with them new ways of thinking and new ways of doing things. Page: 41 Given the rapid changes in the current business environment, bottlenecks could occur in the development of any industry. Even those industries which are doing fairly well now may face new challenges five or 10 years down the road. Traditional industries are mainly involved in the areas of clothing, food, accommodation and transportation; they will continue to have demand even as time evolves. We live in an era where infocomm technology is already a norm. However, some shops still operate like before by waiting around for customers to drop in, hence have little business; some industry players adapt to the change by using online sales to expand their market reach, and do very well. Just as mindset influences thinking, thinking determines the solution. Whenever changes appear in the marketplace, enterprises need to embrace their customers' needs, make adjustments to their business model and undertake the necessary transformation. In the past few years, the Government has provided many assistance schemes to support enterprise transformation and productivity improvement. However, it is essential for enterprises to be self-reliant. Hence, Government assistance cannot be viewed in terms of whether it is sufficient but whether it is truly effective. The problem is that some industry players have no confidence in their own industries. This kind of mindset is, in fact, sunset thinking, which would sooner or later lead to their elimination. Secondly, Government officials need to be mindful that there is no sunset industry, only sunset thinking. Minister Heng Swee Keat announced that in order to support the Industry Transformation Programme and strengthen the coordination among Government agencies, the Government will be setting up teams comprising officials from EDB, SPRING Singapore, IE Singapore, A*STAR and WDA, to develop road maps for each economic sector.[+1 sentence] This is a very good beginning. I hope that when Government officials gauge industry potential, they should not only measure the pace of growth and economic contributions but also consider the social functions as well.[+11 sentences] Even as we emphasise creating value-add, we should not ignore the value of their existence. Having been in business for many years, I am deeply aware that traditional industries that wish to innovate and achieve growth will encounter countless bottlenecks. However, for these traditional industries, the value of their existence lies in being able to survive well and service the society at large. We should realise that industry development has its own rules and process. Transformations also take many different forms. Some gradually evolve, some involve major reforms while some undergo complete changes altogether. The role of Government officials in economic transformation is to gather resources and promote industry development through policies. Therefore, I hope that Government officials could understand the uniqueness of each industry and be open-minded and inclusive in guiding industry transformation. They should not have preconceived notions on the industry potential. While some of these methods have worked in the past, they may not necessarily be effective in the future. As Minister Heng has said, industry transformation is a very long-term strategic plan and the crux is how to implement this plan. In this regard, collaboration among enterprises, as well as the close partnership among enterprises, TACs and Government agencies, is of great importance. I really hope to see that the Government could obtain an in-depth understanding of industry development processes and needs, to avoid wrongly interpreting the situation and trends during the process of structural adjustments. To the officials, any small misinterpretation is just a concept, but, to the enterprises, it is tantamount to wasted time, manpower and resources, which may not be reversed. In this year's Budget, the Government has rolled out a $4.5 billion Industry Transformation Programme to help enterprises.[+5 sentences] It has also affirmed the contributions of TACs. TACs have intimate knowledge of their specific industries and, moreover, have industry leaders with deep experiences Page: 42 in restructuring. This would be able to help their member companies effectively. Singapore's Public Service standards and efficiencies are world famous. In the past, Singaporeans have benefited from the 3P model, which is, the close cooperation among the Government or "Public", citizens or "People" and enterprises or "Private". During this period of economic restructuring, we need to build up the PPT model, and fully optimise the strengths and advantages of the Government or "Public", enterprises or "Private" and trade associations or "TAs", integrating all kinds of ideas, concepts and methods. In this way, transformation and driving up productivity would not only be the objective of the Government, but also the common target of the Government, enterprises and trade associations. With this common goal, the effectiveness of the implementation process would be greatly improved.
Mdm Speaker8 words
[+2 sentences]Ms Sylvia Lim; not here. Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Tanjong Pagar)1169 words
[+35 sentences]Mdm Speaker, I agree with the Finance Minister on the need to transform our economy and the Government's comprehensive plan to transform enterprises and industries through innovation. It is inevitable. Companies will have to transform to stay competitive through adoption of technology, optimisation of manpower and streamlining of work processes. We have to do more with less. But in this transformation process, there will be workers – Singaporean workers – who will be affected by the changes. Mdm Speaker, the economy is undergoing structural changes and not simply conventional fluctuations in demand and supply. We must understand that some jobs will disappear and no longer be available. Some jobs will be redesigned. Some will take on added functions and a broadened scope. New jobs will be created. With this structural transition, our workers will have to adapt quickly and be equipped with new skills at a much faster pace than before for the new jobs ahead. Indeed, transformation is necessary, but we must not forget our workers in this transformation journey, our workers who are the bedrock of our economy. We need to ensure that no one is left behind as the changes gather pace. We need to ensure that our workers, both young and old, can maintain a sense of job security. When there are structural changes, it can result in a "chain effect" on three fronts – jobs, workers and skills. These changes can spread from one function to another within a company, essentially, changing with it, the requisite skill-sets required for each role. For instance, when a retail company adopts an e-commerce platform and reduces its physical shop fronts, certain job functions would change. New processes will have to be introduced and implemented. What this means is that workers who used to take on specific job functions may suddenly find themselves having to move to new or expanded job functions. In that sense, it is not only about one worker, but rather, all the workers along that value chain will also have to transition into other job functions. This may occur both upstream and downstream within a company, from one company to another, within an industry or even across industries. Changes are never easy to deal with, but they also present an opportunity for our workers to undergo training and upgrade their skills. While today's economic conditions are difficult, there are Page: 43 still jobs available – good jobs, new jobs, different jobs. Certain industries are growing and require more manpower. For example, the public transport industry is looking to hire thousands of drivers, engineers and technicians. The key challenge is to improve on our job matching. We need to create better awareness of where the available jobs are and what skill sets are needed for these jobs. To that end, we need to better coordinate and bridge the manpower demand and supply chains so as to improve the chance of a suitable match between job and worker. Currently, when there is a retrenchment exercise by a unionised company, the union would coordinate efforts with the National Trades Union Congress' (NTUC's) Employment and Employability Institute, or e2i, and e2i would assist in job matching for the affected workers after assessing their profiles. During the process, there would be in-house training and coaching for the workers. Where needed, these workers would be advised to go for further training to enhance their employability. The Place-and-Train programme is another way of job matching to help displaced workers secure suitable jobs. Under the programme, workers receive training while in employment with the company. This is a win-win outcome. Companies resolve their manpower shortage issue and workers enjoy job progression and, more importantly, job security. Since 2008, NTUC has worked with various industry partners to create over 50 Place-and-Train programmes.[+6 sentences] Mdm Speaker, effective job matching is also applicable to new entrants who are fresh out of school. We need to create more meaningful internship attachments and apprenticeship programmes to allow students to gain valuable hands-on experience at the workplace. This would help channel students with the relevant skillsets and requisite experience to the appropriate industries, minimising post-school "talent leakage". The Government and employers can do more to improve job matching. We need to encourage more employers to embark on Place-and-Train programmes. Besides providing funding support for these programmes, the Government needs to work closely with the industries to identify future jobs so that we can better prepare our younger generations and equip them with the relevant future skills to meet the needs of these future jobs. According to the Ministry of Manpower's (MOM's) 2015 Labour Market Report, residents aged 40 to 49 formed 33% of the total number of residents made redundant in 2015. This clearly reflects a trend whereby workers in their 40s are more vulnerable and susceptible to job displacement. On top of that, mature professionals, managers and executives (PMEs) above the age of 40 who are displaced often take a longer time to find employment.[+5 sentences] Many times, the jobs that they have been doing are no longer in demand and they do not have other skills or relevant experience to perform another job. Indeed, not having a second skill deprives our workers of the opportunity of promptly finding alternative employment. The longer it takes to find a job, the harder it gets for a successful job match, the higher the stress for the individual and the family. We need to help our workers attain a second skill, but not only when they face a risk of displacement. Even before the risk of displacement becomes real, we should help them acquire relevant skills to help them move ahead into new jobs, different jobs, future jobs. The SkillsFuture programme presents a good platform for our workers to pick up new skills and we need to encourage more to make good use of their SkillsFuture credits. The Labour Movement is driving it together with MOM and I would like to ask the House to do more to Page: 44 emphasise such a need to all our workers.[+1 sentence] Mdm Speaker, we need to transform our industries and our economy. But we must be mindful that there will be workers who will be affected in this transformation process. Singaporeans are most concerned about their job security.[+1 sentence] I would like to urge for greater sectorial tripartite partnerships among the various Government agencies, employers and the Labour Movement to tighten the support structures for our workers, especially those affected by these structural changes. The tripartite partners also need to work closely to articulate the future skill sets and competencies needed for the future jobs. We need to help our workers upskill, reskill or second skill – however we call it – ahead of time, instead of in present time or, worse still, behind time.[+4 sentences] We hope to leave no one behind. With our strong tripartite partnership, I believe we can and will manage the change well. Together, we will come out stronger, as we have time and time again. Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Dr Lim Wee Kiak.
Dr Lim Wee Kiak (Sembawang)2201 words
[+3 sentences]Mdm Speaker, there was much anticipation for this year's Budget, given that everyone is bracing for headwinds on our economy. Small businesses, particularly, are very worried about their outlook; so, too, are the workers on their job prospects. The Finance Minister has been very reassuring in his speech and I am confident that, once again, as long as we band together as one, we will tide over the difficult year ahead. The question is not just about the current headwind but what our future economy is going to be like. There is an urgent need for a new strategy, a new paradigm, a new narrative for Singapore so that Singaporeans can continue to enjoy good jobs.[+20 sentences] In today's speech, I will highlight and put forward a bold proposal for an uncertain future ahead. Second, I will talk a little bit about what I like and what I do not like about this Budget, and third, I will talk about learning from a crisis. In preparing for an uncertain future ahead, truth be told, for all our accomplishments as a nation, we are still very vulnerable to global economic and political storms. So, how can we survive as a small country in this turbulent world? History has never been kind to small countries. How do we ensure our continued existence in this big chaotic world? We have grown from an entrepot trading centre to manufacturing, to a thriving global city, actively engaging in regional and international dialogues from social, political to medical science; we are plugged in to the global network. Our manufacturing industry was once filled with vitality. Even Apple opened a plant in Singapore in 1981 to manufacture circuit boards and computers for several years. Between the 1960s and 1990s, we had high economic growth and Singapore was recognised as one of the four Asian Tigers, along with Hong Kong, South Korea and Taiwan. Today, the tigers are facing extinction. How do we maintain our relevance to the world? If I may use a biological analogy: we could learn from the small organisms as to how they have survived and thrived over the millions of years. The mitochondrion is a very unique organelle within the cell and it is the only organelle within the cell that has its own DNA and genes. It is found in all cells, hosting critical biochemical Page: 45 processes like respiration and energy production. In short, the mitochondrion is the powerhouse of the cell. Because it has a structure that is very similar to a bacterium, many scientists believe it started off as a free-living bacterium many million years ago. Over time, it evolved and became incorporated into the Eukaryotic cells. And now, all cells cannot survive without a mitochondrion. So, we need to make Singapore a country such that we are very much needed in the modern scheme of things. Singapore can be the mitochondria to the world.[+16 sentences] Singapore is a democratic, secular, multiracial society with good political stability. We have well-developed infrastructure and good diplomatic relationships with all countries. We are strategically located as an air and sea transport hub, as well as a leading financial, communications and arbitration centre. Yes, we are small, but that also means we are no threat to the others as well. Since 2002, we have hosted the annual Shangri-La Dialogue which is attended by defence ministers and defence chiefs from 28 Asia-Pacific countries. We have also successfully hosted many important global meetings, such as the first World Trade Organization (WTO) Ministerial Meeting, the International Civil Aviation Organization (ICAO) meeting, as well as the World Customs Organization (WCO) meetings. We even played host to the historic landmark meeting last year between China’s President Xi Jinping and his Taiwanese counterpart, President Ma Ying-jeou. In the same year, we saw the opening of INTERPOL Global Complex for Innovation (IGCI), which complements INTERPOL's headquarters in Lyon, to enhance its presence in Asia and support policing efforts to tackle international crimes around the world. There are at least 70 resident foreign embassies and high commissions, 43 foreign consular posts and 11 international organisations in Singapore. Recently, we saw the opening of the China Cultural Centre as a bridge for people around the globe to get acquainted with China and vice versa. The Orthodox Metropolitanate of Singapore and South Asia has its headquarters in Singapore, of which 12 countries, including some of our neighbours and parts of Asia, are under its spiritual jurisdiction. So, from political to culture and religious organisations, we are clearly the choice for them. I would like to now propose a bold idea that we should lobby for the United Nations (UN) to establish a stronger presence in Asia by setting up a UN Asia Headquarters (HQ) in Singapore to house its key UN offices. Today, UN has permanent offices in New York, Geneva as well as Vienna, Austria, and in Nairobi, Kenya. Surely, this is the millennium for Asia; and should UN not have a better presence in this region? Asia is not only the most populous region in the world, but it is one of the biggest markets for global trade and an engine of growth for the world economy. Singapore should be the best venue for UN to consider building its Asia HQ as the shift in economic and military power tilts towards our region. We have the infrastructure – from transport to communication, from political stability to social security – and with our educated workforce and our close relationships with many countries, Singapore should be the UN regional HQ for Asia. Likewise, the World Health Organization (WHO) should set up the most advanced diagnostic laboratories and disease surveillance centre here to monitor epidemics and pandemics that can affect the whole world.[+7 sentences] The list should include the International Labour Organization, the International Civil Aviation Organization and even the UN International Children's Emergency Fund (UNICEF) as we have the expertise and the ability to house them. If Singapore is the home to UN bodies, then we can be even more well-plugged into the global network to see us well through beyond our next 50 years. Jobs for graduates and boost for tourism. The opening up of UN offices in Singapore would also provide good employment prospects for Singaporeans from across various sectors here. The Page: 46 UN Park in Geneva is a tourist attraction. I am sure if we were to have a UN Park in Singapore, it would be a tourist attraction, too. Reconsidering our defence strategy. The presence of UN bodies, including the UN Security Council, here would also help to balance our defence posturing. We are ranked second in a list of countries by military expenditure per capita, second only to Saudi Arabia.[+3 sentences] So, to the layman, it looks like we are spending a lot on defence. However, it is because we have a small population. If you look at the list of countries by total military expenditure, we are far from the top. Take, for example, Indonesia President Jokowi's campaign pledge to increase Indonesia's defence budget to 1.5% of gross domestic product (GDP) from its current 0.8% as Jakarta seeks to achieve a so-called Minimum Essential Force by 2024.[+6 sentences] They are now ranked number 30 in terms of military expenditure, just six places below us. Defence spending of our neighbours, given their growing economy and population size, will outstrip us soon. I am not saying this to get us into an arms race, but I raise this so that we know that there is a limit to what we can do, given our small size and small population. We need a new defence strategy, apart from maintaining a strong deterrent armed forces. What I like and do not like about the Budget. I am pleased that in his maiden Budget, the Minister for Finance has given focus to the elderly and the needy in our society. The Workfare Income Supplement (WIS) and the investment in SkillsFuture are commendable efforts and, indeed, reflective of our caring policies. I like the Silver Support Scheme, which is designed to help the lower 20th to 30th percentiles of the economic group of the elderly.[+5 sentences] The Silver Support Scheme is the latest addition to our social safety network providing support to our needy senior citizens. It is like an extension of the current Public Assistance Scheme rather than what some perceived as an extension of the Pioneer Generation scheme. Resources needed for the Pioneer Generation Package are finite and the last Government has already set aside money for it. The number of Pioneer Generation citizens will decrease with each passing year while the number of recipients for Silver Support Scheme is likely to increase with our ageing demographics. Resources needed to fund this recurring and perpetual scheme will have to come from the Government of the day. Can we sustain such a scheme, given that our working population to senior citizens ratio is dropping rapidly each decade? I have also received feedback from a few upset elderly who own 5-room HDB flats and were excluded from the scheme. Since there are already two other criteria – per capita income of less than $1,100 and also the CPF contribution limit of $70,000 before age 55, is there a need to cap the housing types only at 4-room HDB flat and below?[+25 sentences] Many have upgraded to 5-room flats to accommodate a bigger family and the price difference between 4- and 5-room flats was not that great decades ago. If we include the 5-room owners, how many more seniors will be eligible for the Silver Support Scheme? The three qualifying criteria are reasonable, simple and practical to implement but there will always be deserving cases that may not qualify. Is there an appeal mechanism for those who do not meet the criteria and feel that there is a case for them to appeal? If there is none, I hope the Minister can consider setting up one. Within the 140,000 recipients who qualified for the Silver Support Scheme, some may already be on the Public Assistance Scheme and some other welfare schemes. How will the new Silver Support Scheme affect the current assistance that they are receiving? What I do not like about the Budget this year is very simple – there is nothing "green" about it. There is no mention of climate change mitigation and what we are doing to reduce greenhouse gas Page: 47 emission. Although we do have green car carbon emission rebates, I am disappointed that there are no further enhancements to it. I hope the Government can put more focus on this and develop our green industries further. Learning from an economic crisis. There is a whole slew of schemes to help businesses, particularly SMEs, to face the challenges ahead. However, if I may briefly raise this point as I do not know if we are doing good if each time when we anticipate an imminent economic turbulence, everyone would look to the Government for shelter. Businesses are always hopeful and confident that the Government will introduce measures to help them tide over the crisis and, indeed, the Budget always delivers. In the last crisis, the Government introduced and enhanced many policies to retrain workers and help employers. But there are also situations that, if we over-shelter, we may end up with an over-reliance on the Government and businesses may become like plants growing in a sheltered greenhouse – they will not have the resilience to withstand a storm or winter. Economic crises are cyclical occurrences, just like the seasons. Seasons come, seasons go. With every crisis, we are supposed to emerge stronger and more resilient from the last one. But that would not happen if companies do not feel the pressure to improve, innovate or adapt. Business leaders who have the foresight will take advantage of the crisis to learn about the weaknesses of their set-up, resolve them quickly and accordingly. Some will restructure and become leaner. Some workers will learn new skills and become more employable. But there will be that few who do not learn from these lessons and take for granted that there will always be help available. This sort of mentality is harmful all round. We are encouraging local businesses to venture out, but the business climates in other countries are far harsher than Singapore's. There will be more obstacles and nobody will be at hand to provide them with aid and assistance. By all means, give them the fishing rod, teach them how to fish, but do not just give them the fish. The Government and our local enterprises should not waste a good opportunity to learn from a crisis. Let the businesses learn to grapple with crisis and come out stronger.[+6 sentences] As the Chinese saying goes, 不经一番寒彻骨, 哪来梅花扑鼻香. In other words, "The plum only blooms in the harsh coldness of winter." It means success comes only with hard work and labour. In conclusion, it may be a difficult year ahead and work to groom a truly resilient Singapore never ends. But I believe that with wise leadership and the diligence of our people, we will all live to smell the fragrance of the plums. Mdm Speaker, I support the Motion.
Mdm Speaker4 words
[+1 sentence]Ms Foo Mee Har.
Ms Foo Mee Har (West Coast)1626 words
[+9 sentences]Mdm Speaker, I commend the Finance Minister for a thoughtful Budget, with its sharp focus on transforming our economy to ready ourselves for the future, whilst continuing the efforts of previous years to foster a caring and resilient society. I will focus my speech on our economy and jobs. Madam, what stood out for me was the recurring theme of partnership throughout this Budget, emphasising the need for all parties to work together in new ways to transform our economy and strengthen our society. I fully subscribe to this spirit of collaboration, which is critical in this increasingly complex world where the Government cannot be expected to know all and do all. We Page: 48 are most effective when working together, leveraging one another's strengths. Corporations and individuals alike need to take greater charge of their own destinies, even as they look to the Government to foster a nurturing and enabling environment in which to thrive and grow. We will get to SG100 in better shape if we each focus on our strengths, align our goals and resolve to support one another in the journey there. Madam, it is encouraging to see that we have achieved an overall surplus of $3.4 billion, attributed mainly to contributions from investment returns. But I am concerned about the underlying structural deficit. For four consecutive years, our expenditure has grown faster than operating revenue growth. For the last two years, total expenditure has outstripped operating revenue and this trend may continue, given our ageing population and slowing growth.[+5 sentences] It is, therefore, crucial that we enter into careful consideration and robust debate over our country's spending plans to ensure that every dollar is well spent. I would like to ask the Finance Minister what measures have been instituted to track KPIs and outcomes on big-ticket investments, such as the Industry Transformation Programme and SkillsFuture. This is to ensure that these multi-year schemes achieve their policy intent and deliver the expected outcome, namely, the boost that is needed for our capabilities and competitiveness. What lessons have we learnt from our experience of years past, where well-intentioned productivity schemes, costing billions of dollars, ultimately failed to lift productivity levels? We have been on this restructuring journey for some time now and, with each passing year, the urgency to show results grows whilst our margin for error shrinks. Central to this Budget is the $4.5 billion Industry Transformation Programme, packed with measures mostly targeted at helping SMEs scale up, use automation and foster innovation.[+4 sentences] The introduction of a one-stop Business Grants Portal is timely. And two thumbs up for the shift from the broad-based PIC scheme towards a targeted and sector-focused approach to support schemes. So, perhaps because the new schemes that have been announced have been targeted, many SMEs have the impression that they will not benefit much from this Budget. We should remember that, apart from these new schemes, SMEs can continue to take advantage of many broad-based schemes that were previously introduced, such as the Transition Support Package, Infrastructure Projects and SEC. For example, firms received a total of $1.9 billion under the Wage Credit Scheme this year to help them defray the wage cost increase given to Singaporean employees.[+17 sentences] Madam, the path that the Finance Minister has chosen is not an easy one. Execution will be more complex as success will depend on multiple partners pulling their own weight. The Government agencies will need to work closely with enterprises at the industry level in order to develop transformation maps tailored for each sector. They will need to come up with different support schemes, tailor-made for different industries, and they will need to look afresh at specialised infrastructural development for each key sector. Trade associations will need to proactively step up their outreach to member firms, develop capacity and capability-building in their respective industries and lead the development of industry-wide solutions that address common challenges amongst their members. These are all steps in the right direction but the journey will take time and success is not guaranteed. These initiatives require extensive planning, coordination and execution, but we must not be deterred. I urge all parties to seize this opportunity to embrace a new era of collaborative Page: 49 ventures. If it all sounds familiar, perhaps it is because we hearken back to a time when our Pioneer Generation, faced with great uncertainty in a new land, depended on one another to make what they could of the little they had. They were inventive, determined and they were a team. So, too, it can be with us. Madam, I am encouraged by the increasing number of support schemes available to promote a vibrant startup ecosystem, including SG-Innovate. But even while we foster a healthy environment for startups to succeed, we should not forget to also help long-established companies continue their success and thrive. Many of these home-grown companies,老招牌 big or small, are ageing family businesses, where longevity depends on conscious and deliberate efforts towards a successful handover of the business. These SME bosses often share the strain on them to continue managing the day-to-day business when age catches up, yet they are unsure how they should go about structuring a smooth transition. For some, their children are either not ready or disinterested to carry on the family business. For many family businesses, succession represents a "make or break" crossroads in the company's history – and many do not make it across. A study done by Prof Joseph Fan of the Chinese University of Hong Kong found that 65% of the value of family businesses is lost as a result of succession issues.[+7 sentences] We must, therefore, put in place measures to preserve and build on the precious value of these companies accumulated during Singapore's growing years. We should learn from the best practices in Europe, home to some of the world's oldest brands, many of which started as small family enterprises. We should provide counselling services to prepare family businesses for succession, advice in the transfer of ownership between generations and trade-offs to be considered when choosing between future managers from within or outside the family. We should set up a market place and also financing schemes to connect owners, potential successors and investors. Our learning institutes may also offer strategic and business expertise to these family businesses to help them refresh and reinvent themselves. With such support, perhaps we could help the likes of Mrs Kwan of Lana Cake Shop ensure that her amazing chocolate cake remains a treat for generations of Singaporeans to come. Madam, this Budget contains all the right ingredients to set the foundations for the future economy. However, we also need to help our workers cope with the cyclical headwinds and structural changes that will come their way. I am especially concerned about the plight of PMEs – they will bear the brunt of economic restructuring, impacting those in their 40s and above the hardest.[+2 sentences] They need our support. I would like to renew my calls for the Government to review policies governing the employment of foreign PMEs. Unlike lower-level jobs where foreigners hired on Work Permits and S Passes are subject to dependency quotas and levies, there is nothing similar in place for PMEs. We need to consider subjecting employers of foreign PMEs to the scrutiny of labour market tests urgently. We should not shy away from actively promoting and championing "Hire Singaporeans First", as the Government's first duty is to its own people.[+4 sentences] If Singaporean candidates possess the necessary capabilities for the jobs they aspire to do, then they should be given greater consideration than foreign candidates. Page: 50 As for those who have lost or at risk of losing their jobs due to restructuring, we must do everything we can to help them get back into the workforce. We have focused our efforts so far on SkillsFuture to help PMEs learn new skills. But many employers believe that no amount of new knowledge and skills can help displaced PMEs restart if they do not, first, have the right mindset. Employers are concerned about having to deal with the baggage and motivational issues that come with hiring a displaced PME. We must, therefore, provide the necessary emotional and motivational support to reignite passion, and this must be an integral part of Professional Conversion Programmes.[+17 sentences] As for us jobholders – whether PME or otherwise – we will need to adapt to a new paradigm. No one can promise us a job for life. When Steve Jobs, in his commencement address at Stanford, told his audience to "Stay hungry, stay foolish", he was advising them to take control of their own destinies, to be vigilant and open to new possibilities, to never be complacent, and never too comfortable. I think that is excellent advice. It is an uncertain and fast-changing world that we live in. Hope for the best but plan for the worst. Try and put aside some savings to tide you over tough times. Arm yourselves with marketable skills. Take advantage of SkillsFuture and be ready to seize new opportunities. Stop looking back. Look forward and put yourself out for the new possibilities. Build bridges, cultivate and maintain a strong network of friends and contacts. The future lies in collaboration. Madam, I conclude that this is a Budget for our times – when we urgently seek a path towards new heights for Singapore, to be enabled by reinvention and transformation. This is a significant challenge at the best of times – and these are certainly not the best of times. We should lose no time in taking the first determined steps forward, looking out for perils and pitfalls, ready to make course corrections, and always, always watching out for one another. Madam, I support the Motion.
Mdm Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera (Non-Constituency Member)1994 words
[+2 sentences]Mdm Speaker, before I begin, please allow me to declare that I am the owner of a mid-size, Singapore-based enterprise. Mdm Speaker, we need local enterprises as the third pillar of our economy, standing alongside MNCs and Government-linked companies (GLCs). Right now, the share of SMEs in value-added in our economy is less than what their share of business numbers and employment would imply. We lack the equivalent of Germany's mittelstand, a critical mass of world-leading SMEs which are world leaders in niche product categories or technologies, like, for example, Faber Castell, a manufacturer of pencils.[+28 sentences] The issue should not be framed in terms of just providing state support to help companies survive, but in terms of providing enablers to help companies to develop their own competitiveness. The state has a vital role to play in countering some of the downsides of our economic environment like high costs, but it should also act as a catalyst to help our SMEs identify, develop and maintain their own critical competitive success factors. This is especially so in regard to developing productivity, where Singapore is still struggling in certain sectors, especially in services, construction and other domestically-oriented ones. Page: 51 To this end, our main focus should not be only on short-term props like ensuring more public sector construction projects, even if those are necessary, to smooth out short-term fluctuations, but on making SMEs more competitive and more productive. In this regard, I have several suggestions. Firstly, companies all operate at different levels of productivity, even within the same industry. I used to take my children for breakfast before taking them to swimming class when they were much younger. Near the swimming class, there were two cafe outlets. One frequently had five, six or seven staff present, many of whom were standing around with nothing to do much of the time. Yet, many dishes were not available or took a long time to prepare. Orders were sometimes forgotten or mistaken. The other cafe outlet had two to three staff and yet, all the food and drinks were prepared fairly quickly. No prizes for which one we went to for our breakfast most of the time. However, companies do not all know how well they are performing vis-à-vis their industry peers. This is particularly true of SMEs. They do not have the visibility about the rest of their industry and often do not have the resources to understand what productivity levels are like in other developed countries and how those are achieved. What is available is public information which tends to be about larger, public-listed companies and industries dominated by these larger companies. No doubt, the National Productivity Council and SPRING do work with SMEs to raise productivity, disseminate best practices and so on. But nothing beats a simple quantitative ranking to focus minds. I suggest a productivity benchmarking system. This would be similar to how our household utilities bills show a chart of our electricity and water consumption, compared to similar-sized households and the national average. Economic promotion agencies or the Government can agree on a company-level standard for, for example, "poor", "average", "good" and "excellent" productivity for specific industries. Government agencies could then automate the extraction of data from financial statements filed with the Accounting and Corporate Regulatory Authority (ACRA), even for private-exempt companies. This data analysis could be used to derive the average figure within the industry and the figure for each company. ACRA, SPRING or another Government agency could then write to each company each year to inform them of their level of productivity, where it is ranked versus the industry average and where it stands relative to the benchmarks which have been derived from global analyses. Improvement in a company's productivity ranking could be used as one criterion or one forward-looking condition, not the only one, to grant access to Government incentive schemes. Secondly, R&D matching. My second suggestion is to create an R&D-matching facility to allow SMEs to work with autonomous universities (AUs) and national research centres (RCs) and research institutes (RIs) under the A*STAR umbrella to call for tenders, as it were, for standalone R&D projects. The Minister for Trade and Industry revealed in response to my Parliamentary Question that from 2004 to 2014, the total number of licensing agreements signed with private companies by Exploit Technologies Pte Ltd, which helps commercialise intellectual property (IP) from the R&D sector, was 920, or just over about 80 a year. Of these, about 80% were with SMEs and startups.[+7 sentences] We can do even better in intermediating between the R&D sector and local SMEs to allow synergistic projects. The example of Taiwan's Industrial Technology Research Institute (ITRI), Germany's Fraunhofer Network or even how some Japanese MNCs collaborate very closely with Page: 52 Japanese universities to outsource part of their R&D work is interesting in this regard. Mdm Speaker, I suggest we create a facility whereby local SMEs are able to proactively put out a tender of sorts for potential R&D projects and assess bids from interested researchers at our RIs, RCs and AUs. If a project is agreed between the parties, A*STAR and/or other relevant agencies could provide co-funding in exchange for job creation commitments or some form of modest profit-sharing. This would appeal to SMEs which seek R&D support for ideas they may have but lack in-house R&D resources and who may not want to go down the path of the Get-Up Programme, which allows researchers to be seconded to companies, since their needs are more project-specific. Next, Mdm Speaker, I would like to speak on sector-specific measures. The services and construction sectors are two sectors which are still grappling with productivity issues. These two sectors will see foreign worker levy rises. But with PIC support tapering down towards 2018, are the measures in Budget 2016, such as the Automation Support Package and Industry Transformation Initiatives, enough?[+6 sentences] We need both carrot and stick for these sectors. It may also have been the case with some firms that PIC was not used to make game-changing investments in technology in the past. For these two sectors, to help them transition to a higher productivity future, we should pay careful attention to ensure that funding support is available to make transformational game-changing investments in technology and work processes, either using the Automation Scheme provisions or some other incentives. Next, SMEs still face problems to do with high cost, problems attracting talent and access to finance. Some of these issues were highlighted in the Singapore Business Federation's January 2016 report on "A Vibrant Singapore Private Sector". The Government needs to help level the playing field. For example, unit labour cost for the overall economy increased at an average rate of 2.15% from 2010 to 2014. This is higher than labour productivity growth of 0.3% measured in terms of real value-added per worker, and 1.3% measured in terms of real value-added per hour worked over the same period.[+3 sentences] In this regard, I would like to discuss the Jurong Innovation District. I will take up the issue of access to finance in the Committee of Supply (COS) and access to talent later on. On the Jurong Innovation District, one of the key challenges that SMEs face is rental costs. Will the Jurong Innovation District provide a rental cost environment that will be conducive to SMEs and startups which also wish to take advantage of the space, or will rentals be high, eating into their startup funding?[+8 sentences] More broadly, the issue of high rentals has to be addressed as it is a bigger and more fundamental impediment to startups and SMEs evolving innovation capabilities as opposed to gaining access to innovation districts with purported network effects. My colleagues will have more to say on this issue of rentals during COS. Next, the Workers' Party suggests that we create a mechanism to ensure a high-level whole-of-Government approach to SME development that goes beyond just the Ministry of Trade and Industry (MTI). If we see local enterprise development as a critical priority, as I believe we should, we should create a national secretariat for local enterprise development, one that brings together multiple Government departments and Ministries and which can create and execute goals for different Government agencies to nurture local enterprises in their spheres of responsibility. In the same vein, the Singapore Business Federation has suggested creating a Minister for SMEs. Next, on nurturing SMEs, the pool of local enterprises is also not equal in terms of their goals and aspirations. Some aspired to become world-class whereas others aspired to maintain Page: 53 themselves as SMEs indefinitely. Our approach to incentives should reflect this inequality very strongly, as was practised by Japan and Korea in their early days of post-war development. I think there is far more room for SME Government support, such as access to finance, tax incentives, cash grants schemes and so on, to be much more calibrated, based on the aspirations of SMEs. We can give more aggressive support and higher quantum of incentives and agree on stretch goals with those local enterprises which want it and – this is the crucial point – which can deliver results.[+12 sentences] The support should be conditional on hitting goals in terms of revenue, investment, job creation and so on, as determined objectively by audits or checks. The support should be unequivocally withdrawn if results are not achieved within a certain timeframe. The genuinely entrepreneurial and ambitious SMEs that we have would welcome this. Lastly, Mdm Speaker, and briefly, making SMEs more competitive is also about unlocking talent in Singaporean entrepreneurs and workers. There is a pragmatic case for egalitarianism as unlocking hidden talent, particularly for our local enterprise sector, which needs it most. The CareerBuilder Singapore's Employer of Choice 2015 survey showed that sectors like the Government and Public Service, airline and travel and banking and financial services are the top industry sectors that millennials want to work in. In other words, many of our young Singaporeans are drawn to work in the Public Sector, banks and large enterprises. This draws talent away from startups and local enterprises, particularly SMEs. To tilt the playing field so as to nurture our local enterprises, we should consider a few possible actions. Firstly, we should do more to foster entrepreneurial attitudes in school, not only at the tertiary level but at the secondary level as well. We should also teach our children about the contributions of entrepreneurs and local firms. The SME Talent Programme (STP) helps local SMEs attract talent from local educational institutes by co-funding internships, study sponsorships and fresh-hire training. In 2015, the Minister for Trade and Industry replied to Mr Chen Show Mao that 155 STP job matches and over 700 STP internships were implemented, benefiting 192 enterprises.[+5 sentences] More publicity should be created around existing SME Talent Schemes among both SMEs and students to drive the take-up rate even higher, which I believe is possible. This should be done in terms of media awareness programmes as well as school events. SMEs should also be encouraged and supported to develop employee branding initiatives so as to be more successful in hiring. Lastly, we should do more to measure and raise social mobility to provide more educational support to persons with disabilities to develop their talents and to work with ex-prison inmates to support their entrepreneurial dreams. I shall have more to say on these topics in COS and future debates, but the reason I raise this subject in the context of a discussion on local enterprises is that future entrepreneurs and innovators can come from such backgrounds. In a situation of talent scarcity, with a large and attractive Public Sector and MNC sector, we must do more to unlock resources of talent, not just because it is the right thing to do morally but also economically. The late Andy Grove of Intel, for example, was severely hearing impaired as a young man but went on to transform Intel and the global semiconductor industry.
Mdm Speaker6 words
[+2 sentences]Mr Ang Hin Kee. Page: 54
Mr Ang Hin Kee (Ang Mo Kio)1142 words
[+10 sentences]Mdm Speaker, in Mandarin, please. (In Mandarin): : Mdm Speaker, I support the Motion. We heard earlier a Workers' Party Member of Parliament mentioned about the help needed for bosses of SMEs. I will address my speech on how workers in SMEs will benefit. This year, the Minister for Finance announced many measures to help SMEs. These are helpful but for them to be effective, we have to ensure that the bosses and workers understand how they can benefit from these measures. So, the publicity efforts should not be aimed only at the business. I think the Government and the employers should explain in detail to the workers. They should understand whether the workers appreciate what these measures mean to them. Workers, in looking for a job, not only consider the salary, they also consider whether the jobs are challenging and whether the career will have progression. They also hope to see that the business bosses have detailed planning and improvement in many areas, and this will help them to decide whether this company is worth staying on for the long term. We now know that SME workers account for more than 70% of our workforce.[+9 sentences] So, we have to ensure that we continue to attract people to work for SMEs. The Government can work with the SMEs in two ways. First is to optimise business. In optimising the business, if more SMEs can get help from the Government, their operations will be optimised. Robots will automate the processes. Some workers may feel that the bosses are trying to help them, but some others may be worried that they will lose their rice bowls. We should consider how to improve the communication with the workers and before the introduction of automation, let them understand the goals of this automation and how they can benefit from it. Secondly, we can consider how to do these in parallel – help them to adapt and implement automation at the same time. This will remove their worries and will be more effective. Second, the Minister has announced a scheme with $450 million on robotics but some people may be worried that the work will be displaced by the robots.[+10 sentences] If robots can help them improve their effectiveness and make their work safer, more productive and more innovative, then workers will be more willing to accept. In this process, I suggest that the automation and the Adjust and Grow upgrading scheme should be implemented together. So, in implementing the robotic scheme, we should also improve the attitude and adaptability of the workers. In addition, the Government, in assessing the schemes, should understand whether the enterprise can apply the schemes and whether the enterprise has given sufficient help to the workers, so that they will understand how these schemes can benefit the workers. Secondly, I hope that the Government, besides implementing the schemes, many of the application processes can be improved. SMEs do not have enough resources and they may not understand how to seek help. Some of them feel that to submit the application forms to many different agencies, they are quite troubled by this process. Some of them may not understand the schemes. Some of them may have to seek help from intermediaries. But with companies that have a shortage of resources, the application for help actually has become a burden. Fortunately, this year, the Government has introduced a creative scheme, a website, so that all relevant materials Page: 55 will be supplied to SMEs.[+1 sentence] SMEs can also seek help from U SME under the NTUC and the trade associations. The Minister has announced this LEAD+ scheme this year which will provide wider assistance in capital and schemes to attract more workers.[+10 sentences] This will help them to implement their projects. I took part in a seminar conducted by U SME recently for SMEs. Besides explaining to SMEs how they can innovate and revamp, it also helped them to interact among one another. I realised two points. First, many of the SME bosses are relatively older and their educational level is not high. I hope that this LEAD+ scheme will have a Chinese version in explaining the contents of this scheme. The officials should have proficiency in Mandarin so that they can help the SMEs. A good package must be repeated three or four times to be effective. When we provide help to SMEs, we must repeatedly explain the good points, so that they will receive the help just as how we implemented the Pioneer Generation Package through different channels and repeatedly explained the benefits to the Pioneer Generation. Second is the expansion of business. Last year, the Government introduced the Earn and Learn Scheme to attract more graduates to join the SMEs but the coverage of the industries is quite small and the quota is small.[+10 sentences] I hope more employers and graduates will be able to benefit from this scheme and that businesses will be able to attract more young graduates to help them expand their business. There may be another problem. On the frontline, the supervisor may not be able to guide and communicate with the new workers. On the one hand, we try our best to send graduates to the SMEs. I hope under this Earn and Learn Scheme, we can ensure that the supervisors and the workers will have good communication through proper training. In this way, we will have a good system for them to welcome the new workers. Besides new workers, when they decide to expand the business, there are some old workers who will feel worried because the ability to adapt to new technologies, the new skills, they need more help. Some old workers resist change because they have a sense of fear. They are afraid that they will not be able to do the job, they will not be capable of completing the work, and they may lose the job to the younger and new colleagues. The companies and the Government must give more time for training, so that they can adapt to the new technology. The Government can also send some mentors to help these SME workers, so that they will adjust effectively to welcome and accept these new contents.[+2 sentences] Finally, to help our SMEs and upgrade our workers, there are many challenges, we should not underestimate them. Just like the story of Travel to the West, there are many difficulties and our opponents are powerful. The Government and the enterprises should work together with our workers, so that we can move together and overcome these challenges in this uncertain market. The SG100 starting point has received the strong support of the Budget. I hope the Statutory Boards and the innovation partners will together be helping our SMEs, so that they can help them to overcome all the challenges they face along the way.
Mdm Speaker6 words
[+2 sentences]Ms Chia Yong Yong. Page: 56
Ms Chia Yong Yong (Nominated Member)2869 words
[+12 sentences]Thank you, Madam. I echo the Finance Minister's call for Singaporeans to work together in new ways to transform our economy and strengthen our society. The Finance Minister said, and I quote, "Everyone has a role, and together, we are weaving a rich tapestry – each thread a different colour and texture, but woven together to give strength and resilience to our economy and our society." To have a strong resilient tapestry, we cannot reinforce one part and allow another to fall apart. It may sound trite, but our individual destinies are interwoven, and how our individual and collective destinies play out will, to a large extent, determine the destinies of our future generations. So, we need to be responsible for one another: the Government for its people, and the people for themselves and their country. Undergirding this relationship of interdependence and cross-responsibility is accountability: the Government to its people, and the people to themselves and their country. We should, therefore, approach Budget 2016 with this sense of responsibility and accountability. Government spending has increased substantially. I welcome the measures, but because we are using public funds, I would like to see that our funds are prudently disbursed, responsibly utilised and effectively achieve the expected and intended outcomes. By way of illustration, Madam, allow me to address the drive for innovation under the Industry Transformation Programme. First, I would like to declare my interest as a partner of Yusarn Audrey, which is a law firm specialising in intellectual property and the commercialisation of intellectual property. The Finance Minister states, again I quote, "The ownership of intellectual property (or IP) allows companies to realise the value of its efforts." The total allocation of funds under the RIE 2020 Plan, from 2016 to 2020, is $19 billion, out of which a sum of up to $4 billion will be directed to industry-research collaboration. This allocation represents, again I quote the Finance Minister, "a concerted shift towards innovation and enterprise, to capture the economic and social value of R&D." In addition, there will be a top-up of $1.5 billion to NRF this year to support the RIE 2020 Plan.[+8 sentences] There should be a few key observations on the innovation drive. These would be: (a) the purpose of innovation is to meet the needs of people and industries better; (b) innovation is the engine of value creation and growth; (c) there is economic and social value in R&D; and (d) ownership of IP allows companies to realise the value of their efforts. I will just paraphrased the Finance Minister. In order to achieve the outcomes, we are: (a) making a concerted shift towards innovation and enterprise; (b) placing great emphasis on industry-research collaboration; (c) spending billions of dollars on this; and (d) in this for the long term. Madam, what we want is for innovation to create IPs which are relevant to our people and industries, meet their needs better, enable them be more productive, profitable, and competitive, Page: 57 propel them and Singapore into a different and higher league, IP which translates into better a quality of life for all Singaporeans, generates more such IPs, multiplying their positive effect and impact on our economy and our society. And for that, we are investing billions of dollars and we will be in this for the long haul. With the foregoing as the background, I will now address two fundamental issues which, ideally, we should tackle. One, IP ownership. One of the four major thrusts of RIE 2020 is to strengthen flow-through from research to its eventual impact on society and the economy.[+23 sentences] To ensure that we can effectively do so, we need to own the IPs or, at least own the rights, on a sustained long-term basis to achieve that impact. The issue of ownership of IPs is particularly important in research collaboration. We need to be clear as to who owns what IPs. This issue should be considered even more carefully where the parties to the research collaborations involve non-Singaporean entities and that happens pretty often. I think we would all agree that unless we own something, we do not have full rights to do whatever we want with it. If I am using a borrowed mobile phone, I have no rights to sell it. I do not even have a right to lease it to another person. I am currently using a dictation software which I bought. It transcribes my dictation into text. I can use it. But I have no rights to reverse engineer, I have no rights to copy or to make improvements. In fact, I cannot even install it beyond a stipulated number of devices. I cannot generate recurring revenue through royalties and licence fees. Why? Because I do not own the software. So, unless we own the IP rights or have meaningful rights to the IP in the innovation, we do not have the rights to deal with the IP in the way we want to. Unless we own the IP rights, we would have to be bound and limited by terms of licences and permissions granted by the IP owners. Would we think it is odd for us to pay billions of dollars and not have full or have meaningful rights to our IPs in our innovations? I think we would consider that odd. Is it possible for that to happen? Yes, I submit, very possible. I acknowledge that we cannot have our way always, particularly in collaborations. The good thing about IP is that rights are a complex bundle and there are strategic structures that can be customised in dealing with this bundle. The point that I would like to emphasise, hon Members and Madam, is that we must be careful in our research collaboration negotiations not to concede valuable foreground IP in return for consolation IP.[+2 sentences] Otherwise, we would be like the man who owns the land, pays the builder to build a house, but stays in the house as a tenant of the builder. No, Madam, we want to use such intellectual property for value creation and growth so that we can harness the economic and social value of such a property. That is why we are investing the money, is that not so, so that we can be competitive and profitable? We want to be able to monetise such intellectual property rights so that we can receive revenue, whether it be a one-time payment for transfer or recurring revenue by way of royalties and licence fees. We need to know what to retain and what we concede. Therefore, I hope that the Government will set clear guidelines for the retention of IPs which are of strategic value to Singapore. We must not let Singapore pay money to be used as a test bed without retaining valuable strategic IPs arising from such research.[+8 sentences] Page: 58 Madam, on industry-research collaboration. In order for us to generate value creation and growth for the relevant industry and ultimately our economy, we must identify the measurable outcomes to be attained. Tangible outcomes should be differentiated from intangible outcomes. We should ensure that we are in a position to correctly identify the outcomes which are impactful and strategic to the industry and direct the research accordingly. The collaboration has to be conducted at a high level with mutual respect and understanding between the industry and research institutions. It is important that the industry plays a more active role than that of a mere feedback provider. The industry and research institutions should collaborate to identify the outcomes that are impactful and strategic and cross-validate each other's inputs. We should not be content with just filing patents. The number of patent grants is not a measure of the success of our investments.[+8 sentences] We need to see the tangible economic and social impact from such innovations. In addition, in order for the IPs created to be more effectively exploited and applied within the industry, the IPs should be owned by the industry or the commercial entity, possibly either represented by the TACs or, as I had said, by the company itself. To encourage further research, we could have schemes for the licence back of such IPs. We would require cross-licensing to other entities within the same industry, and we could commercialise and derive revenue from them. I would, therefore, suggest, for the consideration of this House, a structured framework wherein the industry-research collaboration proceeds on the basis of the industry specifying, validating and accepting the outcome of the research, whilst the research institutions use their expertise to achieve the desired outcomes. This structured framework differentiates the industry as the client, as opposed to a feedback provider, and the research institution as the expert adviser, researcher and developer. As a client, the industry will be better able to communicate its greater insights to direct the outcome of the research. I also believe this framework would result in the creation of IPs that would be relevant to the industry, which would, in turn, create an intangible impact on the Singapore economy and community. As a corollary, funding for industry-research collaboration projects should be granted to the commercial entity or the TACs for them to appoint research institutions for such purposes.[+19 sentences] This framework, I believe, will enable the industry to enter into other collaboration agreements with its members, or with other industries, and to proliferate further value creation and growth. In addition, it would be able to monetise the economic value in the IP, be profitable and competitive. Ultimately, the benefits will be shared by the Singapore economy and community. Madam, I have filed COS cuts, so I will speak more on this later. But suffice it to say that the agencies administering the grants, the industries and research institutions must see themselves as being in partnership for Singapore's future, beyond their respective KPIs, beyond the granting of patents, for the future of Singapore. As the Finance Minister says, "We must remain prudent in expenditures, and ensure every additional dollar spent is spent responsibly." Indeed, let us move forward on this issue courageously, decisively and responsibly. Madam, allow me now to move on to the third section of the Finance Minister's speech, on building a caring and resilient society. Here, I declare my interest as President of the Society for the Physically Disabled (SPD) and board member of SG Enable. In this portion of my speech, I will be referring to persons with "disabilities" or "special needs", but they will all be the same group. I am encouraged that the Minister makes specific mention early on in this section, of the three groups of special people within the Singaporean society: those who have special needs, those who are less well off or who have fallen on hard times, and seniors. I welcome Budget 2016 for its Page: 59 inclusiveness and initiatives to empower persons with disabilities, the seniors and the economically disadvantaged. We have, indeed, come a long way. We have come a long way, since the Prime Minister's National Day Rally speech in 2004, in taking care of vulnerable groups in our society. The second Enabling Masterplan ends this year, and the steering committee for the third Enabling Masterplan has been appointed. We have made great improvements in infrastructural accessibility. There is greater breadth and depth in our programmes for persons with special needs, the seniors and the economically disadvantaged. The appointment of Deputy Prime Minister Tharman as Coordinating Minister for Economic and Social Policies sends a strong message that economic policies cannot be segregated from social policies and affirms the Government's commitment to include vulnerable groups in national planning and nation-building. The Public Service initiative to employ persons with disabilities is another important milestone in the Government's walk of the talk. The opening of the Enabling Village, a one-stop community space and service centre dedicated to integrating persons with disabilities in society, serves to bring new opportunities for persons with disabilities. I welcome the recent Enhanced Wage Credit Scheme and the SEC scheme for persons with disabilities. I welcome the enhancement of the Workfare Training Support Scheme which allows persons with disabilities who earn low wages and are younger than 35 years old to be eligible for funding in their learning.[+49 sentences] These enhancements show the Government's recognition that persons with disabilities can be economically productive, and its flexibility in providing for the limitations and needs of persons with disabilities in the support for their employment progression. Why do I recap this? Because I believe that the Government has set a good framework and built a good foundation for the cultivation of a caring and resilient society. This is critical; this is basic. But what more do we need? Beyond this framework, beyond all the financial measures, we need people to make this successful. Madam, I believe we do have a kind and caring society in Singapore. Of course, we have discordant voices and there will always be. Singaporeans, on the whole, are known for their kindness and generosity. I have experienced that through the years in my personal journey. In terms also of relationship, we are not really too remote from persons who may have some form of special need. It could be a child, sibling, spouse, parent, grandparent, friend, colleague. Or we may know someone who is related to or associated with such a person. For some of us, by reason of illness or accidents, we acquire some form of disability. And for all of us, as we age, we slowly lose our vision, hearing, speech, mobility. When we buy insurance, there is a category of protection for permanent disability. The insured can claim insurance payout if he or she suffers permanent disability. This is a reminder that any of us could suffer a permanent disability. As a wheelchair user, I do not relish the thought of having more persons on wheelchairs. But it is not for me to wish otherwise, because there are things beyond our control. So, I have recapped what the Government has done. I have spoken about the culture of kindness and generosity, and I have spoken about the form of experience that some of us had, either personally or distally, with disability. And we know that we can suffer disability at any time. Page: 60 So, why then do persons with disabilities still not feel included in our society? It cannot be that it is because people are not kind. Could it be that it is because we have a lack of awareness? Could it be that it is because there are disabilities that are not visible? Could it be that it is because there are disabilities that are perceived as disabilities? Here, I would like to share some small voices: "We hope for you to be patient when we are slow in entering the elevator. We do not like to hold up others. "We hope for you to be accommodating when we make strange loud noises. We cannot control our muscles. "We hope for you to give up your seats in the train. We feel bad for you not to have a seat, but our ankles are weak and we cannot stand for long. "Please understand if I refuse to communicate; sometimes, I am afraid and confused from the many voices I hear in my own head. "Do not be offended if I do not respond to your greetings. I cannot hear you. "Give us a chance to train and upgrade our skills so that we can work. We cherish our hope for a brighter future. "Give us a chance to work, so that we can be less of a burden to our families. "Let my son have flexible working schedules so that he can accompany me for my medical and therapy sessions. I do not want him to sacrifice his career development or lose his job because he is looking after me. "Be kind to my parents when I throw tantrums. It is not because they did not teach me well. I simply cannot comprehend my external environment. "Please play with me. My legs are weak, but I still have a sense of adventure. "Thank you for accepting me." Madam, a disability is not caused by a medical condition per se. A disability – a person is disabled by external and internal barriers that impede his development and participation in the community.[+3 sentences] We have people who do not feel included because they do not know what disabilities and what challenges we have. Can we ask this House to be that platform to convey the little voices that I have just shared? Let our people know that there are disabilities they cannot see, they cannot perceive. But those are disabilities that are real and hurting. I ask for a national education campaign so that we can reach out to our people. I ask that we understand so that we can be one, and I ask that when we understand and when we are one, we can then build a country together.[+4 sentences] We will then have a caring and resilient society. It matters not then whether our society is rich or poor; we will all be rich. So, Madam, I support the Motion. Page: 61
Mdm Speaker27 words
[+4 sentences]Thank you, Ms Chia. Those are very nice and necessary comments. I am sure the House will respond accordingly. Let me move on to Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)1465 words
[+8 sentences]Mdm Speaker, the focus of my speech today is on understanding and addressing employment insecurity. Madam, this year's Budget Statement acknowledges that businesses are facing difficult and uncertain conditions. To this end, we see a continuation of some existing schemes to support businesses, such as the Wage Credit Scheme and an extension of the SEC which provides a modest offset for wages paid to Singaporeans. These measures benefit employers and employees still on the payroll. The painful reality is that there is a significant proportion of Singaporeans who have lost their jobs or are at risk of losing their jobs. What is the size of this problem? The Minister said that unemployment remained low at 1.9%, but this percentage included foreigners in the computation. What about unemployment among Singaporeans? According to the Labour Market Report issued by MOM last month, unemployment among Singaporeans rose to 3% in December, meaning that more than 58,000 Singapore Citizens were out of work. As for long-term unemployment among residents, for those who have been searching for work for more than 25 weeks, for the whole of 2015, there were 12,700 residents in this predicament. The report further noted that among those made redundant and sought to re-enter the workforce, only about half of them were able to do so within six months.[+28 sentences] These figures paint a worrying picture but, in all likelihood, under-represent the problem. This is due to the definitions adopted in compiling the data. While the definitions used are in line with international norms, it is useful to elaborate briefly why unemployment statistics likely under-represent the employment landscape. First, a person is considered unemployed only if he is out of work and actively searching for work. If a job seeker is unable to find work and decides to give up the job search or to go into training, he is not considered unemployed. In addition, a person is considered employed in Singapore so long as he has worked for just one hour in the period in question. Thus, a general manager who loses his job and works just five hours a week at a fast food chain counter is considered employed and off the unemployment statistics. Clearly, the plight of this general manager deserves attention. One of my residents recently shared with me his worries about employment in security. Some of his friends in their early 40s had recently lost their jobs. They had decided to dumb down their expectations and found jobs in other industries, but the reduced pay was insufficient to meet their commitments, leaving some of them to become Uber taxi drivers to supplement their income. Such persons are not captured in our statistics. But are these displaced workers not worthy of attention? What stress befalls a breadwinner who loses his job at a stage of life when he has to support children or elderly parents, service a mortgage and more? These stresses, in turn, have ripple effects on the quality of family life and the ability of children to concentrate on their studies. Madam, it is time for the Government to put in more efforts to measure underemployment. Unlike unemployment, which refers to the extreme situation of a total lack of work, measuring underemployment will indicate to what extent a person is suffering from a partial lack of work. According to the International Labour Organization (ILO), measuring underemployment is Page: 62 increasingly relevant for industrialised countries. ILO noted that many countries were facing changes in the employment situation, labour market flexibility and the rise of various forms of non-standard employment. Thus, new situations have emerged that can be regarded as under-employment. According to the 16th International Conference of Labour Statisticians, underemployment reflects an under-utilisation of the productive capacity of the employed population. Measuring under-employment usually starts off with time-related measures, namely, the hours worked versus the hours that the employee could be available and willing to work. We note that the Government has been putting up some statistics on time-related underemployment in its Labour Force Reports. While looking at underemployment based on time is certainly useful, it does not present the full picture. Returning to the general manager example, the fact that he works five hours a week, as compared to a full 50-hour week, is one indicator. But it is also relevant to consider whether he is now drawing a pay at a rate below what is commensurate with his qualifications and experience. A person's earning potential is just as relevant as the hours spent at work. In order for us to better understand the phenomenon of underemployment in Singapore, I call on the Government to do the following. First, the Government can use the existing data it already collects and publish headline numbers showing not just unemployment, the headline numbers should include time-based underemployment and the numbers of demoralised workers, meaning those who have given up looking for work and, hence, dropped out of the unemployment statistics.[+7 sentences] Putting these three measures in headline numbers will ensure that public attention will be focused on these. Secondly, the Government, in time, should go beyond this to look into a substantive measure of underemployment and publish that. For example, employment income versus the median income for that academic qualification and age, or versus the previous employment income. This will give some idea of the extent to which people are downgrading expectations and taking up jobs that are below reasonable labour market expectations just to make ends meet. Madam, I believe that such additional measures will enable us to understand better the underemployment facing Singaporeans so that appropriate policies and mitigation measures can be put in place. Coming back to the Budget measures, what does this Budget do for workers who lose their jobs? There is an Adapt and Grow Initiative and the TechSkills Accelerator. Adapt and Grow is stated to be targeted at those who face greater difficulty in finding jobs and for mid-career jobseekers.[+8 sentences] The emphasis is on inducing employers to hire through wage support to the employers and on retraining and job matching assistance. These are certainly laudable, but it may take some time before the job seeker is able to find meaningful employment, through no fault of his own. As for TechSkills Accelerator, it is not clear whether it is meant only for those already from the information and communications technology (ICT) sector or has a broader catchment. However, it is very ambitious. I concede that I am no ICT professional, but TechSkills Accelerator assumes that technical skills learning can be accelerated. For simple level skills, that might be the case, but for specialised knowledge, I can imagine that it would take years of experience to master, just like other professions, say, engineering or law. Page: 63 In this economic transition, there are hardworking Singaporeans and their families being pushed into limbo. As a society, we should devise some safety nets to give them some peace of mind. To this end, the Government should look into the feasibility of introducing redundancy insurance. One model could involve requiring workers resident in Singapore and their employers to each contribute a very small percentage of the employee's monthly salaries towards a fund. The fund should be geared towards helping workers who undergo involuntary unemployment, meaning those who are made redundant, including those terminated with notice. The fund could gear towards giving a six-month payout at a fraction of the worker's last drawn salary, say, 40%, subject to a cap, say, based on the median wage. Such a modest scheme of limited payouts which end after six months will send a clear signal that only a temporary buffer is being provided, incentivising the worker to actively prepare to earn his own income again.[+9 sentences] Madam, such redundancy insurance has benefits for both the individual and society. For the individual, he would seriously have recourse to this buffer which he contributed to. He may not need to queue up at the social assistance agency and tap on public monies. He also need not grab the first job opportunity that comes along but be able to take a bit of time to hold out for a suitable job, enabling a better employee-to-job-fit and sustainability. Madam, this Budget emphasises the need for innovation which, in turn, requires people to feel secure. As pointed out by the panellists at the Economic Society of Singapore post-Budget roundtable, better cushions for the unemployed will also encourage more people to venture out on their own and become entrepreneurs, an essential element of an innovative society. Madam, economic restructuring and downturns from time to time will result in redundancies. It is also inevitable that if we succeed in our productivity and automation drives, people will be displaced from their jobs. We should devise a feasible scheme to tide our fellow citizens through these difficulties.
Mdm Speaker3 words
[+1 sentence]Ms Sun Xueling.
Ms Sun Xueling (Pasir Ris-Punggol)1570 words
[+7 sentences]Mdm Speaker, thank you for allowing me to speak in support of the Motion. This year's Budget stood out for the futuristic new economy it painted while taking care of the humanistic immediate needs of our families and our workers. A new world where robotics and other forms of automation become core factors of production, industries are transformed and local firms scale up and internationalise. But also a new world where our children benefit from the First Step Grant and the KidSTART programme, and our seniors get help through the Silver Support Scheme. There is a lot that we wish to do: to improve education and opportunities for the less advantaged, to take care of our elderly more and to have social safety nets to cushion Singaporeans impacted by a restructuring economy. In a world with unlimited resources, we can strive to do everything. But alas, we do not have unlimited resources. The sustainable solution to provide more resources for social spending is thus to grow the pie so that we have more to share.[+1 sentence] I would thus like to focus my speech today on the economy and I will take up issues pertaining to individuals and families in the COS debates. Page: 64 The scale of the issues that confront restructuring economies worldwide is not lost on us, and while the Minister for Finance urges us not to let pessimism take hold in the midst of difficult conditions, the need to act decisively and quickly is apparent, as he said, and I quote: "The global economic landscape is changing and our challenges are pressing.[+1 sentence] We have a narrow window. We must find every opportunity to transform, to emerge stronger in the coming years." The Budget contains a host of measures to hasten the transformation of our economy – the Automation Support Package, Financing and Tax Incentives to Support Scale-ups and even a Business Grants Portal to streamline grant applications for our firms.[+1 sentence] But these are supply-side mechanisms, and supply and demand forces are closely interwoven. In our policies to grow the economy, we should also emphasise demand-pull policies – policies that help create new markets and expand existing ones – and I would like to suggest that we can do this by upgrading the Singapore Inc model.[+18 sentences] The role of the Government is critical in the Singapore Inc model. The Jurong Innovation District and Smart Nation are initiatives which play a role in creating demand for new products and services and drive change through being lead users of technology. Together with the Punggol Creative Cluster, these platforms allow local technologies to be test-bedded and this opens up opportunities for exports if they are successful. And just as we had adopted a targeted approach in our early years of economic development, the need to identify core areas of competencies, strategic strengths and invest in our capabilities in them, has grown even more acute, given the increasing contribution of technology and knowledge to products and services. We need to build deep verticals and competencies, for only then will our products and services be sought after by international markets. We have existing competitive advantages and we should build on them. Some competitive strengths arose out of scarcity or needs that we have. Our land scarcity, for instance, led us to create giants in urban planning, infrastructure and city management solutions. Our water treatment competencies arose out of a need for self-reliance. Companies in strategic industries will continue to innovate and be competitive because the problems that they solve for are integral to us. As we embark on the Jurong Innovation District, Punggol Creative Cluster and Smart Nation initiative, new competencies will emerge. Exploration of the use of data analytics and seamless Internet of Things technologies will add to our urban solutions capabilities. Energy-efficient green buildings, urban greening or farming will add to our offerings as a green and liveable city. And with greater connectivity arising from Smart Nation, all our critical sectors of power, security, water, telecommunications, banking and finance, transport will be linked up, and competencies in cyber security will emerge to safeguard the resilience of our system. Next, we can look to grow markets by working with emerging champions. Our Singapore Inc model of economic development has always been one where we are open and aspire to work with the best in the world. By working with emerging champions − companies with leading technology or new business models that are rapidly disrupting traditional businesses and creating demand with their new products and services – we can share in their IP, people and networks and ride the megatrends with them. We can gain access to emerging champions via M&As or through partnerships. Singtel's recent investment in Trustwave, the largest independent provider of cybersecurity services in North America with a presence in Europe and Asia, is an example of how our companies can grow Page: 65 competencies via M&A and internationalise in new market segments quickly.[+4 sentences] Our corporates can also work with emerging champions via a partnership model as many emerging champions start out as small companies looking for partners to trial their products and services. To encourage such partnerships, our two economic agencies, EDB and IE Singapore, need to tie together more strongly the efforts of attracting inward-bound investments with internationalisation of our local enterprises. Our local enterprises need a booster. Another area that Singapore can leverage is in the speed and scope of our policy support. To give some examples, Uber was a $60-million company five years ago.[+2 sentences] Last year, it was worth $50 billion and had expanded to 63 countries − a growth of 800 times in five years. Airbnb was a $100-million company five years ago. Last year, it had grown to $24 billion and expanded to 192 countries − a growth of 240 times in five years The speed at which companies need to grow and seize market share in the age of disruptive technologies is a matter of life and death for them.[+9 sentences] A year in the lifecycle of a technology-driven company can be worth a difference of 10 times in valuation and the outcomes can be quite binary – all or nothing. As a small nation, speed of adaptation and adoption should be our strength. We had a Singapore Inc model of industrialisation in the past and we had put everything on the table to attract foreign direct investment (FDI). A one-stop window for speedy approvals to enable rapid startups was the key then. If we are to be an early adopter or test bed from which new businesses can grow, our policies need to react to companies quickly. This is the new tempo of the market. Our Government agencies need to adopt a faster process, perhaps a one-stop window, when looking at licensing requirements for new technology and business models. We can, and we should, upgrade our Singapore Inc model so that it is more likely that the "next big thing" grows from our shores. Lastly, we have always leveraged our role and connectivity in the region. The ASEAN Economic Community 2015 and China's One Belt One Road (OBOR) initiative, together with funding streams from the Asian Infrastructure Investment Bank (AIIB), give us a fresh opportunity to shape a narrative that puts Singapore in the centre of capital flows, international cooperation and development.[+4 sentences] We can leverage the promise of the Southeast Asian market to attract investments, partner players and internationalise. This is not a new concept. But changing geopolitical situations, changing trading patterns and a new narrative coming from China warrant a constant reassessment to see how best we can position ourselves. We are a key node along OBOR in the centre of Southeast Asia and we can be a gateway linking the South China Sea and the Indian Ocean Basin and be a place for businesses to embark on partnerships and expansion into the region. Further, China has become a net exporter of capital in 2015, with non-financial outbound direct investments exceeding inbound FDI.[+1 sentence] As China looks to Southeast Asia for opportunities, particularly in the area of infrastructure development and production capacity cooperation, Singapore can play a role as a project development hub and provide a financing platform for China's new initiatives. Already, the World Bank Group's Infrastructure and Development Hub and Page: 66 the Asian Development Bank's (ADB's) Asian Infrastructure Centre of Excellence are established in Singapore. We are a hub for various infrastructure funds and project finance banks, such as Standard Chartered, Sumitomo Mitsui, that have their project finance desks here and can work hand-in-hand with the likes of the Industrial and Commercial Bank of China (ICBC) to provide financing options.[+6 sentences] There are, of course, always risks in overseas projects, especially when commercial projects can be thwarted by diplomatic tensions and idiosyncratic problems. But what we can try to do is to focus on projects which have strategic value for us and provide services where we have expertise, as this will allow us better control of project risks. The new economy presents challenges. But there are strengths that we can leverage on, new partnerships that can be formed and new opportunities that we can seize. Our Singapore Inc model was one where we put our minds and our resources singularly behind the need to provide good jobs and a good standard of living for our people. We can and should upgrade our Singapore Inc model to forge a new path forward.
Mdm Speaker45 words
[+5 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 4.15 pm. Sitting accordingly suspended at 3.55 pm until 4.15 pm. Sitting resumed at 4.15 pm
Mdm Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)1500 words
[+8 sentences]Mdm Speaker, thank you for allowing me to join the debate. This year's Budget continues to strengthen the foundation for Singapore's future growth. It gives Singapore's longer-term economic transformation added impetus. Both businesses and workers need to transform for a new economic model. We need to help them to be ready for tomorrow. Much has been said about helping companies to transform. I will address how we must transform the way we help our workers, especially younger Singaporeans, to prepare for this new future. The Budget offers hope to industries and some individuals. Yet, against this backdrop, we also have recent news of much-touted companies in high-growth sectors, such as Rakuten and Double Negative, exiting Singapore. These are dark clouds for our workers, including our youths and millennials. A report by Randstad showed that our millennials are less confident about the job market and fear they may lose their jobs.[+15 sentences] Indeed, some already have a difficult time looking for one. Page: 67 Some of these youths have asked me, "With all this gloom, is there still a rainbow for me to chase after?" This reminds me of a recent encounter during a house visit with a young resident who is not more than 35 years old. He works in the manufacturing sector. Naturally, I asked him how was his job and if times were tough. Surprisingly, he said, "Yes, it is tough in the manufacturing sector but I'm okay." This is quite different from the many conversations I have had. Two years ago, because he was worried about job security in the traditional manufacturing sector, he started looking for alternatives. He chanced upon a write-up on 3D printing, researched into it and was convinced about the prospects of this industry. He tapped into his informal networks to understand more about the industry. He left the familiarity of his old job and got a new one with a 3D printing company developing prototypes. The company is doing brisk business and he is now doing well. He has found his rainbow and is riding a new wave of growth. Even in an industry beset with growth issues, there are many opportunities for those who can seek them. The question is: can we help young workers and millennials discover their own rainbow, especially when our younger Singaporeans will have more than one career throughout their lifetime and many students struggle with the paradox of choice? In essence, the future of employment facilitation must change.[+12 sentences] An industry-led integrated career counselling system can help. It starts from preparing students in schools, then to their workplaces so that they can constantly stay relevant to the global marketplace of jobs. The Ministry of Education's (MOE's) strong career counselling initiatives are a good step in the right direction. But there are two issues here. One, it is not possible for counsellors to have up-to-date knowledge on all industries. Two, the need to help these youths with career navigation post-graduation. MOE can partner the Labour Movement in the latter's broad economic representation to guide our youths in choosing the right paths. The Government can have the Labour Movement to run their career counselling services. This then allows students the opportunities to tap on the unions' extensive network to understand jobs and entrepreneurships through industry networking, workshops and workplace visits. Post-graduation, this relationship continues seamlessly into the Labour Movement's network of career development opportunities. We must also bridge the gap between training and industry needs. Jobs are being transformed so quickly that employers are finding it difficult to find workers with the right skills while, at the same time, students find their school knowledge quickly redundant once they step into the working world. I now come to the second facet of transforming employment facilitation. We need to broaden the adoption of the apprenticeship system so that, for certain industries, our youths are much better prepared for work.[+18 sentences] In the German and Swiss style of apprenticeship, students not only learn realtime industry-relevant skills, but also work habits from mentors. They also pride themselves equipping apprentices with problem-solving skills on the shop floor and not only in the classrooms. However, such schemes can be costly. Can the Government consider further incentivising companies, especially promising SMEs, to start apprenticeship schemes, as opposed to just internship programmes commonly implemented today? Employees and unionists can be trained to become certified mentors and appraisers. And because students and workers know that what they learn is practical, there is good career path, they will more likely stay on the job. We can create an ecosystem of continual training and upgrading that is truly win-win-win. In preparing workers for Page: 68 the future, a tripartite partnership is and will be an important catalyst. The proposed Industry Transformation Programme, especially in the ICT sector, embodies many important elements in helping workers to transform. Minister for Finance Mr Heng Swee Keat proposes for transformation through innovation and for innovation to be pervasive across all segments of society. This is a point well picked up by hon Member, Mr Thomas Chua, that there must not be sunset thinking and that change is needed in every firm, every segment, and he used the food industry as an example. Indeed, he is right on the mark. We need pervasive innovation to help our workers to get good jobs continually. The ICT sector will be an apt sector to test bed new ideas and catalyse innovation. Furthermore, Minister Heng's proposal for the ICT sector addresses many of millennials' desire for continual innovation, definable skills level and broad-based level application of their skills. For example, the TechSkills Accelerator programme would identify the skills needed in the industry, match them with specialised training providers and chart a clearer path for careers in the sector. The success of the ICT sector is, indeed, critical because ICT skills and innovation are strategic competencies for Singapore. They are the engine of value creation and growth. In ensuring the success of this ICT transformation, I would like to encourage the Government to consider enhancing two key areas: one, stronger employment facilitation; and, two, care for workers. It was announced that the ICT sector will offer 15,000 jobs over the next three years, thereby providing many opportunities for Singaporeans. To ramp up our national capabilities quickly, we should fill these jobs not only with new entrants from the Institutes of Higher Learning (IHLs), but also from millennials seeking career changes and displaced mid-career information technology (IT) professionals.[+1 sentence] Yet, we all know that competencies, such as data anaIytics, cybersecurity and applications development, require extensive and lengthy training. How will the Government help working Singaporeans to maintain their income while working towards these new competencies?[+13 sentences] How can we help the displaced professionals to quickly get into these new jobs? How can we scale up the professional conversion programmes? To our workers, a good career is not only a challenging one that brings back the bacon, but also where there is relative security. For the ICT sector to attract local talent, our workers in the industry can be afforded better employment security. The Singapore branch of Double Negative was responsible for some of the visual effects in several Hollywood blockbusters, such as "Man of Steel" and "The Hunger Games". It was, indeed, an important symbol of a thriving media ICT industry. Yet, its departure was sudden. It was not a unionised company and workers were offered retrenchment terms less than market practices. The young employees' faith in the sector might be shaken. It is certainly much easier for technology and media companies like Double Negative to uproot itself, compared to a manufacturing plant. It is also true, lest we forget, that the only job security is not unemployment or redundancy insurance, but value-add and mobility. Therefore, how can we put in place strong employment facilitation and reassure our workers that this is a good industry despite its volatility? I encourage the Government to work with the Labour Movement to better provide workplace support and care for workers. While the proportion of resident-to-work-pass-holders in the ICT sector is reflective of other sectors in Singapore, we note that one-third of them are foreign work pass holders.[+1 sentence] Out of this group, most of these are Employment Pass holders holding on to good jobs. While a Singaporean Core is one that taps on the diversity of skills of that industry's workforce, how can the Government Page: 69 work towards ensuring that young Singaporeans are not crowded out of good jobs?[+4 sentences] Perhaps what is most critical, beyond good school-to-work preparation and apprenticeship systems, we need our millennials and Generation Z to have that sense of adventure and gumption to take on the world. We need to have the mindset that even in a period of slow growth, there can be many bright sparks, if we choose to look for them. There are rich findings for those who decide which rainbow to pursue and work at it with gumption to make it truly theirs. With this, I support the Motion.
Mdm Speaker4 words
[+1 sentence]Dr Teo Ho Pin.
Dr Teo Ho Pin (Bukit Panjang)1100 words
[+8 sentences]Mdm Speaker, I rise in support of the Budget. I support the key thrusts of the Budget in forging strong partnerships to transform our economy and build a caring society. The Finance Minister has highlighted that our economy and ageing population are facing new challenges. He has emphasised that we must find new ways to grow our economy, educate and train our people, and forge more partnerships to encourage firms and community organisations to work together to take care of Singaporeans. Given the complexity of these new challenges, I agree with the Finance Minister that we need to adopt a targeted and prudent approach to help our businesses, workers and seniors in our community. First, supporting SMEs. Madam, we must support our SMEs. Global competition and fast-changing economies have affected our SMEs adversely. Many SMEs face challenges, such as lack of business opportunities, high financing and business cost, and difficulties with retaining talent.[+10 sentences] As a result, many have closed their businesses while others struggle to sustain their business operations. Madam, I would like to propose three suggestions to help our SMEs. First, help SMEs to identify business opportunities. The Government can increase its efforts to provide SMEs with information on emerging markets in our region, including information regarding the ASEAN Economic Community, free trade agreements and new industry growth clusters in Singapore. A business opportunities portal can be set up to provide updated information on new business opportunities both in Singapore and the region. More seminars, workshops and networking sessions can be organised by various Government agencies, together with trade associations, to provide more opportunities for SMEs to meet up with MNCs and GLCs operating in Singapore and overseas. Furthermore, incentives can be given to bigger firms to adopt and nurture SME subcontractors for long-term partnerships. This is a practice in Japan where MNCs have long working relationships with their subcontractors. Some MNCs provide scholarships to the children of their subcontractors' employees or owners, so that these children can continue to run their family businesses and support the MNCs. Two, help SMEs to improve productivity and the quality of products and services. As highlighted by the Finance Minister, productivity growth has remained flat despite the high take-up rate of PIC grants. Many SMEs are simply using PIC to replace their old machines and add new ICT devices without restructuring their work processes to improve productivity.[+24 sentences] Page: 70 We need to ensure that the use of PIC grants will actually increase production capacity or reduce manpower or improve the quality of products or services. We must focus on helping SMEs achieve quality growth and develop niches to remain competitive. To further improve the business processes of SMEs, the Government should partner trade associations to develop and document best business practices. This will raise the overall skill levels of our workforce and shorten the learning curve of new staff. Three, help SMEs to recruit and retain talent. SMEs face tremendous difficulties in attracting and retaining talent to ensure continuity and quality of their products and services. The turnover of staff has also made it difficult for SMEs to build capabilities and grow. With a tight labour situation, it will be more difficult for SMEs to attract talent to restructure and grow. I would urge the Government to help SMEs attract and retain talent. This could be in the form of Government-funded co-payment of SME scholarships or gratuity performance and loyalty bonus for long-serving staff, for SMEs to reward and retain their staff. Next, supporting SkillsFuture. Madam, in today's fast-changing economy and technology, it is important to nurture a culture of learning amongst Singaporeans. In schools, students must be given more opportunities for experiential learning, such as service learning projects, internships and applied research projects. This will narrow the gap between theory and practice, and enable our graduates to be more industry-ready when they enter the work environment. As for working adults, they face various challenges in upgrading their employability skills, such as language barriers, family commitments and even lack of support from some employers. We must find new ways to facilitate and encourage SkillsFuture learning among workers. I would like to propose that we set up centres of excellence for SkillsFuture learning, in partnership with trade associations and professional bodies. These centres of excellence must be conveniently located for easy accessibility. For instance, the centre for excellence for finance must be at our business and financial district. In addition, some schools within HDB housing estates can be designated as SkillsFuture centres for generic skills training, such as language, IT or office administration skills. Next, building a caring society. Madam, building a caring society requires the contributions of every Singaporean in our society. Singaporeans who are more able must step forward to lend a helping hand to those in need. Companies should exercise more corporate social responsibility and do more for the community. As reported in The Straits Times on 26 March 2016, 97 charities were de-registered between 2010 and 2014 due to difficulties in getting staff, volunteers and donations.[+1 sentence] This is, indeed, a big setback in building a caring society. To date, there are over 2,000 charities in Singapore.[+8 sentences] Many of these charities are small outfits with limited capabilities. I urge the Government to consider merging or clustering the charities so that they can enjoy better economies of scale and develop capabilities to sustain their operations. Rather than having many charities scattered all over Singapore, it may be more efficient to co-locate them to support various towns. Furthermore, these co-located charities can consider providing "mobile services" to serve more people, especially those with mobility problems. Madam, as the saying goes, "Health is Wealth". There is no point building a wealthy Singapore if our people are not healthy. Without health, Singaporeans will not be able to enjoy the fruits of Page: 71 our labour and have a good quality of life. Madam, I have been advocating a healthy lifestyle for Singaporeans for many years. At the North West Community Development Council (CDC), we have set up hundreds of healthy lifestyle clubs for our residents. In this regard, I urge the Finance Minister to consider setting up a Healthy Lifestyle Endowment Fund to support organisations which champion a healthy lifestyle. Promoting health among Singaporeans will improve their quality of life, increase their productivity at work and reduce the healthcare expenditure of our country. A healthy ageing population will also reduce the financial impact on families and reduce the tax burden for future generations.[+1 sentence] Madam, I hope the Government will place more importance on promoting a healthy lifestyle among Singaporeans over the next 50 years.
Mdm Speaker3 words
[+1 sentence]Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh)2361 words
[+1 sentence]Mdm Speaker, I join in the chorus of hon Members who congratulate the Finance Minister for presenting a Budget that will help our economy innovate and ready it for the future. It is a Budget that addresses the needs of the business community, especially those in the oil and gas industry and the oil-and-gas related industries – a sector that has seen a sharp decline in business conditions in line with the fall in oil prices.[+1 sentence] Many have had to downsize and recalibrate their business model. Budget 2016 aims to balance the need to sustain reform with short-term counter-cyclical measures to support slowing growth.[+6 sentences] The prudence of the Budget is apt as it keeps some dry powder for potential off-Budget measures, if needed. It is also a Budget with a social focus, extending help to the lower-income groups, families with children and the elderly, but also professionals, managers, executives and technicians (PMETs) to some extent via or through efforts helping to adjust to changing circumstances. These are groups that are especially affected both by the cyclically slowing economy and by the structural shifts affecting a number of sectors in the economy. Some may say this Budget is sombre and lacking in "goodies". But I think otherwise and believe that, in the context of past Budget measures which are still being implemented, this Budget is measured and well-calibrated to take on the storm. The Singapore economy is in transition and some in the workforce are experiencing rising incomes and even employment volatility. We have focused a lot on the medium to long term and they are very valued measures. But at this point, I would like to suggest that we relook at the option of moving to a current year pay-as-you-earn (PAYE) basis of income tax assessment as an automatic economic stabiliser.[+9 sentences] This issue has been discussed slightly more than a decade ago by some economists. I refer to the summary report of a workshop on "PAYE Taxation System" jointly organised by the Institute of Policy Studies (IPS) and the Economic Society of Singapore (ESS) on 23 October 2004. While discretionary fiscal or Budget measures we are seeing now could be seen as a macroeconomic stabilisation tool, its effectiveness may be limited by the long lags between fiscal policy decisions and their impact on the economy, and also the difficulties in determining the optimal amount of Page: 72 transfers, disbursements and rebates. Ultimately, the aim here is to do a little bit more from a tax payment perspective to allow Singapore to have a slightly stronger foundation to better withstand global economic shocks. The rationale for considering the current year basis is to enhance the effectiveness of the tax system as an automatic stabiliser and to help taxpayers better manage their cash flow by matching tax payments and incomes. Indeed, a shift to the current year basis could increase the compliance burden of the tax system, cause uncertainty for some taxpayers, and also reduce cash flow flexibility for others. An accurate system of assessing current year income is also important for a successful PAYE scheme. But the macroeconomic benefits of shifting to a current year system or scheme may have added support now as, under the preceding year basis, tax is paid on income earned in the year before – which would hit the newly retrenched or those who just had a pay cut or even those with a wage freeze amidst rising costs. It is likely that as we restructure and face increasingly volatile global business cycles, income streams for both individuals and companies will become more unpredictable, making it more difficult to plan for deferred tax payments as per preceding year basis. Successful countries which have successfully transitioned to the current year basis tax system include Australia and Malaysia.[+7 sentences] It may yet be too soon to react and stave off a recession. And yes, we are not in sight of a recession but we may see zero growth and, with this, comes cyclical and, potentially, structural unemployment. We need to monitor very closely the pattern of retrenchment and shuffling of workers. We must ensure that the connection between hard work by Singaporeans and the fruit of their labour remains intact. For example, those who have been toiling day after day at the shipyards, factories, hotels, retail stores, offices, banks, trading houses and airports should not be unfairly treated. We must not allow foreign employers to furtively downgrade and reshuffle local staff under the guise of economic restructuring such that they create openings in senior ranks for expatriates to take over from the locals. To those who harbour such intentions, let this be a shot across the bow. Even as we help to support our people through change in this Budget, I strongly urge the Government to give more bite to the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) to reinforce what measures we are doing now for the medium to long term.[+12 sentences] And I have mentioned this in my speech during the Debate on the President's Address. I am all for introducing wider laws to protect against discriminatory practices. Our entrepreneurs and their businesses are one of our engines of growth. We are right in giving them assistance. All said, our economy inevitably transforms, and they, too, have to transit and shift their mindsets. As a senior oil trader told me, I quote: "If I can't sell one petroleum product because of market change, I will look for other products to trade. There is a long chain of by-products from a barrel of crude and it requires the same skill set except that I have to learn something new, get out of my comfort zone, understand the next product and its uses, its price and market share, and start to go overseas to talk to new customers." And that is the entrepreneurial mindset. We also have many small entrepreneurs and these include retail outlets in the HDB heartlands. Already we have seen the demise of the mom-and-pop shops. Let us not allow our town centres to turn into shuttered centres. I hope the Government will look into sustained measures to revitalise these centres. One thought that comes to mind or a simple quick way is to lower or make free parking charges at town centres during lunch hour, especially for those which are not located in populous or popular neighbourhoods. HDB could also look into actively managing the tenant mix Page: 73 at these centres, so that there are wider and more attractive choices to draw customers.[+18 sentences] I also applaud the Budget's focus on "transforming through innovation" by creating an open and innovative urban environment. I hope we can see more JTC efforts to agglomerate certain industries together leading to innovative and sustainable infrastructure solutions which may bring about overall cost savings for businesses. Similarly, I am especially excited about the "blue ocean" approach to pioneer new industries and create the industrial park of the future at Jurong Innovation District. I do hope more of this can be replicated in other areas in Singapore, hopefully, maybe in Toa Payoh. But I think that is a bit of a stretch. I believe that by creating the right environment, we can turn it into the right ecosystem for an innovative and creative industrial sector. From the workers' standpoint, this Budget's social measures do have a sharp focus on helping low-wage workers relative to PMETs. However, the vulnerable group in this current environment of structural change would also include those who are in their mid-careers and higher up the corporate ladder. They are graduates, earning higher salaries, in their 40s and are often targeted for lay-offs as part of cost-cutting measures. Others are let go because they become redundant as their skills are no longer relevant or required. This applies also to those who are non-graduates, diploma holders. They would have housing loans, renovation loans and car loans to service. And then there are children's school fees, school transport, three square meals a day for the family. These are very daunting demands when you do not have a job. Some are already retrenched and taking jobs with lower wages. A small number would have taken up driving taxis or joined the Uber or GrabTaxi operators. A few more were fortunate enough to find jobs but in postings overseas. They have to sacrifice family togetherness in order to stay afloat. They become Singaporean expatriates, a small but growing breed. So, I urge the Government to look into recruiting more mid-career people and give priority to those who were retrenched.[+10 sentences] Also, I hope that the Government and society do not discriminate those who hold part-time degrees. Instead, the Government should regard them as people who took up the torch to improve themselves at their own pace. They are the lifelong learners and their attitudes and spirit should be encouraged. Mdm Speaker, in Malay, please. (In Malay): Singapore's economy may be facing challenges currently, but at this point in time, it is not experiencing a downturn. In addition, there is unequal growth amongst all the sectors, with several sectors still seeing growth opportunities. In view of this context, the 2016 Budget aims to ensure that Singapore is able to withstand current uncertainties and drive the nation's economy towards a new phase of development for future growth. This Budget also builds on the successes of the last 50 years. The Finance Minister has emphasised the importance of the "Spirit of Partnership" that will drive Singapore's growth and help to transform the economy through innovation and industry, and build a caring and resilient society. Workers, business owners, the people and the Government must also work together to build a brighter future for Singapore. The three main thrusts of this Budget are: one, a growing fiscal spending alongside a prudent Budget; two, the Industry Transformation Programme to create new value and spur growth; and three, to support firms and our people in facing present challenges, including demographic, cyclical and structural changes that are ongoing.[+2 sentences] There is also a focus on increasing awareness to ensure that Singaporeans can adapt and gain access to new opportunities. Generally, this Budget shows a commitment to support businesses and industries because they are facing pressures Page: 74 currently. Malay/Muslim firms can still receive benefits from measures introduced during the previous Budget, including wider support through the Transition Support Package. But I urge the Malay/Muslim companies to, if possible, make use of the support given through the Industry Transformation Programme and the Automation Support Package to increase their restructuring efforts because the opportunities to compete are growing smaller.[+7 sentences] China and other nations are becoming more competitive and we are also facing the issue of an ageing population and the presence of disruptive technology, which will challenge the way firms conduct their businesses. In addition, I hope that our Malay/Muslim Chamber of Commerce and Industry will receive benefits from the LEAD+ programme to build on their capabilities. I hope, in future, the chamber of commerce can play a more important role to help Malay/Muslim firms enhance their contributions in the global value chain, become more productive and seize opportunities overseas. The third thrust is helping our people cope with the changing demography and economy, by learning new skills. This is important because, during my Meet-the-People sessions and the recent dialogue sessions at MENDAKI Social Enterprise Network Singapore (SENSE), I found that many people within our community are aware of SkillsFuture but are still unsure how to apply and which courses they should take. We must increase efforts to inform the community about the transformation of the economy in the future, the skills that are needed and also how to take advantage of the national SkillsFuture movement. In addition, the increasingly challenging job market has also motivated many of our Malay workers to upskill while many also lost their jobs in certain sectors. If we look at the situation in the current job market, 40% of those seeking jobs through MENDAKI SENSE in 2015 are those with GCE "N" and "O" level certificates as their highest qualifications. Another 30% possess either the Institute of Technical Education (ITE) or diploma qualifications. If this trend goes on and the spectre of an economic downturn becomes a reality, it is very possible that this will have a cascading effect on the economic status of Malay/Muslim families. It is hoped that the Adapt and Grow as well as the TechSkills Accelerator initiatives, will help our rank-and-file workers and our PMETs in general, and in the IT sector, to adapt in terms of seeking jobs and upgrading to the necessary skills, as well as work with accredited employers. The 2016 Budget's focus on economic policies is also balanced by welfare assistance and income support for the elderly, low-wage workers and the young, as well as general measures to help households cope with the cost of living. I hope that the Government's assistance through the First Step Grant can be extended to single mothers so that their children, too, can receive the benefits.[+1 sentence] To me, this is important because their children are also Singaporeans. In addition, I welcome the Fresh Start scheme and hope that the conditions stipulated for families to receive the grant will not be too strict.[+7 sentences] Finally, for the low-income elderly, there is the Silver Support Scheme, and while the upcoming community network for the elderly is a good measure, nonetheless, I hope that some flexibility can be given, for instance, to those who may be living in a bigger flat, but do not have savings, or family support or have no children. There is a small group of elderly who needs help, who may not fulfil all the criteria for Silver Support and should not be left out. (In English): This Budget calls for partnership among all parties: labour, employer and the Government. I am confident that our workers will be more flexible and resilient under difficult circumstances and be prepared to make adjustments. Just as employers and the Government adjust to adapt and grow, all Singaporeans, too, can do so. On that note, Mdm Speaker, I support the Motion. Page: 75
[+9 sentences]Mdm Speaker, I rise in support of the Budget. Just this morning, I caught up with 24 Barclays' staff who are professionals, managers and executives (PMEs), both young and not so young, who are going to be retrenched in the next few months. I share their fears and concerns. In fact, in the past weeks during my weekly house visits, many Boon Lay residents, including PMEs, I spoke to are troubled by the outlook in their companies. They lament that there is a sharp slowdown in orders and the amount of work to be done. Unions and union leaders, too, are concerned as some are seeing companies fold while some are negotiating retrenchment settlements. The mood is, generally, one of uncertainty and doubt. The Ministry of Manpower's (MOM) unemployment statistics are clear. PME unemployment stands at about 2.7%. In fact, last year, we saw a record of more than 15,000 retrenchments and layoffs, and 71% of them were PMETs. I am expecting things not to get rosier this year; well, at least for the first half of this year. What is so unique this round is that it will not just be cyclical forces alone but also structural.[+4 sentences] Worse still, it is coming at a point when Singapore is embarking on economic transformation and restructuring, having a relatively flat-line productivity the past few years, an ageing workforce, a tight labour market and slower employment growth. Not every industry or sector is hurt and bleeding, but some sectors are already bearing the brunt of low oil prices, currency fluctuations, market uncertainties, recalibration, consolidation and a generally weaker global demand. Unless we do something resolutely and proactively, we may have to face the worst before it gets better. Some used to say that globalisation destroyed many blue-collar jobs but, these days, technology is threatening the PMEs, otherwise known as the middle class or sandwiched class. They are no longer immune because of job obsolescence, disruptive technology, shared economy, crowd sourcing and the Internet of Things. I am glad that strategic plans and measures have been rolled out via SkillsFuture last year and the relentless efforts this year to transform our economy through enterprise and innovation via the Industry Transformation Programme. I support the Budget and applaud the Adapt and Grow initiatives announced by Minister Heng.[+54 sentences] However, I am particularly concerned about how we can support our people through this rough patch of change and uncertainty. I would also like to thank hon Member Ms Sylvia Lim who earlier reiterated the call which I made in this House over the past few years to further examine and relook underemployment as well as unemployment insurance. The Government can spend tons of resources and come up with a buffet of programmes but at the end of the day, it takes two hands to clap but more than just two hands to make a resounding applause. Employers and businesses across various sectors and industries must believe in the same cause and embrace change before change embraces them. Our workers and unions need to stay future-ready so as to navigate, weather through and rise above the storm. The Government needs to provide the systems and supporting structures to facilitate, encourage and catalyse. Page: 77 Society, too, must be receptive to changes, abandon old paradigms and adopt major mental model shifts. In these uncertain times and as we navigate through the peaks and troughs, we need to develop what I call "3R" employers and a "3R" workforce. So, what are "3R" employers? They are employers who are revolutionary, responsible and ready. The first "R", revolutionary. We must move from evolution to revolution. Employers and businesses need to be revolutionary in incubating and executing ideas to embrace change, technology and innovation to achieve breakthroughs, enhance and develop new capabilities to stay ahead of the game. An example would be the use of drones to access hard to reach areas instead of risking human life and yet achieve time, cost and manpower savings. The second "R", responsible. Employers must be responsible and go beyond that to be progressive in human resource practices and harnessing our human capital. It is imperative for them to establish good and sound employment and industrial relations. In unionised companies, they must foster strong union management relations through trust and openness. Responsible such that when they restructure and need to lay off workers, they do it responsibly and in accordance with accepted codes and tripartite guidelines. A good example is not laying off workers just before a festive period, such as Chinese New Year, Hari Raya or Deepavali. Another would be the payment of retrenchment benefits when there is an industry practice to do so. Hiring such that they focus on developing a strong Singaporean Core, they must eradicate all forms of discrimination or biasness, especially with regard to age and the attitude towards both mature and older workers. The third "R", ready. Ready to redesign work processes and recreate good quality jobs to attract and retain the people and navigate the new labour and employment landscape. Ready to overcome the new norms, challenges and competition that lie ahead. What is a "3R" workforce? It is a workforce which is relevant, resilient and ready; not just the workforce but also our unions and the Labour Movement. The first "R", relevant. Relevant amid the rapidly changing employment, economic and global landscape of change and development. Relevant to the needs of the company, profession and industry. Relevant in the new economy of future jobs, future skills and future careers. Relevance can be achieved through a spirit of lifelong learning and continuing education. To learn, unlearn and relearn. To deep-skill, second-skill and develop pi-shaped skills. Unions and the Labour Movement must stay relevant to workers of yesterday, today and tomorrow. This can be achieved through our unions stretching the scope of representation and expanding our membership base to PMEs so that we can look after their interests and welfare. However, we need all employers to support us on this front. We also need to expand our reach and build bridges with professional associations, such as our current 32 U-Associate partners, to build a stronger value proposition to PMEs, helping them progress in their careers and profession and creating a network of excellence and building our U-circle of friends. We are also exploring ways to be the voice of professional freelancers. Page: 78 The second "R", resilient. We also need to stay resilient. This is especially crucial during this period of uncertainty and rough patches in certain sectors. Our workers must stay resilient to ride through the global transformation of work, economic restructuring and industry transformation efforts. Resilient also to weather through greater uncertainty in terms of employment and to move into new jobs and new sectors. We need both new mindsets and new skillsets. Lastly, we need to be ready. We cannot just be ready for now but ready for the future. I recently had a dialogue with a group of 40 PMEs to ask them what they define as being future-ready. The answers actually vary, depending on their life stages. For the young PMEs, future-ready means being equipped to progress, develop and move up in their careers. They are not looking at 10-year time-frames. It is much shorter than that. For the not-so-young PMEs, they consider job stability and security, that is, employment and employability, as crucial tenets of being future-ready. In short, we need to be ready to Do More, Grow More and Be More! On the part of the Government, the Adapt and Grow initiative should address our current challenges and the pressing needs of our workers, especially our PMEs, as we row across choppy waters.[+1 sentence] I have three suggestions. First, enhancing the existing Career Support Programme (CSP) to give a boost to hiring our Singaporean PMEs. This can be done by widening its outreach, stretching its coverage and deepening its assistance to all PMEs, especially the mature PMEs as well as all PMEs regardless of age who have been retrenched or are unemployed.[+3 sentences] I say this because many employers are unaware of CSP. The current criteria also do not address those PMEs who are under 40 years of age and have lost their jobs. In short, the wage support can be more generous during this rough patch. Second, strengthening the Singaporean Core by wielding a heavy hand against recalcitrant companies with the ‘"double weak" and which turn a deaf ear to scrutiny and warnings.[+3 sentences] Take to task, with more robust measures, those who treat the Fair Consideration Framework job advertising requirement in the jobs bank as mere lip service and window dressing. Third, we can also go beyond Professional Conversion Programmes to any tailored targeted programmes with flexibility of interventions which can help minimise skills mismatch, jobs mismatch and expectation mismatch. Fourth, set up a support network for these unemployed and retrenched PMEs so that they do not fall into a deadly spiral of despair and depression. NTUC's U PME Centre has piloted this for one year and is called the Career Activation Programme.[+3 sentences] The programme is supported by a team of career activists who are volunteer PMEs who have faced job losses and who have been through the school of hard knocks and have now succeeded. We have achieved small but steady successes but, more importantly, this support network has helped to boost the self-esteem and morale of the dejected and pessimistic, making them more positive and career-ready. To conclude, Mdm Speaker, I support the Motion and look forward to specific details of the policies and programmes by the respective Ministries, especially MOM, during the COS, to help my fellow workers especially the PMEs.
Mdm Speaker6 words
[+2 sentences]Mr Chong Kee Hiong. Page: 79
Mr Chong Kee Hiong (Bishan-Toa Payoh)1278 words
[+3 sentences]Mdm Speaker, the Finance Minister had announced a prudent Budget in the face of a number of constraints. Last year, we had lower revenue contribution from the traditional three main sources – corporate and personal income taxes and Goods and Service Tax (GST) – due to slower economic growth. The revenue contributions from these three sources are expected to be similar or less in 2016. One of the things that jumped out in Budget 2016 was the huge increase in the projected Net Investment Returns Contribution (NIRC) to $14.7 billion. Without NIRC, the 2016 Budget will be in deficit of $11.3 billion.[+3 sentences] In addition, the dark clouds hovering over the global economy is a stark reminder to spend within our means and save for rainy days ahead. Our open economy is vulnerable to external shocks. As the Minister had cautioned, we will meet strong headwinds. For 2016, MTI has maintained the GDP growth forecast at only 1% to 3%.[+6 sentences] While I agree with the Minister that we are coming from a position of strength and should not be overly pessimistic, I am quite concerned. Although our public finances are healthy, our social development expenditure has been growing at a faster rate than revenue growth. With a maturing economy and ageing population, expenses will increase and our fiscal position will be tighter. Whatever schemes we push out, such as the Silver Support scheme, has to be sustainable over time. How shall we sustain our ever-increasing social expenditures? The way forward is to increase our revenue pie through pursuing economic growth which I have touched on in the debate on the President's Address. To prepare for the future, the Government is investing more in infrastructure development, including healthcare, public transport and Changi Airport, upgrading Singaporeans through SkillsFuture, pumping more funding into research and development (R&D) and placing a stronger emphasis on technology adoption and innovation. It was announced in January this year that our Government's science and technology research budget will rise to a record of $19 billion in the next five years. This works out to be roughly $4 billion each year, which is around 1% of our GDP, comparable to the US' spending on R&D.[+31 sentences] In comparison, South Korea, Japan and China's investments in R&D are 4.3% in 2014, 4% in 2016, budgeted, and 2.05% in 2014 of GDP respectively. Apple alone spent US$8.1 billion in 2015 and Samsung spent US$13.8 billion in 2014. While I fully support this enormous investment in R&D, I would like to urge the Government to consider investing even more in science and technology R&D. This is because we have seen how technological development in robotics, automation, artificial intelligence and ICT are already disrupting business models around the world. To reap the benefits of this new Industrial Revolution 4.0, not only do we need to utilise and harness its power, we also have to develop, create and own the patents and IP rights in these segments, too, as profits will accrue to the owners. It is not easy for our local enterprises to do these on their own due to their smaller sizes. Where some of our local enterprises have achieved nascent success, larger and more established foreign competitors would naturally be interested in acquiring them. But is that the best option? We need Government support, both in funding and in collaboration with local and foreign researchers and universities, as well as foreign firms and for a longer period of time so that these Page: 80 local enterprises could grow to a size that can establish them as significant international players in their own right with a Singapore brand. But here lies another question: is it possible for us, with a rapidly ageing population and a workforce better known for reliability and efficiency, to become creative and innovative? Funding support for innovation is very important. But even more important is our culture. What we need to do, and quite urgently, is to change our attitude and mindset. Creative ventures and setting up businesses require guts because you are putting your own money, time, resources and reputation on the line. We have been trying to encourage risk-taking among our researchers and enterprises for years. As they say, if you want to take on projects in unchartered grounds, "Do not ask for permission, ask for forgiveness afterwards." Is our society ready to forgive a little more easily and make it easier for those who dare, to pick themselves up when they fall and try again? We await the day when we have people comparing how many times they have failed and are still trying, instead of which company they are working with. Supporting our people to overcome challenges and seize opportunities is our investment in SkillsFuture − equipping our people with the right skill sets to work in our new restructured economy. SkillsFuture is a fantastic scheme which encourages individual Singaporeans to take ownership for their own upgrading and career development. A number of my residents have expressed concern over their abilities to relearn and retrain for different job functions or industries. I would like to take this opportunity to share a story reported in this year's 3 February issue of Bloomberg, titled "Appalachian Miners Are Learning to Code". Jim Ratliff worked for 14 years in the mines of eastern Kentucky, drilling holes and blasting dynamite to expose the coal that has powered Appalachian life for more than a century. Today, he rolls into an office at 8.00 am, settles into a small metal desk and does something which, until last year, was completely foreign to him: computer coding. The coal market began to collapse in 2011 and forced five major producers into bankruptcy. This had hit the miners of Appalachia very hard. The miners had to find alternative jobs and a number of them turned to computer programming, one of the few growth sectors they could identify. I find this example particularly inspiring. They prove that with the right support and attitude, it is never too late to relearn, retrain and restart a new career. Mdm Speaker, next on addressing near-term concerns. I declare that I have interests in the hotel and food and beverage industries. While I appreciate the deferment of levy increases for Work Permit holders in the marine and process sectors for one year, as well as maintaining the manufacturing Work Permit levies for another year, I feel that these should be extended to the services and construction Work Permit holders as well.[+5 sentences] The fact remains that Singaporeans are not keen on jobs in these sectors and employers have difficulty recruiting enough staff. During a recent coffee shop visit, a stall owner reflected that he is unable to secure cooks for his zi char, which is a cooked food stall. Singaporeans that he interviewed wanted shorter working hours and long holiday periods. Separately, I was told a parent wrote in to the human resource department of a hotel to request that her daughter not to have to work the night shift. These are businesses that hire both local and foreign workers. In this uncertain business climate and with Page: 81 near-term cyclical weaknesses, we ought to act proactively to support these businesses by deferring the levy increases by one year. On a broader front, would the Ministry work with Trade Associations and Chambers (TACs) to look into setting benchmarks and controlling either the quota or the levy instead of both simultaneously? This will give businesses more flexibility to drive their business and to have a better mix in the number and type of foreign workers they can employ.[+1 sentence] With this, I would like to conclude with my support for the Budget.
Mdm Speaker4 words
[+1 sentence]Minister Chan Chun Sing.
The Minister, Prime Minister's Office (Mr Chan Chun Sing)5311 words
[+16 sentences]Mdm Speaker, thank you for allowing me to join the debate and share the Labour Movement's perspectives on this year's Budget. This year's Budget comes at a time when the mood in Singapore is rather sombre. When we walk the streets and talk to our workers across all industries, the things that are uppermost on people's mind are as follows. One, will I still have a job by the end of this year? If I do, will I have any pay raise, if I am fortunate enough? If I lose my job at the end of this year, will there be another job looking for me? Times have changed, and times have changed very quickly. It was not so long ago that people were choosing their jobs. But the mood has turned around very quickly. The next question that both businesses and our people ask is this: is the current economic slowdown a cyclical or a structural issue? Recently, during the festive period, I had the fortune of driving down Orchard Road. And I always make it a point, when I drive down Orchard Road, to look at the taxi queues. I try to make a mental comparison of the length of the taxi queues with those of last year's or the preceding months. I try to make a mental count of the number of big bags that the people in the taxi queue are carrying. I noticed that the queues are shorter and the bags are fewer. So, the question in front of us is: is this a slowdown where, sooner or later, the same business model will allow us to pick up steam again and life will be back to normal? My conclusion is that the current slowdown is both cyclical and more fundamentally, structural.[+12 sentences] The taxi queues might have gotten shorter and the bags fewer because people are more careful with their spending now. And the taxi queues could also have gotten shorter because Uber is competing with the taxis now. The number of bags may have gotten fewer because people are buying less. But a friend told me that he tested the online shopping delivery time. It has gotten longer. That suggests that it is not just a cyclical slowdown but there is perhaps a more fundamental shift in the consumer pattern – from physical offline shopping to online shopping. If that is the case, the question is how should we respond to this? I will come back to this in a short while. Some workers have commented that this year's Budget did not seem to speak too much about training. There was a lot of news about the $4-plus billion that we are going to spend to restructure our economy. So, some workers asked me: has the Finance Minister forgotten them? My answer is no. Page: 82 If I may borrow a quote from Minister Lim Swee Say. Last year, we embarked on SkillsFuture and we committed more than $1 billion to upgrade the skills of our workers.[+1 sentence] And we have barely started. We, in NTUC and the People's Association and many service providers, are ramping up relevant courses to meet the needs of our workers. So, yes, we have committed $1 billion as a first tranche to try and get ourselves up to speed with the skills of the future. This year, the focus is on trying to create jobs of the future.[+8 sentences] And as Minister Lim Swee Say would say, "Only when we have skills of the future, plus the jobs of the future, will our workers have careers of the future". So, I do not see this year's Budget in isolation. I think we should see this year's Budget as an ongoing continuous effort to restructure our economy and upskill our workers so that we can all have careers of the future. This is where we are today. Many workers have given us feedback that they are very appreciative of the Ministry of Finance's (MOF's) effort to expand and extend SEC, the Workfare Scheme, the Silver Support Scheme and the Professional Conversion Programme. Indeed, we are very thankful that we still have the means to do all these schemes. But I would certainly agree with the hon Member Assoc Prof Randolph Tan who spoke earlier that we need to ask ourselves what is our definition of success for these schemes. For the Labour Movement, the definition of success for all these schemes is not in the continuation or the continuous expansion and extension of these schemes. Our mark of success is that in time to come, we are able to slowly, but surely, wind down the proportion of workers who are dependent on such schemes.[+13 sentences] The true mark of success for all these schemes is not the schemes themselves, but for us to work upstream to make sure that as few workers as possible are reliant on these schemes. This suggests that we have to go upstream to do many more things and not see the expansion of these schemes as a mark of success. So, at this point in time, we are at the critical juncture of our economic transformation. How do we restructure our industries to create the jobs of the future? How do we ramp up the capacity to upskill our workers so as to equip them with the skills of the future? The Government has not shied away from spending resources to upskill our workers or to help our industries restructure. But it is incumbent upon all of us to realise that all these monies come from the taxpayers; and it is incumbent upon all of us to realise that whoever takes any of these monies, either for personal upgrading or for corporate restructuring, has a responsibility to society. Our responsibility is to use this money wisely to really achieve the goals that we set out to achieve, rather than to waste or fritter them away. That would be the greatest injustice that we could do to ourselves, our companies and, of course, our country. To do this, as hon Members Patrick Tay and Desmond Choo have shared, we encourage businesses to relook business processes, expand the markets to go beyond Singapore, and re-examine work processes to see how to raise productivity gains. But the businesses cannot do this alone. The workers must similarly embrace a lifelong learning culture to make sure that we are ready not just for today, but for tomorrow. Let me now touch on three critical challenges that I think we need to face head-on going forward. The first has to do with our effort to tackle possible structural unemployment.[+17 sentences] The example that I shared just now, about people moving from offline to online, does not mean that jobs are destroyed and no new jobs are created. In fact, although the retailer who used to have a physical Page: 83 shopping outlet might be displaced, on the other hand, there are new jobs that are being created at the e-commerce, data management and logistics management fronts. So, the problem is not the total number of jobs available in the economy. The real question is how do we help the person who is displaced at the retail line get into another job that has been created? It will be too far-fetched, for most of the time, to expect someone who is displaced at the retail scene to be able to go into the e-commerce or data management space with minimum training. In order for us to avoid structural unemployment, many people need to literally move one step to the right. The person displaced from the physical retail space might have to take on another adjacent job and someone else might have to take on another job and, slowly, step by step, upgrade themselves. So, it is not a simple issue. For every one job that is being displaced and one job that is being created, we need to train more than that one person to move from A to B. It will be a very involved process and the Labour Movement will definitely want to work with employers and the Government to make sure that we minimise the occurrences of structural unemployment. The faster our structural changes go, the more we need to do this. But it is not so easy. Because when growth slows down, the space for manoeuvre that we have becomes tighter. So, growth, in itself, provides us the space to overcome some of these challenges. When we do not grow fast enough, it will become even more difficult for us to help those who need the help most, that is, those who are displaced structurally. And the jobs will not come back even after this cyclical downturn because consumers' habits and production patterns have changed. So, we will need to do much more to overcome this. From NTUC and the Labour Movement's perspective, we can do three things much better in partnership with the tripartite partners.[+3 sentences] First, as the hon Member Desmond Choo has highlighted, we need to go upstream. Go upstream into the schools, the polytechnics and ITEs to provide career guidance and counselling so that we minimise the chance of every fresh graduate being put into a wrong course or selecting a wrong course because they do not have the correct information. We need to have career guidance and counselling right from the school and onwards to beyond the time they spend in school. NTUC, together with WDA, will announce more details later in the year.[+2 sentences] Besides going upstream, we need to do more for the midstream through continuous upgrading. The Labour Movement will want to partner the Post-Secondary Education Institutions (PSEIs) and Institutes of Higher Learning to stretch the SkillsFuture credits that are available to all our workers. Today, they all have $500 in their SkillsFuture credit account.[+12 sentences] With the Government's subsidies, it can allow our workers to undertake more than a few upgrading courses. But the upgrading courses must be there. Today, we still have much to do to ramp up the number of courses that are current and relevant to the workers. It is not just about encouraging workers to take up any course. It is about encouraging workers to take up courses that are relevant to them; that allow them to have a better chance of obtaining a better job and a better career downstream. And our workers are clever enough to know what are the jobs that may be available and what are the courses that they want to take. We must facilitate this. The third thing that we need to do better in tackling possible structural unemployment is to second-skill or prepare our workers at the age of 40 for the second "lift-off". I learned this from the Swiss. They have a very concerted programme to make sure that before the worker reaches 60 years old or 50 plus, they are equipped and counselled on the next lap of their career. It has to start Page: 84 at the age of 40-plus, to prepare for the next step in their career. If we can do these three things well – upstream, midstream and downstream – then we have a much better chance of tackling any possible structural unemployment. The second big concern that the Labour Movement has is ensuring retirement adequacy.[+13 sentences] After Dr Goh Keng Swee's time, we have had a rough rule of thumb that has worked very well for us. For every dollar we earn in our lifetime, we save one-third of it. That is essentially the basic CPF system. If you earn $100, the employers put in $20 and we put in $20. This means that there is $40 in CPF out of the total of $120, hence, one-third. Where did Dr Goh get that magic number of saving at least one-third? That is because most of us work two-thirds of our life and then spend one-third in retirement. If we start working at the age of 20 and retire at 60, we work 40 years. And if we live until 80, that means that we need to prepare for 20 years of our life in retirement with 40 years of earning. Hence, the rough rule of thumb, without taking in the interest rate and escalation in medical cost, would require us to save at least one-third. This is a choice that we must allow people to make: some people would like to save more and retire earlier, whereas some would want to work longer and prefer to save less. Our job is not to dictate the choices that our people make. Our job is to facilitate their choices with the options available. Many of our people want to work longer and we should find ways to re-examine this concept of a fixed retirement age to allow Singaporeans with the experience and capabilities to contribute as long as where they want.[+4 sentences] This is a work-in-progress. Some countries in Europe have done this. It is a very involved process, in defining the capabilities required and the job specifications, to facilitate this. But we must look into this because our people are working longer. Our challenge, when we come to speak about retirement adequacy, is not just talking about whether the older workers should get 20% when they are past the age of 60 or 65. This is because, if the employers are unscrupulous, they will tell you that, "I can give you back your 20% CPF if I lower your base pay".[+19 sentences] It is the total pay package that is important. Our job is to make sure that our workers command a respectable total pay packet that allows them to save up enough for their retirement. Retirement savings have to start from Day One. The formula that I just shared, starts with the assumption that at the age of 20, when we start working, we save one-third conscientiously. When we can get more and more people to be self-sufficient without having to depend on the Silver Support Scheme in future, then we have truly succeeded. We can then reserve the finite resources that we have for those who are truly in need because even with the best of our abilities, there will be some in society who will not be able to save enough for their retirement adequacy. Our job is to make sure that as few as possible need to rely on the Silver Support Scheme in time to come, and that we can focus our finite resources on those very few. Page: 85 This will require us to work very hard to look at job redesign and prepare our workers for the eventuality. And it is never too early to talk about preparing for retirement and saving up for retirement. The third challenge that the Labour Movement is most concerned with is the issue of productivity gains. We have read many statistics that our average productivity is quite low. But let us go beyond that average number. It is not true that we do not have high productivity sectors. It is also not true that the average number defines the productivity of the entire sector. Let me give some examples. In the current volatile environment, many people would think that the oil and gas industry is suffering and is in the doldrums. But it is not true that the entire oil and gas industry is suffering. There are companies in the specialty chemical sector that are earning more because they are able to hold up the prices while their feedstock prices are low. There are companies in other sectors, despite what you say about these sectors, that have above average productivity. In terms of sectors, there are three sectors that are particularly challenging and require us to pay much greater attention to if we are to lift the overall productivity number of our country. They are construction, retail and food and beverage (F&B) sectors.[+33 sentences] We have to do much more if we truly care about the salaries of workers in these sectors. Because without real productivity growth, no matter what rules we come up with, it will uplift the salaries of the lowest earners in our economy artificially. So, we owe it to them to try our very best to lift those numbers. This is why the Budget this year goes beyond a broad policy. We need to go sectorally to examine where the laggards are in our productivity drive and how best we can help them to uplift the productivity in their respective sectors. It is not easy. It is not as easy as just giving out grants to encourage people to change their work processes to achieve higher productivity. If giving out money is the KPI, then perhaps MTI and MOF will not be sweating so hard because it is easy to give out money. To achieve real productivity growth, we need to go sector by sector and, sometimes, company by company. It requires the TACs to work very closely with the civil servants, workers and so forth, to identify areas which they can improve, in each and every process that they are involved in. So, it is no easy work. But we have no choice. We either do this or we pretend that some broad macro measures will miraculously lift the productivity of all. I do not believe that. I have visited enough companies to know that no two companies are the same. No two companies can even blindly adopt processes that have been proven elsewhere. They have to localise and contextualise them; and they have to win over the workers – retrain them, according to their capabilities to adapt and adopt those new strategies. So, it is hard work. On this front, the Labour Movement is committed to work with MTI, MOM, MOE and MOF to give our best shot for all our companies to do this well. It is not a short-term challenge but a long-term one. And very often, when we talk about productivity, we have a lot of new ideas about how new hotels can be differently designed, new production processes can be differently designed, and so forth. These are good ideas. But I would urge all of us to look beyond all these because the turnover is too slow. If we only focus on the new ones, it will take us very long before we change the entire stock. I will give an example of the hotel industry, which is very challenging when it comes to lifting the productivity of, say, the housekeeping services. For all the new hotels that we designed, yes, we can do something different. And we are doing something differently. But our focus must go beyond that because, at any one point in time, the vast majority of the hotels are from the existing stock. Their rooms cannot be redesigned overnight. So, we need to pay attention not just to the Page: 86 new stock that are coming in, but also the vast majority of the old stock that we have inherited and must continue to work with. It is not something that we can do easily. But I would suggest that we relook at some of our processes seriously to catalyse some of these. In the area of productivity, very often, we talk about the training of man and the buying of new machines − what we called the first two "M"s − the man and the machine. But if we are truly serious about raising our productivity across all sectors, let us all unite together to re-examine our mindsets and methods.[+1 sentence] Take, the security industry, for example. There is no way that we can design a higher paying job for the security guard if the building has not been designed for security right from the onset. As Churchill would have said, "Once we design a building in three months, the building will take the next 30 years to design us"; and it will design our jobs as well. If we do not design security upfront, there is no way that we can uplift the productivity of our workers downstream.[+10 sentences] What about the methods? We have to re-examine − and I hope that the Government will take the lead in this − how we do our contracts. Explore whether there are opportunities to aggregate contracts, both in terms of time and space, for us to achieve greater economies of scale and the scale to redesign some of the jobs for our lowest-wage earners. These are the things that we have to do step by step to raise the productivity. At the end of this, once again, as Mr Lim Swee Say has put it most eloquently, "Economic growth equals manpower growth plus productivity growth". If manpower growth is zero, then our only variable is productivity growth. If productivity growth is low or zero, then economic growth is low or zero. It is a very simple equation and we should bear it in mind. For the last part of my comments in English, let me state the Labour Movement's stance on the Singapore Core. We believe in the Singapore Core. We believe in urging and working with all companies to build a strong Singapore Core. But that Singapore Core does not mean that it is an all-Singaporean workforce.[+10 sentences] We recognise and accept that for Singapore to be regionally and globally competitive, we need a diverse team − a team of talents from cross-sector and cross-cultural backgrounds and have international exposure. So what does it mean to develop a real Singapore Core? It means giving all Singaporeans the best shot to rise up the hierarchy. We are not asking for affirmative action that just because we are Singaporeans, we will get ahead compared to the rest. We are asking for a fair chance. We want to work with all MNCs to give our workers a fair chance, a fair shot. And NTUC is committed to working with companies to give our workers chances to be groomed, not just deepen their professional competencies but to equip them with the cross-sectoral competencies, so that they have the best shot to rise up the hierarchy and reach the C-suite positions. It will be such a waste that, after EDB and MTI have worked so hard and we have all these good jobs in Singapore, our people are unable to take on these jobs. And to take on these jobs, we must prepare our people way in advance − 10 or 20 years in advance − for them to be groomed systematically through diverse paths, to be exposed beyond the country, to see the world as their oyster and not just Singapore. Only then will we be able to take on the very best jobs. Today, the persons holding the country's top jobs in Exxon Mobile and Shell are Singaporeans.[+23 sentences] But these two Singaporeans did not grow up just in Singapore. They were exposed to the opportunities across the globe before returning to Singapore to take on leadership positions. We will continue to make sure that we adopt this inclusive and globally-oriented approach when we define the Singapore Core. The Singapore Core cannot be defined from an exclusive and Page: 87 inward-looking perspective. We will work with MOM and MTI to continue to strengthen companies which want to support us in this endeavour. And I think Minister Lim Swee Say will announce more about such measures in the coming week. NTUC will also be doing what we can to help our younger generation get the necessary exposure when they are young, before their family commitments tie them down. We need to prevent PMETs in their 40s from being displaced in 10 years' time. We have to start with PMETs who are in their 20s and 30s now. Otherwise, we cannot blame the competition if, one day, our people lose out. So, Mr Deputy Speaker, the challenge is upon us, just as it is upon any other country. We need not fear the competition because there is competition. In fact, the greater the competition, the more intense the competition, the more we are able to pull ourselves apart from the competition if we organise ourselves well and get our act together. As I always say, the circumstances will not define us; our responses to the circumstances will define us. There is no reason that our tripartite formula that has served us so well will not be able to help us overcome this challenge ahead of us. But it requires us to have a shared understanding that this is not just a cyclical slowdown. There are more fundamental structural forces at work. It requires us to have a shared understanding that for every dollar that we take from the Budget, we have a responsibility to do the most that we can, be it businesses or individuals. Sir, thank you very much and please let me continue my speech in Mandarin. (In Mandarin): Mr Deputy Speaker, Sir, last week, former Member of Parliament Mr Yeo Guat Kwang and I met some SME bosses to discuss future challenges. Mr Yeo Guat Kwang truly lived up to his reputation as "Yeo Guat Kwang" – he compiled all the difficulties faced by SMEs and summarised them into a list of 12 "headaches". This is what he calls the four "threes". It is not a 4-D number. First, SMEs face three "highs" – high rental, high wages and high levy. They also have three "less" – less business, less profit and less workers. They feel that there is a "lack" in three areas – the bosses lack power, the workers lack motivation and landlords lack empathy. And they face three "difficulties" – difficulty in doing business, difficulty in getting workers and difficulty in securing a shop space.[+56 sentences] With these 12 challenges, can this year's Budget really help SMEs? It is our wish for our SMEs to succeed because all large multinational corporations (MNCs) started out as SMEs. Without today's SMEs, we will not have the Singapore MNCs of tomorrow. In the1960s and 1970s, we developed a number of Singapore MNCs. Today, the challenges are the same. How do we grow a new generation of Singapore MNCs? How do we support the SMEs of today so that they will flourish and continue to employ 70% of workers in Singapore? This is our challenge. I am neither a doctor nor the Minister for Finance. Perhaps the Minister for Finance has some remedies but I have learnt a thing or two from Minister Gan Kim Yong. I may not be able to solve all the problems of SMEs and I am not saying that I can do better than SMEs because, ultimately, a lot of problems must be solved by SMEs themselves. SMEs have to address many near-term issues and the NTUC and Government want to do our part to help them. Mr Gan is the Minister for Health, and he takes care of his health in three ways. Firstly, by taking less sugar and less salt. Secondly, by exercising more. Thirdly, by taking tonics occasionally. Page: 88 So, let us talk about taking less sugar and less salt. SMEs agree with, and are appreciative of, the measures implemented by the Government. However, they face a big challenge: they do not have enough manpower and time. Even though the Government has implemented so many good policies, they wonder: "How can we benefit from them? Do I have the time to understand all these measures? Or is it a case of there seemed to be many options but none is within reach?" In this aspect, we are heartened by the Finance Minister's announcements. If the Government can streamline these procedures and consolidate various measures and workers can be sent for proper training and there is partnership with SMEs, then I believe SMEs will benefit tremendously and be very grateful. To be honest, SME bosses are very busy and every day is a challenge. So, as Government officials, we cannot just wait for them to apply for these schemes or come forward to understand these programmes. That is being too passive. For NTUC, we will be proactive in helping to promote these programmes for SMEs to benefit from them. If we can all do that, even if it is just an ordinary policy, we will see good results. On the other hand, if we do not convey the message to SMEs during the most crucial period, even the best policies will come to nought. So we really hope to work together with the TACs of SMEs and the Government to address these problems. Why do we say less sugar? In fact, the Minister for Finance gave a lot of "candies" but we all know that we should take sugar in moderation. If we take too much sugar and it becomes a habit, then obesity problems may arise and it does nothing to solve our problems. As Mr Thomas Chua mentioned, the Government has taken one step forward. And we hope that companies and unions will work together and move forward together for a better future. Secondly, move around more. But where can you go? Actually, SMEs have combed the entire Singapore but Singapore will always be a small market. We all know that if an SME makes $10 out of every Singaporean, it will only be a millionaire. But if you go overseas, for example, to big cities in China and India, you only need to make $1 out of every customer and you will become a billionaire. Singapore is a small country and a small market, but it does not mean that we cannot venture overseas and conquer other markets. However, it is easier said than done and requires cooperation from IE Singapore and other economic agencies to help our SMEs expand out of the domestic market and venture abroad. Only when they go international to conquer a bigger market will our SMEs become MNCs of the future. So, do exercise and move around more. Hopefully, the Government, unions and businesses can move together hand in hand. Thirdly, take some tonics occasionally. In this area, NTUC will do our part. We are very interested in the bosses of SMEs, big or small. They have two key areas of needs. Firstly, we often talk about the training of workers but bosses need training too. For example, at the recent training session organised by the Bosses' Network, company bosses get to upgrade their skills and open their minds which help them achieve breakthroughs. When bosses achieve breakthroughs, workers will follow likewise. If bosses cannot make a breakthrough, then there is no need to even talk about productivity. In this aspect, NTUC will continue to organise programmes for company bosses to learn from one another and share best practices with the rest of the SMEs in Singapore in the shortest time possible. Secondly, SMEs face great difficulties in terms of manpower training. In this regard, NTUC will launch training programmes to help our SMEs strengthen human resource management.[+5 sentences] Only when they upgrade their human resource management skills can our workers have a better future. As for us, the success of an SME means success for our workers. If the bosses' businesses cannot succeed, our workers will not have a better tomorrow. So, to us, the success of businesses and improvements to our workers' lives are two sides of the same coin. They are, in fact, the same Page: 89 issue. Moving forward, NTUC will continue to work with SME bosses and other organisations because we believe that the Government has taken the first step. The next step requires both people and businesses to work together. By doing so, we will be able to overcome both the current cyclical issues and long-term structural challenges.
Mr Deputy Speaker4 words
[+1 sentence]Mr Lee Yi Shyan.
Mr Lee Yi Shyan (East Coast)2198 words
[+7 sentences]Mr Deputy Speaker, Budget 2016 challenges us to think long term. We want to address immediate cyclical head-winds, but the more important task remains in taking measures that will help us fundamentally restructure the economy. Towards this goal, the Finance Minister declared, "We will target resources towards enabling firms to build deeper capabilities, develop their people, scale up and internationalise". The businesses which I talked to welcomed the new economic initiatives. While waiting for further details, many already have suggestions on how we could become more competitive. They look forward to giving their views to the Committee of the Future Economy. For now, I would like to share my thoughts on three of the new programmes. First, I must commend that the $400 million Automation Support Package (ASP) is a powerful tool.[+4 sentences] As a three-in-one package, it provides capability grants, tax allowance and concessionary loans to help SMEs undertake comprehensive remodelling of their businesses. For instance, SMEs could undertake automation projects, re-engineer workflows, acquire new technologies and train its workers. However, some SMEs might find the capital cap of $1 million limiting. I hope the Ministry would consider expanding the cap if the usage of the scheme is high, which, in itself, is a very encouraging sign. Next, let me comment on the $450 million National Robotics Programme.[+23 sentences] If we look at the global market for industrial robots, four key points stand out: one, on a worldwide basis, robot sales have doubled in the past five years; two, the top five markets, namely, China, Japan, America, South Korea and Germany, account for 70% of the world demand; three, Asia is the fastest growing market for robots; and four, China is the largest buyer by volume. China buys one in four sold worldwide. On a per capita basis, South Korea and Japan are leading the world in having the most robots per 10,000 people, ahead of the traditional industrial power houses such as Germany, Italy, Sweden, Denmark, US, Spain, Finland and Taiwan. Conspicuously, Singapore is absent from the list. Hitherto, most robotic solutions have been applied to the manufacturing sector. But this is changing. More and more robots are being deployed in the services sectors, giving hope that we can substantially reinvent our services sector which has been lagging in labour productivity growth. Consider, for instance, applications in the hospitality sector: robot bartenders which can mix up to 50 types of drinks, robot concierge providing travel tips to hotel guests, self-guided vacuum cleaners combing common areas, and autonomous guided vehicles delivering room service to Page: 90 hotel guests. Another example is healthcare. Our hospitals are already using robots to pack medications, move supplies between rooms and transporting patients on motorised beds. Surgeons are using robots to assist in complicated and delicate surgeries. In Japan, Showa University has developed a robot dental patient, a robot which mimics human responses: it can talk, blink, roll its eyes, sneeze, shake its head, cough, move its tongue and becomes tired from keeping its mouth open for too long. It would even choke and show gag reflexes if the trainee dentist becomes too rough. This life-like robot provides a realistic simulated environment for training and learning. Mr Deputy Speaker, some of our services sectors are ahead in the use of technology and robots. Others are still trying to figure out what to do. But all sectors will benefit from having their own industry-level collaboration platforms. The good news is that we are not starting from zero. Changi General Hospital's newly opened Centre for Healthcare Assistive and Robotics Technology (CHART) can be a good reference model. CHART brings together healthcare professionals, academia, industry players and research institutions to develop the hospital applications which can be shared with other hospitals in Singapore and beyond. In establishing such centres, I would go further to argue that we should not be contented at being a mere consumer of smart solutions. We should instead aspire to create our own applications and products that are commercialisable and exportable. In this way there is a chance that we can build up an ecosystem, a new industry based on our consumption expenditure and R&D investments. In fact, global spending on robots is expected to quadruple to $67 billion by 2025, creating some 3.5 million new jobs in the process.[+2 sentences] The growing robotic industry will offer us real opportunities or applications for business and healthcare workers. This leads me to the third point: how do we develop the 20-plus Industry Transformation Roadmaps that give us not just a sustained path for productivity gain but also lead to us to becoming Expert Centres for Best Practices? Minister Heng announced earlier that the Ministry would provide a $1.5 billion top-up to the National Research Fund this year.[+3 sentences] It is part of the Government's plan to provide $4 billion to support industry research projects to drive and deepen industries' innovation capability. The industries I talked to warmly welcomed the renewed emphasis on industry-led research projects. Furthermore, they also wished to see a better integration of NRF funding with the Industry Transformation Roadmaps, eliminating the perception that our research institutes and our industries have not forged a common vision for the future and are working separately from each other. According to the 2013 national R&D survey, economic spin-offs attributed to R&D was $23.8 billion.[+3 sentences] The private sector contributed $23.7 billion, which is 99.5%. The public sector, comprising the Government, universities, polytechnics and research institutes merely accounted for less than 0.5%. Page: 91 From the above, it is clear that allocating more R&D funding to industry-led research collaborations would greatly multiply the economic spinoffs to our economy. Large local enterprises and SMEs especially, are hoping that more R&D funding can be directed to them for better local value capture and IP-retentions.[+1 sentence] Mr Deputy Speaker, under RIE 2020, the Government has identified four broad verticals to focus our R&D efforts. They are the Health and Biomedical Sciences sector, the Advanced Manufacturing and Engineering sector, the Urban Solutions and Sustainability sector and the Services and Digital Economy sector. To fully harness the economic spin-offs of these four sectors, two changes would be helpful: one, Ministries and their agencies to take on industry-development roles; and two, agencies outside MTI be given the investment promotion tools to undertake economic development under the whole-of-Government approach.[+13 sentences] Let me explain. In each of these verticals, there is substantial expertise residing in our public sector and "their industries". Consider the Urban Solutions and Sustainability cluster. The Urban Redevelopment Authority (URA) is a respected agency internationally for its world-class planning capability. BCA's Green Mark and Sustainability standards are being adopted in other countries. The Centre for Liveable City is a global thought-leader in urban planning and solutions. The Land Transport Authority (LTA), coordinating huge investments in building up an elaborate public transport network, has experience that is valuable to other cities. IDA architects the state-of-the-art infrastructure to make Singapore a world leading smart city. EDB draws in clean and green technologies research needed to grow a smart city. And the list goes on. Each of these agencies has something unique and valuable to contribute to an overall competitive cluster. The solutions we devise here require a high degree of interagency coordination and seamless public private partnerships. Together, we are solving very real, day-to-day problems with budget, resource and space constraints. Given the inter-disciplinary nature of problems in urban solutions, a more effective way for industry development for this new vertical would be to empower Ministries and agencies involved to take on industry development roles, by giving them the necessary tools to do so.[+2 sentences] In this way, we can grow our competencies into new clusters of growth, bringing along our large local enterprises and SMEs to create solutions for a fast urbanising Asia. Mr Deputy Speaker, Budget 2016 has emphasised the importance of partnerships in bringing about collective progress and effective restructuring of our economy. In this regard, I am pleased to note that the Ministry is enhancing the LEAD programme to strengthen our TACs so that they can do more for their members.[+4 sentences] In my interactions with the Singapore Furniture Industry Council (SFIC), I have seen how an effective TAC has helped the entire industry to upgrade, internationalise and acquire new design capabilities. SFIC could do so because it has successive generations of strong leaderships. SFIC's annual International Furniture Fair Singapore is very well-attended. It also generates for SFIC the financial resources needed to sustain a full-time professional secretariat. While SFIC is well-organised and well-run, the same cannot be said of every TAC. I hope the enhanced LEAD+ programme will help many more TACs to professionalise and level up.[+25 sentences] Mr Deputy Speaker, please allow me to say a few words in Mandarin. Page: 92 (In Mandarin): In the 2016 Budget, the Finance Minister repeatedly highlighted the importance of long-term economic restructuring. Only with a strong economy can we raise the income of workers and invest in social development, healthcare, infrastructure and defence to ensure peace and stability for our nation. Yet, as Singapore embarks on its 51st year of nation-building, we are faced with a world that is totally different from the one in the early days of our nation-building. Many developing countries in Asia have caught up with us. China has surpassed Japan in 2010 to become the world's second largest economy, and is forecast to surpass the US in about 10 years' time. External competition, an ageing domestic population, low fertility rate and limited space – all these have put a limit to our development. Right now, there is a greater sense of urgency to accomplish the many things that we need to do, for our next generation. Ultimately, whether economic restructuring succeeds or not will depend on how our businesses and workers are involved. I hope we will face the competition with courage, resilience, determination and creativity to overcome constraints and competition. Our competitiveness is built through roughing it out in the international marketplace. If we rely on a walking stick and depend on protection, we will not be able to endure the storms that come our way and will never be able to take flight. Conversely, if we are able to build upon the pioneering spirit of our nation and work together, with TACs actively participating in industry upgrading programmes, company bosses striving to learn the best practices of world industry players, workers investing in lifelong learning to master new skills, and with the technical and R&D support of our tertiary and research institutions, there is hope that we will be able to strengthen our competitiveness, create our own innovative products and services, and earn our place in the international market. (In English): Mr Deputy Speaker, at SG51, Singapore faces a vastly different, developed and connected world. Every country I visited is making progress. Some inspire; some impress; some make me worried. When I was in Sanya City, Hainan, last week, I saw a seafront belt of 12 hotels under construction. Each of these mega-hotel complexes has a private beach, iconic architecture and differentiated theme. Each would have been a billion-dollar project if located on Sentosa. Seeing them makes me wonder: are we as imaginative? Are we as bold? How are we to maintain our tourism share? To the competition around us, do we keep up or give up? China is gargantuan in every aspect of its economy. And in enormity emerges excellence. It is common knowledge by now that China is the world's largest market for smart phones and e-commerce and mobile, or m-commerce.[+2 sentences] It is the world's largest automobile market. China produces 6.6 million graduates every year. It has 100 cities with more than a million people, and Shanghai alone is 4.2 times the size of Singapore in population and talent terms. China's outward investments started to outstrip its inward investments last year. Economists expect China to overtake America somewhere between 2020 and 2030 to be the world's largest economy.[+3 sentences] The rise of China has enormous ramifications for us and the region. Last year, Shanghai Mayor Yang Xiong and I spoke in the Twin Cities seminar entitled, "科技创新驱动合作商机", translated as "Opportunities and cooperation driven by science, technology and innovation." The topic suggested by our Shanghai counterparts clearly showed that Shanghai was like us, at the stage of development where science and technology matter most. But the title also meant that if Singapore Page: 93 did not have adequate science and technology capability, there was no basis for this seminar.[+1 sentence] In conclusion, there is, therefore great urgency for the tasks at hand. We must redouble our efforts in R&D, applying our R&D resources to industries, get our young people interested in science and technology and pay serious attention to the learning of Mandarin and regional languages.[+2 sentences] Capital is mobile. Firms will invest where they can find high-quality workforce and talents. If we stagnate, if we close our doors to foreign talents and new ideas, the Singapore Core will be weakened and Singapore will diminish.[+2 sentences] On the day the Finance Minister announced the 2016 Budget, The Business Times headline read: "Singapore's continued relevance – that's the big question". Mr Deputy Speaker, the question is: can Singapore stay relevant?
Mr Deputy Speaker4 words
[+1 sentence]Mr Ong Teng Koon.
Mr Ong Teng Koon (Marsiling-Yew Tee)1798 words
[+4 sentences]Mr Deputy Speaker, this year's Budget is an important one as our country embarks on the next phase of its developmental journey towards SG100. The Singapore economy has started to experience significant headwinds that have made the business environment less favourable and the short-term outlook less optimistic. Much of this can be put down to external factors, such as the slowing Chinese economy. But it has made the operating environment more challenging for local businesses, even as they come under pressure to restructure and raise their productivity. It is, therefore, reassuring that a good part of Budget 2016 has been geared towards extending more targeted help to viable local businesses to help them weather these toughening conditions. I refer particularly to those measures targeted towards our SMEs, such as the Loan Assistance scheme and the Industry Transformation Programme.[+3 sentences] Even as we seek to provide such near-term assistance to local SMEs, however, I would urge that thought be given to enhancing the broader ecosystem that would sustain entrepreneurship and ground-up innovation in the long haul. In parallel, we have seen that productivity growth has been modest and uneven in the past few years despite intensive efforts. Raising overall productivity will necessarily involve rewarding the strong and allowing the weak to exit the scene. Businesses with fundamental flaws in their business models, for example, those that are over-reliant on cheap labour or Government subsidies, should be allowed to die a natural death.[+23 sentences] Policies that inadvertently keep such "zombie" businesses alive will only hold back productivity growth and technological advancement. To tackle the twin challenges of encouraging entrepreneurship and increasing productivity through innovation, we need to consider how we can protect the interest of the entrepreneur even as we allow businesses to fail where warranted. This is especially important in an economic downturn, when even good businesses can fail due to circumstances beyond their control, such as a major customer defaulting or going bankrupt. Therefore, a holistic set of measures needs to be put in place to support businesses through such events. Page: 94 I would like to outline three specific aspects where support for entrepreneurs can be enhanced: one, developing the business idea; two, launching the business; and three, mitigating the impact of failure. The key first step lies in developing the business idea to ensure that would-be entrepreneurs have sound, robust business models in place before launching their ideas. One piece could be around education, equipping them with the skills needed to develop a thorough business plan. This will involve educating them on business fundamentals, such as market sizing, business plan development, operations and so forth. It is important that we go beyond theory and focus on the hands-on, in-depth sessions to strengthen proposals and preempt future problems. Perhaps this could be made a part of the SkillsFuture programme. In recent years, we have seen the establishment of a number of "accelerators" which are designed to help startups succeed. However, these tend to be focused on startups in sectors that are perceived to be "sexy", such as media and Internet businesses, or in financial technologies (fintech), for which a new dedicated one-stop office has just been announced. What we might see as more everyday businesses can also benefit from such support, be they from retail, F&B or basic services. This is especially important as it is these everyday businesses that will, ultimately, make up the bulk of the Singapore economy. Let me now turn to the second aspect where more support can be extended, namely, at the stage of launching a business. Even with a sound business plan, many things can go wrong when launching a new business. Startup firms in Singapore can easily be crippled by high costs, and we could consider building more proactive "test bed" facilities to allow room for experimentation. Take, for example, the F&B industry. Singapore's F&B industry has a strong international reputation, with many brands successfully going global. However, consider the daunting challenge facing a would-be restauranteur today. Securing a space is a challenge, as most high-traffic malls are run by Real Estate Investment Trusts (REITs) and will not take a risk on unproven concepts. Even if they were able to obtain a space, they might have to sign a two-year lease, with significant penalties for early termination. This greatly increases the risk facing any potential start-up F&B operator. Would it be possible, for example, to collaborate with mall operators to offer "co-hawking" spaces, providing startup F&B businesses access to high traffic at affordable rent with flexible lease terms to test out their concepts for six months before graduating to permanent locations if they prove successful?[+1 sentence] Another example of potentially prohibitive costs is legal services. Currently, a law firm can easily quote $10,000 to $15,000 or more for a shareholders' agreement.[+1 sentence] This is not feasible if you are raising a seed round of only $40,000 to $50,000 of funding. Perhaps SPRING Singapore could consider providing standard templates for startups to use or to seek to partner startup-focused low-cost legal firms.[+8 sentences] The third area where more could be done is mitigating the impact of failure for would-be entrepreneurs. In this regard, I should make clear that it should not be the objective of Government policies to completely eliminate the risk faced by new ventures. We certainly do not want to give the impression that small businesses can do whatever they like and the Government will bail them out. However, what I am advocating is to have more focused efforts to ensure that those who heed the call and take the plunge into the world of business do not risk permanent damage to their reputations and their future income potential should the venture fail to pan out. Page: 95 In this area, I would like to focus on three issues: one, criminal liability resulting from business failure; two, insolvency; and three, society's tolerance for business failure. Let me illustrate with a real-life example of how our current legal provisions can overplay the risk of criminal liability for entrepreneurs who encounter difficulties. Mr Chua was a director of a property construction and development company who came to see me for help. His company, which employed more than 100 foreign workers at its peak, had run into severe financial problems due to the downturn in the property sector. As a result, Mr Chua had had to liquidate all his personal holdings and to go into debt to try to pay his workers' levies and salaries. However, due to the illiquid nature of his assets, he was ultimately unable to make all the necessary payments in time, and although his workers' levies and salaries have largely been paid, and all affected foreign workers have been successfully repatriated, Mr Chua was charged by MOM in Court for 16 counts of contravention of the Employment Act for the late salary payments.[+7 sentences] These are considered criminal charges under the Act. While we can all understand that the Act was enacted to prevent fraudulent or malicious failure to pay salaries, the punishment seems harsh in cases where a business runs into cashflow problems due to a general downturn in the sector. Even a sound business can be thrown into default if one major customer fails to make payment on time. Hence, we need to administer the Act with great discretion and compassion. I note that the insolvency regime is currently undergoing a timely revamp. This is warmly welcomed and as the region enters challenging economic times, we need to further strengthen policies and schemes to give our local businesses time to turn things around, rather than risk turning a short-term cashflow hiccup into a death-spiral that ultimately kills the company and harshly penalises the business owner. I would highlight the possibility of promoting so-called "schemes of arrangement" in adverse times, as these can help business owner-managers turn around their insolvent businesses. Schemes of arrangement appear to be the most popular corporate rescue regime and a study from 2002 to 2009 by the Insolvency and Public Trustee's Office showed a 77.1% success rate out of 48 cases.[+1 sentence] Let us help make schemes of arrangement more widely available. Currently, they are rarely used by SMEs as they are prohibitively expensive to set up, with all parties engaging lawyers to negotiate their positions. Negotiations can also drag on as 75% of each class of creditors needs to agree.[+9 sentences] Would it be possible for the Government to create a forum for facilitating the resolution of creditor disputes in the event of insolvencies involving outstanding amounts below a certain cap? This would function in a manner similar to a small claims tribunal or other mechanisms to lower the transaction costs for all parties while ensuring fair outcomes. There is scope to strengthen such arrangements. For example, every business has a few key contracts that allow it to continue trading. This could be contracts relating to supply of raw materials or lease agreements. Some of these contracts may contain a provision where, if the business enters into a scheme of arrangement, the contract may be terminated. Let us keep these contracts, ranging from supply contracts to lease arrangements, alive during the duration of the scheme. This allows a company with a fundamentally sound business with misaligned cash flow the breathing room to allow it to operate and trade back into success, creating a more stable business environment. Page: 96 Another critical aspect of rehabilitating an insolvent company is to give access to financing. Currently, there are plans to permit "super priority financing" to help these businesses attract funds to restructure their businesses.[+8 sentences] As with the working capital loan support initiative, the Government can consider covering part of the risk of such loans. This will serve to increase access to such loans, provided safeguards to ensure debt levels remain manageable. Good businesses will sometimes fail due to bad luck or circumstance. If we are to encourage entrepreneurship in our country, we need to develop greater tolerance for business failure. Businessmen should not have to face criminal charges and possible debarment from hiring foreign workers if their plight was due to genuine business difficulty, not any malicious intent to defraud workers. Criminalisation of such situations turns a short-term problem into a potentially lifelong handicap which may severely restrict future employment or business opportunities for the affected individuals, even if they had tried their best to do everything right. Of course, this is not to pretend that all business failures are equally noble; many will be due to incompetence, insufficient planning or outright fraud. But productivity and innovation require some risk-taking and, without risk takers, there would be no progress. So, we need to ensure that risk takers who aim high but fall are provided the necessary support to enable them to rise again.[+1 sentence] Mr Deputy Speaker, I support the Motion.
Mr Deputy Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)1364 words
[+1 sentence]Mr Deputy Speaker, I speak in support of the Budget. It is anticipated that the global economy will slow this year.[+5 sentences] China, one of the main drivers of global growth in the last few years, is slowing. High commodity prices, which fuelled growth in many parts of the developing world, including Southeast Asia, the Middle East, Africa and South America, are also dropping. It is anticipated that many industries that had developed to support the commodity price boom, including mining, offshore exploration and shipbuilding and rig-building, will slow. Even alternative energy, which always becomes more economically viable when energy prices are high, may also become less attractive. Financial institutions, which have extended credit to these sectors, may also face a problem of rising non-performing loans. Singapore, apart from facing these global headwinds, will also be going through its own economic restructuring.[+7 sentences] Local businesses are still adapting to manpower constraints from the tightening controls on foreign labour. In this context, an expansionary fiscal Budget is to be welcomed. If Government spending is able to pick up some of the slack from the slowdown in private sector expenditure, this will, in theory, help to stimulate the economy. Also, it is good that the expenditure is being focused on those sectors that are most in need and most likely to spend. The expenditure covers a wide range of support for SMEs to modernise and survive in the tougher climate. This includes the Automation Support Package, financing and tax incentives to support scale-ups and support for internationalisation. In the context of helping transform our economy and helping businesses cope and adapt, I believe these are to be welcomed. Page: 97 There are also a number of measures that are going to continue and these include continued support from the Transition Support Package, as well as the extension of the Senior Employment Credit (SEC).[+14 sentences] Given the tough climate, I have no quarrel with these as they stand at the moment. The only caution I would sound is that we should not institutionalise subsidy to industries. Many developed countries, in response to pressure, have subsidised a wide range of sectors, including agriculture and manufacturing, under the pretext of supporting infant industries. These subsidies can prove very difficult to remove. This is because the cost of a subsidy is distributed across all of society, while the benefit is concentrated on just a few people. Thus, the people who benefit from it would have a strong vested interest in resisting the removal of the subsidy, while the people paying the price are usually too large a group to be specifically concerned. Systematically expanding the system of subsidies, will add to the long-term fiscal burden a country faces and add to the strain that future generations must pay if allowed to expand imprudently. Singapore has stayed clear of this because most Government grants or incentives have very specific parameters and we try our best not to make them recurring even though, at times, they get renewed at Budgets. However, as we expand this list of grants and support, we must be cautious not to fall into the trap some other countries have fallen into of having institutional subsidies for various sectors of the economies. These subsidies can then develop into crutches. Additionally, in the event the Government wishes to be more creative or adventurous in extending support to SMEs, another option might be to provide low-cost financing, rather than grants. There are some Budget measures that follow this principle including the SME Working Capital Loan, as well as the SME Mezzanine Growth Fund. But in principle, I would support financing as opposed to grant because this way, companies take the benefit of financing when they need it to get over a tough patch, but the expectation is that they will pay it back in future. This may also give the Government more ability to finance and support a greater range of activities as earlier successful finance recipients pay back what they have received. On a related note, although this is an expansionary Budget, I am heartened that, overall, there is still going to be a modest Budget surplus.[+5 sentences] Some of this is due to increases in revenue from expanding the definition of Net Investment Income. It is also good that much of this is going towards social spending. As our population ages, the reality is that the workforce will shrink relative to the non-working population. The working people may face multiple strains of supporting young children and others who are unable to work on account of age or illness. To the extent that the Government is able to socialise some of these costs, the burdens on this working group would be less. The Budget schemes including GST Vouchers, Silver Support, service and conservancy changes (S&CC) rebates and support for children through Children Development Account (CDA) grants and KidSTART, all fall within this category and, as they are all being provided within the context of a balanced Budget, they are to be welcomed.[+6 sentences] My only concern is that as these support schemes get increasingly institutionalised and the base of people receiving support rises relative to the working population, there is likely to be significant additional strain on the Government Budget. It is my hope that we will continue to Page: 98 finance these schemes. The only way I can see this being sustainable, apart from increasing taxes or finding other sources of income, would be to continue growing the economy. The biggest challenge we face will be to continue to be creative in finding new drivers of growth, so that we can support what is likely to be a falling working population and larger base of dependants. Mr Deputy Speaker, I will speak in Tamil. (In Tamil): Mr Deputy Speaker, at the opening session of this Parliament, I spoke about the importance of sending children to preschool. About 17% of Indian families had not sent their children to preschool, and this may lead to more difficulties for them once they start primary school as they will not have had the same head start as their peers.[+6 sentences] One of the facts that I believe that had contributed to this were concerns about the costs of pre-school. At the time, I mentioned the many schemes that the Government already had to help defray the cost of preschool education, including the availability of Centre-based Financial Assistance Scheme for Childcare (CFAC) and the Kindergarten Fee Assistance Scheme (KiFAS) grants. With these grants, the cost of childcare and kindergarten education can be significantly defrayed for those with lower incomes. However, even with those measures, there are concerns about the cost of bringing up children. In this regard, I welcome the measures in the Budget to further assist with the costs of bringing up young children. Two measures are of particular note. First, the First Step Grant provides $3,000 into the child's CDA account.[+1 sentence] This account can be used for the child's healthcare and childcare needs and this can be of help to them. Additionally, parents will also continue to enjoy dollar-for-dollar matching for amounts put into the CDA grant.[+3 sentences] Thus, if they put an additional $3,000 into their CDA account, this will be matched dollar-for-dollar by the Government. Currently, not all parents fully utilise this account and some do not use it at all. I encourage all parents who have concerns about meeting the cost of childcare to maximise the CDA grants available if necessary. Additionally, the KidSTART scheme will provide additional help for low-income families for the first six years of their lives. The Minister mentioned that this is in recognition of the importance of the early years of education and to ensure that children from poorer backgrounds do not miss out on this.[+3 sentences] With these new schemes in place, I would strongly encourage all parents to enrol their children in preschool education. If you know of neighbours and family members who have not done so, please encourage them to do so. I believe that with the help and financial assistance available, all families should be able to send their children to preschool so that they will be adequately prepared for primary school.
Mr Deputy Speaker4 words
[+1 sentence]Mr Yee Chia Hsing.
Mr Yee Chia Hsing (Chua Chu Kang)514 words
[+4 sentences]Mr Deputy Speaker, I wish to commend the Finance Minister on his inaugural Budget speech, which I thought was comprehensive and balanced. Today, I wish to talk about Singapore's engines of growth. The Finance Minister began his speech by sharing some history of the first Budget speech by Mr Lim Kim San in 1965. Allow me then to share some history. Page: 99 From 1819, when Stamford Raffles first set foot on our shores until today, Singapore can be said to have four main engines of growth.[+2 sentences] For over 100 years before our Independence, Singapore has made use of its good location to act as a trade hub, connecting Southeast Asia to the rest of the world. This is our first engine of growth. After Independence, we developed manufacturing as our second engine of growth.[+2 sentences] We became a major ship building and oil refinery centre. We reclaimed swamp lands in Jurong to create the first industrial estate and attracted many MNCs to set up factories here, creating jobs for many of our citizens. Our third engine of growth was the development of Singapore as a regional financial and wealth management centre.[+3 sentences] We moved towards electronic trading of shares and removed estate duties. And we gave attractive incentives to foreign financial institutions to come to Singapore. The increase in the number of players pushed our local banks to also up their own game, providing better service to all. With the revitalisation of the Marina Bay area and the opening of our two integrated resorts, we gave a further boost to tourism, our fourth engine of growth.[+6 sentences] I am sure Marina Bay Sands, with its spaceship rooftop, is one of the most iconic in the world. People see a photograph of the Sands SkyPark and know this is in Singapore. Like many Singaporeans, I wonder what is next. Are we going to be like a pack of cards with just four aces? Are we going to be faced with slower growth? Can our children grow up in a Singapore where they will be able to follow the rainbow and pursue their dreams? Budget 2016 seeks to transform our industries to strengthen our expertise and drive growth through innovation.[+7 sentences] New schemes were introduced to promote the use of automation and aim to help our SMEs "scale up". I cannot crystal ball and say what our next engine of growth will be. But if we look back at the four previous engines of growth – trade hub status, manufacturing centre of the world, regional finance centre and tourism – a common thread runs through them. Each of these has to do with Singapore opening itself to the rest of the world, and this we can never stop. Whether for companies or people, Singapore must continue to be a beacon for the best and brightest to set up their base here and to call Singapore home. We cannot afford to turn xenophobic or to be inward-looking because if we do, Singapore and Singaporeans will be the worse for it. Mr Deputy Speaker, on this note, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Mr Ang Wei Neng.
Mr Ang Wei Neng (Jurong)1335 words
[+2 sentences]Mr Deputy Speaker, the current global business conditions are difficult and uncertain. It will not be an easy year ahead for Singapore companies. In response, Minister for Finance Heng Swee Keat has unveiled a raft of measures which the Government will be undertaking to soften the blow, from introducing new schemes for SMEs to increasing public spending.[+17 sentences] Page: 100 This is welcome news. It is also very clear that once again, the Government is in the driver's seat of the Singapore economy. While this has worked for us for the last 50 years, we need to evaluate if this is sustainable or effective for the next 50, as we live in an increasingly competitive and volatile world. At some point, the people and private enterprises need to steer the economy while the Government is playing a supporting role by ensuring that policies are business-friendly. In the US, its largest and most innovative corporations are private enterprises like Google, Intel, Microsoft and so on. Japan has large conglomerates like Mitsui and Nippon Telegraph and Telephone Corporation (NTT), while Korea has chaebols, like Samsung, LG, Hyundai and so on. These companies are all important driving forces in their respective domestic economies and are also huge global players. In Singapore, the driving force of the economy has always been the Government. From attracting foreign MNCs to creating jobs in the early days to developing strong Government-linked companies, like SIA, PSA, DBS Bank and ST Engineering, to expand overseas in the 1980s. In the year 2000, Dr Tony Tan chaired a Technopreneurship 21 Ministerial Committee to help nurture local high-tech enterprises. It was tasked to study entrepreneurship in several major cities. Committee members were told by some in the US that the US government has no role in developing entrepreneurship, but Singapore went ahead anyway to put all the policies and support in place to nurture entrepreneurship. At that time, the foreign observers commented that Singapore was probably one of the few countries in the world that had put in so much effort to promote entrepreneurship. Subsequently, the Singapore Government's effort to promote entrepreneurship has been cited as a successful model by Mr Josh Lerner, who is the author of the book, "Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed – and What to Do about It". Today, Singapore is consistently ranked as one of the easiest places in the world to do business. Despite all these measures which create an entrepreneurship-friendly framework and a growing awareness of the need to drive productivity among SMEs, the actual state of private enterprise is lacking. While there has been an increase in the number of young startups, our productivity growth is dismal. The productivity growth target for the economy, as outlined by the Economic Strategies Committee in 2010, was 2% to 3% a year over 10 years. If we exclude the post-financial crisis rebound in 2010, productivity growth came in at a compounded annual growth rate of 0.3% over 2009 and 2014.[+7 sentences] When the Minister for Finance, Mr Heng Swee Keat, singled out the major innovations in Singapore’s history, most, if not all, of the innovations were led by the Government, be it in NEWater technology or innovations in our social policies. There are very few private sector-generated global innovations we can be proud of besides the Soundblaster by Creative Technology. Even then, technological change has superseded this innovation. Are we doing the right things? If we scratch beneath the veneer of good news, some CEOs in the private sector questioned if the Government really understands the way the private sector thinks. Page: 101 Take the PIC scheme as an example. PIC was started in 2010. Since then, about 71,000 cash payout claims amounting to $3.6 billion were made between 2011 and 2015.[+6 sentences] However, the PIC scheme has been abused. In 2014 the taxman had to claw back $7 million worth of improper claims. PIC has been successful in promoting awareness of the productivity movement but less effective in promoting innovativeness. SEC is another example. It was introduced in 2011 to provide support to employers to hire older Singaporean workers. It is supposed to expire this year but it has been extended to 2019. The SEC fund will be topped up by $1.1 billion this year.[+10 sentences] Does SEC really influence employers to employ more workers above the age of 55? Of the five employers I have asked over the last one week, ranging from SMEs to MNCs, all of them conceded that SEC did not influence their decision to hire older workers. Given the current tight labour market, they will employ workers above 55 years old as long as they qualify for the job, regardless of SEC. However, all the five employers, as expected, welcomed SEC as it improves their bottom line. Rather than just merely extend SEC for another three years, my suggestion is to increase the employers' CPF contributions rate for workers who are between 55 and 60 years old to 17%, that is, the same as workers who are below 55. Just increase the employers' contribution rate for the workers between 55 and 60 years old. By doing so, more elderly workers will be encouraged to stay or return to employment. Without better understanding, the Government's efforts cannot effectively transform the SMEs. Our business promotion policies will not be effective in driving the desired outcome. In fact, the Government may be doing too much to protect and cushion private enterprises from developing resilience and true excellence. William Kerr, an assistant professor at Harvard Business School, argues that "subsidising individuals can have a perverse effect of encouraging entry or keeping alive lower ability entrepreneurs". Mr Sankaran, Vice Chairman of Makino Asia Group Companies, also shared with me that Government subsidies, if not implemented appropriately, could hide SME's inefficiency and, at times become a crutch rather than helping them to run.[+4 sentences] In coming up with policies and programmes geared towards promoting enterprise, those from the private sector could be involved to a greater extent in the development stages. Coming from the target audience, they would know better if the programme would be useful and how it would be taken up or abused. This would hopefully result in programmes which are more realistic, effective and targeted. Private sector involvement does not have to end at discussion. The Civil Service could hire promising executives from the private sector to supplement its policy team. For instance, venture capitalist and entrepreneur, Dr Finian Tan, joined the Administrative Service for a few years. However, the practice of recruiting mid-career executives into the Public Service appears to have stopped.[+2 sentences] Is it worth reviving? Similar reciprocal arrangements, where public officers are given the opportunity to better understand the private sector, would also help in formulating more effective policies. The initiative to second up to 20 public officers to TACs, to help Government agencies to better understand enterprises' needs and to support TACs in developing their capabilities and strengthening their processes and services, is a good first step.[+1 sentence] We should have more of such arrangements. In deepening private sector understanding, the Government may also want to consider seconding public officers to promising SMEs.[+8 sentences] After their private sector stints, they can help to Page: 102 formulate better policies and incentives to encourage enterprises to improve productivity, innovation and expand regionally. The healthy exchange of staff between the public and private sectors will deepen understanding between the two sectors. Certainly, there are constraints and it is easier said than done. However, well-thought-out and administered policies and programmes generated from a solid base of knowledge will likely result in less abuse, and make them less of a hand-out nature. They should result in spurring on our SMEs and private enterprises to aggressively compete in the local and global marketplace, because they want to, and not because the Government wants them to do so. For the sake of future-proofing our economy, it may be worth a try. With this, I support the Budget. Page: 103
Adjournment of Debate›Motions5 turns · 48w
· 0 highlighted
motion-693
The Minister for Finance (Mr Heng Swee Keat)16 words
[+1 sentence]Mr Deputy Speaker, may I seek your consent to move, "That the debate be now adjourned"?
Take-up Rate for Digital TV Assistance Scheme›Oral Answers to Questions7 turns · 612w
· 8 highlighted
oral-answer-1259
Ms Sun Xueling55 words
[+1 sentence]asked the Minister for Communications and Information (a) what is the number of applicants applying for the digital TV assistance scheme in the last two years; and (b) whether the Ministry is fully satisfied that residents are aware of the move from analogue to digital TV and the shutdown of analogue TV channels in 2017.
The Minister for Communications and Information (Assoc Prof Dr Yaacob Ibrahim)440 words
[+2 sentences]Madam, I thank Ms Sun Xueling for her question on our transition from analogue to digital signals for TV broadcast. Madam, we launched the Digital TV (DTV) Assistance Scheme on 29 September 2014. The Assistance Scheme is meant to provide about 160,000 low-income households with a free digital set-top box and indoor antenna, which will allow them to use their existing television sets to receive DTV signals. Once an estate is able to receive good indoor DTV reception, that is, they are DTV-ready, the Media Development Authority (MDA) sends notification letters to eligible households and makes available application forms for the Assistance Scheme at the community centres and social welfare offices.[+4 sentences] MDA produces DTV information booklets in four languages that are sent to individual homes once the estate is DTV-ready. MDA has also advertised the digital switchover initiative on TV, radio, Mass Rapid Transit (MRT) trains, bus stop shelters, as well as print and online media. MDA is partnering retailers and organising roadshows in the heartlands to encourage early DTV adoption. Public response has been positive. In a survey conducted by MDA in December 2015, we were encouraged to note that 62% of households knew how to receive DTV channels. Since the launch of the DTV Assistance Scheme, over 84,000 households have been notified of their eligibility and close to 39,000, or 46% of these households, have received the assistance package.[+1 sentence] Madam, we are on track to notify all eligible households by early-2017 when all estates are DTV-ready. MDA assesses that the adoption rate of 46% for the Assistance Scheme is a good sign.[+6 sentences] There are several reasons why a household may choose not to accept the assistance package. Firstly, they may already be a pay TV subscriber and, hence, will not need a separate DTV set-top box. Secondly, they may have purchased newer-model TV sets that are DTV-ready. The third possibility may be that despite the letters going out, they may still be unaware of the transition to digital broadcasting. It is this third possibility that we are most concerned about. We will continue to engage the public and our stakeholders to raise DTV awareness. MDA plans to step up publicity in the lead-up to the cessation of analogue broadcasting at the end of 2017 and to track and encourage early adoption among households. Apart from public communications, MDA has worked with the voluntary welfare organisations and senior activity centres to reach out to the elderly and the disabled, to assist them with the digital switchover. We are confident that more and more households will switch to DTV as we near the shutdown of analogue TV broadcast.[+1 sentence] Page: 7
Mdm Speaker5 words
[+1 sentence]Ms Sun, next question, please.
Ms Sun Xueling (Pasir Ris-Punggol)6 words
[+1 sentence]Madam, I have a supplementary question.
Mdm Speaker15 words
[+2 sentences]You did not put up your hand, but okay. Please proceed with the supplementary question.
Ms Sun Xueling60 words
[+3 sentences]I thank the Minister for his explanation. I think the DTV roll-out will give an indication of the issues we have to look out for when we embark on the Smart Nation initiative. I would like to enquire, for the elderly and the less Internet-savvy, is there a hotline that they can call, especially if they face issues with installation?
Assoc Prof Dr Yaacob Ibrahim31 words
[+3 sentences]Madam, there is information available in the booklets. There are telephone numbers on the booklets which they can call to seek help. There is a website which they can turn to.
Criteria for Setting-up of Public Library›Oral Answers to Questions5 turns · 729w
· 10 highlighted
oral-answer-1260
Ms Sun Xueling49 words
[+1 sentence]asked the Minister for Communications and Information (a) what are the planning parameters for the setting up of a library in a district; and (b) what steps are being taken to make accessibility to books more convenient for residents to enable them to pick up books on the go.
The Minister for Communications and Information (Assoc Prof Dr Yaacob Ibrahim)352 words
[+1 sentence]Madam, the National Library Board (NLB) aims to make libraries as accessible as possible to Singapore residents, using a network of 26 libraries, including three regional libraries. Library locations are planned with reference to the Urban Redevelopment Authority's (URA's) land use masterplan. NLB seeks to locate in a planning area where the population size has a minimum threshold of 150,000 residents. In addition, NLB looks for convenient locations, either within or near town centres, or in shopping malls with easy access to the Mass Rapid Transit (MRT) stations and bus interchanges.[+3 sentences] This allows Singapore residents to visit their favourite libraries "at their doorstep". The three regional libraries house larger collections and offer enhanced services for specific segments, like seniors, teenagers or young children. For example, a resident from Sembawang can regularly visit the nearby Sembawang Public Library and head to the Woodlands Regional Library for a more specialised service, such as IT programmes for seniors offered at its Silver InfoComm Junction. The 26 public libraries are complemented by over 120 reading corners in community spaces and preschools across the island.[+1 sentence] These include reading corners at 11 Senior Activity Centres. Project Deliver Me and the Mobile Library (MOLLY) buses are two further initiatives through which NLB brings library content and services to the underserved.[+3 sentences] Project Deliver Me, in particular, delivers books to those who are less mobile and, hence, find it difficult to leave their homes. Beyond the physical libraries, reading corners and mobile library services, NLB has also made it easy for Singapore residents to access our services on the go. NLB started introducing self-pick-up reservation lockers in 2014. They are now offered at three libraries – Orchard, Sembawang and Pasir Ris. And, Madam, there are plans to expand this to all branches by 2017. Page: 8 NLB also offers digital library services. It currently offers a collection of over four million e-books which are easily accessible through its website or the NLB mobile app.[+1 sentence] NLB will continue to monitor population and usage trends so as to optimise its library locations and digital services and to serve the needs of Singaporeans better.
Mdm Speaker3 words
[+1 sentence]Ms Sun Xueling.
Ms Sun Xueling (Pasir Ris-Punggol)95 words
[+3 sentences]I thank the Minister and would like to enquire, in new estates like Punggol where there are sizeable numbers of residents, especially those with young children, would the Ministry consider having temporary libraries so that we do not lose the opportunity to inculcate the love of reading for children at a young age? My second question is that the process of selecting books, sometimes, is as informative as reading a book itself. Would NLB consider making available more synopsis and recommendations so that users can acquire knowledge even as they are picking up a book?
Assoc Prof Dr Yaacob Ibrahim230 words
[+5 sentences]Madam, to the second question, we do that. What the library staff will do is that as and when new collections come into their possession, a review would be done and written up and this is made accessible, as I had mentioned earlier, on the NLB website. In fact, if you go to the Orchard Road Library, there are panels where we put up new books with a bit of a description as to what each book is all about. We will continue to curate content in such a way to attract new users to our libraries. If you were to look at our mobile app, there will be short excerpts about some of the books that you may be interested in. To the first question, unfortunately, the answer is that interim or temporary libraries will not be set up.[+4 sentences] The reason is that there is a nearby library called the Cheng San Public Library. Having said that, there may be communities that are interested in setting up their own community library, as had happened in Sengkang. The volunteers in Sengkang decided to set up a community library as the renovations are taking place at the Sengkang Public Library. NLB is prepared to assist any community group which is prepared to take the lead in setting up their own library corners or libraries to serve the needs of their residents.
Support for Sports Not Affiliated with National Sports Associations›Oral Answers to Questions5 turns · 769w
· 8 highlighted
oral-answer-1261
Mr Darryl David37 words
[+1 sentence]asked the Minister for Culture, Community and Youth whether more support can be given to those sports that are not affiliated to a National Sports Association (NSA) to encourage a sporting and healthy lifestyle in our community.
The Minister for Culture, Community and Youth (Ms Grace Fu Hai Yien)339 words
[+1 sentence]Mdm Speaker, the Ministry of Culture, Community and Youth (MCCY) and Sport Singapore recognise the health and social benefits of sport and encourage individual and community participation in many different types of sports. Many sports in Singapore are already supported by one of the 63 National Sports Associations (NSAs) recognised by Sport Singapore. However, there are other developing sports which have not fulfilled the criteria to be accorded NSA status. In cases where such sports help to promote an active lifestyle and build a more cohesive society, Sport Singapore will work with the respective groups to grow and develop the sport to provide more sporting opportunities and options for all.[+1 sentence] For example, Sport Singapore has been organising introductory programmes and competitions for Ultimate Frisbee through ActiveSG. More than 100 students from about 10 Page: 9 schools took part in the ActiveSG Ultimate Frisbee Competition in November last year.[+7 sentences] Other programmes offered by ActiveSG include urban trekking and stand up paddling, which are also becoming more popular in Singapore. ActiveSG also champions innovative programmes to lower the barriers of entry to sports participation. For instance, ActiveSG offers flippa ball, which is modified water polo played in shallow pools, as I was told, so that participants can pick up and enjoy the sport more easily. Those who are keen may then pursue water polo as a competitive sport subsequently. ActiveSG has also organised family-friendly tchoukball programmes – which is a very popular sport these days – during the school holidays to promote parent-child bonding and interaction. Catering to members of all ages and fitness levels, ActiveSG offers a comprehensive range of exercise programmes at its sports centres, including aqua aerobics, piloxing and Zumba. We also partner the Health Promotion Board to offer the Sundays @ the Park programme, where anyone can join in for an hour of fun and energetic group workout. As new sports emerge and develop, MCCY and Sport Singapore will continue to consider how best to support these sports, so that more Singaporeans can live better through sport.
Mdm Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)168 words
[+6 sentences]I thank the Minister for the reply. I would like to raise a supplementary question, Madam. Besides the financial support given to NSAs and so on, and the other activities which I am heartened to hear that MCCY is doing, for sports that are not so popular – the Minister mentioned flippa ball and tchoukball – I was approached online recently by someone who organises dodgeball and I had to Google to see what dodgeball is all about. I understood it is a version of "hantam bola" but played a little bit differently. His point was that he was going to take part in an international competition and he was wondering if he were to do this, would he be able to compete under our flag, with the pride that he is representing Singapore, albeit not in a popular NSA sport but nevertheless in a sport that has Singaporeans participating? Could the Minister please share the other forms of support that could be given to these sport activities?
Ms Grace Fu Hai Yien222 words
[+2 sentences]I thank the Member for the supplementary question. The Member's question originally was to ask if more support could be given to non-NSA sports to encourage a sporting and healthy lifestyle in the community. The answer is one that is very inclusive and we are quite prepared to work with many sports, even though they have not formed NSAs. But when it comes to representing Singapore in specific competitions, that is where I think there should be a more considered reply.[+3 sentences] First of all, do you represent the fraternity? Are you the only one who has expertise or has interest in this sport? Is this a recognised competition at the international level? All these considerations will determine the level of support because working with a limited budget, we want to see that our financial support go towards promoting a level of expertise and a pipeline of talent development, so that resources are not too spread out such that they become episodic and do not promote a continuous pursuit of excellence.[+2 sentences] This is where a non-NSA sport will probably get a more considered reply from Sport Singapore, but I am sure Members can imagine that with very limited resources to work with and with many, many sports that have strong support from NSAs, we would have to apply our resources carefully. Page: 10
Framework for Healthcare Institutions in line with Counter-terrorism Plans›Oral Answers to Questions5 turns · 650w
· 8 highlighted
oral-answer-1262
Assoc Prof Fatimah Lateef38 words
[+1 sentence]asked the Minister for Health with recent announcements on the Home Team's counter-terrorism initiatives as well as community plans under SG Secure, whether the Ministry will be coming up with a framework for healthcare institutions pertaining to this.
The Minister of State for Health (Dr Lam Pin Min) (for the Minister for Health)305 words
[+8 sentences]Mdm Speaker, in their daily operations, the public healthcare institutions (PHIs) aim to provide a baseline level of security that balances the safety of their patients, visitors and staff while allowing public access without undue hassle. The day-to-day security operations include surveillance via closed-circuit television (CCTV), patrols and immediate responses to security incidents by security personnel and access controls against unauthorised entry to restricted and sensitive areas. Our PHIs also conduct security awareness training for their staff so that they remain vigilant and are aware of the basic security measures that they should take. PHIs also have contingency plans to step up their vigilance during heightened security alerts. These include the deployment of additional security personnel, increasing the frequency of patrolling, tightening of access control and stepping up security awareness training among their staff. For security incidents, like terrorist attacks, the hospital security personnel are expected to contain and manage the situation until the Police arrives at the scene. The Ministry of Health (MOH) and PHIs also participate in whole-of-Government planning efforts to enhance preparedness for security threats and to share good practices. The institutions also work directly with the Police land divisions to develop standard operating procedures and conduct familiarisation and emergency drills to test their preparedness and vigilance. In view of the heightened terrorism threat and the new modus operandi of terrorists, MOH and PHIs are reviewing our security plans, in consultation with the Ministry of Home Affairs (MHA). The review is expected to be completed within a few months' time and will cover preventive security, contingency plans to deal with different scenarios and threat levels, including terrorist incidents and consequence management. The review will also examine the required competency of the security personnel.[+1 sentence] MOH will work closely with MHA and the Home Team to ensure that our PHIs remain vigilant and alert.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef (Marine Parade)69 words
[+5 sentences]Mdm Speaker, I have two supplementary questions. First, with the revamp and refinement, can we consider reaching out to all levels of staff, including cleaners and maintenance personnel as well, because these are the people who may pick up suspicious items or activities during the course of their job? Secondly, the Minister of State mentioned public institutions. How about private healthcare institutions? How will they align with this initiative?
Dr Lam Pin Min234 words
[+3 sentences]Mdm Speaker, I would like to thank Assoc Prof Fatimah Lateef for the supplementary questions. I would like to assure the Member that MOH takes the security of our PHIs very seriously. I would like to thank her for her suggestion. Yes, MOH will work with PHIs to enhance security awareness programmes and to educate their staff at all levels to remain vigilant. Page: 11 As for the second question on private healthcare institutions, MHA has a set of guidelines to guide all private building owners, including private healthcare institutions, on how to strengthen their physical security with the essential security features and measures. Similar to PHIs in their daily operations, private healthcare institutions also have a baseline level of security that includes surveillance via CCTVs, patrols, immediate responses to incidence by security personnel and access control against unauthorised entry to restricted and sensitive areas. The private healthcare institutions also form part of the Police-led Security and Safety Workgroup where they meet regularly to share good practices and to enhance preparedness for security threats.[+1 sentence] Mdm Speaker, I would like to reiterate that it is not just the work and duty of the security personnel to keep Singapore safe. It is important that hospitals and the staff on the ground as well as all Singaporeans continue to remain vigilant and look out for any suspicious behaviours and items and report them promptly to the authorities.
Use of Medisave for Terminal Illnesses and End-stage Diseases›Oral Answers to Questions5 turns · 440w
· 9 highlighted
oral-answer-1263
Assoc Prof Fatimah Lateef30 words
[+1 sentence]asked the Minister for Health whether the use of MediSave for patients with confirmed terminal illnesses and end-stage diseases with significantly limited lifespan can be liberalised more for their use.
The Senior Minister of State for Health (Dr Amy Khor Lean Suan) (for the Minister for Health)253 words
Care options for patients with terminal illnesses and end-stage diseases include palliative treatment at home or in a hospice. Palliative care is subsidised and patients can tap on MediSave to pay for the remaining copayment. The Ministry of Health (MOH) recently raised the MediSave limits so that patients can tap on more MediSave for palliative care needs. In January 2015, the MediSave withdrawal limit for inpatient hospices was increased from $160 per day to $200 per day. There are no daily limits for home palliative care but there is a lifetime MediSave withdrawal limit which was increased from $1,500 to $2,500. Patients can use their own or their immediate family members' MediSave. However, if the patient passes away in the hospice, he may use all the available balance in his own MediSave account for the final inpatient hospice bill without any daily limit.[+2 sentences] Similarly, for a home palliative patient with terminal cancer or end-stage organ failure, he can also use all the available balance in his own MediSave account for the bills and will not be subject to the lifetime limit. Bills may be covered by Government subsidies, MediSave or charity dollars from voluntary welfare organisations. Overall, about eight out of 10 inpatient hospice bills did not have out-of-pocket payments while about nine in 10 home palliative care patients did not have to make out-of-pocket payment for their bills.[+1 sentence] MOH will continue to ensure that the MediSave withdrawal limits for end-of-life care remain sufficient, along with subsidy coverage to keep these services affordable.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef (Marine Parade)63 words
[+4 sentences]Mdm Speaker, I applaud MOH for the recent increase in the usage of MediSave for such patients. We heard that out of 10, maybe one or two of them will actually exceed the amount. Perhaps for this group, we can have further upliftment and consideration on a case-by-case basis because cost can really be quite high for some of these patients? Page: 12
Dr Amy Khor Lean Suan90 words
[+1 sentence]Indeed, there can be exceptions to such bills. For such instances, patients could approach the social worker to apply for additional assistance under MediFund or Medication Assistance Fund.[+2 sentences] Let me assure the Member that no patient will be denied the appropriate care that he or she needs due to inability to pay. When we receive appeals, for instance, for more usage of MediSave, we will consider these on a case-by-case basis and work out the patient's healthcare needs as well as affordability issues with the patient and the family members.
Disciplinary Actions and Preventive Measures Related to Hepatitis C Outbreak at SGH›Oral Answers to Questions6 turns · 1,226w
· 6 highlighted
oral-answer-1264
Mr Leon Perera57 words
asked the Minister for Health (a) what are the names of the SGH and Ministry staff who have been disciplined in connection with the Hepatitis C hospital infection cluster in 2015; (b) what are the penalties and/or warnings that they individually received; and (c) for what reasons have these penalties and/or warnings been given in each case.
Miss Cheng Li Hui23 words
asked the Minister for Health what are the measures put in place to ensure that the Hepatitis C incident does not happen again.
The Minister for Health (Mr Gan Kim Yong)11 words
[+1 sentence]Madam, may I take both Question Nos 6 and 7 together?
Mdm Speaker2 words
[+1 sentence]Yes, please.
Mr Gan Kim Yong1075 words
[+13 sentences]Madam, our healthcare professionals are committed to doing their best to cure and care for their patients. They have played a critical role in providing good quality healthcare for Singaporeans. Unfortunately, gaps and lapses do happen. When an outbreak occurs, hospitals must do two things. First is to take steps to stop further transmission and care for the affected patients as best as they can. The second is to review the processes at the individual and system levels and make improvements to reduce the risk of any recurrence. The Hepatitis C outbreak in the Singapore General Hospital (SGH) is a painful incident – painful to the patients, their families and our healthcare professionals. The chief executive officer of SGH has apologised for the outbreak. The Ministry of Health (MOH) and SGH are committed to caring for all affected patients by providing them with counselling, support and appropriate Hepatitis C treatment. The well-being of the affected patients and their family members remain our top priority. My Ministry will continue to work with SGH to ensure that they receive the necessary support and care. Once again, let me apologise to the affected patients and their family members for this incident, and especially to those who have lost their loved ones. To identify the cause of the outbreak and address the gaps, my Ministry has set up the Independent Review Committee (IRC) comprising experienced clinicians from different disciplines, with support from local resource persons and international experts, to determine the cause of the Hepatitis C outbreak and provide an objective and critical review of the response. After a thorough investigation, the IRC concluded that the outbreak was caused by gaps in infection prevention and control practices at SGH, together with other overlapping factors, such as a change in the wards and greater susceptibility and exposure of the renal patients to intravenous Page: 13 procedures.[+8 sentences] As a follow-up to the IRC report, both SGH and my Ministry have taken steps to address the gaps. I will articulate this further later. MOH and SingHealth also instituted disciplinary procedures to hold our staff to account. We set up independent human resource (HR) panels to examine the roles, responsibilities and actions of key MOH and SGH staff in relation to the incident and to recommend appropriate disciplinary actions. The SingHealth HR panel submitted its recommendations to the SingHealth Board. The Board decided that the junior and frontline healthcare staff would be required to undergo retraining and competency assessment to improve their infection prevention and control practices. The Board also decided to hold 12 SGH leaders, including senior management, responsible for their failure to enforce a strong infection control regime and incident escalation protocols within the hospital. The MOH HR panel submitted its recommendations to the Public Service Commission (PSC). The PSC decided to take disciplinary action against four MOH officers holding Director-level or equivalent roles for their failure to intervene early and to ensure that the infectious disease notification and reporting system was effective and rigorous.[+20 sentences] The disciplinary sanctions imposed on MOH and SGH staff included warnings, stern warnings and financial penalties. Let me explain. When a warning is issued, it is lodged in the staff's service record. A stern warning is a more serious penalty. Not only is it entered into the staff's service record, it has a negative bearing on his career, including future promotion and awards. A warning or stern warning may be given together with a financial fine. But, Madam, the greatest penalty is not these disciplinary measures. For everyone involved, including those who had provided direct care to the affected patients, we will carry with us the pain and regret of this incident for a long time to come. It is, therefore, important for MOH, our healthcare institutions and healthcare workers to learn from what went wrong and make sure the mistake is not repeated. Instead of naming individuals and developing a blame culture in our healthcare institutions, we need to encourage a learning culture to make our hospitals as safe as possible for the patients. This culture of continual learning and improvement is important for enhancing patient safety and the quality of care. Looking ahead, our focus is to improve our systems and processes to enhance infection control and strengthen detection and response to infectious diseases. Revealing the names of the officers and specific sanctions each individual received does not contribute to better care of our patients. In deciding what to disclose, we have to bear in mind the longer-term impact on our healthcare system and healthcare workers and strike a careful balance. Let me now turn to the measures that we are putting in place to improve patient safety. Following the IRC's review, SGH has taken steps to improve infection control by enhancing its processes and strengthening cleaning and decontamination. SGH also enhanced its education and retraining programmes for staff and implemented stricter monitoring of infection control practices. To verify that its systems are robust, SGH has engaged consultants from the Joint Commission International, a reputable accreditation and consultancy organisation, to conduct a thorough review Page: 14 and assessment of its clinical processes. We are also sharing the lessons learnt from this outbreak with all hospitals and working with them to ensure that their infection control, risk management and escalation protocols are in place. In December 2015, MOH set up a taskforce headed by Minister of State for Health, Mr Chee Hong Tat, to enhance the national healthcare system's ability to detect and respond to infectious disease outbreaks in hospitals and in the community. The taskforce is scheduled to complete its review by the middle of this year. MOH has decided to implement a number of the taskforce's interim recommendations earlier.[+6 sentences] This includes setting up a National Outbreak Response Team comprising experts from across the healthcare fraternity. This team will augment the efforts of healthcare institutions to deal with disease outbreaks. Other measures include simplifying processes for notification and reporting of infectious diseases by doctors and laboratories. MOH has also designated the Communicable Diseases Division to assume overall responsibility for overseeing surveillance of all infectious diseases. Madam, the Hepatitis C incident reminds us of the need to remain vigilant at all times. While it is not possible to completely prevent outbreaks in hospitals, MOH and our healthcare institutions are determined to learn from the mistakes made so that we continue to improve our systems and processes to provide better and safer care to our patients.
Mdm Speaker58 words
[+5 sentences]Order. End of Question Time. Introduction of Bills. Minister for Finance. [Pursuant to Standing Order No 22(3), provided that Members had not asked for questions standing in their names to be postponed to a later Sitting day or withdrawn, written answers to questions not reached by the end of Question Time are reproduced in the Appendix.] Page: 15
Visit of Dato Roselan Mohd Daud, Brunei's Deputy Minister at the Prime Minister's Office›Announcement by Speaker1 turns · 41w
· 0 highlighted
speaker-691
Mdm Speaker41 words
[+3 sentences]Order. On behalf of hon Members, I wish to welcome the hon Dato Paduka Awang Haji Mohd Roselan bin Haji Mohd Daud, Deputy Minister, Prime Minister's Office, Brunei Darussalam, who is present in our Gallery opposite me today. Page: 76
Priority Seats for the Elderly and Pregnant Women on Public Transport Systems›Written Answers to Questions2 turns · 270w
· 0 highlighted
written-answer-2761
Er Dr Lee Bee Wah85 words
[+1 sentence]asked the Minister for Transport (a) whether the Ministry will consider (i) conducting a campaign or public education on giving up seats for the elderly and pregnant women on public transport systems, (ii) taking enforcement action against commuters who take up priority seats; (b) how many complaints have the train operators received about such cases in the past three years; and (c) whether the train operators will make more frequent public announcements on reminding commuters to give up seats to those who need them more.
Mr Khaw Boon Wan185 words
[+10 sentences]In the past three years, SMRT and SBS Transit have received about 130 instances of feedback relating to passengers not giving up their seats. The Land Transport Authority (LTA) and Public Transport Council conduct an annual Graciousness Campaign with the public transport operators. One key message of the campaign is to encourage commuters to give up their seats to those who need them more, such as the elderly and pregnant women. Members of the House may recall Phua Chu Kang and the Dim Sum Dollies extolling commuters to give up their seats. The current campaign features cartoon characters, including one called Stand-Up Stacey. Our survey indicates that the message recall rate of the current campaign is very high, at 95%. Changing behaviour takes time but there are encouraging signs. In LTA's perception survey, the percentage of commuters noticing that people are giving up seats has risen from 42% in 2012 to 63% in 2014. We will continue to push ahead with our efforts to promote gracious behaviour. Hopefully, public education will lead to more sustained improvements in such behaviour, rather than using regulations and fines.
Vehicles and Stations under Car-sharing Scheme›Written Answers to Questions2 turns · 148w
· 0 highlighted
written-answer-2762
Miss Cheng Li Hui41 words
[+1 sentence]asked the Minister for Transport (a) what is the current number of vehicles and stations under the car-sharing scheme; (b) what has been the utilisation rate; and (c) whether there are plans to increase the number of car-sharing vehicles and locations.
Mr Khaw Boon Wan107 words
[+6 sentences]There are currently three operators running car-sharing schemes, with about 300 cars amongst them. The Government supports them by making available to them lots in Government-managed car parks. The Housing and Development Board has allocated more than 300 car park lots for their use. The utilisation rate is competitive information for the operators. However, they have shared that it is healthy, growing, and tends to be higher during weekends and public holidays. The Land Transport Authority and the Economic Development Board are currently evaluating proposals from car-sharing operators for an electric vehicle car-sharing programme that will see up to 1,000 electric cars deployed nationwide within 10 years.
Subsidies for Diabetes and Cervical Cancer Tests at Polyclinics and GP Clinics›Written Answers to Questions2 turns · 209w
· 0 highlighted
written-answer-2763
Mr Louis Ng Kok Kwang38 words
[+1 sentence]asked the Minister for Health whether the Ministry will consider providing higher subsidies for detection tests conducted at polyclinics and GP clinics for diabetes Page: 108 and cervical cancer so as to increase early detection for these diseases.
Mr Gan Kim Yong171 words
[+7 sentences]Health screening plays an important role in helping individuals detect diseases early and seek treatment to manage these diseases promptly. Screening tests for diabetes and cervical cancer are available at affordable rates through the Health Promotion Board's Screen for Life programme. Singaporeans can visit general practitioner (GP) clinics participating in Screen for Life to enjoy a package rate of $10 for chronic disease screening which includes diabetes screening, and $10.25 for cervical cancer screening. Since 2014, individuals who hold the Community Health Assist Scheme (CHAS) or Pioneer Generation (PG) card can receive these tests for free at Screen for Life GPs, and receive subsidies for their doctor’s consultation fee, if they are due for screening. With these subsidies, CHAS and PG patients paid an average of only $2 per visit last year. In addition, eligible Singaporeans can receive subsidised cervical cancer and chronic disease screening at the polyclinics. The Ministry will continue to review these subsidies from time to time to ensure that screenings and follow-up consultations remain affordable for Singaporeans.
Statistics on ElderShield Premium Payers and Payouts›Written Answers to Questions2 turns · 388w
· 0 highlighted
written-answer-2764
Mr Louis Ng Kok Kwang58 words
[+1 sentence]asked the Minister for Health (a) what is the current number of ElderShield premium payers; (b) to date, what is the number of people who have received ElderShield payouts; and (c) whether the Ministry will consider setting up a coordinating office to help elders with ElderShield matters such as that of signing up, paying premiums and getting payouts.
Mr Gan Kim Yong330 words
[+12 sentences]ElderShield is an insurance scheme that provides basic protection against the costs of long-term care arising from severe old-age disability. Depending on the policyholder's plan, the scheme provides cash payouts of either $300 a month for up to five years, or $400 a month for up to six years. As at end 2015, there were 1.2 million ElderShield policyholders, or about 65% of the resident population aged 40 to 83. Those aged 84 and above would not have qualified for ElderShield as they had exceeded the maximum entry age when ElderShield was introduced in 2002. Instead, they can apply for financial assistance under the Government-funded Interim Disability Assistance Programme for the Elderly if they meet the income and disability criteria. Since ElderShield was launched in 2002 till end-2015, there have been about 12,500 successful claims, with around $90 million paid out. Today, to ensure participation in the scheme, it is made as easy as possible, and all Singapore Citizens and Permanent Residents with MediSave accounts are automatically covered under ElderShield at the age of 40, unless they choose to opt out. As the scheme is operated by three Ministry of Health (MOH)-appointed insurers, that is Aviva, Great Eastern and NTUC Income, the insurers will send out premium notice letters once a year, before policy renewal. Premiums are usually paid via direct deduction from the policyholder or their family member's MediSave account. For those without a MediSave account when they reach 40 years old, the Central Provident Fund (CPF) Board will send an invitation letter to them to invite them to open a CPF account, so that they could be automatically covered under ElderShield. The insurers are also responsible for responding to queries on premiums and supporting the policyholder through the claims process. Page: 109 MOH will continue to review the processes for ElderShield sign-up, premium payment and claims, including working with other organisations, such as the Pioneer Generation Office, to help Singaporeans with ElderShield processes and their long-term care needs.
Use of Caregivers Training Grant›Written Answers to Questions2 turns · 218w
· 0 highlighted
written-answer-2765
Assoc Prof Daniel Goh Pei Siong56 words
[+1 sentence]asked the Minister for Health (a) in the past year, how many caregivers who have benefited from the Caregivers Training Grant are specialised caregivers who provide care for specific illnesses or disabilities; (b) how much do the specialised caregivers receive on average; and (c) whether the Ministry will consider increasing the grant quantum for specialised caregivers.
Mr Gan Kim Yong162 words
[+8 sentences]The Caregivers' Training Grant was introduced in 2007 to support caregivers of seniors who are 65 years or older and persons with disabilities with up to $200 each year to attend caregiver training courses. To date, more than 32,000 caregivers have benefited from this grant. In financial year (FY) 2015, caregivers who used the grant to attend courses pertaining to conditions, such as dementia, autism, dyslexia or intellectual disabilities, made up about 40% of the 6,000 caregivers who have used the grant to date. The average annual utilisation by these caregivers was $116 per grant recipient in FY2015. We do not have plans to increase the grant quantum at the moment, as the current grant of $200 per annum is generally adequate. Today, about 80% of all approved caregiver training courses cost $200 or less. The average annual utilisation per grant recipient has remained at about $160 for the past five years. We will continue to monitor the adequacy of the grant.
Enforcement Action against Unlicensed Tour Guides›Written Answers to Questions2 turns · 202w
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written-answer-2766
Mr Desmond Choo55 words
[+1 sentence]asked the Minister for Trade and Industry (Industry) (a) how many unlicensed tour guides has the Ministry taken enforcement action against from 2013 to date; and (b) what are the measures that the Ministry has and will be taking to regulate against unlicensed tour guides from diluting the quality of tour guide services in Singapore.
Mr S Iswaran147 words
[+7 sentences]The Singapore Tourism Board (STB) takes a serious view against unlicensed tourist guides. The STB (Amendment) Act 2014, which came into effect in October 2014, strengthened the powers to investigate and compound offences by STB enforcement officers and increased the penalties for unlicensed guiding offences, to more effectively deter illegal tourist guiding activities. Over the past few years, STB has stepped up enforcement action against unlicensed tourist guides. Enforcement checks have increased by more than five times from 225 in 2013 to 1,245 in 2015. Since 2013, one licensed travel agent and its director were convicted and fined for engaging unlicensed tour guides to conduct tours, while six unlicensed tourist guides were convicted and fined $1,500 or more for each offence. STB will continue to closely monitor the situation and take firm action against companies and individuals who do not comply with the regulatory requirements. Page: 110
Detentions under Section 160 of Women's Charter›Written Answers to Questions2 turns · 207w
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written-answer-2767
Mr Louis Ng Kok Kwang49 words
[+1 sentence]asked the Minister for Social and Family Development (a) how many women and girls have been detained in the last five years under section 160 of the Women's Charter; and (b) in each of the last five years what has been the longest and mean duration of detention respectively.
Mr Tan Chuan-Jin158 words
[+8 sentences]Under section 160 of the Women’s Charter, the Director of Social Welfare can admit a woman or girl below the age of 21 into a place of safety for reasons, such as ill-treatment or moral danger. The Director of Social Welfare must be satisfied that doing so is in their best interest. Each of such cases will be thoroughly investigated by the Ministry of Social and Family Development within a month of placement. To ensure that the women and girls do not remain in the place of safety unnecessarily, an independent Discharge Committee reviews such cases every six months. Over the last five years, a total of 10 women and girls were admitted. Three of them were discharged within a month after the investigations. Seven continued their stay at the places of safety mainly because of continued protection concerns and lack of suitable caregivers. The mean duration of stay was two years, while the longest was four years.
Maternity Leave for Single Mothers›Written Answers to Questions2 turns · 88w
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written-answer-2768
Mr Louis Ng Kok Kwang34 words
[+1 sentence]asked the Minister for Social and Family Development whether the Government will consider increasing the amount of maternity leave for single mothers considering that they need more time to take care of their children.
Mr Tan Chuan-Jin54 words
[+3 sentences]Currently, single unwed mothers are eligible for eight and four weeks of paid and unpaid maternity leave, respectively. We are in the midst of reviewing the support provided to single unwed parents, as part of the Ministry's efforts to better support children from vulnerable families. We will announce the outcome of our review soon.
Review of Additional Housing Grant›Written Answers to Questions2 turns · 285w
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written-answer-2769
Er Dr Lee Bee Wah22 words
[+1 sentence]asked the Minister for National Development whether the Ministry will be reviewing the Additional Housing Grant which was last enhanced in 2009.
Mr Lawrence Wong263 words
[+13 sentences]The Additional Central Provident Fund (CPF) Housing Grant (AHG) Scheme was introduced in March 2006 to help low-income families own their first home. AHG can be used to buy a new flat from the Housing and Development Board (HDB) or a resale flat from the open market. We have enhanced the AHG twice: first, in August 2007 and then in February 2009, to benefit more households and to increase the subsidy amount. Today, first-timers earning up to $5,000 a month can apply for AHG of up to $40,000. Since the scheme was introduced, $1.6 billion has been given out to more than 83,000 households. There are no immediate plans to further enhance the AHG scheme. Page: 111 On top of AHG, first-timers buying a new flat can also receive the Special CPF Housing Grant (SHG). We recently enhanced SHG in August 2015 to include households earning up to $8,500, and doubled the maximum grant quantum to $40,000. This means that eligible first-timer families can now receive up to $80,000 in housing grants when they buy a new flat from HDB. Meanwhile, we also introduced the Proximity Housing Grant (PHG) of $20,000 in August 2015 to help families buying a resale flat live closer to their parents or married child for mutual care and support. Together with AHG and the CPF Housing Grant of $30,000, eligible first-timer families can now receive a total of $90,000 in housing grants when they buy a resale flat. We will continue to ensure that public housing remains affordable, and are prepared to do more if necessary. Page: 112
Information on Specifications of Cars Manufactured Abroad›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 143w
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written-answer-na-2757
Er Dr Lee Bee Wah52 words
[+1 sentence]asked the Minister for Transport (a) how are officers at LTA and the vehicle inspection centres kept abreast of changes in the specifications of cars manufactured abroad; and (b) why are some car exhaust systems not allowed even though these may emit lower noise levels and are well within the decibels allowed.
Mr Khaw Boon Wan91 words
[+5 sentences]All imported vehicles have to be approved by the Land Transport Authority (LTA) before they can be registered for use. As part of the approval process, the importer has to provide the full specifications of the vehicle model. From this, LTA will know if there is any change in the vehicle specifications. Car exhaust systems must comply with both LTA's safety regulations and the noise and emissions standards set by the National Environment Agency. Car exhaust systems that meet noise standards but fail emissions or safety standards will not be allowed.
Tax Rebate Eligibility for Electric Cars›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 185w
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written-answer-na-2758
Er Dr Lee Bee Wah34 words
[+1 sentence]asked the Minister for Transport (a) what are the criteria to assess whether an electric car is eligible for tax rebates; and (b) how long does it take to process the tax rebate application.
Mr Khaw Boon Wan151 words
[+8 sentences]An electric car is treated no differently from any other car under the Carbon Emissions-based Vehicle Scheme (CEVS). Even though electric cars produce no tailpipe emissions, the process of generating the electricity they consume emits carbon. This has to be taken into consideration when we assess whether to give them a carbon emissions rebate or levy a surcharge. If it is assessed to produce equivalent low carbon dioxide (CO2) emissions, it is eligible for a rebate off its Additional Registration Fee. If it is assessed to produce high equivalent CO2 emissions, a surcharge is levied. For new cars, its CO2 emissions for the purposes of CEVS are based on requisite test reports from the manufacturers. On the other hand, used cars imported into Singapore will need to undergo testing at accredited vehicle testing centres to determine their CO2 emissions. The rebate or surcharge is applied immediately at the point of registration.
Trial of Electric Vehicle Car-sharing Programme›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 142w
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written-answer-na-2759
Er Dr Lee Bee Wah54 words
[+1 sentence]asked the Minister for Transport (a) whether he can give an update on the outcome of the trial of the Electric Vehicle Car-Sharing Programme; (b) how many private electric cars have been registered in the past two years; and (c) what is the Ministry's position on encouraging car owners to switch to electric cars.
Mr Khaw Boon Wan88 words
[+5 sentences]The Land Transport Authority and the Economic Development Board had earlier issued a Request for Information (RFI) to invite proposals for an electric vehicle car-sharing programme. The proposals are being evaluated and the result of the RFI will be announced soon. Page: 106 Two private electric cars, a new Peugeot Ion and a used Tesla Model S, were registered in the past two years. We are neutral as to the type of technology cars use. Our position is that we want to encourage environmental friendliness and minimise emissions.
Pioneer Generation and Other Subsidies for Elderly Patients not Physically Present to Collect Medications›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 128w
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written-answer-na-2760
Assoc Prof Fatimah Lateef50 words
[+1 sentence]asked the Minister for Health whether there can be exceptions made for Pioneer Generation (PG) patients who are not able to be physically present to collect medications and supplies due to mobility conditions and other factors, to still be able to utilise their PG subsidies and the Medication Assistance Fund.
Mr Gan Kim Yong78 words
[+5 sentences]For Pioneer Generation (PG) patients with mobility restrictions, their caregivers can collect the prescribed medications and supplies on their behalf. The same subsidies will apply whether the PG patient collects the medications and supplies in person or through a caregiver. This includes PG subsidies as well as the Medication Assistance Fund. We will remind our healthcare institutions and staff of this arrangement, so that it is implemented effectively on the ground to benefit our PG patients. Page: 107
[+11 sentences]Madam, I rise in support of Budget 2016. Budget 2016 has stayed on course to fulfil the Government's mission to build both a future-ready economy and a caring and resilient Singapore beyond SG50. Analysts have acknowledged that it is a far-sighted Budget, with resources committed to support businesses to scale up automation, create high-value jobs and internationalise. SkillsFuture, a big piece to secure Singapore's place in the new economy, is another key feature. Work is underway to develop more than 20 Sectoral Manpower Plans to identify the skills required in each sector and to develop a Singapore core. At the individual level, the first tranche of training dollars was already credited to Singaporeans to encourage lifelong learning. The people's voice through the Our Singapore Conversations can still be heard in this Budget. Anxieties over high healthcare and financial worries of the ageing are addressed with several key moves. Our national safety net is now visibly stronger by the additional pieces in the form of higher Public Assistance quantum – the Pioneer Generation package, Silver Support and MediShield Life for all. This is a significant task that not many Singaporeans fully appreciate but is nonetheless critical for their future. On concerns – as we confront the brave new world, I cannot help but still be alarmed at the speed and the disruption of change in the new economy. The 2016 World Economic Forum report on "The Future of Jobs" indicates that over the next five years, about seven million jobs could be lost through redundancy, automation or disintermediation, meaning the removal of the middleman in business processes. This loss is predicted to be only partially offset by about two million new jobs and mostly in the more specialised families such as Computer Engineering.[+10 sentences] In the logistics industry, for instance, both overseas and in Singapore, where large warehouses have been major employers of workers, robots now replace warehouse workers in jobs such as picking and packaging. Fully automated production processes from design to delivery, with very little manpower needs, is not far from reality. Even our radio journalists in the local radio stations have had their jobs re-scoped. I was working with a lady, Lu-Ann from 938LIVE, and she now video-records her interviews with us, Members of Parliament, and presents reports in voice, video and other online writings as well. Such is the change. Yes, as they say, embrace the digital economy or be left behind. Go digital or go home. Groups at risk – there is indeed cause for concern for businesses and people who are at risk of being left behind in the future economy. They include our small- to medium-sized enterprises (SMEs), our Professionals, Managers, Executives and Technicians (PMETs) and the lesser-skilled and unskilled employees amongst us. They are, after all, our own and are here to stay. First up, is our SMEs which make up 99% of enterprises in Singapore and contributing more than 50% of our gross domestic product (GDP).[+10 sentences] By sheer size and presence, they cannot be ignored, and they have to drive our growth. Granted, many of them have moved up the league and are a lot more conscious and open to the need to upgrade, but even more of them are stuck. Remodel their business; fend off disruptive technology; move from value-adding to value-creation; use big data, use cloud computing, get into the Internet of Things – these are calls that are easier said than done for many of them. Many SMEs are still concerned about the here and now – rental and manpower challenges. While they bemoan, the shake-outs continue. In the retail industry, brick and mortar stores are fast and furiously replaced by online stores. In the travel industry, tour operators continue to fold as travellers make their bookings online. Shake-outs are inevitable, but how can we reduce the numbers and how do we support those who finally exit? The PMETS – at the individual level, there are still PMETs who are unsure of their place in the new economy. Many were not formerly exposed to the changes that are taking place. A The Straits Times article in March 2016 reported that the group that was hardest hit by layoffs last year was our highly skilled and middle-aged employees who were seen by firms as too costly for their previous firms to retain and supposedly too old for prospective employees to hire.[+3 sentences] The days when PMETs who lost their jobs turned easily to the real estate, financial planning, insurance and even taxi-driving, are over. Low-skilled and unskilled – it is a known fact that unskilled or low-skilled jobs will disappear. In my effort to find jobs for my low-skilled, lowly-paid elderly residents in the Central District as a Mayor, I was informed that even makers of the 手工包, or handmade buns, are replaced by machines in South China, for instance. Our SMEs, PMETs and lower-skilled Singaporeans are at risk of being left behind.[+10 sentences] Do we give up easily? Do we tell them go digital, or go home, although we all know that there is nowhere else to go for many of them because this is where home is? Madam, I have a few suggestions for consideration in this Budget. First, on segmentation by ability, attitude and altitude. The first suggestion I have has to do with segmentation or adopting a less of a cookie-cutter approach when working with the groups of vulnerable SMEs, partners and individuals. Madam, I fully understand the perspective that in the realm of business, the Government should meddle less and not interfere with the free market mechanism – shape up or ship out. My colleague, Assoc Prof Randolph Tan, said in Parliament yesterday that this is a matter of the head, and not the heart. However, because so many of our enterprises and people are involved, I would urge that one more layer of intervention be considered. Other than industry segmentation and partnering with trade associations, another dimension of segmentation must be considered. We must be even less cookie-cutter in our approach. Profile the SMEs, PMETs, the lower-skilled workers and even the volunteer welfare organisations (VWOs) by three "A"s: one, the ability – current and potential ability, knowledge, skills and tools; two, their attitude – their willingness to update, upgrade; and three, their altitude – the vision, the ability to rise above themselves in the industry in the current terrain.[+7 sentences] For the stars who possess all three "A"s – ability, attitude and altitude – the Government's key engagement strategy should be to facilitate and to open doors, so they can scale and soar. These stars may or may not be leading trade associations. They could be outliers. They may not toe the line or fall in place nicely with the rest of the industry. They may be trailblazers. They could be the Ubers in their own industry, disrupting current business models. We need to find a way to identity them so they could reach their peak. Link them up with research and development (R&D) resources, angel investors or even global mentors; remove the barriers to performance which are within Government's circle of influence; create more Block 71 clusters to reduce the cost of business in rental and other shared corporate services such as in finance, legal and audit; develop even more mini Innovative Parks beyond the mega Jurong Innovation Park.[+10 sentences] If they do not wish to be led by their trade associations, give them the creative licence and space to soar on their own. Invite them to join industry panels. The second group – those with the Attitude and Ability but lack the vision at the moment and are at risk of being displaced, quickly guide and direct them to schemes and grants that can help them land firm and scale. As for those with a willing Attitude, but lack the Ability, then, training comes into play. For those who have the Ability but lack the willingness to change the Attitude, invest in counselling them, nudge them into action before giving up on them. And then for those who have neither the Ability, Attitude nor the potential for Altitude, help them develop an exit strategy. They should not have been in the business in the first place. Madam, my next suggestion is to make SkillsFuture the mantra for every Singaporean. I believe SkillsFuture is one of the best answers to prepare our businesses and people for our future. There is, however, an urgency to move the whole nation more quickly into the SkillsFuture mindset and action. Whilst the $500 SkillsFuture credit to every Singaporean is a great welcome, it serves as a nudge at best, and is no guarantee that it will lead to an innate desire to learn or to learn lifelong.[+12 sentences] The SkillsFuture must be more than active ageing training programmes. It must be more than meeting only the current sectoral manpower needs of businesses, although that is important. While the Council works on the bigger pieces such as the Sectoral Manpower Plans, we need to convince the man in the street that Singapore's future jobs and the funding of our social safety nets depends on how future-proof each one of us is. We need to transform the mindsets and skillsets of as many Singaporeans as possible before it is too late. Here are some suggestions. First, beyond intellectual rationalisation, we need to develop a SkillsFuture Communication Matrix for communication strategies to reach Singaporeans from different backgrounds. We need to outreach with more everyday applications to show the importance and impact of SkillsFuture. A Hokkien-speaking aunty running a fashion accessory shop in one of the markets in my division, told me recently when we were discussing about re-modelling and reducing the cost of business, she said "MP, we are already buying stock from the Internet" in Hokkien. This morning, I heard Love 97.2 radio deejay, Chen Jianbin, sharing that he now has to find ways for the audience to not just listen to his jokes, or 听他的笑话 , but also "see him making jokes" or 看他的笑话. So, these are applications, our SkillsFuture is already happening and we need to get the message out to the streets. Second, from the thousands of choices in the SkillsFuture galore of courses, we need to be able to appoint coordinators, SkillsFuture Ambassadors who can identify, help curate and communicate the list of competencies that will enhance the Future-Readiness Quotient of businesses and especially people on the streets. Third, we need to encourage and incentivise as many Singaporeans as possible from young to each own their personal Individual Future-Proof Development Plan with a Future-Ready Toolkit. Fourth, we must make pervasive, freely accessible Future-Readiness Self-Assessment Toolkit and bite-sized tasters at convenient neighbourhood sites, the community centres or online, with courses such as: (a) Using video and voice applications such as Skype; (b) Taking great digital photos; (c) Setting up online stores from scratch; (d) Construct our own website; (e) Learn to Code; (f) Create simple Apps on the smartphone; (g) Make objects through customised 3-D printing; (h) Write for the Internet.[+3 sentences] There is no end to what one can learn, regardless of age and language. We need to spread the message of the new economy more urgently to the man in the streets. And, finally, let me move on to the subject of partnership. Typical of Minister Heng Swee Keat's style to listen and engage the ground, the theme of the Budget is termed "Partnership for the Future".[+5 sentences] And indeed, in a landscape that is featured by structural changes, disruptive technologies that can displace jobs easily and manpower constraints, the former top-down problem-solving approach by the Government can no longer suffice. While I truly appreciate the importance of partnership, I fear that unless we move towards a more enlightened form of partnership, the outcomes of the Budget may not be as effective as desired. There are two things I would like to highlight. First is the application of the enlightened form of partnership in the business arena. Whilst it makes sense to engage Trade or Clan Associations to take the lead in selected industries, we must not be overly rigid with this strategy. Trade associations, like other organisations, comprise of us mortals who may not all share the same vision or agree on the same tactics, and may be distracted by politics and personalities. It would be useful, as we pour more resources into industry-led transformations, to also set some targets that are co-shared by all the partners. We must allow space for SMEs with the ability, attitude and altitude to charter their paths – without insisting that they must toe the line of their industry associations. Public officers who are supposed to be sent to assist the industries should preferably be senior enough to impact policy making. We should invite or even pay for successful global industry leaders to sit as advisors to industry panels which comprise the trade associations and the other member players.[+15 sentences] In the Social Service sector, where Minister Heng has kindly created the Business and IPC Partnership Scheme (BIPS) to incentivise businesses to donate services in kind to IPCs and charities, I would caution against behaviour that may be counterproductive. Volunteering is, after all, about giving something back and not getting something back. Already, business consultants have started to issue advice to businesses to start reviewing their Corporate Social Responsibility (CSR) strategies or plans, so that they can enjoy greater tax deductions under this new scheme. There is also a worry that if we are not careful, the BIPS would cannibalise what charities are currently receiving in much-needed cash donations. Those who used to donate in cash may now decide that service or volunteering is more pocket-friendly. To this end, I would recommend a more targeted approach to direct corporations and donors to the known pain areas or the growth areas in the social service sector, areas such as: (a) Redesigning jobs for the elderly, the lower-skilled or even the unskilled. (b) Helping children with rare diseases and their families. I have seen many of them. Try visiting some of the families. Some of the young parents are really under a lot of stress and need a lot of help. (c) Others old and young who are severely disabled. (d) The homeless. (e) Those who are isolated elderly residents in many of our estates. (f) Need for pro bono accounting, audit and legal services. (g) Fundraising and marketing and even e-learning modules or curricular development for these special schools. Do not limit the BIPS donations to only $50,000 for each VWO.[+6 sentences] For outfits that serve the very severely disabled, their needs are way beyond $50,000. So, in summary, my suggestions are, first, on the triple "A" − the need to identify those with the ability, attitude and altitude − and help these potential trailblazers to trailblaze and soar; second, to make SkillsFuture a more pervasive phenomenon to the man-in-the-street; and third, for more enlightened partnerships. In conclusion, Madam, I would like to thank the Minister for Finance, Mr Heng, for his inaugural Budget. This is a considered Budget that I know is the outcome of much of the Minister's style of listening to the ground. It is a balanced and sensible Budget that will play a large part in securing the future of our country and our people. Madam, I support the Budget.
Mr Christopher de Souza (Holland-Bukit Timah)2327 words
[+12 sentences]Mdm Speaker, thank you for allowing me to join in the Debate. Today, I would like to speak on four issues: first, the need for vigilance and heightened security in Singapore; second, the importance of providing flexible work arrangements for employees, especially for working mothers; third, reviewing existing property cooling measures for Singaporeans; and lastly, growing our total fertility rate (TFR) organically by promoting the process of adoption in Singapore. Before delving into those four topics, I would like to share a few broad views about this Budget. The Budget is significant. It is the second major announcement in this House post-GE 2015, following the President's Address earlier in January. The Budget displays a confident, clear and deliberate charting of fiscal policy for Singapore. That the Government, the Minister for Finance, is able to plan so methodically what Singapore's people and economy need is itself a major advantage, which so many other economies in the globe, unfortunately, do not possess. And that these fiscal policies have the financial fuel, that is, the money they require to be implemented and implemented well, that is indeed a rarity regionally, possibly even globally. We must never take such an eloquent and hard-earned fiscal position for granted. We should preserve tough-minded prudence in our Budget and fiscal planning. Let me now address the four issues that I would like to speak on today. First, the need for vigilance and heightened security in Singapore. In a recent poll done by The Sunday Times, it was found that three in four Singaporeans believe that it is only a matter of time before Singapore faces a terrorist attack. This echoes the sentiments of our Minister for Home Affairs and Law, who also acknowledged that it is, "no longer a question of whether an attack will take place but when an attack is going to take place in Singapore".[+11 sentences] This is, indeed, illustrative of the climate of heightened security that we are presently experiencing. Singapore no longer faces the same conventional threats that she faced some 10, 20 years ago. Instead, we now face threats from non-state actors like ISIS, who spread fear and discord through domestic terrorism. We also face the self-radicalisation of individuals through social media and the Internet. This has made the threat of terrorism more insidious than other threats that we have faced in the past. I believe that the best way to address these threats effectively is to have both hard and soft measures in place. On the one hand, we need to have the wherewithal of a good military and Home Team to detect and deter any threats beyond our shores, and to ensure that we have a safe and secure Singapore. On the other, we need to win the hearts and minds of Singaporeans so that should the threat of terrorism materialise here, we will be ready to stand united as a nation. The aim of terrorists is often to inflict maximum fear and to divide society. Given Singapore's multi-ethnic, multiracial and multi-religious make-up, it is particularly important that any potential instance of domestic terrorism does not sow discord or distrust between our different communities. To achieve this, consistent efforts must be taken to build strong bonds between the different ethnic communities, and the strengthening of our multiracial national fabric must be made a priority. In light of this, has the Government considered whether there are areas where more needs to be done to beef up our internal security to deal with the threat of terrorism? What is being done to plug any gaps in our internal security framework?[+7 sentences] Ultimately, our ability to deal with the threat of terrorism effectively will depend on how we choose to respond as a country in the aftermath of an attack. We cannot take our peace for granted. Singaporeans, the Government and local authorities must work hand-in-hand to keep Singapore safe, and to prepare ourselves for the possibility of an attack happening here. If we get our security right, that base plate right, then we can talk about the economy. This leads me to the second part of my speech: providing flexible work arrangements (FWAs) for employees, especially for working mothers. In recent years, the Government has worked closely with the tripartite partners, through the Tripartite Committee (TriCom) on Work-Life Strategy, to promote the adoption of FWAs in the workplace. And it is heartening to know that we are starting to see the results of these efforts. In January this year, the Minister for Manpower shared that the proportion of employers providing at least one form of FWA for their employees has steadily increased from 28% in 2008 to 47% in 2014.[+9 sentences] I see this as a positive indication that employers are starting to recognise the value of providing flexibility to their employees. However, I would like to highlight the importance of these FWAs for working mothers. As the labour force participation rate for women continues to increase every year, employers need to understand and appreciate the importance of adopting good workplace practices that help working mothers to balance family and work commitments. In particular, mothers with newborns need help to adjust back to working life after their maternity leave, and it may take time for them to strike the right balance between their responsibilities at work and at home. As such, in the interim, employers need to be compassionate to these working mothers as they learn to cope with work and added family responsibilities. Besides reducing time spent at work or their workload, flexibility can also be applied in terms of working time, for example, allowing for staggered hours and shorter work weeks, and work location, for example, allowing working mothers to telecommute. By doing so, more mothers can return to the workforce and increase their family income without compromising on their family life. In his speech during the Debate on the President's Address, Mr Desmond Choo proposed that the Government consider providing working mothers with the legislated right for an additional eight weeks of FWAs. I support this proposal. In fact, I believe that the Government should consider taking it one step further. I am proposing that working mothers be given the option to choose between either taking an additional eight weeks of flexi-work or an additional eight weeks of no-pay leave.[+3 sentences] This will give mothers more time at home to bond with their newborn and would also allow them to breastfeed for at least six months, which is the recommended period according to the World Health Organization (WHO). Further, under this proposal, employers will not be financially disadvantaged as they would not have to pay them during the eight-week period of unpaid leave. In fact, some employers may prefer to give these working mothers the eight weeks of unpaid leave because it makes it easier for them to forecast manpower needs. In light of this, would the Government consider legislating this option for working mothers to choose between either having eight weeks of unpaid leave or having eight weeks of FWAs after the current 16 weeks of maternity leave?[+6 sentences] These measures can go a long way towards helping working mothers integrate their work with their personal and family life. It is my hope that employers will continue to show compassion and understanding to their employees, especially working mothers, and will work towards exploring innovative ways to provide FWAs for their employees. Third, the need for a timely review of existing property cooling measures. While the Government has been successful in stabilising the property market through the introduction of the Additional Buyers Stamp Duty (ABSD) and the Total Debt Service Ratio (TDSR), the lacklustre property market that we see today is rather different from the overheated property market back in 2012 and 2013, when these measures were first introduced. In light of this change in circumstances, I believe that it is time for the Government to seriously consider reviewing and easing some of the existing property cooling measures. However, I understand and appreciate that the Government will want to be cautious and will be keen to adopt a calibrated approach in reviewing the property cooling measures that are currently in place. As such, would the Government consider the gradual and calibrated approach of removing ABSDs for Singaporean buyers, while still retaining the TDSR for Singaporeans and retaining the ABSDs for foreigners?[+5 sentences] Let me explain why I believe this should be done. First, by retaining the TDSR, a Singaporean is only going to be allowed a credit line that is within his means. This should allay any concerns that easing the property cooling measures will cause a surge in Singaporeans purchasing second or third properties when they may not be able to do so. Further, if a Singaporean is able to afford a second or third property through the TDSR regime, why should he be taxed with an ABSD? Lastly, by retaining the ABSD for foreigners, we ensure that the foreigners will not enter the Singaporean property market in an overly speculative way. If the Government is concerned that removing the existing property cooling measures may cause the market to surge upward exponentially, perhaps the Government would also consider adapting the Australian model in Singapore, which I have raised in this House before.[+9 sentences] The benefits of this model are that it discourages foreigners from engaging in an overly speculative way as foreigners are only allowed to buy new property, and are only able to sell that property back to domestic buyers. This discourages speculation by foreigners because they will not buy property at a price that they would not be able to sell it back to a local for. As such, adapting the Australian model to Singapore could help to deter speculative or overly speculative behaviour by foreigners in the market while the property market starts to pick up after the review of the existing property cooling measures, which review should contemplate the suggested removal of ABSDs for Singaporean buyers, in my view. So far, Madam, I have raised Defence – the need for heightened vigilance; Manpower – the need to tap on the immense potential of our working mothers; and Homes – the need to safeguard against overly speculative behaviour of foreigners in our property market. But to do all this, we need to grow our TFR, so that we will have a Singaporean core who will be able to staff and push for key initiatives for Singapore. This leads me to the next point – inculcating a culture of adoption in Singapore. In recent years, our TFR has been much lower than it has needed to be. As Singapore's population continues to age, the effects of having such a low TFR will continue to affect our economy in the years to come. Therefore, I would like to speak about how we can promote the loving, nurturing and voluntary alternative of adoption to pregnant mothers who might be thinking about terminating their pregnancies. Many of these women may not be aware of, or might not have thought about, the option of adoption. I believe that the option of adoption could be publicised more widely, and greater efforts can be made to provide pregnant women with information about the wonderful and voluntary alternative of adoption.[+3 sentences] Currently, it is mandatory for all women, regardless of nationality, educational status and number of children, seeking to terminate their pregnancy in Singapore to undergo pre-abortion counselling. It is my hope that these pre-abortion counselling sessions can be an avenue to provide pregnant mothers with further information about adoption. By understanding the process and the benefits of adoption better, pregnant mothers will be able to make an informed decision when considering an abortion. I strongly believe that if adoption is more widely publicised as a comforting, loving, nurturing and voluntary alternative, there will be a reduced number of abortions in Singapore. Therefore, would the Government consider promoting adoption as a voluntary alternative for a mother who is thinking of abortion?[+6 sentences] The promotion of adoption could also have the happy result of increasing our TFR organically. I have heard stories of Singaporean couples trying for a baby for many years and are open to adopting a child. I have heard also of stories of Singaporean couples who have children who are also open to adopting a child. If the option of adoption were to be publicised more extensively, then these couples would be able adopt and raise the child as one of their own. More than that, adoption does not only help couples who are unable to conceive, as there are many couples who already have birth children of their own who are open to adopting another child. Indeed, there are many wholesome, loving and beautiful traits in adoption, not just for the family seeking to adopt, but also for the adopted child who can grow and be nurtured in a loving family environment. After all, the choice of an adoption is a voluntary choice that a pregnant mother has to make, and we must do all that we can to support her as she makes an informed choice.[+1 sentence] In conclusion, Madam, the initiatives introduced in this year's Budget are timely and forward-looking. This year's Budget strikes a good balance between initiatives that boost the economy, like the introduction of the SME Working Capital Loan scheme and the Automation Support Package, and also includes measures to strengthen our social safety nets like the enhancements to the Workfare Income Supplement (WIS) scheme and the implementation of the Silver Support Scheme. All of these initiatives require prudent fiscal planning and a healthy Budget.[+3 sentences] I hope due consideration can be given to proposals that I have raised in my speech when the Ministries are planning and rolling out their programmes in the coming year. I believe that with good fiscal, economic and social policies in place, we will be well placed to chart our future together as a nation – Government partnering Singaporeans; Singaporeans partnering Government. I support the Budget.
Asst Prof Mahdev Mohan (Nominated Member)2503 words
[+10 sentences]Mdm Speaker, with your permission, I will speak first in my mother tongue and official vernacular, Tamil. (In Tamil): Mdm Speaker, may I first of all extend my salutations to you and to the respected Members of this House. Before I begin my speech, I would like to read the words from a poem during the Sangam period by great Tamil poet, philosopher and humanist Avvaiyar. She said, "ஒப்புர வொழுகு", which means that "one should change one's goals and oneself to adapt to the changing world". Her work called Aathichoodi contains 108 single-lined quotations. I read the words "ஒப்புர வொழுகு" in line 10 earlier. The Budget debate stands on the footing of this principle that was written thousands of years ago. Based on this principle, we should focus on the importance of education, resilience and innovation. Mdm Speaker, let me continue to speak in English. Thank you. (In English): Finance Minister Heng Swee Keat has put forward a Budget which seeks to address near-term cyclical weaknesses and guard against medium-term structural challenges.[+8 sentences] I think the Committee on the Future Economy, Ministries and agencies have their work cut out for them. He said that we should "muster resources, to innovate, scale up and internationalise". I commend the Minister and the Ministry. It is a call which we and the stakeholders and constituents whom we may represent must heed as members of Singapore's business, professions, Government and society. The call for productivity is not new nor are well-founded fears that we live in decidedly challenging times. We are accustomed to our inherent limitations as a small, low-lying island State. We are also aware of heightened security threats. The hon Member Mr Christopher de Souza reminded us just moments ago – natural disasters of historic proportions in Asia and the re-emergence of geopolitical turmoil in Eastern Europe and the Middle East highlight the need for collective action. But I would like to focus on the acknowledgment that the Minister has made in his Budget speech. He acknowledged that our economic transformation is not a choice, but a means for our survival.[+6 sentences] That is a very significant acknowledgment and I would say it is a relatively new acknowledgment as well. At this point, I would like to perhaps depart slightly from the learned hon Member Mr Christopher de Souza who earlier said that before we can have the economy, the first thing we have to get right is security. I would add that, unfortunately for Singapore, we do not have the luxury of seeing them separately; both need to be met at the same time. Our base plate places three things on equal par. First, of course, the economy; second, security; and third, I would say, compassion for our people. All three are equally important. Yesterday, the hon Member Ms Foo Mee Har rightly drew our attention to the consecutive deficits we have experienced in the past four financial years.[+20 sentences] It is something that gives us pause for thought as we decide to increase our expenditure even further. Other Members yesterday have highlighted the plight of those of us who may be inadvertently left behind, or perhaps "sandwiched". I think we have to think carefully as we go forward. It is time for our economic strategy, which we have exported for a very long time as the "Singapore Model" to be transformed, as Minister Heng puts it, to be re-calibrated, forged afresh in light of the new and fresh projected developments and changes we now face. In response to the transformative spirit of Minister Heng's speech, I would like to focus on two aspects: the reference to innovation and the one to resilience as imperatives for Singaporeans, going forward. I agree they are crucial, but would like to note that these two ideas or principles are not precise science; there is an art about them. In an increasingly fast-changing and interconnected world, fostering resilience to withstand unexpected shocks is becoming more important. The effects of financial crisis still linger, as do prospects of further financial seismic shifts to come. I want to consider what resilience means and why it must be instilled in the education process from an early age and at all levels. In the discipline of psychology, resilience is defined as "that ineffable quality that allows some people to be knocked down by life and to come back stronger than ever". Rather than letting failure overcome them and drain their resolve, they find a way to rise up from their woes. Resilience forsakes grand narratives. It requires flexibility to thrive and to be kept alive. Productivity and resilience have some things in common. Box-ticking exercises; rehashing old routines; staying in the office past 10.00 pm just for the sake of appearance, for example, are not resilience and they will not yield productivity. In short, resilience means we have to have grit. It means having Paralympics gold medalist Yip Pin Xiu's courage to never give up. It means having mountain climber and pro bono medical surgeon Dr Kumaran Rasappan's verve to scale new heights. And to me, resilience means being a lifetime supporter of Liverpool Football Club. It teaches you never to give up. On a serious note, Singapore has been recognised as only one of 100 resilient cities throughout the world. This recognition was by the Rockefeller Foundation in New York. This initiative of having 100 resilient cities supports the adoption and incorporation of a view of resilience that includes not just the ability to respond to the usual shocks – earthquakes, fires, floods and so on – but also the stresses that may weaken the fabric of a city on a daily or cyclical basis.[+5 sentences] Singapore has to be able to brace for shocks and stresses as a nation. They can take and have taken several forms – transboundary haze pollution, infrastructural failure, civil disturbances, cyber-attacks and economic crises. Building resilience – the ability to bounce back quickly and effectively – is an urgent social and economic issue and one that unites many countries and cities all throughout the world. I support the Budget speech's emphasis on resilience. I have a few suggestions though and these pertain to education. The first point would be, as we build new facilities, for example, the Outward Bound Singapore (OBS) campus at Coney Island – which I support – I think we have to look beyond.[+7 sentences] Having an OBS campus at Coney Island is all well and good, but why do we not send our youth beyond Singapore or beyond Singapore's Sisters' Islands? Send them to other countries in the Asia Pacific to cut their teeth. Minister Heng has noted in his speech that "we are in the center of the Asian growth story: China, India and ASEAN are expected to grow" exponentially. I would say more about this in my cut for the Committee of Supply (COS) debate in time to come, but I think this also is a clarion call for other agencies, non-governmental organisations (NGOs), and societal organisations in our country. Surely, the Singapore International Foundation has a role to play towards ensuring that our youth are toughened up through real-life challenges, so they are strong by OBS, but they have to be intellectually rigorous as well and they have to think out of the box. I commend going beyond adventure training, and having adventures safe in the knowledge that this spirit of adventure will build character for our young and will create future leaders of business, science, government and society. Singaporeans, particularly our youth, need to be given a chance to show how rigorous they can be, intellectually and physically. The SkillsFuture programme is one means to do this, as is the Adapt and Grow initiative. I commend the Jurong Innovation District which the Minister had suggested as a "space for entrepreneurs, researchers and students to design, prototype, and test-bed their new ideas".[+25 sentences] I would add though, that when we have a new space, we should take a step back before ploughing forward. I point here first to hon Member Mr Leon Perera who spoke about why benchmarking is important for SMEs. SkillsFuture is good. Having a district of their own is very important, but what benchmark do we say to show which businesses could thrive, which may fail, and what we can do for them? He makes good points worthy of our consideration, as does hon Member Ms Denise Phua who very succinctly talked about ability, agility and altitude. At this point, can I just say on the point of altitude – as lawmakers and policymakers in the House, it is often a suggestion from people in Singapore, including SMEs and businesses, that we may fly at a high altitude. We are not quite on the same ground level to receive their concerns. Perhaps this should be borne in mind as we plough forward. Focusing on this exciting new idea of a Jurong Innovation District, it looks set to be Singapore's Silicon Valley, a Mecca for talented entrepreneurs looking to make their mark. It is marvellous. But I add that as it is in Silicon Valley, research and planning is just one part of the enterprise. In Silicon Valley, there is, increasingly, a concentrated business cycle that requires all the companies there to be nimble, calculated and quick in their judgement and execution. There is a very fast turnaround in Silicon Valley. Can I just say a few words by Stanford University Economics Professor Yossi Feinberg? He says this, "The best entrepreneurs prove the value of being able to set clear, long-term objectives and weigh up risk effectively against these objectives. That is no mean feat. For this reason, beneath the skin of the typical entrepreneur is often a stressed individual under intense pressure to pluck the right choices from a plethora of information. Just like the rest of us, these people have no innate intellectual ability that allows them to glide through work or life." I would fully agree with the sentiment. The Jurong Innovation District aims to give our entrepreneurs, our Silicon Valley professionals, some guidance. I think this guidance is very, very important. Innovation cannot be induced by "intense pressure". You cannot tell someone, "Please be innovative". To truly support and equip innovators, we cannot just provide seed funding or pair them up with venture capitalists alone, as much as they would like that. We must focus on ensuring education and skills development by giving them the room to find inspiration in the company of like-minded individuals. Significantly, they should be able to have a grasp of, among other things, corporate ethics and corporate responsibility; the value and basics of intellectual property rights and patents; and, as many of us in this House have agreed in the past couple of days, proper action-oriented tutelage from experts, other businessmen and technocrat entrepreneurs who can guide them.[+2 sentences] All of this should begin in secondary school and junior college or, perhaps, even at a younger level. But they must obviously continue through polytechnic and tertiary or university education. The change we need to usher in this education process is for more action-oriented research projects, not just writing but doing.[+7 sentences] I would say that while ICT is an important sector to begin, it must look beyond the ICT sector. Having a clear business model with a route to profitability is the norm for most successful new enterprises and business ventures. This should be developed and strengthened from the get-go. A can-do attitude is a trait that is observed obviously in all entrepreneurs. But it is just a beginning or a seedling of innovation. It cannot, by itself, give rise to innovative projects and products. As we create new agencies, bodies and spaces, let us remember that we must also actualise our current and traditional nodes of education and skills development – our higher level education and tertiary institutions. All the universities in Singapore have enterprise and innovation hubs or laboratories for companies and organisations to collaborate with technology experts and students in industry projects.[+8 sentences] My fellow Nominated Member, Ms Chia Yong Yong, has put forward a compelling suggestion for greater synergy between research institutes and business. I would fully agree with this. Remarkable projects are being beta-tested at every level in Singapore and more should be known about this. These projects come from a variety of disciplines as diverse as architecture, engineering, business, political science and law. Innovation should pervade all these sectors. If I may, I would suggest to the Ministry and to the Minister, as we look at SG Innovate as a point or a node for ourselves, to look at other entities such as the Royal Society of Science and the British Academy of Humanities and Social Sciences. I look at these as examples because they are not universities per se. They are research institutes that traverse all universities in the UK. The best ideas are housed, developed and fertilised there. That could be a role that SG Innovate plays − to inculcate, develop and hot-house some of the best ideas from all universities. Closer to home, I would also add that perhaps we should look at the Young Outstanding Singaporeans who have been awarded over the years for the past 40 years.[+2 sentences] I note, for example, that the hon Member Assoc Prof Fatimah Lateef is one such example of a Young Outstanding Singaporean, who represented Singapore at the World Congress. My point is that we have had innovators for a long time, it is not new to Singapore, and these innovators who are in our midst must be engaged with. SG Innovate will be that node, hopefully, to link thought leaders, innovators and liaise with our existing professional academies, businesses and universities.[+15 sentences] In conclusion, Mdm Speaker, Minister Heng made reference to an interesting metaphor in his speech. He said that "everyone has a role, and together, we are weaving a rich tapestry – each thread a different colour and texture, but woven together to give strength and resilience to our economy and our society". This metaphor is apt. But I would caution against assuming the tapestry is ordained or static. Tapestry is art, not science. The artisan's craft of weaving rich texture and producing a masterpiece cannot be overshadowed by our administration's focus on the mapping of professional or business standards to produce a good short-term product. It must have the long term in view, always. It cannot be exciting today, gone tomorrow. We must understand that tapestry will have its fair share of artistic blocks, changing perspectives, agendas and unanticipated outcomes. Many Members have spoken about the importance of a Singaporean Core everywhere − in business and in society. To remain relevant, our art must been seen as a batik. It cannot be seen as something from another country. There is no transplant for us. We must adapt it; it can never be perfect. As I began with a Tamil poem, let me end with a few words from a poem we might recognise.
Mdm Speaker8 words
Asst Prof, you have run out of time.
Asst Prof Mahdev Mohan7 words
[+2 sentences]Thank you very much, Mdm Speaker. Obliged.
Mr Gan Thiam Poh (Ang Mo Kio)1556 words
[+1 sentence]Mdm Speaker, I welcome this Budget. I am glad that the Government has decided to opt for an expansionary fiscal policy this year with 7.3% higher total spending over last year.[+17 sentences] We are indeed fortunate that we can afford such an increase due to increases in both Operating Revenue and higher Net Investment Returns Contributions (NIRC). Can the Government provide more details of the projects to be launched this year with the fiscal expansion and how many of them are likely to benefit our local SMEs? I hope the Government will look into launching proportional higher number of projects that can be undertaken by SMEs which employ about 70% of Singaporean workforce. I am looking forward to the changes the Industry Transformation Programme can bring to our business landscape. It aims to offer a more targeted and sector-focused approach to restructure our companies and drive their growth through productivity gains and innovation. I certainly hope that our SMEs will be proactive in their approach to these new measures and work with the Government agencies to take their business to the next level. Many companies are so focused on their day-to-day operations or meeting deadlines that they fail to take advantage of the benefits of the various schemes the Government has launched due to their circumstances. It is also challenging for them to make the short-term adjustments which are inconvenient but necessary for them to progress. The present economic environment presents a good opportunity for many companies to leverage on the low commodity prices and work on projects with reduced costs of production. However, while their businesses benefit, they risk having lower revenues, too, in view of aggravated downward pressure due to lower material prices while faced with high capital outlay made in the last few years. Hence, we have to be careful when we measure productivity based on revenue or by its face value. Companies may have to work doubly hard to obtain the same revenue. Hence, our enterprises have to move to secure higher value jobs to compensate for the downward pressure of costs. At the same time, companies still have to tackle significant business costs, like rent which can be reduced further. For example, JTC can set the lead to bring down the cost component as it is a major player in the market. Great efforts by Government agencies with strong support from Singaporeans continue to be warranted to attract and bring in quality investment that can give Singaporeans the five "C"s – namely, comparative advantages, competitive edges, competencies, capabilities and capacities that can generate quality and well-paying jobs for Singaporeans. Mdm Speaker, in Mandarin. (In Mandarin): I welcome the move by the Government to raise the income ceiling of the Workfare Income Supplement (WIS) from $1,900 to $2,000, benefiting about 460,000 Singaporeans. In addition, the Government will also start paying WIS on a monthly basis instead of quarterly.[+1 sentence] This measure is welcomed by workers as they can receive WIS more quickly. Another welcome measure is that workers now only need to work for one month to qualify.[+2 sentences] Raising the income ceiling and simplifying the qualifying criteria will provide financial support for workers, and helping more workers to keep their jobs. Amid the current economic uncertainties, these measures are very timely. It is like "sending charcoal in a snowy day". I also support the measures to enable persons with disabilities who is above 13 years old to be eligible for the Workfare Training Support (WTS) Scheme.[+14 sentences] Through working, persons with disabilities also hope to have a career, live a meaningful life and contribute to the family and the country. We therefore should give them more support. (In English): Next, on the subject of levy increases for S Pass holders in every sector and work permit holders in the construction and services sectors. While I can understand the rationale behind this decision, I feel that we must be cautious towards over-reliance on foreign workers. The impact on business costs is substantial and comes during a time when businesses are facing more difficult and challenging conditions. I feel strongly that we should rethink and keep in view the levy increases for all the businesses for this year. Higher levies just add onto the business cost burden without necessarily resulting in the desired productivity gains. This brings me to the next subject of improvements in productivity. There are various Government assistance schemes to help our companies work towards gains in productivity. However, there are cases when a company just does not know how to go about improving its productivity, let alone access the appropriate schemes. Also, different sectors have different problems, and within each sector, companies serve different niches which present their own unique problems. I appeal to the Government to provide expertise to our local enterprises to help improve their productivity as part of an entire ecosystem overhaul. This will be a much more proactive approach and will underscore how seriously we view the problem of low productivity gains and our collective determination to overcome this challenge. Another issue which we have to address urgently is the growing number of PMETs who have been retrenched. The middle and older PMETs are particularly hard hit, and this is a group usually with mortgages to service and still supporting children in school and elderly parents – the typical sandwiched class. I am deeply concerned with the re-employability of these middle aged or older PMETs as they tend to be vulnerable in an economic downturn, becoming the easy choice of the company's cost-cutting restructuring measures rather than exhausting other alternatives, such as collective wage freeze and adjustment.[+3 sentences] I urge the Government to explore incentivising employers instead to keep the jobs for all these experienced PMETs. Mdm Speaker; the Workforce Development Agency (WDA) runs a Professional Conversion Programme to help jobseekers re-skill themselves and to gain the necessary knowledge and competencies to take on new skills. Unfortunately, this programme does not guarantee the same pay for the workers. Perhaps, we should allocate more funds to the Career Support Programme (CSP) which offers more opportunities to mature Singaporean PMETs for mid-level and above jobs. The CSP has a wage support component and makes it attractive for employers to hire such individuals in any job that pays a gross salary of at least $4,000 a month.[+6 sentences] With business cycles getting shorter, skills can become obsolete very quickly. SkillsFuture will come in very useful, not just for our PMETs, but all Singaporean workers. SkillsFuture will keep our workforce updated and versatile and well-equipped to meet the evolving demands of the job market. The quality of our workforce will play an essential role in attracting investments to Singapore. And, of course, the Government must continue to work hard to bring in good quality investments which will provide good jobs with attractive salaries or wages for Singaporeans. While we could possibly equip Singaporeans with skill mastery, multi-skill sets as well as lifelong skills learning in meeting the dynamism and rapid changing economic challenges, it may be necessary for all of us to rethink of our pursuits in life. This may mean it warrants a further review of our long-term commitment in life, such as HDB and private property prices. It may be prudent to reduce the property loan tenure to not more than 20 years in meeting shorter skill life with the advent of technological advancement and stiff market competition.[+14 sentences] Finally, I would like to express my appreciation for the various measures which support families with children. The Child Development Account (CDA) First Step grant, the KidSTART initiative and the Fresh Start Housing Scheme are thus useful and helpful. However, we would probably not see any significant increase in the number of babies next year. For our fertility rate to improve, we would need to invest more in building up our infant care and childcare infrastructure and system. While it is relatively easy to hire foreign domestic workers to look after babies, there is also a demand for good infant care. Finding such services in convenient locations and with well-trained staff is not easy. When I was a child, I recall that it was quite common to find homemakers who are also nannies. Today, there are far fewer women doing this work. The main reason is that women are better educated and have better opportunities in their careers. Parents have shared with me that sometimes, both husband and wife need to work late or travel overseas, and it would be ideal if they can leave their young children in their usual infant or childcare centres beyond the current operating hours. Nannies, compared to centres, are usually more flexible. Would the Government look into possible solutions for this problem? Twenty-four-hour care services will also be helpful for workers who work shift work. Alternatively, some parents leave their children in the care of their elderly parents. As a token of recognition for their contribution, the Government may wish to consider allowing them to claim the subsidies which would have been claimed by infant or childcare centres.[+3 sentences] I do not consider this to be monetising something which many grandparents do for the young in their families. Rather, the money would help to ease the burden of the young parents in raising a family. With this, I conclude with my support for the Budget.
Ms K Thanaletchimi (Nominated Member)1556 words
[+10 sentences]Mdm Speaker, I welcome the Budget as it is an inclusive Budget and seeks to bring Singapore beyond SG50. It calls upon the partnership of all Singaporeans to work together in new ways to transform our economy and build a caring and resilient society. Let me now touch on the vulnerable workforce – the workers in transition. As our economy transforms, we will have to transform ourselves. During this period, the vulnerable group needs the most help. This group includes low-wage workers, women workers and mid-career individuals who take on new jobs, and more needs to be done to ensure that they are taken care of. Retirement adequacy continues to be a challenge for the low-wage workers, and more so for the women. Statistically speaking, women are expected to live longer than men. This means more retirement savings is needed so that we can age gracefully with peace of mind and with dignity and vitality. For the older or senior women in Singapore today, many have not worked in the formal economy or have suffered from a gender wage gap in their earlier working years. For this group, the Silver Support Scheme that will begin in July will serve as a good supplement to their retirement income in addition to the existing support schemes, such as MediShield Life and Pioneer Generation Package.[+7 sentences] For the women workers, it is important that they are given fair opportunities at the workplace, while continuing to care for their families at home. The family unit is the basic building block of a thriving nation. Our families give us support and keep us grounded, and women continue to play a larger role in the families. However, striking a balance is not easy and more needs to be done for the women workers to ensure equal opportunities in placement and career progression. Women should be given stronger support to be able to pursue our different definitions of success. Women should not be fearful of "sacrificing their careers" for a family if they are given the right to request for flexible work arrangements (FWAs) or given equal opportunities when back to work. Against the backdrop of a slowing economy, will this vulnerable group be faced with more challenges? The Workforce Development Agency's (WDA) Professional Conversion Programme (PCP), which helps jobseekers re-skill themselves to take on new jobs has helped many to switch career pathways.[+1 sentence] However, more support can be given to not just companies but also individuals as many often suffer pay cuts when they change career paths, voluntarily or not. For example, a 58-year-old union member, who was a Senior Clinic Supervisor took up a nursing diploma course but was only given training allowance of $1,000.[+1 sentence] While she can look forward to better career progression, as the sole breadwinner of the family, it is challenging having to cope with daily expenses for the family and, at the same time, upgrade herself to make sure there is retirement adequacy towards her silver age. More can be done to strengthen the PCP by making sure that there is close collaboration amongst all the stakeholders.[+2 sentences] A concerted tripartite effort can create a stronger support network for this group of people. A hands-on approach from the agency to offer not just training grants but also psychological support and guidance can help acclimatise workers quicker in different workplace environments. They can also be paired with mentors to share insights before, during and after the programme.[+1 sentence] Unions can also complement such efforts. Also, to ensure that drop-out rates are low, the selection process of such programmes must take into consideration an individual's capability and aptitude levels.[+29 sentences] Allow me to share another example of how psychological support, guidance and help by all parties – union, management, family and friends, and society at large – had helped an accountant in his 50s to have successfully completed PCP many years back. In the past, it is called "SMCP". This achievement was not without a challenge. He did well in his academic programme which included a hospital attachment. However, after commencing work, he was not able to cope and adapt in a fast-paced ward environment. There was a constant struggle to the extent that he was in a state of depression and did not know who to turn to until he met up with the union. He needed a pillar of support to lean on and a listening ear to hear his struggles. With much discussion with the management, he was then given another opportunity to show his ability in a smaller ward that was less demanding, in terms of workload. He was then able to cope and subsequently shone to take on higher responsibility. He is a living example of how age is not a barrier and resilience is the key to success. Now, he has been successful to the extent that he was further given the opportunity to take up advanced diploma in nursing and he was glad that he stayed on in this meaningful career to care for the patients. Mdm Speaker, I would like to now speak in Tamil. (In Tamil): Like this accountant, there are many workers who face changes in their workplaces. Some endure because of their passion, some may return to their previous industries when opportunities are made available, and some may give up. They have a common quality. They have made the first step to learn a new skill. They can only succeed with the help and cooperation of all stakeholders, such as the workers, workers' union and the Government. Every worker's story can be a success story. For this, it is necessary to have the support of the tripartite partners. (In English): Mdm Speaker, I would like to now switch over to English. I would be talking about inculcating the culture of lifelong learning. Change is a constant. The economy will continue to transform itself and our jobs will constantly evolve. Learning must never stop. Our education system has brought us this far, but in the era of rapid changes, we need to have a certain level of nimbleness and agility. We need to inculcate a culture of lifelong learning so that we can be future-ready with future skills. So, how can we be the catalyst of this mindset change? Does our ecosystem allow our people to be independent; to plan for our career; to adapt to changes; to take on new skills every few years; and to constantly learn, unlearn and relearn? What better way can one do this then tapping on the slew of grants offered under the SkillsFuture initiatives, beginning with the SkillsFuture Credit. Perhaps, to better support the workers in their endeavour to learn new skill, both the Government and employers too, are encouraged to top up the individual's SkillsFuture Credit account.[+8 sentences] With this, workers especially those who wish to take up courses on their own to upgrade or even switch industries can use this to pay for their courses. There are others who may not be forthcoming to attend courses or learning as a whole due to long hours of work and the need to work overtime almost daily. For such workers, bite-sized programmes can be another approach to keeping them relevant to the needs of the current skills as well as future skills. We need to be open and accept that individuals are different and therefore we need to employ different strokes for different folks. Let me touch on SMEs – building the Singaporean Core. The initiatives announced at this year's Budget to help and support the SMEs is much welcomed. This will help many SMEs to transform to grow together with our economy. However, such measures, while prolonging the survival of some enterprises, may lull workers working in such enterprises from understanding the need to upgrade them to be future-ready with future skills as they get complacent in their current job. What is alarming is, workers working in SMEs are largely Singaporeans.[+4 sentences] Hence, how can we ensure that workers in these enterprises are upskilled through the slew of programmes and initiatives offered by WDA, especially the SkillsFuture initiative, so that SMEs can continue to have an effective Singapore core in their workforce? How can we advise and guide such enterprises? How can we render early help and better assist the workers working in such enterprises? Let me now turn to the plight of the middle-income earners. On middle-income earners who are in vulnerable situations, there must be some safety net in dire times should our economy become more sluggish. More needs to be done to assist them in between jobs, especially if the job search takes more than six months to a year, or even more.[+2 sentences] Many middle-income earners, commonly known as the sandwich class, whom I have interacted with, had expected tax rebate this year. Of the many with families, there are singles that support the aged parents and, in some cases, those who support the siblings who are physically challenged. Why is there no tax rebate for the middle-income earners this year? This is the question that ponders in the mind of the sandwich class as they strongly believe that with the tax rebate, such workers can then have something for their savings and help in their family financial chaos.[+2 sentences] Thank you, Mdm Speaker. With this, I support the Motion.
Mr Pritam Singh (Aljunied)1400 words
[+1 sentence]Mdm Speaker, this is the first Budget that allows the Government to tap on Temasek's Net Investment Returns Contribution (NIRC) alongside the Monetary Authority of Singapore (MAS) and GIC, presenting the Government with a cumulative total of $14.7 billion. This is a substantial increase of about 48% from the NIRC of $9.9 billion at the Government's disposal last year and has given this Government more leeway and flexibility to implement its plans, with the $3.4 billion surplus as well.[+5 sentences] Mdm Speaker, the focus of my speech is to persuade the Government to consider a deeper discussion of fiscal prudence and the trade-offs in determining our Budget priorities. By doing so, we can have a richer discussion on the Budget and my speech will seek to provide some suggestions on the contours of such a discussion. As with almost all Budget announcements made over the last few years in particular, it is usually followed by a discussion in some quarters, especially in commentaries and forum pages, about whether the Government is turning populist, if welfare is taking root in Singapore, or a combination of similar themes. Very seldom are fears of welfare accompanied by a look at the overall fiscal state of affairs and both in the short and long term. The additional details in this Budget about the Silver Support package exemplify a recognition by the Government that there are many Singaporeans – more than 140,000 of them, in fact – who are not adequately equipped for retirement and live precarious lives, perhaps, not only physically, but more significantly, even mentally. The total expenditure for this year's Budget comes up to $73 billion. The $330 million expended on the Silver Support Package will rise in the years to come because of our demographic profile.[+11 sentences] To put things in some perspective, the State collects $2.2 billion a year in gaming revenue. Our vulnerable elderly deserve to retire with dignity. This must be a central social objective of the Singapore system. No discussion of financial prudence can escape the important behavioural question of ensuring our society retains a positive work ethic with permanent schemes like Silver Support and Workfare. However, this question should be posed with a sense of not just perspective, but also proportion, in view of the demographic transition in Singapore and the structural changes that come with economic transformation, both of which will become more apparent in the years to come. How can we better approach a discussion on the Budget going forward? Firstly, the evolution of technology and data analytics ought to make discussions on Budget projection generate more light rather than heat. In the same way, the Ministry of Defense (MINDEF) human resource planners can project with sufficient granularity the number of men that will serve National Service (NS) in about 20 years' time, and as a consequence, determine the force size and structure to a reasonable degree, a richer public debate on permanent schemes like Silver Support can take shape if we assess the sustainability of such schemes with a long-term perspective in mind. This would help the public better understand the overall costs and sustainability of such schemes rather than leave it to conjecture. For example, a more coherent and holistic public debate on the pros and cons of potentially expanding Workfare can also take place if the public is presented with tools to better understand how much such permanent initiatives are likely to cost years down the road. Many Singaporeans have in the past suggested tweaking Workfare to raise the cash component. Currently, a 50-year-old employee earning $1,800 on Workfare gets an additional $9 in cash and $13 in CPF contributions every month, with the amount payable every quarter, subject to the number of months he or she remains employed.[+6 sentences] However, an important consideration in the context of fiscal prudence, and understanding such permanent schemes better could be, for example, an exercise that compares raising the WIS payout amounts as compared against the initiative announced in this year's budget which increases the income eligibility threshold from $1,900 to $2,000. How many additional Singaporeans would benefit by this threshold rise and is there scope to further raise the payouts under WIS, and if so, what would be the specific impact on the Budget, and would it be wise? Such enquiries will make the public better appreciate the trade-offs and operationalise the meaning of fiscal prudence. A second trend that often repeats itself prior to the Budget debate is the wishes of specific industries or industry leaders who call for more reliefs or taxpayer support. What we do not see much of is the debate about whether some companies have grown to expect the equivalence of constant assistance or "welfare" from the State, without the same scrutiny extended to permanent schemes for the needy or less well-off. Like permanent schemes that help individual Singaporeans, a fuller public discussion on fiscal prudence should also extend to companies and industries, and enquire whether Budget initiatives indeed achieve the policy outcomes that they were intended for. For example, it would be helpful for the Government to set out how much the Productivity and Innovation Credit scheme (PIC) has actually improved productivity numbers or even spurred innovation, even as this year's Budget heralds a reduction of PIC payouts going forward.[+4 sentences] This is relevant, as even the Government has acknowledged that some companies have used their PIC credits to buy equipment they do not need. Fiscal sustainability would also require accounting for the extent of such leakage and unintended consequences as well. The lessons learnt from the shortcomings of the PIC scheme should be transferred to the Budget's announcement of the three-year $400 million Automation Support Package, specifically with regard to grants, which assist in the roll-out of new automation projects and investment allowances. This would ensure that the technologies introduced actually improve productivity as envisaged. Moving forward, and specifically on the Budget's announcement of the $4.5 billion Industry Transformation Programme with more than 20 sectors earmarked for development, it would be worthwhile to consider how companies and sectors that do the most to raise productivity, improve skills and innovation as well as promoting internationalisation can benefit more from taxpayer dollars than those who do not. One way to effect this differentiation is to consider a higher cap on corporate income tax rebates than the current $20,000 cap for companies that record real productivity gains.[+3 sentences] For example, the cap can be progressively lowered or even removed completely for companies that do not meet the policy objectives of the scheme. It would also be important for any exercise in fiscal prudence to distinguish and incentivise activities that actually create something tangible that have a real trickle-down effect as opposed to economic initiatives that just "rotate around the high-finance microcosm enriching the 1% as they buy and sell existing assets to one another, bidding up their value, while failing to invest in research, products, jobs or innovation" – an apt descriptive which I read in a recent TIME magazine article that reviewed a new US primetime television show, titled "Billions". Mdm Speaker, even as our businesses are incentivised to transform, they must keep Singaporeans at the centre of their efforts. To this end, the Industry Transformation Programme should identify and thereafter even prejudice firms that are what the Ministry of Manpower (MOM) calls "double-weak firms" – weak in having a Singaporean Core and weak in their commitment to fair hiring practices and the development of Singaporeans. Likewise, these companies should be restricted from benefiting from corporate income tax rebates or tapping on the grants that go up on the business grants portal that is to be established in the fourth quarter of this year.[+2 sentences] An inclusive Singapore must be underwritten by Singapore-based companies that support the employment prospects of Singaporeans. In conclusion, Mdm Speaker, in a recent book titled, "Industries of the Future" by Alec Ross, the former innovation adviser to Hilary Clinton, portends a future where medical technology, robotics, coding, big data and so forth, will make many jobs redundant, amongst other interesting predictions. In this context, a deeper and more sophisticated public discussion on fiscal prudence, sustainability and accountability of Budget expenditure in a more ambiguous future becomes more and not less urgent.[+2 sentences] It would also, I hazard, have the parallel effect of engendering a more inclusive citizenry that is rooted to Singapore's long-term success. Mdm Speaker, I support the Budget.
Mr Louis Ng Kok Kwang (Nee Soon)1494 words
[+1 sentence]Mdm Speaker, let me first start by joining the House in thanking the Minister for Finance for a positive Budget that was filled with positive stories. It is a Budget Statement about how everyone has a role to play and together, we will write the next chapters of the Singapore story. This is a Budget which helps everyone but with a stronger focus on SMEs, our young, our low-wage workers, persons with disabilities (PwDs), our seniors and Institutions of Public Characters (IPCs).[+1 sentence] It is a Budget that tells us that change is on the horizon and we must take this journey of change together. I initially wanted to focus this speech on the issues I filed cuts on; issues that I care about deeply and issues that fellow Singaporeans and residents have raised to me. I filed 20 cuts altogether, raising concerns on how we can help single parents, young parents, the elderly, low-income families, micro-SMEs, drug offenders in their rehabilitation process, foreign workers, fighting climate change, the transboundary haze issue, improving flood management, moving towards a car-lite city, beefing up our Home Team, improving electronic waste recycling, expanding the Active, Beautiful, Clean (ABC) Waters Programme, extending the smoking prohibition, improving animal welfare, fighting wildlife trafficking and lastly, improving the OneService App.[+9 sentences] It would have been a speech about a few main issues from the above cuts, but I scrapped that speech and decided instead to focus on something more fundamental and what the President had asked us to do in his Address to us in January this year. And that is to "engage and partner with Singaporeans in nation building", the fifth of the five key aims this Government aims to fulfil. I see this Budget debate as one of the last few chapters of this "Budget" journey. In fact, we are nearing our destination. I do feel that we perhaps need to take a few steps back and add a few more chapters in this journey. This Budget is one huge item in our agenda that affects everyone in Singapore. It is something that everyone has a stake in and everyone should have a voice in. I strongly believe that we should use this opportunity to engage and partner Singaporeans in nation building. This is our best opportunity to do so in each financial year. In this journey, we have asked fellow Singaporeans for their feedback through a public consultation exercise which started on 1 February and ended on 26 February.[+1 sentence] In less than a month, the Budget Statement was announced and many have asked if we can effectively digest all the feedback from the public within a month. Minister Heng had mentioned that we received over 1,000 feedback but, of course, I understand that not every feedback was received on the last day.[+2 sentences] But the question here is whether we can make this journey less rushed. I am not advocating for us to delay the Budget Statement but rather, I hope we can start the process earlier. For a financial year that starts in April, I suggest that we start the first public consultation in November the previous year for a period of one month.[+24 sentences] So, we start the consultation in November rather than February, and this consultation is similar to what we are already doing. It gathers general ideas from the public about what they want to see in the Budget and members of the public provide this feedback without knowing what the Government has in mind or the general direction it is heading. We then take two months to digest all the feedback, which is from December until January. In February, we release a draft Budget Statement similar to what we released on March 24. We then have another round of public consultation about that Budget Statement for a month. This second round of public consultation is a good opportunity for Members of this House to obtain feedback from the ground and work towards incorporating them into the final Budget Statement. And the feedback obtained from this consultation will likely be more specific, since members of the public now know what the Government has in mind based on their previous feedback and it is now about finetuning the ideas. This final Budget Statement is then read towards the end of March, after digesting the feedback from the second round of public consultation for a month. Is this process more tedious? The answer, without a doubt, is yes. But will people feel more engaged, more empowered and will this strengthen our partnership with fellow Singaporeans? The answer is, without a doubt, also yes. We need to change the narrative and I accept that it is changing. It has gone from the Government organising sessions to tell people what the new policies are, to sessions now asking for feedback before we draft the new policies. But I think we can, we should and we must go one step further. The destination is important but I feel the journey is even more crucial. Communication has to be two ways and after we obtain feedback from the public, we should incorporate as many of them as possible into policies, show people the draft policies and then get feedback again. This will show that public consultation is not just an exercise for us to put a tick in the box but that we are truly listening, and that their views and feedback are being looked into, worked on, perhaps even expanded and then incorporated into the final product. Do not get me wrong; this Budget 2016 is a good Budget for Singapore and Singaporeans but it can be better. I feel there are more ideas out there that can be explored. There is no doubt that there has been a lot of public feedback about this Budget. I am sure we have all seen the feedback about the Budget Statement both online and in the print media and on the ground, during our house visits and during our coffee shop visits. As always, there is praise and there are criticisms. There will always be negative feedback, but these may also be ideas we have not thought of, and they may be worth exploring. The most feedback I have received is from the parents of the 93 babies born each day before 24 March 2016 when the new First Step Grant kicked in. Some have even come to my Meet the People Sessions. But there are questions on why 24 March, why not 1 January 2016, since the babies born from 1 January until 23 March 2016 missed out on the SG50 Baby Jubilee Gift and now the First Step Grant? And so, I hope we can backdate it and provide the grant to babies born from 1st January 2016.[+1 sentence] There are concerns about whether the cap on the tax relief will hit working mothers hardest, is 1% but I met that 1% on Sunday. There are concerns on whether the development of Coney Island will affect the environment there. There are concerns on why we are lowering the cash payout rate for the Productivity and Innovation Credit (PIC) Scheme and proceeding with increasing the foreign worker levies for the services and construction sectors. I believe these are all valid concerns that we should look into and it is for that reason that I hope that for next year, we will include a public consultation phase after the Budget Statement is read and before the announcement of a final Budget.[+12 sentences] Mdm Speaker, in my maiden speech, I spoke about how we can mobilise our most important and valuable resource in Singapore – our people. To engage people, we need to listen more than we speak. And I quoted, "The most basic of all human needs is the need to understand and be understood. The best way to understand people is to listen to them." And how we are not there just to explain policies to people and to throw them facts and figures, but we are there to truly listen and understand. I held my town hall last Saturday and spent close to two hours just listening to the feedback from residents about the Budget and many other issues. They spoke of their hopes, their aspirations and their dreams for Singapore. For me, it was a powerful session and there are ideas and suggestions there that we need work on and perhaps incorporate into the next Budget. This Budget is about partnerships and about starting our journey together for the next 50 years. And I agree with Minister Heng that there is no doubt that we need to grow our economy and invest collectively for the long term – in our people, our home and our security. And with a population that is engaged, empowered, inspired and mobilised, this journey will be even more amazing, the Singapore story even more powerful and this red dot will shine even brighter. Mdm Speaker, I support this Budget.
Assoc Prof Fatimah Lateef (Marine Parade)2049 words
[+21 sentences]Mdm Speaker, year after year I sit in this august Chamber listening to our Finance Minister deliver the Budget for Singapore. Always well-planned, always structured, always comprehensive addressing the issues of the day; current, prudent and practical. The question I then asked myself is, how do we ensure that we grab all the opportunities that are available, whether from the Budget or from any other platforms to empower ourselves, to uplift ourselves, our families, our companies and businesses and of course our nation. The question is also, Madam, are we as hungry as we should be? Let me narrate a story. Once, a young man approached Socrates and asked how he could achieve success and even greater success? Socrates took the young man out to the sea and they walked on until the water level reached the shoulders of the young man. Socrates then grabbed the young man's head and pushed it under the water. The young man struggled but Socrates was a big man and, of course, stronger. Then slowly he lightened the grasp on the young man's head and allowed him to surface, gasping for air. Socrates then said to him, "When you want something so bad, as you had wanted air a moment ago, you would naturally achieve success." Every Budget, every National Day Rally, many would ask, "What goodies are we getting?" Is this the appropriate question we should be asking? The late Minister Mentor said in an interview with the National Geographic Magazine: "Singaporeans are not as hard driving and high striving as they ought to be." Prime Minister Lee Hsien Loong himself said at one of the National Day Rally speeches, "Singaporeans are not as hungry as the Vietnamese." Our forefathers worked really hard, showcasing sheer grit and discipline. But are we hungry enough to carry on? We are a first-world nation. We can build all the best facilities for training sportsmen for example. But facilities alone do not make champions. Discipline, dedication, sheer grit, sweat, blood, tears and toil does. With this Budget, the Automation Support Package, for example, has a Capability Development Grant, which can support up to 50% of qualifying costs for automation projects. The equipment loan is enhanced from 50% to 70% and the Investment Allowance is rather generous as well.[+15 sentences] Are we hungry enough to utilise these as appropriate? For those involved in business, can we think out of the box to make this relevant? If the box is small enough, are we brave enough to enlarge it? And even with that, if it is still restrictive, do we dare, are we hungry enough to break that box, but do not break any laws of the nation. Are we hungry enough to also perhaps pre-book our lot at the Jurong Innovation District? The stronger our desire for achievement and the hungrier we are, chances are we will strive hard to get whatever we want. So, what is our Hunger Index? Can we peak our expectations? Can we keep our motivation wave riding high? Are we ready to not peg grades to our self-worth? Are we ready for education beyond textbooks and the four walls of our classroom that can enrich us, and widen our mindsets and empower us? Our communities, the world, the Internet, virtual learning and simulation are all our newer platforms for learning. In all these, we can instil discipline in the approach and gauge the desired outcome in order to reap the maximum benefits. Are we hungry enough for jobs, coming in at the appropriate level and working ourselves up? Are we hungry enough to maintain or even further our competitiveness, knowing the rest of Southeast Asia, China and India are up and coming? The extension of the non-taxation of gain from equity is a good example.[+4 sentences] This will enable SMEs to explore new businesses and models, and help restructuring and even streamline their company's investments. This will reduce their worry about any incidental tax costs that can be incurred. For those venturing overseas, the Double Tax Deduction (DTD) for the Internationalisation Scheme is an option to help jump start initiatives as well. Are we hungry enough to better what others know and even to do better than they have done? In this context the Productivity and Innovation Credit (PIC) Scheme has been a booster for many companies. It will be extended till 2018 and beyond that, there will some changes.[+2 sentences] Such broad-based schemes will be replaced by more targeted ones. This may throw off some companies and pose challenges for some SMEs at first, but I would urge businesses, especially the smaller ones, to view this with a broader perspective, plan early and assess financial commitments and capabilities appropriately. Balance this also with another new initiative that has been announced, that is the SME Working Capital Loan to help maximise benefits.[+32 sentences] Are we hungry enough to further the frontiers of research, in the various disciplines? The flexibility to claim writing-down allowances on the acquisition costs of intellectual property (IP) over a longer time frame can help relevant companies and institutions. As we become a research hub, we must continue to encourage companies to bring in more IPs to Singapore. Can we come out of our comfort zone and choose to be extraordinary? Get the greatness and the mastery that we want? Parents have been presented with a blank canvas in their children. How ready are we to be creative and expressive with this canvas? Failure need not always be paralysing. Can we remove constraints on our thinking? Can we ride the tide of change and transformation and be willing to take the beating as we strive? Can we take ownership of our learning and growth? I have met many young people who have interacted with me and said, "I do not really know what my interests are, nor my passion", or "I do not know what I am good at". Well, knowing ourselves and understanding what we like is really a function of two things. Firstly, external action such as the work you have been doing, the projects you have been involved in, the travels, and the experiences that you have bought along the way. The second point is really about internalisation and adequate introspectionary reflection. So, if you can put the two together and work on it a bit, you will realise your strengths. We can choose to sit in a café or by the beach and watch the world go by or wait for inspirations to strike us or we can get up and do something about it, and tame that hunger. On a cautionary note, as we enhance our drive and get more hungry, remember to think of others and appreciate people. As we grow and develop ourselves, people like our parents and grandparents and the less abled are growing older and need to be treated with respect, patience, and love, even as they become slower than they used to be. As we pursue to fulfil our hunger, let us not trample over others or venture into non ethical territories. We always want a clean, upright, caring, nurturing and stimulating environment with a long-term goal of building resilience. Remember work-life and family balance as well. And also remember philanthropy. In the end, it is about being balanced, well-equilibrated, successful and happy in our lives together. It is about the sustainability of Singapore. Madam, our Hunger Index is well as that of our future generations will determine how sustainable we are as a global brand name, how our journey would be towards SG100. In Malay, please. (In Malay): The Malay community has attained so much success and achievement including in the new fields, and if we look closely, those who succeed, as well as their families, they possess certain traits that lead to their success. But there are a few who are still stuck in challenging situations. In my experience in interacting with and assisting them, there are a number of issues that need to be dealt with. And these are the five issues. First of all is mindset. Many are still not exposed to or are unaware of available assistance schemes.[+3 sentences] They only go to nearby places such as mosques and Majlis Ugama Islam Singapura (MUIS). I would like to propose that mosque volunteers work with the Ministry of Social and Family Development (MSF) or the Community Development Councils (CDCs) in a joint effort to help them and point them in the right direction. In Geylang Serai, for instance, I worked with these institutions so that they can refer cases to me. Another way will be for MSF to work with mosques to reach out to these families.[+15 sentences] I hope that those in this group would speak to us so that we can help them and formulate an action plan that will assist them for the sake of their future. The second factor is self-confidence. They have to be open-minded enough to see the bigger picture and look far ahead. If others can achieve success, they can do it too. We will help them and motivate them. But they have to develop a mindset that is inspired, motivated and have a strong desire to achieve something. The third factor is prioritising family expenses. Attend courses such as the "Spending Wisely" course which is held near your place. Do not give up. If you need personal counselling, we can do it too. The mindset where you "work hard first and enjoy later" is the right way. The fourth factor is debt. This is the source of financial problems for certain families, spending beyond their means, buying things on instalment plans and so on. Change this habit. There are those who still have credit card issues. Some even have eight to 10 credit cards. Some are forced to sell their homes because of debt and how they handled their finances.[+9 sentences] The fifth issue refers to health issues. There are those in this group who prefer not to undergo health screening or early screening. If they are diagnosed with an illness, they find it hard to accept and sometimes refuse treatment. Sometimes, this is due to financial reasons, but in other cases, it is because of their mindset. Some have just reached the age of 40 years and think that they are already old and they are less motivated to take care of their health. Your health is in your hands. Do what is necessary for your future and your families' future. Despite these issues, many of our Malay/Muslims have managed to turn their lives around and are more positive and self-reliant. I find that those who are able to overcome these five factors are able to progress with the available assistance schemes. Their children's generation can succeed because they are focused on education, which is the most important factor in transforming the lives of their families.[+14 sentences] We are now facing a new world with new challenges. We need a new mindset; to be more proactive, to be more global and to be more reliable. Every individual in our Malay/Muslim community, together with other communities, must undergo this transformation together as one for the sake of our future and the future of Singapore. (In English): With ourselves being described as a wonderful tapestry, interwoven and interlaced, a piece of batik art, but let me add my piece. A wonderful, healthy, nutritious bowl of salad. Consider the salad bowl. Different pieces of vegetables, fruits, nuts, raisins cut up into small pieces but, at the same time, always maintaining the character, the flavour, the taste, the colour and whatever they have individually. But they coexist in that salad bowl; happily together, loosely held by a salad dressing. Hopefully, it is a healthy dressing. Not mayonnaise, but a vinaigrette dressing or a lemon dressing would be much healthier for us. And, co-existing in that salad bowl, sharing that common space, limited as it may be, but together cohesive, and when you take a spoonful of this salad, and put it into your mouth, the flavour is wonderful. The explosion of flavour is just indescribable! That is how we must be like – the salad bowl where we are all together in it, together for the future for Singapore. I support the Budget.
Mr Azmoon Ahmad (Nominated Member)2147 words
[+9 sentences]Mdm Speaker, I shall deliver my speech in English and Malay. I will cover three areas. First, the plight of the middle-income group; second, innovation and the culture of inquisitiveness; and lastly, Malay SMEs. First, let me express my appreciation to Minister Heng Swee Keat for the delivery of Budget 2016. I am highly impressed by the clarity and simplicity with which the nation's strategic goals were presented. However, I must say, I have some concerns which I would like to highlight. First, the plight of the middle-income group. Through my involvement in community issues over the last 13 years, I have become impassioned over the welfare and well-being of the sandwiched class, or as they say, the middle-income group. There were rigorous discussions on the middle-income group during the run-up to last year's Budget Statement delivered by then-Finance Minister, Deputy Prime Minister Tharman Shanmugaratnam. The Government was astute in recognising the problem and announced a slew of measures to help them. It is interesting to note, however, that the Budget Statement this year made no mention of further enhancing or expanding the schemes targeted for the middle-income announced last year, let alone introduce new ones.[+9 sentences] I get the impression and sincerely hope that this is because existing initiatives are making substantial headways in alleviating the plight of the middle income. As Singapore progresses amidst the global and at times uncertain economic backdrop, our economy will have to adapt and adjust. Both local and multinational corporations (MNCs) would be continuously re-inventing and restructuring themselves while trying to cope with the changing economic landscape. As new economies replace old ones, the possibilities of jobs redundancy and obsolescence are inevitable. I sincerely believe our progress equation will have to include these unwanted elements. It is a systemic constraint that we are confronted with, which we have to manage. I also appreciate the Government's effort in trying to circumvent this by introducing proactive and constructive measures on our workers through re-training and skills upgrading. With the middle-income group constituting a major proportion of our workforce, it is imperative that we place safeguards to ensure robustness in the times of adverse economic conditions. As recent as last month, the Singapore Economic Society discussed the idea of cushioning workers in the event of involuntary unemployment. Former Nominated Member of Parliament (NMP), Dr Kanwaljit Soin, suggested unemployment insurance through the usage of Central Provident Fund's (CPF) Medisave, which seems to be an idea that is worth exploring.[+8 sentences] Other Members of Parliament had also expressed similar proposals on workers' safety net in the past. Perhaps it is timely that we should revisit this with the purpose to ensure the worker's and his or her family's well-being, should the unwanted event occur. Mdm Speaker, I shall proceed with the next part in Malay. (In Malay): Good afternoon. First, let me express my appreciation to Minister Heng Swee Keat for the delivery of Budget 2016. Although it is very interesting and comprehensive, I would like, however, to register some concerns. Throughout my involvement in dealing with community issues over the last 13 years, I have been very concerned with the welfare and well-being of middle-class Singaporeans or the group often termed as the sandwich class. I concur that the Government has already identified and discussed this issue at length, and has already provided various assistance schemes for the middle-class in the 2015 Budget. Unfortunately, I find that this year's Budget Statement did not touch deeply on, and did not state, whether there will be further enhancements or expansions to the schemes announced last year, let alone introduce new schemes.[+8 sentences] As Singapore progresses amidst an uncertain global and economic environment, our economy will have to adapt. Both local companies and MNCs will continue to re-invent and restructure their businesses and operations, while they also try to cope with a rapidly changing economic landscape. As the new economy replaces the old economy, several jobs will very possibly become redundant and obsolete. I believe that our progress equation will have to include these unwanted elements. We have to accept that this is the systemic constraint that confronts us and we have to manage it well. I would also like to express my appreciation to the Government for working hard to overcome this issue by introducing proactive and constructive measures, through the skills upgrading and retraining schemes made available to our workers. With the middle-income group making up a large proportion of our labour force, it is important that we provide this protective and safety net to ensure that we stay strong during the times when the economy is bad. Moreover, just last month, the Singapore Economic Society discussed ideas about measures that can be implemented to help minimise the impact on our workers if they are retrenched. In fact, former NMP, Dr Kanwaljit Soin, proposed the idea of an unemployment insurance using the CPF Medisave account.[+5 sentences] This is an idea that we can explore and discuss further. Other past MPs have also expressed similar proposals to provide such a social safety net. The time may have come for us to re-examine this idea with the aim of ensuring that the welfare and well-being of workers and their families are cared for, in case anything unfortunate happens. (In English): I shall touch on innovation and culture of inquisitiveness. I have been involved in innovation and R&D since I started my career in 1986. Through the 30 years, it is evidenced for me that successful companies invest significantly in R&D and innovation activities.[+34 sentences] The value creation and the unique value proposition that these companies offered through innovation kept them ahead of their competitors. It was also a primary factor which enabled these successful companies to be able to tread through difficult times. Innovation was clearly one of the key drivers towards success and sustainability. I heartily laud Budget 2016's key thrust in placing innovation as one of the strategic pieces. I am convinced that this is the right element for enterprises to embark on if they are to forge into the future successfully. It can also mean life and death. However, going forward, I support wholeheartedly towards this initiative which will enable us to transform our economy and bring us into the future that we desire. However, innovation is neither a product nor it is a material item. It is an intangible capability and competence which need to be nurtured with time. For innovation to be successfully and sustainably applied, it has to be deep-rooted in the way we do things and the way we run our business. Innovation calls for the intelligent application of knowledge which ultimately creates value. And it is this purpose of continuous value creation that elevates enterprises from one level to the next, thus transforming themselves. Having worked for large MNCs in my many years of employment, I frequently met and dealt with local enterprises. Unfortunately, I must admit that my impression on most local enterprises that I met was not encouraging if I were to assess them on their involvement in R&D. Somehow, investing in R&D and innovation activities is not an important and top-of-the-list item on their agenda. As such, it is apparent and noticeable that they are unable to provide that special value which is needed to differentiate them from their global competitors. If we want innovators to create and create value, we have to start by creating innovators and nurture them. And to achieve this, we have to start from young. Here, I mean we have to start as early as primary schools. I am of the opinion that it would have been too late if we start later than this. Here, I would like to share with you my personal experience on how I ended up being involved in the R&D domain. When I was a young boy, I used to sit next to my father on weekends while he would start dismantling parts of his Vespa motor scooter. He would then hand me pieces and items of the motor scooter engine – screws, bolts, piston ring, piston, engine blade, brake clutches, spark plug, you name it, and he would then ask me to start cleaning them on a pan filled with kerosene. A bit dangerous though, but I did it. Though the odour from the kerosene can be challenging, I enjoyed it and felt intrigued. While doing all these, I became fascinated. What ran through my mind was – how can all these small parts, when put together, be able to make the motor scooter run, whereby each part itself is almost useless, just a mere piece of metal. And that was the time where I started to develop a sense of inquisitiveness. It is this inquisitive attribute which I gained and later on in life propelled me to become an R&D engineer upon my graduation after completing university education. And I never regretted it. R&D and innovation is still my passion to this day. Mdm Speaker, the message which I want to deliver here is about creating innovators from a very young age. We have to start as early as possible if we want our young to have that inquisitive attribute and to make it second nature. I believe it is an important prerequisite if one is to be an innovator. Herewith, I would like to request for the following if we are to create a continuous supply of innovators who can fit the strategic pieces: first, include innovation subject as part of the curriculum in primary schools up to tertiary institutions; second, nationwide and national level or cluster level innovation competition in schools, by the chambers of commerce, community organisations, and so on; third, mass media involvement to elevate these initiatives so as to create awareness and high-level interest in innovation; fourth, top level and Ministerial stewardship towards this innovation initiative; and, lastly, funds must be allocated for the above initiatives.[+6 sentences] I hope the relevant Ministries will pick up the suggestions and steer the way. Mdm Speaker, I shall touch on the topic of Malay small and medium enterprises (SMEs). Our SMEs play an important role in our economy. The Industry Transformation Programme is apt and timely to bring us into the future. The slew of support schemes and incentives offered by the Budget 2016 are again laudable. However, I would like to highlight that there are gaps with varying degrees of capabilities and competencies among our SMEs. Without doubt, generally, Malay SMEs are very far behind other ethnic SMEs in almost all areas.[+3 sentences] It is against this backdrop that I would like to raise my concerns. I wish I have all the statistics to share and understand where the Malay SMEs are. Even if we have it, it would still be a cause of concern. Malay SMEs need much more help if they are to move and meet the call in support of the nation's long-term strategic goals. Herewith, I would like to request to the relevant Ministries to render special attention to the plight of the Malay SMEs. Amongst the few examples of two aspiring Malay SMEs that I know of which deserve and need all the support they can get are, first, Vector ScoreCard Pte Ltd run by Mr Nazri Muhamad; and, second, Enercon Asia Pte Ltd run by Mr Azhar Othman.[+1 sentence] They are young and aspiring entrepreneurs whose aim is to expand and become a global enterprise one day. I believe there are more SMEs like them that have similar aspirations.[+1 sentence] What they need is proper guidance. It is my hope to see SMEs like the above rise and become successful enterprises in the future with sales value of at least $220 million annually. They need to be guided and tap the professional expertise from experienced mentors who have the credentials of transforming SMEs into MNCs.[+2 sentences] Mdm Speaker, through my experience working in various MNCs, I began to value the support and services rendered by top level and professional business consultants, like McKinsey, Boston Consulting Group, and so on. The outcome of their work, without a doubt, justifies the standing they are accorded with. Again, with this backdrop, I would like to propose the following: form a special business council within the Malay community to oversee and steer the progress of transforming possible Malay SMEs to reach a target annual revenue, to be determined and agreed upon, in support of the nation's strategic goal; providing the needed professional support so as to help the identified SMEs to meet its defined objectives; seek the assistance from the relevant Ministries if targeted SMEs could be given the support to have access and to be coached by top-level business consultants with the objective to grow our SMEs into MNCs; and, of course, lastly, financial support, which has already been outlined.[+1 sentence] Mdm Speaker, with all being said and elaborated, I support Budget 2016.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)2049 words
[+8 sentences]Madam, I will deliver my speech in Malay. (In Malay): Madam, one of the main themes for this year's Budget is the Spirit of Partnership. In his speech, Minister Heng Swee Keat emphasised the importance of this factor in transforming our nation's economy and in strengthening Singapore towards being an inclusive and caring society. I agree and concur that emphasis and focus should be given to this Spirit of Partnership because, in our present lives that are full of trials and tribulations, efforts that require cooperation or collaborations between different groups and entities, are the best way to cope with an uncertain living environment. As the Malay saying goes, "Whether the burden is light or heavy, we will carry it together". The value of the Spirit of Partnership is the main theme of my speech for this year's Budget debates. Madam, the Government's plans and efforts that focus more on the business sector are a welcome move. This is to be expected, especially with the gloomy overall economic outlook in the near future. The support given to small and medium enterprises (SMEs) is important because SMEs form 99% of all local businesses, creating 70% of the nation's labour force and contributing 50% towards Singapore's gross domestic product (GDP).[+19 sentences] If something unfortunate happens to our SMEs, the whole of Singapore will be affected. For instance, the winding down of an SME will result in job losses for Singaporeans. I feel that the main objective is to gain a collective benefit and not for only certain groups. The collective benefit is gained by Singaporeans through the jobs made available when small and medium enterprises continue to grow and progress. This collective benefit is a main factor in achieving an inclusive and caring society. For this Budget, one of the main emphasis is the effort to increase systems automation and encourage mergers and acquisitions. The Government has provided grants to support SMEs to achieve this. In terms of economy of business, any increase in automation will be viewed as something positive because it is closely linked to an increase in productivity. However, the next question will be, what will be the impact of automation on the economy of employment? Economic experts have different views on the impact of automation on jobs. The moderate view is that, while automation will make jobs disappear, at the same time, it will create new jobs. A study by George Graetz from the Uppsala University and Guy Michaels from the London School of Economics in 2015 showed some evidence that automation will result in job loss to low-skilled workers and to certain moderately skilled workers. Retrenchments and job losses cannot be avoided when mergers and acquisitions occur. In this decade, mergers and acquisitions occurred rapidly in many industries, like banking, logistics, manufacturing and others. Madam, one of the main concerns of Singaporeans is the loss of income. The main aim of the Government in supporting the increase in automation, and encouraging mergers and acquisitions, is that Singaporeans can reap the collective benefits, and that it will not only benefit certain groups. Many hope that the Government will pay close attention and monitor it closely, so that this aim of reaping collective benefits can be realised. We certainly do not want a situation where automation and technological development result in certain segments of society feeling that they are left behind, and sink amidst the tide of modernity and progress, resulting in negative feelings, as the saying goes, "being discarded after they are no longer useful." If this happens, it will weaken our efforts to build an inclusive and caring society. As one way to manage the impact of retrenchment that will certainly occur in the effort to achieve progress, I support my colleague Ms Sylvia Lim's suggestion that the Government consider introducing a Redundancy Insurance. This is an insurance scheme where employers and workers each contribute a small portion of the worker's monthly salary into a fund. The objective of this fund is to help workers who are facing unemployment due to involuntary retrenchment, including those who were served notice. This fund can perhaps provide payouts over a period of six months, whereby the payout amount can be based on a small proportion of the last salary received by the worker, within the range of 40%, but at the same time, have a limit that is based on the median income.[+8 sentences] This simple scheme can give an indication that the help provided is short-term in nature, but at the same time, it can give some relief and financial assistance while these individuals strive to look for new jobs. Madam, in addition, I would like to convey the wishes of many people to increase the amount allocated for the SkillsFuture credit. The people welcome the SkillsFuture scheme, especially amongst the low-skilled and low-wage community members, who wish to upskill so that they will not sink amidst the tide of technological development and automation. However, their intent to upskill will be affected due to cost issues. On the basis of inclusiveness and caring for one another, I hope that the Government can seriously consider the suggestions mentioned as part of the Spirit of Partnership between the Government and the people to help Singaporeans cope with the challenges that will emerge in our nation's pursuit of progress. Madam, I would now like to touch on the social aspect of the 2016 Budget. In his speech, the Finance Minister said that we will like Singapore to be a great place to raise a family, where we bring out the best in every Singaporean, and a society that takes care of those who have special needs, and who are less well off. The Minister once again emphasised the Spirit of Partnership between individuals, society and the Government in order to achieve this objective. For this year's Budget, in an effort to aid early childhood development, a new initiative KidSTART was introduced.[+1 sentence] The KidSTART scheme aims to help the early development of children's physical, cognitive and social skills. The present Child Development Account scheme (CDA) has been enhanced with an additional First Step grant of $3,000 as an initial assistance.[+1 sentence] As mentioned, these schemes provide support for Singaporean children in order to give them the best start possible in life. On the basis of this noble aim, I appeal to the Government to extend these schemes to every Singaporean child including those born out of wedlock. Presently, Government schemes exclude this group of children.[+10 sentences] I do understand that the Government provides these schemes only to children who are born to married couples in an effort to strengthen the institution of the family. As a family and household counsellor, I agree with this approach. But I also feel that we should assess this from another angle. Firstly, children born out of wedlock are also Singaporean children who will contribute to the development of this nation when they become adults. Secondly, these children are just like other children, born the same way and have the same needs, in terms of physical, cognitive and social development. Thirdly, these children should not be treated differently because of something that their parents did. I would like to reiterate that, while I agree with the Government's efforts to strengthen the institution of the family, nonetheless I believe that there are better ways, in the form of early prevention that can be taken to deal with this issue. The Government's approach in this issue should be changed so that when these children grow up, they will not feel marginalised, left out and angry, because society seems to blame them for something that their parents did. I believe that the Government's support towards the development of every Singaporean child, regardless of their status, will be welcomed by Singaporeans. Madam, I would like to now touch on the development of the Outward Bound School (OBS) which aims to build resilience. The development of resilience among our students is important in preparing them for the various challenges in life and giving them self-confidence. I support the plan to build the OBS in Coney Island, which will be able to accommodate more participants.[+17 sentences] In order to build one's resilience, we need to have a holistic approach, whereby every aspect of the human brain, that is, Intelligence Quotient (IQ), Emotional Quotient (EQ) and Spiritual Quotient (SQ), must be developed and nurtured. SQ first came to the attention of academics, especially in the field of psychology, early last decade. According to academics, SQ is closely linked to awareness towards the meaning of life, being responsible in life and the need for humility in life. By possessing SQ, it will point an individual towards having a personal vision and work towards it, with the objective that every benefit gained is not meant just for him, but also for society and the world in general; in other words, achieve collective good. In short, he turns himself into a blessing for all. I am of the view that a combination of these three quotients will not only result in resilience, but it will also build other positive human traits. Here, I would like to repeat a suggestion that I gave previously in this House, that is, the reintroduction of Religious Knowledge subjects in secondary schools. I feel that schools are the best place to develop a holistic person that should combine IQ, EQ and SQ. I would like to share that I have one child who is studying in a full-time madrasah, one in a public school and one more in a Mission school. I had the opportunity to examine how these three schools nurture good values and good traits. The advantage that Mission schools and madrasahs have over public schools is that they also focus on developing SQ. Madam, I mentioned earlier that one of the efforts that the Government does to strengthen the institution of the family is by excluding children born out of wedlock from enjoying the support schemes provided by the Government. Following that, I said that it is better to undertake early preventive measures so that this situation, where a child is born out of wedlock, can be lessened or prevented. I am confident that this can be achieved through the development of the Intellectual, Emotional and Spiritual Quotients in each person. A partnership, which combines the Intellectual, Emotional and Spiritual Quotients, can result in individuals who are highly resilient and gives priority to the collective need. These are the Singaporeans that we need in our effort towards building an inclusive and caring society. The final issue that I will touch on is the Government's move to encourage Corporate Social Responsibility (CSR) and other ground-up initiatives, by providing more support. Here, I would like to suggest that we establish a more effective link or cooperation between corporate entities and individuals, with the Social Service Office (SSO).[+9 sentences] I do understand that the main role of the SSO is to coordinate and increase cooperation between voluntary welfare organisations (VWOs) within their respective jurisdictions, so that the local communities can receive the maximum benefit. This is done by monitoring the demography and needs of the local community. For example, monitoring is done to see if there is a duplication of services, whether the service provided currently is sufficient and so on. The partnership between the SSO and programme organisers, be it corporate entities or interested individuals, can help to fill in the service gaps within a certain area. This partnership not only benefits the needy, but it also helps organisations that provide assistance or that wish to implement community programmes, and hence creating a win-win situation for everyone. Before I end my speech, I would like to state that the Spirit of Partnership is an important aspect of personal development, as well as the development of society and the nation. The Spirit of Partnership aims to combine resources and manpower so that it can give the best and maximum benefits possible to every member of society. But we must be careful so that this partnership does not lead to unwanted side effects and resulting in a segment of society feeling marginalised and neglected, because that will run against our country's mission to build an inclusive and caring society. Madam, I support this Budget.
Dr Tan Wu Meng (Jurong)2348 words
[+3 sentences]Mdm Speaker, I stand in support of this Budget. I will speak on three areas today: why our economic restructuring is so important; pitfalls and opportunities; and how we must continue keeping our social system progressive. Madam, a vibrant economy creates opportunities and jobs for Singaporeans. In the 21st century, this has to mean good quality jobs − Singaporeans moving up the value chain, climbing up the value tree, finding a branch of skills where they can specialise and find mastery.[+9 sentences] Sometimes, as circumstances change, jumping to a new branch on another tree, continuing to climb, climbing higher, and climbing better. It is a good approach, not just in the Year of the Monkey, but throughout life. And our startups and small and medium enterprises (SMEs) provide opportunities too − the skills that come with running a business and the chance to build a successful enterprise. Madam, when a society is low on opportunity, it is the rent-seekers and owners of old capital who extract profits, often without creating value for a broader economy and society. So, a thriving society with its jobs and enterprise, all these help our young Singaporeans to rise and grow, while adding dynamism and value to our society. We also know that a strong economy gives us the means to support fiscal redistribution and the many social programmes that underpin an inclusive society. It also ensures we can maintain a credible defence deterrence through a strong Singapore Armed Forces (SAF), as well as a Home Team that is ready and equipped to face the challenges of this century. All these keep us relevant to the world and ensure that our voice can be heard, even though we are small. In summary, Mdm Speaker, we must not forget that a strong economy secures our Independence, sovereignty and security, and is also key to building a fair and just society. My second point, Mdm Speaker, is avoiding pitfalls while securing opportunities.[+1 sentence] And there are challenges amid our restructuring. We have evolved from a third-world to a first-world economy, and the low-hanging fruits have already been picked.[+7 sentences] But there are still lessons we can learn from the experience of other developed countries, the challenges they faced, the lessons they have learnt. In February 2013, the Harvard Business School published its 2012 survey on US competitiveness led by Prof Michael Porter. It is useful to look at the observations and what we can learn that are applicable to Singapore. One observation by the Harvard study was on the importance of shared resources, for example, workers having relevant skills in the labour market; workers moving in between employers, between sectors, but having that base of skills; supply chain networks; and physical, technical infrastructure. Yet, the authors of the Harvard study found that there was a shortfall of investment by businesses in shared resources. Investment would have helped all companies in the long term. But at the level of individual companies in the US, it did not always make short-term business sense. The Harvard study also observed that, with globalisation, it is quite possible for a company, especially a multinational corporation (MNC), to grow more competitive, even if the host nation loses its edge, partly because of this lack of investment in the host country. So, Mdm Speaker, it is important that we provide incentives for businesses, especially MNCs, to continue investing in Singapore, and reinvesting in Singapore and Singaporeans. One way to do this is for companies to continue training up a strong Singaporean Core with skills and industry knowledge – not just the numbers, but people with skills and the tacit, implicit knowledge that comes from knowing an industry sector deeply and, especially, in business sectors of key importance where Singaporeans are still under-represented.[+2 sentences] Building up this local pool of talent also helps our SMEs because the more skills and talent are in the pool, the more there are who can forge on, start their own enterprises, and help fellow Singaporeans to grow and rise. Different industries, different ways, but it must always be an on-going effort. In Singapore, because of our history of fiscal prudence, we are in a position to supplement this with Government investment as well. And I concur with fellow Members that SkillsFuture is an important step forward, because individual companies, sometimes because of their size, may not be willing to underwrite the cost of training, or they may fear that a worker is going to move to another company after upskilling.[+29 sentences] But when companies invest in workers, upskilled workers, it uplifts the entire sector of skills. It helps other companies in the sector, it helps the workers, it helps Singapore. Mdm Speaker, at a broader level, research and start-up spin-offs should also continue receiving investment, especially in a way that socialises the gains when these companies turn profitable and especially when these companies become very successful. Mariana Mazzucato at Sussex University, who studies the economics of innovation, has proposed many ways to do this. For example, loan repayments that are adjusted based on profits of the enterprise, or allowing the state to retain equity, just as private venture capital firms do. It does not have to be a controlling stake, but the equity could be preferred stocks with priority in receiving dividends. The Harvard study, Mdm Speaker, also observed that some American corporations were driven by short-term performance indicators – short-term shareholders driving short-term corporate behaviour. This led to extractive optimisation in the short term, rather than longer-term investments which add value and create sustainable innovation. The lesson for Singapore, Mdm Speaker, is that even as we boost our productivity, we must continue pursuing both kinds of innovation. Some innovations add efficiency or reduce costs. This is important. It is part of competition – enhancing existing situations. But they can also easily be undercut by cheaper labour, cheaper economies and lower costs elsewhere. Other innovations create new value and new markets, pathbreakers, game-changers. We need both kinds of innovation. They complement each other and help bring each other to greater heights, and it has to be continuous – a never-ending process of innovation. Each chapter having to be better than the previous one because that is how we write the story of tomorrow's enterprises. Mdm Speaker, I now turn to my third topic: building a progressive social system – progressive in process, progressive in outcomes. GDP growth is not pursued for its own sake. I have spoken earlier about how a strong economy is key to Singapore remaining independent and a pre-condition for a fair and just society. So, it is crucial that our socioeconomic system remains progressive – supporting social mobility and making sure every child has a fair start in life. Helping children who start with less, without pulling down those who were blessed enough to start with more. Furthermore, Mdm Speaker, when a child from a disadvantaged background does well, it uplifts the rest of the family. It uplifts a community. It uplifts our society. A few years ago, Economics Nobel Laureate James Mirrlees led a team which reviewed the UK tax system. They issued a report. The review was called "Tax by Design". One key point was the system must be considered as a whole when deciding whether taxation is progressive or regressive. So, you can have individual flat consumption taxes which, on their own, may be regarded as regressive by some observers, but when the revenue is redistributed to those with less and when it is used to help those who are disadvantaged, the system becomes overall progressive. This is how taxes like our Goods and Services Tax (GST) support progressive social programmes: (a) the GST Voucher Scheme, which helps families with less; (b) the upcoming Silver Support Scheme for elderly Singaporeans with fewer resources – sometimes just by accident of which era they were born in, they grew up earning third-world wages and retired in Singapore with often first-world costs; and (c) we see our Edusave Merit Bursaries, the MOE Financial Assistance Scheme.[+4 sentences] Another very important part of redistribution, another very important progressive policy, Mdm Speaker, is our subsidies for first-time buyers of HDB homes because that first opportunity to get early access to home ownership is deeply important – that early opportunity to have an asset which can appreciate and accumulate value throughout life. And so, we must continue helping young couples have affordable home ownership early in life. These are just a few examples. But Madam, progressive redistribution alone is not enough to build a strong, cohesive society. Our social norms and our social culture, they matter too. This is why even though the Ministry of Finance (MOF) is introducing a cap on the total amount of personal income tax relief, it is very important that we do not put a cap on tax deductions for charitable donations.[+2 sentences] Tax relief and tax deductions help recognise behaviours which benefits the community, while keeping the system progressive. So, we must continue encouraging personal and corporate charity as they add something special to our society. The new Business and IPC Partnership Scheme, Mdm Speaker, is an important step forward.[+1 sentence] It acknowledges that meaningful charity is not just about cash or tangible assets. MOF is now going to recognise employees giving their time, services and even secondments where they transfer their skills and knowledge.[+19 sentences] It empowers people to give in ways other than cash. These charitable deeds, Mdm Speaker, are an important part of our social fabric. Of course, some may argue that fiscal transfer achieves the same numerical outcome. Perhaps on the balance sheet, the numbers might look the same, but there is a fundamental difference, because volunteerism and charity are transformative. It transforms the recipient, it transforms the donor and it transforms our society. Volunteering and voluntary giving uplift our spirits in a way that taxation and tax transfers can never do. And these are important externalities which transform the inner life of the people we serve, as well as the inner life of those who step forward to serve. On another point related to this, Mdm Speaker, the Community Networks for Seniors are another big step forward. Today, we have many helping hands. Many hands, and many channels of assistance – VWOs, volunteers, schools and businesses. But when it is complicated for the end-user to get access to help, the overall system can actually become regressive on the ground because of that complexity. Allow me to explain. When the application process is complicated, when there is red tape and when there is bureaucracy, it becomes harder for those who are less well-informed, less IT-literate, or from more disadvantaged background, to seek help or to find out what avenues of assistance are available. We are moving towards online e-government, but for residents who do not have a computer or a smartphone or who do not happen to be literate in English, e-government channels, instead of an open-door, can be a digital barrier. Madam, the World Bank's 2015 World Development Report looked at "Mind, Society and Behaviour", through the lens of behavioural economics. One important insight in that report is the concept of bandwidth constraints. What it means is the idea that psychological stress and hardship can place a cost on people's mental resources. Some economists call it a "cognitive tax" or "bandwidth tax". You have so much to worry and think about that it is harder to apply, harder to go about your daily life and harder to find your way, especially if there is bureaucracy. This can lead to a focus on the immediate present, to the detriment of the future and, as we have talked about, less time and energy available to navigate the different roads to help. So, it is important, Mdm Speaker, that we continue doing our best to reduce complexity, especially at the frontline and on the ground for the end-user or recipients of help, because complexity has regressive effects on the most vulnerable among us.[+2 sentences] We must continue looking into how to make the journey simpler, improving access to helping hands. Many steps have been made earlier, even though we can do more. MSF's Social Service Offices (SSOs) and their coordinating roles have been a key step forward in coordinating care and helping families, especially those with deep complex issues who need a lot of attention to uplift them and make sure the children can continue getting a good start in life.[+1 sentence] Likewise, Mdm Speaker, for our Pioneer Generation ambassadors, who in many constituencies, have been helping pioneers understand policy better. The SGfuture programme is another platform to help people, Government, and agencies see issues together, co-create a future and especially look at issues through the eyes of the people.[+1 sentence] Madam, as governance grows more complex, the need for coordination will continue to grow. At our highest levels, we have our Coordinating Ministers looking after National Security, Economic and Social Policies, and Infrastructure. But at the ground level, Madam, coordination matters very deeply as well – whether it is your family doctor, or a patient navigator in the hospital helping an elderly Singaporean find their way through the healthcare system; whether it is public servants seeing issues through the eyes of the end-user, working across departmental and agency boundaries, like our Municipal Services Office; or our social workers at our SSOs and the staff at the upcoming Community Networks for Seniors. So, Madam, in our policymaking and implementation, we must continue to recognise coordination as a valuable process and a valuable outcome, in and of itself. And we have to allocate resources and manpower to make sure coordination continues at the ground level and to keep things as simple as possible, especially for those starting with less and those who are disadvantaged.[+2 sentences] In conclusion, Mdm Speaker, this Budget has many innovations, even as it continues the work of building a more fair and more equitable society. May we always innovate and coordinate well at all levels: achieving economic prosperity, supporting a system that is progressive in its progress, and helping all our people to lead a full and happy life.
Mr Zainal Sapari (Pasir Ris-Punggol)1693 words
[+2 sentences]Mdm Speaker, thank you for the opportunity to speak. I would like to focus on low-wage workers. Last week, the CEO of a cleaning company shared with me that they lost their cleaning contract with a Statutory Board this year because they had bid for the contract based on current salaries of their workers and also factored a one-month bonus.[+4 sentences] Many of their 40 cleaners now working for the new company had not only their salaries reset to $1,000, but also all other employment benefits as well. I also came across many workers during NTUC's employment seminars lamenting why their salaries were not increasing every year or why their employers were not giving them their 13-month bonus. There are many Singaporeans who are working in the low-income sectors who are facing stagnating wages and have resigned to the fact that their situation cannot change. In some countries, any wages below two-thirds of the median income are considered as low wages. In Singapore, the gross wage of workers at the 20th percentile is $1,800 while those at the 50th percentile is $3,460.[+1 sentence] This income gap is widening. In the last five years, real wage increase for the 20th percentile was 2.1% compared to the higher percentage real wage increase for the 50th percentile at 3%.[+3 sentences] Perhaps, I would like to call for the Government to set a target for a higher percentage wage increase for workers at the 20th percentile compared to the 50th percentile to reduce the income gap. This would help us have a more objective assessment of the effectiveness of measures taken to help low-wage workers. We need to think out-of-the box and have a concerted effort to create better jobs and improve skills so that these workers can enjoy a higher percentage real wage increase. In this Budget, the Labour Movement welcomes the changes made to the Workfare Income Supplement (WIS) to enable more workers to qualify with a higher payout, but we need a longer-term solution to help low-wage workers.[+1 sentence] I would like to make a call for the Government to work with our tripartite partners to explore making the payment of Annual Wage Supplements (AWS) and giving annual increments to workers as part of the licensing or registry conditions for the cleaning, security and landscape sectors. Potentially, we are looking at 85,000 local workers in these sectors benefiting from such a move.[+35 sentences] Moreover, it will create a level playing field for all service providers and service buyers to remain competitive while, at the same time, boost the income for the low-wage workers. More importantly, it will send a strong signal for other employers to follow as well. The Labour Movement also welcomes this year's Budget to support industry transformation but for this to happen in the clean, green and safe sectors, we need changes in the four "M"s – Man, Machines, Mindset and Methods. This, perhaps, can make any wage increase in these sectors more sustainable in the long run. Let me touch on the first two "M"s − Man and Machines. The Progressive Wage Model (PWM) is not the only key to help our workers earn better pay through higher productivity. Beyond PWM, SkillsFuture also promises a hope for a better future for our workers – the Man. Two areas must be looked into. First, SkillsFuture outreach efforts towards low-wage workers must be customised and targeted to suit the profile of low-wage workers who are mainly matured with limited education. This is an area that the Government can work on with its tripartite partners. Second, the respective sectors need to ensure there are current jobs to match the higher skills the workers have acquired through SkillsFuture training where workers must be comfortable in using technology. This can be achieved through job redesign in the clean, green and safe sectors. Increasingly, more service providers would like to adopt greater technology to reduce manpower requirement and improve productivity. Their workers are also being trained to operate this equipment, but service buyers must be receptive to different ways of service providers delivering their service using technology. The next "M" is Mindset. A change in mindset is required to ensure productivity can be achieved in a more sustainable manner. Earlier, I suggested job redesign to match SkillsFuture training to enhance productivity. For this to happen, service buyers must have a cooperative mindset to work more closely with the service providers during the procurement process to explore different possibilities. This involves giving service providers more time to suggest a solution to meet service buyers' needs. This is an area which I feel that the Government Ministries and statutory boards can lead by example to create success stories for others to adopt. A mindset change is also required amongst service buyers in buying services. They need to have a performance-based mindset by doing more to adopt performance-based contracts. Despite best sourcing efforts, many contracts continue to be headcount based, and, hence, there is little incentive for service providers to explore other means of improving productivity. Moreover, headcount-based contracts will be very expensive and unproductive, given that labour supply will be tighter in the coming years. Mdm Speaker, the Government must also encourage buildings to be designed with a "productive" mindset at the outset to enable a cost-effective approach in procuring cleaning, security and landscape services where less manpower would be needed. The third "M" is Method. For industry transformation to happen, it also requires an accompanying change in methods. The latest manpower report has highlighted clearly that labour supply will continue to be tight. Based on the old method, unless there is a change in the method, there might not be enough people to be deployed to provide the services required. Concerted efforts must be made to explore the potential of aggregating demand for services. There are also other methods that could be explored to help low-wage workers. I also want to make a call for procurement processes to be more worker centric. Being more worker-centric in procuring services means that service buyers need to pay more attention to or specify the employment benefits to be accorded to the outsourced workers. This would help the workers have better wages and benefits and would definitely motivate them to be more productive at work. I am sure if the statutory boards, as I said earlier, had a worker-centric mindset, the workers would have enjoyed the current higher salaries. Service buyers can also look into having contracts of longer duration to incentivise the service providers to embark on greater adoption of technology that could lead to manpower savings and better productivity.[+1 sentence] This also ensures that outsourced workers do not always find themselves as the disadvantaged lot every two to three years when their salaries get reset again. Relevant to my call for procurement process for outsourced services to be more worker centric, I would also like to call for the Government to explore a Public Private Partnership (PPP) model in procuring essential services such as cleaning, security and maintenance services.[+4 sentences] This may be the next breakthrough in our policies for the outsourced sectors to help low-wage workers. The next aspect of "method" we have to tackle, Mdm Speaker, is the issue of unfair contracts. Ultimately, such contracts will impact the workers as the service providers will find ways to cut corners. It could also be challenging for service providers to embark on productivity efforts given that their operating margins are very low. While I am calling for contracts to be of longer duration, I would like to discourage the practice of having an Option to Extend at the same terms and conditions.[+7 sentences] Unless a variation in contract price is allowed, it is usually the low-wage workers that will suffer from stagnating wages. Mdm Speaker, fair contracts will create an environment that will benefit all parties, including workers who can enjoy better employment terms and conditions. I have written a blog on this and I am happy to note that MOF will play its part to encourage fair contract clauses. Perhaps, with the Government taking the lead to promote reasonable and fair contracts, it would play an instrumental role to shape the behaviour and practices in procuring outsourced services. If stakeholders in the industry can change their "mindset" and '"methods", the transformation needed for "man" and "machines" would follow as a consequence. Workers, through SkillsFuture, can now be better trained to leverage on technology, making investments in training and machines less risky and with greater promise for higher productivity. Mdm Speaker, please allow me to speak in Malay. (In Malay): I welcome this year's Budget which aims to help the low-wage workers through changes made to the Workfare Income Supplement Scheme (WIS), and the Workfare Training Support (WTS) Scheme which will make more workers eligible.[+2 sentences] However, in order to enjoy better pay, Malay workers, particularly those in the lower income group, should focus their efforts to upskill themselves through Workforce Skills Qualification (WSQ) training. Malay workers who are working in the outsourced sectors, such as cleaning, security and landscape, can receive better pay based on the skills that they obtain after undergoing the WSQ courses. In view of the $4.5 billion support provided under the Industry Transformation Programme, it is important that Malay workers, especially the low-wage workers, make use of SkillsFuture wisely to ensure that the new skills that they learn will be useful to industries and companies which will be undergoing transformation through automation and technology, which will improve their productivity and reduce the demand for labour.[+5 sentences] This will help workers to obtain better wages. (In English): Mdm Speaker, in conclusion, I believe that unless we take bolder steps to negotiate the glaring disparities between our low-wage workers and the majority of the Singaporean workforce in matters like wages and employment benefits, low-wage workers will continue to feel marginalised and the income gap will continue to widen. As a nation, the onus is on us to ensure that when they look ahead, they see beyond the status quo. They should see positive change for themselves, their jobs and, more importantly, their families. With that Mdm Speaker, I support the Budget.
Miss Cheryl Chan Wei Ling (Fengshan)1762 words
[+8 sentences]Mdm Speaker, Budget 2016 is a Budget that covers a broad spectrum of support for individuals and industries with a targeted approach and some long-term investments on infrastructure. Like past Budgets, it is one where we get some disappointed sighs from those who do not stand to benefit while others heaved a sigh of relief as the much-needed safety support is provided. Minister Heng noted that, in 2016, there are cyclical headwinds and challenges that exist, but there are also opportunities if we adapt and grow in preparation to capture those future opportunities. With this context, we clearly understand there cannot be generous packages annually. In the years ahead, we will inevitably encounter some years similar to 2016 where economic outlook is not at its best and yet we need the tenacity to weather the storm together as a nation. Central to this is the question, "How can we find a balance between state support and involvement of community to enhance our social safety net?" As Singaporeans, we share a common wish deep in our hearts. We want Singapore to reach SG100 and beyond for many generations to come and in a much better position than today. As we progress towards SG100, there are a few social indicators that will continue to raise the bar of support requirement in our society. These indicators are an increasing ageing population, constant need to bridge the income disparity, a shrinking working population and the well-educated younger generation with higher aspirations and expectations of what basic livelihood entails in a developed nation.[+6 sentences] It is apparent that to provide for such rising needs, we may reach a stage where there is an over-dependence on the Government for social programmes. To sustain an appropriate level of state support for social programmes, more revenue streams must be created, and this may increase the burden on our future generations. Being aware of what the potential outcome may be, it is prudent for us to take the necessary steps today to avert such an outcome. I believe we can do so by defining our new chapter together and creating options to strike a right balance between state support and partnerships with the community at large. To begin, we must recognise that a social safety net must be present for some groups of individuals and those with lower likelihood of being able to be self-sufficient without external assistance. Typically, some of these groups are our seniors, the lower-income workers, people with disabilities (PwDs) and our younger families. In order to supplement state support, we have further enhanced our social safety net for those more vulnerable through multiple schemes. However, the challenges that we face are: one, the state support system has become more complex over the years and it is harder to implement with ease so as to maximise the support for the intended beneficiaries; two, increasing funding requirements means a need for the public to cross-subsidise in different ways; and three, some groups, albeit small in quantity, may still not qualify for any available support schemes.[+3 sentences] Let us take a closer look at each challenge and what could be done to address it. First is the complexity of the public support system. An example is the support for our seniors. Pioneer Generation Package (PGP) began in 2015 and that was crucial to many seniors due to their age and also the lower preparedness to manage their healthcare costs as they started their lives during the difficult times of nation building.[+2 sentences] It was good that PGP covers all seniors who were 65 and above at the point of policy implementation regardless of their household income. Post-PGP, MediShield Life was introduced, and it provides further protection for those who do not have insurance coverage. It was critical for the lower income families and those with little savings to manage their hospital care needs. Now, there is the Silver Support Scheme providing quarterly payouts for the bottom 20% of seniors and, to some extent, 30% of them. While all these are beneficial to our Pioneer Generation (PGs), their children who are the next generation of seniors will likely require the same types of support but at a much higher cost than our PGs today.[+11 sentences] Herein is a possibility of the successive generation of seniors not being able to support themselves at an earlier age, if income disparity and social support are not properly managed. This brings about the urgency for us to review and begin engaging them while they are still active income earners. As we begin charting the directions for the future, I feel that we need to take strategic and proactive approaches rather than time-based subventions specific for each generation. And second is increasing funding and cross-subsidisation from public. To reduce the burden on subsequent generations, we must begin the planning right now and choosing the right paths for them. On the same note of strategic and proactive approach, below are some suggestions of how we can involve our future seniors. First, there is a need for earlier community involvement and collaboration with today's middle-aged group as they plan for both their family and retirement. Second, the people involved have to be aware and prepared with passive income and financial planning for old age beyond today's primary twin pillars – their property and CPF. Third, options have to be made available for them to balance the level of dependence and financial support on their family, bearing in mind the smaller family units and increasing trend of singles over time. These approaches, if taken in tandem, could be alternatives or will at least maintain cross-subsidisation at reasonable amounts or levels. Third, groups that do not qualify for any state support. The reality of any system is it cannot provide coverage for all groups across the society, thus, the need to dispense support based on a targeted approach. However, if subsidies continue to be targeted only for specific groups, how can we be assured that those whom we believe are self-sufficient will indeed be able to manage on their own?[+7 sentences] For this group, I feel that some of their needs can be looked into through funding at different aspects instead of direct subsidies. One of the options is to supplement it by fostering care in our society. In doing so, we can broaden the support base for some groups that fall outside public support due to their household income or property value. Knowing that state support will always be required, how then do we partner and involve the community at large to enhance our social safety net? As a country, we need to ensure fostering care in society becomes an ingrained culture and paying it forward is a social value that Singaporeans are associated with. Such culture cannot be achieved overnight. Likewise, partnerships also require willing parties to step forward and the willingness to smoothen the creases together along the journey. Earlier in my maiden speech, I spoke about the need for an Integrated Social Hub, or what I term the the 3G Village, where we can bring community networks together and reinforce social values through inter-generational sharing, thereby strengthening our social fabric. It is heartening to note that in Budget 2016, more focus is given to improve last mile delivery and social innovation to maximise impact of schemes.[+16 sentences] Some of the schemes that are encouraged include corporate social responsibility (CSR) as well as promoting the scale-up of ground activities and community networks. To take the Budget's focus on partnerships a step further, I propose some areas for future considerations. First, introduce the social culture and inculcate values at a young age. Today, some schools do conduct projects under the Community Engagement Programmes (CEP). However, there is a lack of emphasis on values learnt from these projects. I believe that these projects should go hand-in-hand with training and such emphasis begins from home. Parents should be given opportunities to be a part of the CEP experience with their children and not be restricted to giving back only through CSR organised events. Family role models and precious time spent as a family would be more effective benefits emerging from such programmes. Second, there is a growing trend of self-organised groups for different causes that benefits the society at large. We applaud these efforts and should assist them in scaling up. It would be helpful to have platforms made available where the different self-organised groups can leverage resources, shorten their learning curve and enable volunteers to extend their contribution to other new areas which may interest them. Third, many groups on the ground who receive help from community networks today are not registered or belong to any IPCs. This does not mean that corporations who are willing to support community networks cannot do so. Instead, I advocate that IPCs and VWOs extend their support and work closely with local communities in conjunction with these corporations. Likewise, social enterprises that assist in similar ways should be given consideration and concession under the framework. This way, more individuals and vulnerable families can benefit from the system. Lastly, to expand on the SG Future Citizen Engagements that was launched in November 2015, I hope the various SG Future Ministries continue to partner the community in co-creating solutions and finding more effective methods of delivering their services in this digital age.[+3 sentences] With close community involvement, tangible benefits can be achieved and more individuals with varying circumstances may also receive assistance. Unless we begin planning early, the right balance between state support and community involvement will not emerge. To ensure that social support will be sustainable, it needs like a balloon to have more than one party adding their lung capacity to keep it afloat. State support coupled with individuals, family and community involvement is the way forward to ensure a basic decent standard of living for all Singaporeans, even as the cost of that invariably rises over time.[+6 sentences] The Budget, to me, is more than the announcements of basic subsidies and handouts. We should view it over a longer horizon and chart directions for Singapore both socially and economically. Thus, there is urgency for us to act in the interest of our future generations and prevent any undesirable outcome. Moving forward, I hope the Government and the public can jointly view subsidies and funding support packages or programmes more holistically and taking longer term perspectives. This way, we can continue our prudent spending approach with an aim to improve wealth distribution throughout our society and funding timely investments for the subsequent generations. Mdm Speaker, with this, I support the Budget.
Mr Zaqy Mohamad (Chua Chu Kang)2492 words
[+3 sentences]Mdm Speaker, thank you for allowing me to speak on Budget 2016. Budget 2016 is a new chapter for this term of Government and one that provides for Singaporeans for our current needs, and also prepares us for the future. Let me begin with a topic close to heart for many Singaporeans – on feeling secure about our future needs and retiring comfortably. Budget 2016 provides for many measures that support our cost-of-living expenses such as the GST vouchers and other top-ups, support and subsidies for various schemes such as MediShield Life to prepare us for our long-term healthcare costs, and the Silver Support Scheme, for seniors who may need support in their retiring years.[+9 sentences] Through my conversations with residents and many ordinary Singaporeans, many have serious concerns that their future is uncertain and they have question marks looming over several aspects of their future. Chief among these concerns is whether they can retire comfortably. Many young Singaporeans today are already looking ahead and have set expectations of their expected lifestyles in years to come, which also raises the issue of whether they see their future beyond their working lifetime, whether it is here in Singapore or somewhere else. To give Singaporeans a sense of security about the future, we need to stabilise their future expectations for them. We have built mechanisms such as the CPF. But unlike ordinary savings, its use is rigid and does not do enough to provide stability amidst uncertainties. The reality is that most Singaporeans use a large part of their CPF for housing. When needed, most of their supposed savings are hard to access and of limited use. If they need to monetise their assets, these days, downgrading does not provide much benefit because the gains are also limited. This is also exacerbated because a large part of their savings had also gone into long-term interest payments and other indirect taxes such as housing levies. I think we are too deep in after many years to reverse the use of the CPF for housing, but on the broader scale of our collective policies, the Government should consider an end-to-end review of our policies that affect retirement security and whether they are sufficient to give Singaporeans a strong sense of security in old age.[+3 sentences] As a start, to provide stability in an uncertain future, the CPF itself must be certain. To the ordinary Singaporean, the goal posts have been shifting and that has created this uncertainty and insecurity among Singaporeans about their future. That has to be a clear definitive and firm end point that all Singaporeans can agree on and work towards. CPF LIFE is certainly a big improvement, but the Minimum Sum is still a moving target to many.[+8 sentences] There has been a lot of recent progress with MediShield Life – a scheme I personally believe provides many benefits to citizens. However, these changes have not done enough to provide the assurance of a secure retirement. Even the standard integrated shield plans announced recently cannot guarantee that the premiums will remain at a fixed price after two years. So, many are worried about premium hikes in the years ahead. Madam, I support the principle of means-testing, as it means that more help can be diverted to those in the lower income group or for targeted segments who need it most. However, we need to monitor all our schemes collectively, because each is often governed by individual agencies. If most of our schemes are means-tested the same way, then there is a possibility that our policies could end up skewed too much for the lower-income, with little going in the way to help the middle-income groups. This is the sentiment on the ground, and it may be time for the Ministry of Finance (MOF) to study the impact of our schemes holistically. The Silver Support Scheme, for instance, was implemented with good intentions. However, leaving out senior citizens who are in 5-room flats or larger, does leave many retirees who were middle-income earners, unsupported.[+12 sentences] Many of my older residents have asked the Government to move away from using household types as a cut-off because it is no longer reflective of income and wealth. For example, a 5-room flat in Choa Chu Kang today sells for about $450,000 to $488,000, compared to a 3-room flat selling at $550,000 in Upper Cross Street or a 4-room flat selling at $900,000 at the Pinnacle. Recently, I met Mr Ho, a resident in Choa Chu Kang, who has lived in his 5-room flat for the last 18 years. He had purchased the flat together with his son 18 years ago at $190,000. That was what he could afford then, and it reflected the wages he had accumulated over his working life. It does not mean that because the flat is worth $450,000 today, he is rich. For him, not much can be monetised from his joint-asset because his son and his family still need a home. Downgrading to a 4-room or 3-room flat will not be practical for him because he has himself, his spouse, together with his son's family and grandchildren. In all likelihood, Mr Ho needs to find another flat if they downgrade and the total costs could be more than $450,000. So, is it worth it to make that shift? Mr Ho explained he had purchased a 5-room flat with his son because they wanted to live together in a multi-generational setting. And I agree with him when he says that this disincentivises seniors who want to live with their children, because they will always lose out on Government benefits and rebates. So, means-testing this way no longer makes sense as a reflection of wealth or income status. We accept means-testing in welfare schemes and hospital subsidies but let us also take a practical approach on other schemes such as Silver Support Scheme, especially in helping our retirees, as they are no longer working or earning an income.[+1 sentence] The use of the lifetime CPF savings approach as an indicator of the Silver Support Scheme was indeed innovative and I was hopeful that it would serve to help many Singaporeans. The inclusion of the second criterion using household types is an archaic idea that diminishes the impact of the scheme.[+4 sentences] Mdm Speaker, as I sat listening to Minister Heng's excellent delivery of Budget 2016, looking at the many tables and charts, one must realise that our schemes today are getting increasingly complex. Given the variable criteria for each scheme, how many Singaporeans actually do know what they are getting from Budget 2016 and all our Government policies? So, it is important that the Government provides clarity to every citizen on the benefits that they receive. If they have visibility today, it will also help them plan for the future. It is important to ensure that there is clarity and greater transparency in our social compact. There is no point pouring millions of dollars into schemes that people do not know how to use or know that they can benefit from, or they can leverage.[+9 sentences] I would like to propose that each year, the Government should consider sending a consolidated statement of accounts to each Singaporean – we do that for our income tax and CPF scheme – but a consolidated account for each Singaporean to inform them exactly how much rebates, vouchers and benefits they will receive for that year. At that point in time, it may also be useful, given their current state of CPF, CPF LIFE, Medisave and MediShield Life, and so forth, whether they are adequately covered for their future, compared to others of similar profile or certain pre-defined retirement benchmarks. This is not a new idea in the sense that it is similar to the annual consolidated statement of accounts that banks, utilities or telecommunication service providers send to their customers. But this can be a first step in helping Singaporeans better understand how they are benefiting from the various schemes, so that they can better manage their finances today, and be assured of what they have in place for their future. Madam, we also live in a time of unprecedented change. The Finance Minister and the Prime Minister in recent speeches have also spoken about technology developments that can create opportunities for businesses and jobs in Singapore. This would also mean that work requirements and the environment are likely to change for many Singaporeans. I cannot help but think that while our taxi drivers worry about competition from Uber drivers, there is a larger concern ahead, which is the impact of driverless vehicles in the near future. The trend is already visible, and I think it is just a matter of time. What do we do with the thousands of taxi drivers, bus drivers, goods vehicle drivers in time to come?[+8 sentences] The same can be said of many other jobs that would be affected by this digital wave reaching our shores. There are also many studies that predict that we are more likely to see some PMET segments lose their relevance due to automation and artificial intelligence, compared to skilled personnel such as engineers, technicians, even plumbers. Job security for Singaporeans cannot be taken for granted and we must be prepared for this. As a responsible, far-sighted Government, we must prepare Singaporeans for this possibility, or if you must, eventuality. It will take us years to reinvent our workforce, but it must start today. We must get better at re-inventing our workers. The key to countering unemployment and under-employment is how quickly we can transform our workers to be relevant to a new set of jobs. The key is not just about training or matching, it is about re-inventing the workforce. SkillsFuture is a wonderful initiative, but it also leaves a lot to personal choice and therefore may not be able to shape the momentum and direction of our labour force. A clear and concerted industrial policy may be needed, given that the Government has been studying the development of these technologies and the jobs of the future.[+18 sentences] For the educated group, we must also start looking at the depth of our skills developments and focus on mastery in areas that are not so easily replaced by artificial intelligence or robots. Mdm Speaker, in Malay, please. (In Malay): This year's Budget represents a turning point, in terms of not only dealing with current needs, but also in reaffirming the paths that should be taken to preserve our prosperity, both socially and economically. Some may perceive this Budget as one that provides a lot of help to businesses, but the fact remains that a significant investment is made towards the needy, as well other investments in young Singaporeans, for example, the new Outward Bound School (OBS) campus. Looking at the economic challenges now, it is not surprising to see many Singaporeans feeling worried and concerned about, among others, job opportunities and job security, while for businessmen, it is about the challenging business prospects. However, if there is something meaningful and important that can be derived from this Budget, it is that it gives hope that despite the dark clouds, there is a ray of hope and a huge opportunity for everyone, provided that we are ready to undergo a transformation, and the Government will always provide support. Although several sectors are affected, there are many other sectors that offer many opportunities. Many companies and entrepreneurs have seized this opportunity. The same goes in terms of careers. For example, the fall in oil prices may have affected the oil and maritime sectors, but it is something positive for the aviation industry. It is also the same for industries like the halal food exports, where its global market continues to expand, and should be exploited by our local businessmen. Technological development has created many business and career opportunities, and hence, our people must be prepared to take advantage of it through a mindset change and by obtaining relevant skills. I am confident that the foundation built through a culture of lifelong learning for a knowledge economy will help Singaporeans undergo this transformation, supported by industries and the Government. Infocomm technology (ICT) is one field that is developing rapidly. It promises many business opportunities and careers like cyber security, analytics and application development, with high salaries, because it requires a lot of expertise. However, apart from ICT, technology is also required in many other careers. For instance, the banking sector uses a lot of technology and needs capable talent. This digital wave is becoming more prevalent and will change how we work in many sectors. Within this wave, certain workers, including the PMET segment, may become less relevant due to automation and the use of artificial intelligence.[+2 sentences] Hence, the Malay community must be ready for this change. For example, the way we shop or hail a taxi has also changed in this digital era through applications like Uber. In media, digital platforms like Netflix and Spotify also brings competition to current media platforms like MediaCorp, Singtel and Starhub, and all these affect us. We need to reinvent ourselves, and make use of SkillsFuture to upskill or look for new skills.[+2 sentences] I hope that the Government can help by showing us the way and direction that will help the community to tread potential pathways, as well as motivate our youths in terms of giving career guidance, academic counselling and the training that is required. It should be done using better approaches and giving better information. Here, I hope that Malay bodies like MUIS, Mendaki and the Association of Muslim Professionals (AMP) will play a part in implementing several programmes, and we should further enhance the efforts to help the community undergo this transformation to embrace technology in the digital era.[+2 sentences] (In English): Madam, just as our forefathers rallied together for a common cause and vision to build Singapore into a developed economy over 50 years, we will need our current and future generations of Singaporeans to also find meaning in doing the same for our Singapore tomorrow. For that to happen, they will have to continue to see their future in Singapore so that they can build it to be the home that they want it to be. Twenty years ago, our late founding father Mr Lee Kuan Yew made a famous quote, "To the young and the not so old, I say, look at the horizon, follow the rainbow and go ride it." Madam, I believe in the rainbow, and it is important to give our people a sense of security for the future.[+2 sentences] They must feel that the pot of gold at the end of the rainbow is attainable. That the rainbow is real and is not a mirage. Only then can we be more confident to ride the rainbow of opportunities that come with this great nation that we call home.[+1 sentence] Mdm Speaker, I rise in support of Budget 2016.
Er Dr Lee Bee Wah (Nee Soon)2180 words
[+6 sentences]Mdm Speaker, I rise in support of the Budget delivered by the Finance Minister. Every Budget is a balancing act, striking a balance between generosity and prudence. But this year's Budget has to balance another set of factors – helping Singaporean firms and families weather the economic storms ahead, while setting our long-term course for the right direction. This is definitely not an easy thing to do and I thank the Minister for largely accomplishing it. First, let us talk about firms. In the short term, companies, especially SMEs, will be facing quite a lot of pain. Our growth last year of 2.1% was the slowest since 2009 and economists expect growth for the next few years to remain stuck at around 2%. Manufacturing actually declined by 5.2% last year, again, the worst showing since the global financial crisis.[+15 sentences] At the same time, rental and wages remain high. Besides helping with wage credits and loans, is there more that we can do to help our companies weather the storm? I urge the Government to keep re-looking into the high rental cost issue. In fact, very often, I hear feedback because a lot of industrial buildings and shopping malls have been bought by REITS. Many of my residents told me that whenever the lease is up for renewal, if they make money, the rental will surely go up and this is one of the main concerns of those who are in businesses. On the other hand, I have also seen many business owners who have not made any progress in reducing their reliance on foreign workers. Instead of relooking into their work processes, they ask their Members of Parliament (MPs) to appeal to delay the time they have to send their foreign workers back. In fact, I have a resident who came to see me and he told me, "MP, do you know that foreign workers are like a drug. The moment you give it to us, it is difficult to wean it off. You want to take it away from us; it is difficult for us to survive". I am sure my fellow colleagues also meet similar residents in their Meet-the-People Sessions asking for more help. I would like to urge our businesses to embrace the spirit of our pioneer entrepreneurs and keep innovating even in economic downturns. One of our founding leaders Mr Lim Kim San was a perfect example of this. After World War II, when Singapore's economy was still ravaged by war, he came up with a machine to produce sago pearls cheaply and made his first million. He did not wait around for the Government to give any research grants or Productivity and Innovation Credit (PIC) for machinery purchase! Macro-economically, reports suggest that our push to increase productivity by 2% to 3% is not on track.[+19 sentences] This will hurt our economic growth and specifically the wages of locals. I suspect both Government and businesses will have to work harder on this. To sum up, we need to strike a balance between helping companies and preventing a passive and reliant attitude. There is an old saying, "Give a man fish and you feed him for a day. Teach him to fish and you feed him for a lifetime." In the short term, Singaporean firms might rightly expect some fish from Government to keep their workers fed. But ultimately, the whole country will run out of fish if they do not develop bigger, smarter and faster fishing ships to get better fishes from international waters. That is why I fully support the idea of automation and internationalisation. It is not going to be easy but whichever companies embrace these longer-term plans will emerge stronger and survive better in this very competitive business climate. I would also like to raise three specific points with regards to the economy: red tape, trade associations and retrenchment. The first is red tape. I am delighted to see the Government provide a business grants portal so that companies can apply for grants easily. Beyond the portal, Government can also look into harmonising the different types of grants and simplifying rules, so that companies do not have to resort to consultants just to navigate the grants, and have their grants creamed off by these middle-men. Over the last few months, I have met quite a lot of my residents who come to my Meet-the-People-Sessions for help. These are SME business owners. And why did they come to seek help? Actually, they were approached by consultants, or, for some, they appoint the consultant and the consultant promised them that there is some money to get from Government. At the end, when their PIC application was not successful, you know what the consultant did? Ask them to go and see their MP. In the past few years, many companies put up websites, bought machineries, some of which are still lying at a corner of their office and collecting dust.[+1 sentence] How much more productive can it go? Hence, the transition from PIC grants to the Automation Support Package is the right way to go.[+2 sentences] But I am sure companies, especially SMEs, will need a lot of help as automation is much more complicated. I hope SPRING Singapore can play the role of facilitators or consultants, without creaming off their grants of course. The idea of strengthening trade associations with grants and seconded Government officers is also a timely one, as trade associations are the ones who knows the needs and challenges of their respective industries.[+11 sentences] Civil servants, trade associations and businesses should have more trust in each other and have common vision of transforming our businesses, with more automation and bringing our businesses to the world stage. Mdm Speaker, in Chinese, please. (In Mandarin): This year's Budget is to help local businesses especially SMEs to transform and adapt to the new economy. However the economic outlook in the next few years is worrying. I hope the Government can further explore how to help SMEs to overcome the present difficulties. At the same time, local businesses should not develop a mindset of relying on the Government. They should be like our pioneer entrepreneurs who were self-reliant and made breakthroughs without the help from the Government. Singapore companies now cannot be "kiasu" or "kiasi". Instead, they must bravely seek breakthroughs. I applaud the Government for simplifying the application process for grants and subsidies as well as strengthening the cooperation with trade associations to help more SMEs increase their efficiency. There are two points worth noting. First, when the automation support package replaces PIC, the definition of automation should not be too narrow, because this will make application more difficult, or it may miss investments that could truly increase productivity.[+1 sentence] Second, the Government should encourage trade associations to organise more overseas study trips to look for new ideas and opportunities, helping our companies to go overseas. (In English): Mdm Speaker, the third issue is retrenchment. We need to make sure companies try to retain as many Singaporeans as possible, including in high-income jobs. Do not cut the locals from management jobs, while retaining lower-paid locals to fulfil the quotas.[+36 sentences] Mdm Speaker, in Malay, please. (In Malay): I would now like to highlight the issue of retrenchment. I would like to thank the Minister for deferring the increase in foreign worker levy, which will help businesses cope with the uncertain economic environment. With this deferment, we should ensure that Singaporeans do not lose their jobs, so please do not allow our people to be retrenched, like what happened recently, or more may lose their jobs. I would like to urge businesses, when they have to retrench workers, to retain Singaporeans. I would also like to urge the Government to ensure that companies give priority to Singaporeans and not sacrifice them in order to save foreign workers. This includes reducing those who earn higher income, while retaining those with lower salaries to fulfil the quota. I also hope that the Government can provide comprehensive assistance to retrenched workers, assistance from the point of training until they gain employment. (In English): Mdm Speaker, the other major thrust of this Budget is families. I commend the Government for not overlooking the plight of the needy in our midst and of young couples who are starting families. The CDA First Step Grant, KidSTART and Fresh Start Housing Scheme will greatly help needy families with young children to ensure no child is left behind as our nation progresses. I urge more people to complement this effort by volunteering their time and expertise, to befriend and encourage such families. I would like to share the stories of three residents whom I met at the coffeeshop, and they talked to me in Mandarin. Mdm Speaker, in Chinese, please. (In Mandarin): After the announcement of the Budget Statement, I went to the coffee shop on Sunday as usual to have breakfast and chat with my residents. One resident pulled me aside and said to me, "MP, I have something to tell you. I live in a five-room apartment. Before, I worked very hard to be able to afford this flat. Now, I am retired and have no income. Why does the Government not give me any money?" After a while, another resident came to tell me, "MP, I live in a HDB flat, but it is an Executive Apartment. I pinched and scraped in order to buy this flat. Now I have retired and have no income. Why does the Government not give me money?" Again, after a while, another resident came to me. She said she has a friend who lives in a bungalow. Her friend worked two jobs to buy this bungalow, which is rather run-down, not the modern type. Now, he has no job, no income, why is it that the Government does not give him any money? What they are referring to is the Silver Support Scheme. What worries me is that none of these residents mentioned whether their children gave them money or not. Traditionally, we have the responsibility to maintain our parents – so-called "raised children to provide for old age". I hope we will not delegate the responsibility of looking after our parents to the Government. The purpose of this Scheme is to help those at the lowest 20% to 30% income percentile. If everyone asks for the Government for subsidies, then Government will not be able to help those who are truly needy. I hope this "He has, why I do not have?" mindset will not become a characteristic of Singaporeans. (In English): Mdm Speaker, another change that I have heard a lot at the ground is the capping of tax reliefs, which will primarily affect high-income mothers with two or more children. One such mother told me that this will increase her tax burden by 20%.[+1 sentence] She has three children and was considering a fourth, but with this change, she no longer feels the same incentive and support from the Government to do so. She is already feeling stress from juggling her work, kids and parents, and is now even re-considering quitting the workforce to focus on her family. I know this cap is expected to net $100 million a year in revenue, but I certainly hope it will not turn out to be "penny wise, pound foolish" by driving high-income mothers away from the workforce or reducing the number of children they add to our future workforce.[+8 sentences] The cap appears to contradict the Government's effort to encourage procreation. So, may I know what has changed to prompt this change in policy? And talking about procreation, based on the feedback from my young residents who are young parents, I doubt that all these financial incentives are going to give you the desired outcome. Many of the young parents told me that they are discouraged to give birth to more children by the increasing costs of childcare and increasing costs of milk powder. So, I asked them, "Under what circumstances will you give more children?" They told me, "You give my children free education from childcare all the way to University. You subsidise the milk powder." Many do not want to commit resources, both time and money, to the next generation. So, if there is no change in mindset, 传宗接代, to have more babies is for the survival of the country. I do not think all these packages that we are dishing out are going to give us the desired outcome.[+1 sentence] In conclusion, everybody wants more help from Government, from retirees to young parents. Our Minister for Finance has a very challenging balancing act to perform. He needs to do an admirable balance between generosity and prudence, between short-term support and long-term development.[+3 sentences] I would like to urge Singaporeans to innovate, to think deeply and work together with Government. With trust and unity, we can surely weather the storms ahead, and chart a new course towards broader and brighter horizons. Madam, I beg to move.
Mdm Speaker45 words
[+5 sentences]Order. I propose to take the break now. I suspend the Sitting and will take the Chair at 4.30 pm. Sitting accordingly suspended at 4.11 pm until 4.30 pm. Sitting resumed at 4.30 pm
Mr Dennis Tan Lip Fong (Non-Constituency Member)2254 words
[+3 sentences]Mdm Speaker, today, I shall be touching on three different aspects of the Budget. I will first start with the Budget proposal to enhance the Revitalisation of Shops (ROS) scheme. In November 2007, the Government introduced the ROS to enhance the vibrancy and competitiveness of HDB shops. As of March 2016, the HDB website stated that the scheme has benefitted 4,600 shops at 54 sites.[+2 sentences] It also stated that this covers over 50% of our town and neighbourhood centres. The scheme covers upgrading of common areas, promotional activities and rent-free periods for tenants to renovate their shops. In last year's Committee of Supply (COS) debate in March 2015, former Senior Minister of State for National Development, Mr Lee Yi Shyan, said that HDB has spent $8.4 million since the ROS scheme was introduced in 2007.[+2 sentences] Assuming the effective period of expenditure was from 2008 to 2014, this amounts to an average of $1.2 million per year. I hope the Minister can share with the House some details about how the ROS scheme has improved the businesses of HDB shops in the past nine years. Budget 2016 will set aside $15 million annually to enhance the ROS scheme. This is a large increase compared to previous years, more than 10 times the average expenditure in previous years. While I am sure it is good that our existing HDB shops are receiving more assistance to enhance their businesses, I hope the Minister for Finance can share the reasons for this large annual increase in funding for the scheme and also share details about how the proposed increase in funding will be utilised, and in what ways will the coming year's programme be different from the past.[+30 sentences] Madam, in many HDB estates, especially the older ones, it is quite a common sight to see shops in an unfavourable facing or location doing badly. It could be due to their relative poor location compared to shops in a different location in the same estate, or it could even be due to oversupply of shop spaces in the same estate. For such shops, I hope the Minister can look into how the ROS can better assist them, or to consider how parts of the town centre where these shops are located could be redeveloped. As we provide assistance to our existing HDB shops, let us also not forget about building adequate new shops in our newer HDB estates. Residents of then-newly built HDB estates like Sengkang and Punggol experienced a lack of basic amenities and shops when they first moved in. The design of most of the void decks was also not conducive for constructing shops. One reason for this is the philosophy of building amenities like convenience shops and coffeeshops only when there is a critical mass demand. I feel that this philosophy should be tweaked to build amenities ahead of demand. This is so that pioneering residents are not deprived of amenities when they move in. You may ask how can businesses thrive when demand has not reached critical mass. That is where the Government can step in to provide reduced rents until critical mass is reached. Another way we can improve new HDB estates is to build town centres consisting of low-rise HDB shop houses to a competitive retail mix to meet the wider needs of residents. I know that in recent years, the approach has been to build a shopping mall that acts as an integrated hub for the estate. However, in my view, a town centre like the ones in mature estates, such as Bedok and Tampines, are better suited to meet the needs of residents and to create a sense of community and identity. A shopping mall can still be built but only as a complement to the town centre. A shopping mall must not compromise the businesses of the retail shops in the town centre but complement and enhance the business in the neighbourhood shops by helping to draw people to the town centre and making the town centre a lively place where residents of the town and even residents of nearby estates will want to visit and spend their time, thereby bringing business and vibrancy to the town. I am glad to note that the URA Masterplan states that the Bidadari Estate will have a wide range of amenities like a bus interchange, neighbourhood police centre, places of worship and healthcare facilities. I certainly hope that amenities, such as mini-marts, provision shops, convenience shops, and coffee shops can be built ahead of demand. I also hope that town centres with low-rise HDB shop houses can be incorporated in the plans for not just new HDB estates like Bidadari but also other new estates as well as when older estates are redeveloped. I will end this part of my speech with an anecdote. The hawker centres at different parts of Bedok, such as Block 85, Bedok North at Fengshan Single Member Constituency (SMC) and Block 511, Bedok North at Aljunied Group Representation Constituency (GRC), see many customers who are from relatively new estates like Punggol or Sengkang. I have spoken to quite a few of these customers during my visits to these markets over time. One common reason given is the lack of good dining places in Punggol or Sengkang. How often do you actually see people from Bedok going to Punggol or Sengkang to have dinner? There may be various reasons for this but certainly, in my view, poor town planning is one of the reasons. Mdm Speaker, may I next speak in Mandarin. (In Mandarin): Mdm Speaker, from this year's Budget, it is evident that companies are facing difficulties and uncertainties in the business environment. Although the Government has announced measures to benefit employers and employees, for Singaporeans who are already unemployed or are facing impending unemployment, their difficulties warrant even more help. This is especially so when the unemployed is the main breadwinner of the family. Besides supporting their own family, they may also need to service their housing loan and look after their elderly parents. Many PMETs who were retrenched from their jobs with both SMEs or MNCs had to resort to driving taxis as a full-time job as they were not able to find suitable replacement jobs or, for others, who were only able to find jobs where the income offered was much less than their previous incomes, they had to resort to driving taxis on a part-time basis to supplement their incomes.[+9 sentences] This is what we call "underemployment". This underemployment situation is worrying. It means that we are unable to utilise our human resources effectively to fully develop our economy. However, our employment statistics does not reflect this underemployment situation. We do not know which category these "underemployed" people fall under in our employment statistics. We also do not know whether our published employment statistics reflect this situation. Underemployment will cause under-utilisation of the working population's productive capacity. The question is, how do we prevent this from happening? In other words, how do we fully utilise the working population's productive capacity? In this regard, measures announced by the Government, such as the Adapt and Grow Initiative and TechSkills Accelerator, should be able to facilitate the utilisation of the productive capacity of the working population to a certain extent.[+3 sentences] However, these measures are primarily targeted at existing workers or workers undergoing training for career conversion. It not only requires the cooperation between employers and employees, but also takes some time before the effect kicks in. For unemployed or retrenched workers, in the absence of a stable income, their entire family's financial situation may be adversely affected. If workers can be provided with retrenchment insurance, in the event of retrenchment, he can receive financial assistance by way of a payout from such insurance policy for say a few months before he finds a new job.[+5 sentences] This may alleviate any financial difficulty and lighten his financial burden. (In English): I would like to spend the final part of my speech on what the Budget has provided for our children and young people. This is found in section C of the Budget which is entitled "Building a Caring and Resilient Society". Under this section, there are various sub-headers, including "Caring for our young". I am happy to note that for Budget 2016, the Government will introduce a new Child Development Account (CDA) First Step Grant for all Singaporean children. Parents will automatically receive $3,000 in their child's CDA which they can use for their children's healthcare and childcare needs.[+6 sentences] This is a departure from the previous practice of dollar for dollar matching which placed lower income families at a distinct disadvantage. I understand that my Workers' Party (WP) colleagues have spoken up on this in the previous Parliament and indeed other Singaporeans too. The new CDA grant with its $3,000 is certainly a good first step in the right direction. Madam, just to be sure that I understand correctly, may the Minister confirm that when it is stated that the grant is, I quote from paragraph C6, "for all Singaporean children", it includes children of single unwed parents too? I think this would be good because we should not focus on the parents, but the welfare and benefit of their Singaporean children and the value they will bring to Singapore. Next, under the section "Caring for our young", there is also the sub-heading "Building Resilience in our Youth". Under this section, the Government is making a single proposal that through a new national outdoor adventure education masterplan, it will build a new Outward Bound Singapore (OBS) campus on Coney Island.[+27 sentences] It is stated that the new OBS will be built to help our young people develop a sense of adventure, resilience and be ready to challenge themselves to be their best. Madam, I agree that the OBS programme is good for our young people and as many of our young people as possible should be encouraged to attend. I hope that the new OBS will be able to provide many opportunities for our young people to enhance their sense of adventure. A one-off participation in the OBS programme alone may not be enough to build resilience or a sense of adventure. There are other activities that our young people can be encouraged to participate to build resilience or nurture a sense of adventure. For example, we can encourage our young people to join co-curricular activities (CCAs) like certain uniformed groups, sports or outdoor activities clubs. I was a scrawny and introverted schoolboy. Spending six years in the National Cadet Corps (Sea) opened my eyes to adventure and teamwork. I struggled when I had to canoe round Singapore in three days. But I could not disappoint my buddy in the same canoe and, together with our friends in other canoes, we learnt to cheer and encourage each other and finished as one big team. Resilience training involved much more than a round-island Singapore canoe expedition or a one-off OBS programme. We need to re-look at the way we educate our children. We should not be happy with an education system that encourages our children to succeed by being "exams smart" alone. The system should encourage more of our young people to explore different "adventures", for example, taking time off studies or work to excel in sports or hobbies, like some of our national athletes; o r even taking time off to see the world and broaden your horizon, like what many young people in Europe do. And our young people should not fear losing out by graduating later or starting work later. We have had Singaporeans who took time off to climb mountains. They are fine examples. We also have to find a way to teach our children not to be afraid of failure but to learn to cope with failure. There must be latitude in the education system to allow this. If our children are afraid to fail, they are less likely to be adventurous. They will always go for safe options. They are also less likely to appreciate innovation and entrepreneurship. We can forget about Singapore having the next Sim Wong Hoo, not to mention Steve Jobs. As a schoolboy with questionable motor skills, I was not very good at sports like rugby or football. Rather fortuitously, I discovered the joy of distance running, and never stopped running since. What has running got to do with resilience or fortitude? You can run many miles to prepare for a marathon. You can plan to run each kilometre of your race in five or six minutes, but you will never know whether you are going to get the cramps at 33 kilometres which will throw your marathon race into disarray. Resilience is when you are down with cramps at 33 kilometres and you keep pushing to cross the finishing line and not give up. Resilience is when you are down with shin splints but still work on your recovery to get back to finish your race another day.[+2 sentences] Running, and indeed sports, mirrors life. Like marathon runners, all of us have our own race in life to run. When the chips are down, when you are struggling with your business or when you are laid off by the MNC you work with for 20 years, what do you do in the race of life? Do you just sit and despair or do you pick yourself up and press on to cross the finishing line another day?
Mr Kwek Hian Chuan Henry (Nee Soon)1689 words
[+34 sentences]Mdm Speaker, I stand in support of the Budget. I would like to start off by commenting on the principles of the Budget. The Finance Minister spoke about "spending more and spending right". We are fortunate that we are able to spend more. What is just as important is that we are committed to spending right. Right, because this Budget upholds the fundamentals that have made Singapore special. Right, because it adapts to reality. It is decisive, and it is bold. This Budget embodies the principles that make us special. It continues the work to keep Singapore safe. It strengthens the fabric of our multiracial society. It invests in our people, so that everyone has the best chance to do well. It delivers on our promise to our people that we will be able to take care of those who have less. That we will help those who fall behind get back up on their feet. That we will give our children a better future. That we will help our seniors age with dignity, assured of proper healthcare. Let me spend the rest of my speech on how the Budget adapts to changing realities. I would first talk about how our Industry Transformation Program helps our economy today, and builds our economy of the future. Next, I will talk about how our Budget helps Singaporeans through restructuring, and the slowing economy. Last, I will share about how our community programmes build shared experiences among Singaporeans. Mdm Speaker, this bold Budget helps us adapt to that changing world, especially for companies. Most SMEs I spoke to are very supportive of the Industry Transformation Programme. Most SMEs acknowledge that increasing productivity and restructuring are critical and urgent. But to make further progress, they face three challenges. One, they are too small to implement major productivity efforts within their own companies. Two, our SMEs generally find it difficult to understand and tap onto the many Government incentives. Three, our Government can do more to improve on internal Government processes, to benefit our companies. Therefore, the Industry Transformation Programme is a strong start to address these concerns. First, the programme strengthens our trade associations and chambers as the voice of their industries, so that they can best represent diverse views, and be strong partners to the Government. Second, the business grant portal improves SMEs' access to Government assistance, so that SMEs can focus on getting the help they need, rather than on figuring out who to get help from. Third, the National Trade Platform helps our trade sector cut through unnecessary red tape. This is an excellent example of how the Government can actively spark productivity growth. Mdm Speaker, this Budget also builds on the future economy. It addresses many of the concerns of high-technology start-ups, some of which I raised during the debate on the President's Address. One, the $4 billon R&D funding for industry research collaboration is a big step to push the best ideas out of the labs and into the marketplace.[+1 sentence] Because when it comes to innovation, what matters is not just the ideas but the circulation and popularisation of the ideas as well. Two, Jurong Innovation District (JID) is a strong move to strengthen our start-up eco-system.[+1 sentence] It creates an innovative sandbox to test-bed and integrate technologies in areas where Singapore can boldly invent the future. Three, our robotics initiative helps our SMEs get ahead of the curve, to be active disruptors, rather than passive bystanders in the coming era of robots and machines.[+14 sentences] And some people I talked to are excited to see that we are using robotics not just to build our economy but also to improve Singaporeans' lives. An example would be our hospitals. What more can we do to improve the transformation programme? I want to touch on four ideas, and I hope they can be considered. First, I hope SG Innovation can work hand-in-glove with the JID, so that the ideas born in the former have a fair chance to be realised in the latter. As Singapore invents the future in areas of urban planning, digital health, smart nations, and advanced manufacturing, we can and we must bring our startups along on this journey. Second, LEAD-Plus is a good start. But once we achieve a few quick wins, I hope we can extend to more sectors, even to those without strong trade associations and chambers. Given how critical and urgent our restructuring efforts are, the Government must come in and provide strong leadership. We cannot leave it to chance. Third, the National Trade Platform is a step in the right direction for the Government to drive productivity. As we come up with the Industry Transformation Maps (ITMs) for different sectors, we should pinpoint the inefficiencies and come up with solutions. What matters is not whether the inefficiency comes from the industry or from the Government. What matters is that the Government and industry come together to solve these inefficiencies. Fourth, the Government can consider developing an ITM for the HDB retail sector as well. They face different challenges compared to the rest of the retail sector. I hope that HDB, the National Environmental Agency (NEA) and even Town Councils, as major regulators of our heartlands, can partner with SPRING Singapore and the Federation of Merchants' Associations of Singapore, to drive this important effort.[+5 sentences] As someone familiar with both business and economic development, it is clear to me that the Industry Transformation Programme is groundbreaking. It is ground-breaking because we are realigning and networking ourselves in an unprecedented way to support our economy. In this new way forward, our economic agencies will have to work much closer with our non-economic Government agencies. Our research sector will have to work much closer with our companies. Our Government will have to work much closer with our industry. This may not sound significant, but increasing the intensity of the partnership and working as one Team Singapore, will strengthen our odds for success in an exponential manner. It is also groundbreaking because the Government will provide much needed industry leadership to sectors which usually lack clear and holistic Government direction, such as the F&B and retail sectors.[+16 sentences] In addition, the civil service will also develop a deeper knowledge in these sectors. Over time, the knowledge gained can help us best evolve Government regulations and programmes in safety and health, manpower and labour, education and SkillsFuture. This could go far to address concerns from the businesses about excessive regulations. But all these efforts will not be easy. In fact, the Industry Transformation Programme is the difficult way forward. But it is also the right way forward. We must be prepared to give the programme ample time to take effect, and for us to get the formula right. We must be prepared for both success and failure. Yesterday and today, in this Chamber, we heard several ideas on how we must measure how we spend on our economy carefully. I believe we have to strike a good balance. The risk of over-measurement in the name of accountability is that we will move too slowly and too cautiously. Especially for the future economy, we must move decisively but be prepared to make quick adjustments when circumstances change or when better methods emerge. I agree with the Finance Minister's view that there is no "rulebook" for us at this stage of development. I would also like to add: "time is short; let us get to work". Another reason why I support this Budget is because it helps Singaporeans through restructuring, and the slowing economy. It does so in at least four ways. One, this Budget continues to help us evolve to a skills-based economy.[+5 sentences] Many enterprising business leaders I have met understand the importance of skills. Our SkillsFuture movement, coupled with industry collaborations such as TechSkills Accelerators, is closely watched by many, and they have high hopes for it. The Government must deliver. At the same time, I hope that more of our companies will hire based on skills, especially workers being re-skilled. Taking re-skilled workers on board makes good business sense because companies get to hire employees who are committed to success, committed to staying relevant and committed to change. Two, this Budget strikes a fine balance between companies and the Singaporean worker.[+2 sentences] In this slowdown, the rise in most types of workers' levies is tough for businesses to bear, but it helps level the playing field for Singaporeans. It reinforces the message that Singaporeans must form the core of our workforce and our economy. Three, this Budget continues the Government's efforts to encourage companies to hire older Singaporeans as they re-skill. Four, this Budget helps provide a lifeline for many Singaporeans involved in private sector construction.[+11 sentences] Having smaller Government construction projects means giving Singaporean main contractors, many of whom are of mid-size and doing private sector work, a fighting chance to win much-needed Government contracts. The effect will be felt all the way down to numerous Singaporean sub-contractors and Singaporean workers. It is a cost-effective way to pump-prime our economy and to help Singaporeans at the same time. I have raised this idea several times during consultation sessions, and I am very heartened to know that the Government is acting immediately on this issue. The sum total of our 2016 Budget policies related to the Singaporean worker is that even as we restructure, even as sectors and companies rise and fall, the Government will make sure that Singaporeans are looked after. This is a principle worth supporting. Last of all, I concur with the Government's effort to build shared experiences among Singaporeans: by getting every Singaporean youth to go through Outward Bound School; by getting more people to visit the National Gallery; by encouraging Singaporeans to come together and adopt ground-up initiatives under the Our SG fund; and by encouraging companies to get their employees to do more for our society. All these will deepen our people's sense of identity and strengthen our unity. In conclusion, the Finance Minister spoke about the Singapore Story. This Budget will help us write the next chapter together. With that, I support the Motion.
Dr Lily Neo (Jalan Besar)1848 words
[+10 sentences]Mdm Speaker, I stand to speak in support of the Budget Statement raised by the Minister for Finance, Mr Heng Swee Keat. I commend Mr Heng for a good Budget in his first Budget Statement as the Finance Minister. Whilst it is a prudent Budget, it is a well thought-out one to assist companies to ride out the present challenges and it is a caring one on social spending for the groups that need the most help; the low-wage workers, people with disabilities, the young and the seniors. I also like the focus this Budget sets out on the way forward to strengthen Singapore's future economy. Madam, Minister Heng said in his Budget Statement that "in the coming year, given our economy's heavy dependence on external demand, the weaknesses in the global economy will pose strong headwinds". This global downturn and its possible effect on Singapore's economy in the coming year are constantly on the minds of many Singaporeans. Many hear, read and follow the global economic updates from the mainstream media or internet whilst others actually experience the market sentiments, the retrenchment of colleagues, neighbours and friends. Although Minister Heng said that "we must not let pessimism take hold, lest it creates self-fulfilling expectations", I am of the opinion that we cannot not discuss it. It is better to address people's worries where possible and offer solutions to allay concern. Singapore is one of the world's most open economies and, therefore, can be very adversely affected in any global downturns. In February this year, it was reported that Singapore's January non-oil domestic export fell 9.9% compared with the same month last year.[+1 sentence] According to economists then, this portends the real possibility of an impending recession. The manufacturing sector of Singapore has been in recession for a year. This sector which makes up a fifth of Singapore's economy has been hit hardest with a decline last year of 5.2% from 2014, its worst performance in 14 years.[+19 sentences] Sadly, there is no reprieve in sight due to continuing weak global demand. Economists are saying that the global risks are mounting. China is restructuring its economy from export-led to consumer-led and is projecting slower growth of 6.5% to 7% this year, signalling a continued contraction in the world's Number Two economy. China's economic slow-down affects many countries, especially Singapore, as China is Singapore's largest trading partner. The economic outlook in the US remains uncertain. The rise in US Federal Reserve rates could result in foreign capital outflows from Asia to the US and put downward pressure on the dollar exchange rate. US companies, much like Chinese companies, are shelving imports. Singapore's export to the US accounts for almost 8% of our GDP. As it has been said before, "Whenever the US jumps on the global trampoline, Singapore gets a bump". The downside risks are clearly more pronounced now. Minister Heng Swee Keat said, "I am aware that current business conditions are difficult and uncertain. Many of our firms are facing weaker top-line growth, rising manpower costs and tighter financing. Workers are anxious as retrenchment has increased, including professionals." May I ask the Minister for Finance whether our Government should start looking at policies to mitigate retrenchment? The Budget feedback exercise conducted by REACH showed (a) worries of an economic downturn, (b) concerns over job security and (c) support for families, as the top three concerns of the participants. Thus, I would like to touch on the following two topics in addressing the concerns mentioned: one, that are the relevant measures to better protect Singaporeans from redundancy? And two, coping with challenges and seizing opportunities? So, what are the relevant measures to better protect Singaporeans from redundancy? Madam, we should not wait for slowing growth to start manifesting in increased unemployment before thinking hard about what we can do to expand job opportunities for Singaporeans. Although Minister Heng said that unemployment is still low, it is nonetheless a total of 15,580 workers being laid off last year, the fifth year in a row that redundancies rose. Last year's number climbed 20% from 2014 and was the highest since 2009.[+12 sentences] Madam, we need to keep the morale of the public high and maintain the confidence of the people. Singaporeans need some assurances that the Government is in control of the global economic downturn and the knock-on effects it has on job stability locally. There is a possibility that this economic slowdown may be a slow drift with increasing numbers of redundancies that saps the economic vitality of this country. In fact, keeping labour force participation high would be one of the means of supporting GDP growth. In this context, I would like to suggest that we adopt a Singaporean-centric policy to expand job opportunities. The Government can take the lead in the expansion of job scope availability. There are many areas in almost all Government ministries that are in need of expansion. For instance, we can look at the expansion of IT professionals in the MOF and many other Ministries, the establishment of stepdown care with more homecare providers in MOH or the recruitment of more early-childhood professionals and the social workers for MSF and so on. This is an opportune time for the Government to earnestly support the various Ministries to expand. This can help us absorb the excess workers or retrenched workers; but more importantly, this will enable certain departments of various Ministries to thoroughly improve on what was previously not possible due to the shortage of manpower. The resultant effect will be that people are in employment and the Government Ministries are improved. Would our Government also consider facilitating the growth of part-time work arrangements? Companies could be incentivised to keep their staff with part-time work arrangements rather than retrenchments when they need to cut costs due to the present economic climate.[+5 sentences] If more companies can take this option, we can achieve a dual objective of reducing redundancies, and also of establishing future part-time work option norms. This latter objective is worthy of consideration because there is a value-add if there is an increased participation of part-time workers in the workforce down the road. Availability of part-time work will enable those who want to have family work-life balance to continue working as without which, they might have opted otherwise. The Government Ministries can perhaps take the lead in establishing such work options in the public sector. Now may be a good time to take this step as previously, it might not have been possible due to the shortage of manpower. Will MOF also consider the Jobs Credit Scheme again for SMEs, especially if the situation worsens with even more redundancies, and encourage our companies to preserve jobs?[+1 sentence] This Jobs Credit Scheme was implemented for one year and was announced in Budget 2009. Employers received 12% cash grants on the first $2,500 of each month's wages for each employee on their CPF payroll. It was a good scheme and should be considered again, if necessary, but with some tweaks in enforcement. We can consider crediting the cash grants to the employees directly rather than to the companies whilst allowing corresponding adjustments to the employee salaries by the companies.[+1 sentence] This way, we can ascertain that the assistance is given directly to Singaporeans whom we want to safeguard from retrenchment. Another tweak that can be considered would be the coupling of job credit with skills upgrading by recipients as an eligibility requirement.[+3 sentences] We can therefore hope to achieve an upgraded and more productive workforce from this exercise. This is in line with the focus on the "short-term patch and the medium-term opportunity" of Minister Heng Swee Keat. Middle-aged PMETs are finding it hard to find re-employment. In July last year, MOM announced a number of measures to support this segment of the workforce.[+30 sentences] As we approach the one-year mark, it may be useful to do a stock take and gather feedback to see if the measures need to be tweaked in any way to increase the employability of PMETs. The worst affected group of people in any retrenchment would be those in the lower-income bracket. This group usually lives from hand to mouth and does not have any savings due to their meagre incomes. Thus, any redundancy will put their subsequent daily livelihood in severe jeopardy. Although they are eligible for ComCare, there is a need to empathise more with them. Perhaps, we can assist and handhold them for skills upgrading courses and better job placements. There is a need to sustain them financially while they are having upgrading courses. I hope our Government can subsidise them on their dependents' needs before they get to be re-employed. Coping with challenges and seizing opportunities. This is the era of the Internet economy. Information Technology (IT) has transformed the business world. IT is here to stay and is developing very fast indeed. Now is the time to ensure that our workforce stays relevant and competitive by being more IT-savvy. Thus, we should take this opportunity now to upgrade more, if not all, of our workforce IT-knowledge and skills to a higher level. This should apply to even the low-skilled workers in their own capacities. IT has dramatically accelerated the processes of new business-world creations. Today, people spend an increasing percentage of their time in the virtual world in their day-to-day living. And this has made IT very relevant to the business world where customised information on products and services can be easily accessed. Today, companies cannot even survive and compete without it. We need increasing numbers of infocomm professionals to address the present shortage in this area. Equipping our workforce with higher levels of information and communications skills for medium-term opportunities is vital and is the way forward. Recent surveys have shown that optimism about the economy has fallen right across the board. Many companies have indicated that their immediate focus is to defend their positions at home, making a change from 2015 when the top goal was to enter new markets. These companies will spend and invest to remain competitive with other companies. It will be useful for our Government to design innovative schemes that can encourage companies to upgrade their workers' knowledge of IT. The intention is to facilitate our firms to keep their workers, packaged with improving their skills especially in IT, for a longer-term economic goal. I am not sure, as I do not have the details yet, of the newly announced "Adapt and Grow Initiative" measures and whether this initiative adequately addresses the intentions mentioned. It will also be ideal to have incentive schemes in place, for those who are retrenched, to pick up IT knowledge or to switch to IT jobs. We may need more coaches and staff to persuade and to facilitate them to learn new IT skills and job-matching and placements. I end by saying that I am in agreement with Mr Heng Swee Keat that we must have the courage to try new ways – think long term, dare to try and be open to change so that we will move in the right direction.
Mr Darryl David (Ang Mo Kio)1410 words
[+2 sentences]Mdm Speaker, I thank you for the opportunity to join in this debate. I would also like to commend the Finance Minister for delivering a Budget that is progressive yet balanced, with specific focus on certain key groups, organisations and individuals. The Automation Support Package aims to spend over $400 million in the next three years to support firms in scaling up their automation projects.[+4 sentences] This is a clear sign that the Government is aiming to stay ahead of the curve by recognising that the next technological transformation of our economy is already taking place and will inexorably continue. It is also clear that our Government would like our SMEs to be at the heart of this economic development and transformation, with various financing and tax incentive support provided to our SMEs. Sir, many of my colleagues in the House have already commented on the financial, enterprise and innovation aspects of the Budget. The focus of my speech today will thus be on how our Budget aims to set the foundation towards building a caring and resilient Singaporean society. In an earlier speech I made in response to the President's Address, I spoke about the importance of imbuing our youth with the psychological capital to persevere in the face of setbacks, and the need to introduce experiential learning components into our schools' formal curriculum. It is thus heartening to know that this year's Budget intends to put in place a masterplan for outdoor adventure education, with the aim of developing ruggedness and resilience in our youth.[+15 sentences] Sir, a few weeks ago, I had my own "outdoor adventure experience" when I took two of my kids to a tree-top adventure at Bedok Reservoir. When I was younger, tree-top adventures meant you went out with some friends and you climbed trees. Today, apparently, you have to pay a fee, put on a safety harness, get your helmet on and attach your pulley to a safety line to ensure you have this tree-top adventure. But no matter. Along we went. My children are built rather differently. My five-year-old daughter took to the course four times and had to be stopped from going on for a fifth time. But my eight-year-old son found certain parts of the course rather challenging, struggled at points and, at one point, even froze some 10 to 15 feet above the ground. Through cajoling, through persuasion, through determination, he completed the course, I am happy to say, and came down with a wild look of exhilaration in his eyes. And he said, "Dad, I was scared but I did it. Let us do it again." This real adventure I had with my children re-emphasised the importance of exploration and experimentation for young children; of situational learning for youth, and the crucial life lessons such as perseverance and resilience are best learnt in experiential settings. I am confident that the brand new Outward Bound campus will be the vital catalyst that will kick-start and accelerate adventure learning. I will speak more on this during the COS debate. Sir, another area that I would like to comment on is the Silver Support Scheme. What is radical about this scheme is that it does not tie the payout to "work" or any form of active contribution or participation on the part of the elderly.[+1 sentence] They only need to qualify for the scheme to get this payout. The Silver Support Scheme will thus not only help these elderly who qualify, but also their family members by alleviating the family's overall financial commitments. I understand the need to keep the qualifying criteria simple and straightforward, so that the scheme can be administered fairly quickly without the need for too much analysis. However, I would like to ask if the Finance Ministry could also consider certain cases that are in obvious need of help, but might not qualify for the scheme based on these broad criteria.[+18 sentences] For example, there might be those who have made more than $70,000 contribution to their CPF by age 55, but who presently find themselves in a financially challenging position for one reason or another. The same could also be said for some seniors who might be living in a 5-room flat or larger, that they do not own, but are struggling financially, without much support from anyone. This point was also raised earlier by the hon Member Mr Zaqy Mohamed and I hope that the Ministry can look into this. A final area I would like to speak on, Sir, is the need to provide more support for the emotional wellness of the sandwiched class. Earlier, my Parliamentary colleague, Mr Azmoon, used this term to refer to the middle-income group. I am using this term from a family structural perspective to refer to those individuals that have young or adolescent children and are also caring for ageing and chronically ill dependents, such as parents or even their spouse, at the same time. They are quite literally sandwiched between their obligations. Should the difficulties they face as providers and caregivers be compounded by the fact that they are from a lower-income strata, then we have all the elements of a perfect storm of stress. I would like to share the story of Mdm Tan, one of the residents in my constituency. Mdm Tan is the sole caregiver to her husband who has multiple health problems, and she also has a schoolgoing son. Mdm Tan's husband is heavily dependent on her to take care of him, and she has to juggle this responsibility with caring for her son and holding a part-time job. Although the family is receiving Public Assistance and ComCare aid, Mdm Tan is herself under a lot of stress as she finds herself being pulled in many different directions due to her multiple commitments. Sir, with the economic slowdown and the shadow of structural unemployment looming, this storm of stress will explode into a typhoon of trauma should individuals like Mdm Tan lose their jobs. The Government has done a good job of putting in place social safety nets such as financial assistance schemes and even MediShield Life to keep financial and medical expenses low. However, I feel that we need to see how we can assist these individuals to cope with the emotional and psychological burden of being caregivers simultaneously to two groups of dependents, the young and the aged, who have differing caring needs. And all these while also dealing with their personal issues and challenges. We know that social services have been decentralised from the five CDCs to the Social Service Offices (SSOs) that are now located in their various constituencies. In this regard, I would like to ask the Government to consider providing community-based mental wellness centres that offer solutions to stress-related problems or issues related to mild depression for residents who need such services. Unfortunately, Sir, mental wellness is still very much stigmatised in Singapore where Singaporeans would often equate a visit to the Institute of Mental Health (IMH) with schizophrenia or some other catastrophic mental health issue. Indeed, many of my residents still colloquially refer to the IMH as "Siao-Lang Keng" or the "Insane Asylum." Perhaps a decentralised approach to mental wellness could be a better way to build community awareness around stress management and mild depression, and this will also encourage residents who need such services to be more receptive to getting help. I believe this is important as providing easily accessible mental health support would be increasingly important for our society as Singaporeans search for more ways to cope with the stress of living in a fast-paced society, and to also better manage and negotiate the economic challenges that are coming our way.[+1 sentence] Sir, this year's Budget has continued the momentum of previous years' where the Government continues to support local SMEs to restructure their operations and manpower needs. It is a conservative and balanced one that has addressed economic concerns while acknowledging the need for measured and sustainable social spending. It is heartening to know that the Government has recognised the importance of experiential learning for our youth and will make significant investments in this direction. I also hope that more attention can be given to improving the "heart-ware" infrastructure to provide more support for the vulnerable members in our community.[+1 sentence] Sir, I look forward to the future with hope and optimism, and I support the Motion to pass the Budget.
Ms Kuik Shiao-Yin (Nominated Member)3484 words
[+14 sentences]I declare my interests as an entrepreneur in the field of social innovation and I also ask the Deputy Speaker's advanced pardon for any lapses into informality. It is the language of the heart for youths, and I speak to them as much as I speak to the hon Members of this very formal House. Last year, we celebrated our Jubilee in a big way – as we should. Our dramatic jump from third world to first in 50 years is an outsized achievement we will probably never see again. Already, the future in front of us looks nothing like the past we just left behind. Random terrorism, climate change and all kinds of breakdowns all seem to be part of our new and very scary normal. So, clearly, the year-long party is over and SG51 is in a different emotional space. One of the ways we could try to cope with all this rapid change is to fantasise about our past. But nostalgia, while lovely as a sentiment, is pretty lousy as a strategy. The sobering fact we must all accept is that our world is not our father's world. And we have to find our own way forward. Life is just going to be more complex. Solutions are no longer simple. Success is no longer straightforward, and disruptive change will come for us all. Budget 2016 declares "Transformation through Innovation" as our best way forward.[+6 sentences] We are asking Singaporeans to just accept the call to arms, to step up and take some risks, be productive, internationalise, collaborate and oh! along the way, please care for the needy, get married, have more kids and do not forget to be resilient. These are all great aspirations, but in the field of social and emotional work I come from, we know this to be true – the greatest barrier that will stand in the way of all these changes we hope to see are going to be fundamentally human. At the heart of every frustrating roadblock we will face to our technical solutions is actually a cluster of cultural habits – deeply rooted patterns of behaviour, emotions and narrative that can prove surprisingly resistant to change even in the face of overwhelming logical evidence. The Finance Minister has talked about the need to get precise with solving our economic issues by coming up with bespoke roadmaps for the long-term transformation of specific sectors. I support that approach. My request is that we also get equally serious and precise in the way we resolve the human cultural habits that stand in the way. If we want sustained transformation of our industries, we should be drawing up matching bespoke roadmaps for the long-term psychological and emotional transformation of our people as well.[+7 sentences] We should treat it seriously as we would with any other priority economic initiative. And treat the observations of cultural analysts as seriously as that of our economic analysts. When we track specific cultural metrics – critical behaviours or beliefs – we can get early insights that signal to us whether we are on track or just seriously off-course. Metrics have to be meaningful. Just telling us "X number of businesses were started in Y years" tells us nothing deep about whether genuine innovation or meaningful entrepreneurship is on a healthy rise. What would yield deeper insight is to also track over the years, qualitative data about the emotions, beliefs and behaviours Singaporeans hold towards risk, failures, possibilities and uncertainties. If we want to know why productivity does not really happen in Singapore, we should track our behaviours and attitudes towards the creation and sharing of value. And if we want to know why collaboration does not happen easily in Singapore, we have to track our behaviours and attitudes surrounding openness and trust. We must match "Strategy with Culture." If you want to see strategies succeed, cultural intervention must always be the first resort.[+6 sentences] Not the last resort or just one of many resorts; first resort. All too often, companies actually severely underestimate how much strategy's effectiveness hinges on cultural alignment. At any top-down strategy that is at odds with ground-up culture is, at best, hamstringed and, at worst, utterly doomed. Culture trumps strategy every time. Almost every enterprise that has gained peak performance – the Four Seasons, Apple, Southwest Airlines – they all got there by prioritising cultural interventions as their best accelerator for change. Successful cultural intervention is about focusing on just a few critical shifts of specific behaviours, deeply linked with the strategic outcomes that we hope for. If SGInnovate is being tasked to cultivate an ecosystem for innovation, it has to pair its strategic matchmaking with culture-building efforts that connect with its goals.[+3 sentences] It should take the lead in holding discussions with thought leaders in Singapore's entrepreneurial ecosystem to learn what are the beliefs and behaviours we must encourage or discourage in our youths so that by the time they enter the workforce, they are primed with the habits of innovation. Cultural transformation does not reach a tipping point without winning over a small but crucial crop of influential early adopters. The early adopters bring in the early majority, the early majority brings in the late majority and the late majority brings in everyone else who is still wondering what on earth is going on. SGInnovate must seek out the local early adopters of innovation culture and work with them to help build up Singapore's thought leadership on innovation.[+24 sentences] It is galling to me that at our innovation conferences here, we are still getting keynote speakers from everywhere but Singapore. This just reinforces the perception of our own people as well as outsiders that Singaporeans are just not as capable of innovative thinking as Westerners. If we look hard enough, we will find that we already have pockets of people who are just as cutting-edge in their approach to their public, private and people sector work but are also excellent at communicating their views. We need to take bigger bets on our own people and shore up our confidence in Singapore's ability to do things different. There are many cultural roadblocks to transformation, but I will focus on the two that I think have the greatest cost on our economy. They are our national habits of fear and scarcity thinking. Because fear is such a quick and effective emotional lever that galvanises our survival instinct, it has been the favoured motivational tool of many of our parents, teachers, bosses and even politicians. And managed well, fear is a perfectly healthy kick-in-the-pants we all need to force us out of complacency into action. Fear compels us to man up, save more, study hard and work long. And fear, in that sense, is an emotion that does help us take care of our future. But fear loses these powerful, positive effects when it goes beyond a temporary emotion that we feel to a permanent disposition we live in. And when the fear becomes part of our emotional and cultural DNA, we lock ourselves into a habit of self-limiting behaviours. And this is why we need to talk about our "kiasu" culture. It really disturbs me that year after year on those funny National Day surveys, we still rank "kiasu, kiasi" as among the top few defining traits of what makes us Singaporeans. We laugh about it but it has been 50 years and the joke is on us. How much longer will we self-identify as a people living under siege? What human potential and opportunities have we lost over the years living as a nation of people scared to lose out and scared to fail? How much more opportunities are we prepared to lose? I do not think "kiasu" culture should be celebrated. In fact, I think we should kill it. Because all these behaviours that we are telling Singaporeans are necessary to take us into the future – innovation, productivity, collaboration, generosity to the needy – they are wholly dependent on a person's desire and drive to generate greater worth and real value to share with the world. "Kiasu" culture does not give a damn about generating or sharing worth and value. The "kiasu" person will even pursue things of questionable worth he himself does not believe in, as long as he sees everyone else is doing so. Nothing illustrates this best than the toxic arms race between "kiasu" parents. The Straits Times discovered four in 10 parents purchase tuition for pre-schoolers. And when asked why, the overriding reason, of course, was better grades. But in the same breath, only a third of these parents said tuition actually improves academic performance. So, by their own admission, they are paying for something that they already admit is not productive. The price is the time and money that could have been spent developing their child in more worthwhile skills. "Kiasu" culture is too costly a culture to put up with and there are huge trade-offs in human development, manpower and time and dollars spent. "Kiasu" culture is also what created the subculture of grantrepreneurs – people who call themselves entrepreneurs but are really just grant-chasers – who seize upon any kind of public monies, like the PIC grant, to use on everything but what the grant was meant to accomplish.[+35 sentences] Yes, there are genuine "kiasu" entrepreneurs. But the "kiasu" entrepreneur is driven by the anxiety to make short gains rather than a mindful desire to win at a long game, so he will only take the risks that everyone is already taking and innovate what everyone else is already innovating. That is why entrepreneurship here tends to lack originality and is really just a copy-and-paste work of little worth. Yesterday's bubble tea shop is today's hipster coffee joint and cat café. We have a ridiculous number of entrepreneurs in F&B and way too little in industries like marine and construction, which have far more opportunity, profit and need for new blood willing to go where nobody else wants to go or dares to go. Sir, fear is an emotion essentially rooted in the rejection of uncertainty, and its opposite is not courage. When we embrace uncertainty, what we experience is the emotions of mindful ambition and wonder. I suspect our highest innovation and productivity will only come when more of us move beyond the fear of "Die lah, die lah! What must I do to survive?" to the mindful ambition of "I have no idea what lies ahead, but I am still here and I am still alive. What things of great worth do I still get to create for somebody else today?" The other habit that costs us plenty is our scarcity mindset. It is most toxic when it dovetails with the "kiasu" culture. Scarcity mindset is the belief that there is not enough to go around and the giving of any advantage to someone else is stupid because it comes at the cost of our personal survival or happiness. You see it in the way we push back on whether columbariums have a place in middle-class neighbourhoods or the anger we feel about immigrants – one more foreigner here means one less MRT seat for me. I have seen it in the way some non-profits work in silo, believing it is every NGO for himself in the fight for the limited pie of state and donor funding. And now, you can hear it in the outrage amongst some mothers in the 1% when they discovered, "I cannot claim tax relief on income above $80,000 anymore because we want to support greater social spending." In scarcity thinking, there is no "win-win". It is always a high stakes competition of "win-lose" or "lose-lose". In scarcity, power or profit cannot be shared, even with the very people who help support the position we enjoy. So, nobody wins in this destructive zero-sum game of scarcity. When we adults push back hard on why our domestic workers should be given their right to their day of rest since it impedes on my day of rest, then how can we expect anyone to do any better? Should it surprise us if someday we see many in the next generation grow up refusing to take responsibility for our welfare when we become the powerless ones in our old age? Why should it anger us when our bosses push back hard on why they should be forced to give us our right to more paid paternity leave when it infringes on their right to make more profit? Rich or poor, employer or employee, local or foreign, powerful or not, we will all bear the cost of our collective scarcity mindset. And yes, the habit of scarcity is an unavoidable product of our context as a small country of limited resources. And it is true, small countries do not get to be naive about survival and we have little leeway to fool around with our future. But when we keep pushing out the story of how we are the little red dot surrounded by big, bad wolves that want to eat our lunch, we risk reinforcing the zero-sum mentality as the most significant story for Singapore and our best way forward. This is counterproductive to our push for more open and giving collaboration as the best way forward. So, in SG51, what I hope is we can start pushing out a new Singapore story founded upon the opposite of scarcity. And no, it is not abundance, because the paradigm of abundance that there is plenty out there and enough to spare for everybody is not always true. Resources are limited, especially in a small nation and there will always be tough trade-offs which we will all argue over. So, the most honest alternative to scarcity is actually not abundance, but satisfaction. It is the mindset that says, "Whatever we have, it's enough. I have enough. I am enough. So, I'm able to want you to have enough too". It is what allowed that famous "Jackpot Auntie" to give away her casino windfall of $0.5 million not once, but twice to charity. And when reporters asked her why she would do something like that when she was not rich, she said, "I have all that I want".[+16 sentences] When we are satisfied, we are far more willing to give something of ourselves, and from that mindset of satisfaction flows the desire to share decisions, information, recognition, profits and yes, the tax burden for social spending. Only when we are deeply satisfied as a people will we want to subtract some value from ourselves to multiply the value that can be had by all. So, I think it is a beautiful thing for the Government to advocate deeper, respectful partnerships between stakeholders as the best way forward. With the state acting as the guide, it challenges us stakeholders to take our place as the "heroes of the story" instead. The outreach to trade associations, Our Singapore Fund, Community of Seniors and Business and the IPC Partnership Scheme will hopefully open our eyes to seeing each other as equal partners in a win-win game on the same quest to solve the same pains. Minister Heng talked about how we must change our paradigm and view our greying population and disabled as a source of strength that can shape our society rather than a weakness to be managed. And I agree. So, I appeal on behalf of our weak and marginalised that in the design of our social policies, we choose to see them not through the lens of a zero-sum game too. As we execute our policies like SkillsFuture, Fresh Start Housing Scheme and KidSTART, let us use this chance to set up more win-win situations for our working poor. How different would our interventions be, if we designed them around a vision for our poor, not as a cost to manage but as a partner, a possible source of strength, who can share the same quest to solve the same pains. Our policies must accord our poor the same dignities and assumptions we accord our privileged. If we do not expect our middle-class families to raise children well in overcrowded conditions, then let us not expect poor families to do any better in overcrowded rental flats co-shared with a stranger. It is setting them up for failure. We know the divisive effects of favouritism in the family. Well, a country is like a family writ very large. Let us do away with any form of structural favouritism in the way we treat our rich versus our poor. At last year's Budget, I asked that we consider giving single unwed mums and their children the same benefits and acceptance we accord to married mothers. MSF has already announced that they will review the inequalities in policies.[+1 sentence] And that is fantastic news. We are struggling with birth rates, so it is right that all young life that has been given to Singapore should be duly welcomed and all their life-bearers duly honoured. This year, Minister Heng mentioned "all" Singapore babies will receive the Child Development Account (CDA) First Step Grant that can help struggling parents access the State's generous co-savings plan.[+12 sentences] But the marital status of parents has always been the eligibility criteria for CDAs. So, you can imagine, on that single word "all" hangs the hopes of so many single mums as well as the hearts of us married mothers who are rooting for a win for them. So, I hope we can clarify whether "all" includes the children of our unwed mums, because single or married, rich or poor, many of us mums share the same heart. We want to partner the state in the common mission to bring up our children to become all that they can be, and many of us mums stand as one on this – see us all as equal. See all our children as equal too! I know there is an argument about why not just invest in innocent children rather than invest in the bad parents who make bad choices? But well, then all of us parents in this room stand equally condemned, for we too have made varying levels of bad choices in our lives that messed up our own families. The difference is that the more social and financial capital we have, the easier it is for us to recover and learn from our stupidity. Wealth buys us second, third, fourth, fifth and sixth chances. But for many who are poor, bad choices are more difficult to recover from and good choices are not always available or easy to take. When we show our strong support to the uplifting of parents who made poor choices, we teach not just them but their children, and ours too, the power of grace. That even when we mess up and the consequences must be paid, as long as there are people rooting for us to find our way home, there is a chance for restoration, and that is what sows the ambition for transformation. The Government led the way before when it created the Yellow Ribbon Project that taught us a better way of seeing the ex-offenders in our midst, and that was courageous moral leadership we can all get behind.[+1 sentence] You do not have to go to a physical prison to be an offender in society. Sometimes, you just have to commit the crime of being somehow second-class in people's eyes. So, let us unlock everyone's second prison of shame.[+1 sentence] In conclusion, let me end with the same wish I had expressed at Budget 2015 – "Our country spent the first 50 years of our history getting rich. Let us spend the next 50 years charting our course towards becoming truly wealthy." Our unity has always been our greatest source of wealth.[+2 sentences] Not the riches of Reserves, our fancy buildings or our amazing industries. Those are just outcomes, wonderful results we create through choosing again and again to do things as one people and one Singapore. Fortunes can come and go but they can be built up again on the bedrock of a thousand strong promises made between husbands and wives, parents and children, haves and have-nots, governments and their people.[+5 sentences] When threats become real, when the money runs thin, we will see conflict. And we will want to fight, and I pray we do fight. But let it be a fight for each other and not against. A fight to work through differences and partner across the divides. A fight to move out of a spirit of fear and scarcity into a new spirit of ambition and satisfaction. So, yes, the problems that are coming are probably bigger and more powerful than we think.[+3 sentences] But you know what? So are we! Thank you, Finance Minister. I support your Budget and your call to greater unity.
Mr Lim Biow Chuan (Mountbatten)1656 words
[+6 sentences]Mr Deputy Speaker, it is always difficult to speak after such a vibrant and refreshing speech, but I think I need to speak for my residents, so allow me. Last year, we had a Budget that many people cheered about because we were celebrating SG50. This year's Budget is slightly more muted. However, there are several things which stand out in this year's Budget Statement. First is the Minister's promise on building a caring and resilient society. I applaud the Government's continued efforts to look after the different segments of society which need more help. It is critical that a caring Government continues to help the less advantaged in an affluent society. I support the fact that the Government is raising the qualifying income ceiling for Workfare Income Supplement (WIS) from $1,900 to $2,000.[+3 sentences] This will enable a bigger group of workers to supplement their income and CPF savings. I urge the Government to regularly review the qualifying income ceiling to ensure that those who would really benefit from the WIS are not excluded because they had worked harder during the past year. This is the target group of people whom we are trying to help so that they can eventually get out of the poverty circle. We can be more generous in giving them a boost or a leg up to eventually achieve financial independence. I also support the fact that WIS payout would see increases between $100 and $500.[+6 sentences] This would help these lower-income workers to cover increases in cost of living as well as ease their financial burden. The improvements to WIS, the increases in public assistance and increases to the Singapore allowances, together with other schemes like the GST Voucher scheme, rebates on Service and Conservancy (S&C) charges and so on. All these are a strong signal that the Government is very mindful of the needs of the lower income. This Government should continue to render care and assistance to low-wage workers, seniors and those with disabilities. Regarding care for our seniors, I strongly support and welcome the Silver Support Scheme. It continues the Government's approach to care for our seniors. The Minister for Finance had announced that the Government will use three criteria in combination to identify those seniors who are low-income or without income and are at the bottom 20% to 30% of the seniors. These criteria are lifetime wages, housing type and level of household support. I hope to urge the Minister to reconsider and exclude the criterion of housing type.[+19 sentences] In my constituency, I have several seniors who have worked hard all their lives and are living in either 5-room flats or private properties. They have worked hard to purchase their dream home and today, some of them have no income as they are retired and are advanced in age. If they do qualify for the Silver Support Scheme based on the other two criteria, why should their housing type exclude them from being eligible for the Silver Support Scheme? They may not have children who are supporting them so the fact that their housing type excludes them from being eligible for the Silver Support Scheme would be of great disadvantage to them. The fact that they live in 5-room flats or private properties does not mean that they are financially able. Some of their properties may be very old walk-up apartments which are not easy to sell. Some may have inherited the property and some may have worked hard and lived in their current property all their lives. Is it the intent of the Government to push these seniors, at this stage of their lives, to uproot themselves from their neighbours and a familiar environment just to qualify for Government support and for a better quality of life? I am quite sure that it is not the intent of the Minister for Finance. What about seniors who are living on the charity of their relatives who are not their children, but staying in private properties? These seniors would be excluded from the Silver Support Scheme because, their nephews, nieces or their god-children staying in private properties had, of their kind heart, decided to look after them even though they have no obligation to do so. Should the Government disqualify these seniors from benefitting from the Silver Support Scheme and then place a heavier financial burden on relatives or even friends who are simply being charitable to them? How about seniors living in nursing homes or old folk homes; what is the address used by the Government to consider whether they qualify for the benefits of the Silver Support Scheme? Hence, I urge the Government to reconsider using housing type as a criterion in determining whether seniors should qualify for the Silver Support Scheme. The Prime Minister had said that the Singapore Story belongs to all of us. Let us include this small group of seniors who, for one reason or another, live in properties which do not meet the qualifying criteria. The second aspect of the Budget which stands out for me is the push towards transformation of the economy. I agree that businesses need to take a good hard look at themselves and ask themselves how can they prepare themselves for the future? How can their businesses grow, bearing in mind, the uncertain economy? The Government has launched a $4.5 billion Industry Transformation Programme (ITP) to strengthen enterprises and industries, and to drive growth through innovation.[+16 sentences] There is the Automation Support Package, support for industries to scale-up and encouraging internationalisation, schemes to develop and deploy new technologies. I think these are good schemes to help nudge businesses towards being more innovative and to improve productivity. One challenge is how to ensure that the benefits of these schemes reach the companies and businesses. One feedback which I had received regarding the Productivity and Innovation Credit (PIC) was that many businesses did not fully understand the purpose of the scheme. As a result, there are consultants who helped these companies apply for the PIC, not because it would result in improved productivity, but simply because the Government is giving away monies to businesses. This is an abuse of the intent behind the PIC. So, I urged the Government to ensure that the Industry Transformation Programme (ITP) is better explained to the industries or businesses. More should be done to prevent abuse of the scheme and to ensure that the funds are properly applied to achieve the purposes of helping companies innovate and improve. Expand our SME Centres so that we have more staff on board to help reach out to the businesses to explain the many schemes available to assist them. Make it a target that the majority of businesses will think of SME Help Centres or SME Advisory Centres first if they need any advice or help regarding Government schemes. Get the banks, the accounting firms, the lawyers and other professional advisors involved in helping to refer their clients to the SME Advisory Centres or the SME Help Centres to understand more about the types of schemes available to help the businesses. I am also glad to hear of the Adapt and Grow initiative to help our people adjust. The Government's expansion of the wage support scheme to encourage firms to hire workers affected by retrenchment or business restructuring is welcomed. One feedback which I have received from residents who are retrenched or have lost their jobs is that they find it difficult to find another job easily. Some of them remain unemployed for several months, and during this time when they are unemployed, it is a huge challenge for them as they have to juggle with bills to pay and other family expenses. The last thing on their mind is to retrain or reskill because they need to find alternative sources of income to cover their daily expenses. Some of these workers are also upset that having served their employers faithfully for several years, when the company downsizes the operations and has to retrench staff, no consideration is given to the staff for their loyalty or their efforts in building up the company. So, I ask the Government: will the Government consider introducing a retrenchment benefit law that would compel companies that retrench staff to pay a minimum of between three and six months of retrenchment benefits depending on the length of service by the staff?[+2 sentences] Currently, the law is that if you have served for a minimum number of years with a company, you are eligible for retrenchment benefits. However such payment is not compulsory unless you have an agreement with the company or the union has negotiated an agreement for its workers. The payment for retrenchment benefits should be made compulsory instead of leaving it to agreement between employer or employee or leaving it to becoming discretionary. It should also apply to all staff including PMETs and management.[+2 sentences] In this way, the staff retrenched will be able to concentrate on learning new skills for the future job and not have to worry about paying off the family's monthly expenses. It would make the transition less worrisome if they are able to rely on some short-term retrenchment payment to tide them over for a few months whilst they find another job or undergo retraining. Many other countries like Australia and the UK have laws requiring companies to pay retrenchment benefits.[+2 sentences] Perhaps, it is timely for Singapore to consider similar laws, especially since a recent report suggest that higher skilled staff make up the bulk of layoffs. This means that it is no longer the case that if you are skilled, you can find alternative employment so easily. Details can be worked out by reference to the amount paid in other countries and the Government can always impose a cap on the amount of retrenchment benefits to be paid. So, I urge the Government to explore this option.[+1 sentence] Mr Deputy Speaker, I support the Budget Statement.
Ms Rahayu Mahzam (Jurong)1848 words
[+7 sentences]Deputy Speaker Sir, I stand in support of this Budget. Not too long ago at the opening of Parliament, the President asked all of the Singaporeans to stand together in solidarity as we embark on the new chapter of nation-building. The broad vectors in the President's address which were supported by this House have now been put into an action plan in the form of the Budget. The two main themes of the Budget is the spirit of partnership and transformation. Today, I would like to share my perspectives on these two themes. Firstly, on the spirit of partnership, it is apt that the Minister for Finance spoke about partnership as it is important that Singaporeans take ownership over the concrete actions to be taken in the next chapter of Singapore. Many have come to associate the Budget announcements with the handouts of "goodies". Some question the support they feel they deserve and missed out on because of existing criteria. I think the means-testing criteria is something that needs to be carefully calibrated, and constantly reviewed to ensure that people who need help are not left to fend for themselves.[+3 sentences] The Government will also need to continually work towards making life better for all Singaporeans. However, people should also help themselves and each other. There must be personal responsibility. Partnership means we have to do our part; it means that there must be shared responsibility between the Government and the people.[+30 sentences] At this juncture, I would like to share the story of a lady I met at a focus group discussion between several Malay/Muslim women entrepreneurs, Mdm Saadah Jan d/o Rasif Khan. Mdm Saadah shared about the last time she met a Member of Parliament. It was the lowest point in her life as she had gotten into some financial trouble as a result of a failed business venture. She recalled that her MP, who was Minister Shanmugam, arranged for her to receive financial assistance, among other support. She said receiving financial assistance was a wake-up call for her. She asked herself, "How did my family get into this state?" and vowed to get out of that situation. She was a homemaker but started looking out for work that she could do. She started by taking orders for roti kirai on Facebook. She asked her mother to teach her how to make the dish and successfully won the heart of her first customer. She then got more orders. She figured that since she was cooking for her family, she could cook for other families. So, she started cooking for three other families. Before long, she was cooking for 10 families. One thing led to another, and she found herself with a happy problem of having too many customers. Her sister then gave her some seed money and she rented a commercial kitchen space which allowed her to grow her business. Her journey was not always smooth, she said. She had to put in a lot of hard work and had many trying moments. including the time she had to sleep at a nearby park so that she could stay close to the kitchen and not have to go home. However, she did not give up and trudged on. She is now a proud owner of a thriving catering business, Dapur Ummi Abdullah. She also believes in the importance of paying and treating her employees well and in not taking any shortcuts in the business. She said she complies with all business regulations and continues to be prudent by investing the bulk of the profits back into her business. So, she said, at the end of the sharing, that she had nothing to complain about and is very happy with her current situation. What struck me most about her story was how she took personal responsibility. She refused to stay dependent on public assistance and pulled herself out of financial difficulties. And she continues to be responsible towards her employees and her business. I acknowledge that some may need more support and may take more time than others to get out of their financial rut. But what I think is important and what makes the difference is having the right attitude and that sense of responsibility of self and the country. I think this is what striving together means. This is what the spirit of partnership and the spirit of the community should look like. I would like to call on Singaporeans to take a different approach towards the Budget and ask not what you can get out of it, but see what role you can play in the implementation of the various measures. In particular, there is a great opportunity to tap on Our Singapore Fund to come up with projects that can help the community.[+6 sentences] Singaporeans should look out for gaps and see where we can play a part to uplift the community. On a lighter note, I must say that the artwork of the tapestry in the Budget handouts reminded me of a ketupat, a Malay rice cake. If you think about it, it is quite a meaningful and a poetic symbol. One strip of the coconut leaf is limp and not as useful, but several strips of coconut leaves when weaved together forms the lovely ketupat which can hold the rice. Just like how when the Government and the people work together, we can and will create something meaningful. I move on to the second theme – transformation. The Minister for Finance laid out the strategy to transform our economy through innovation and enterprise.[+4 sentences] There is a need to transform and do things differently because the world is changing and we are facing new challenges. Local businesses and Singaporeans should be supported to go through these changes and be equipped with skills to be future ready. But I think that this is only one aspect of the equation. There is also a need to do more to enhance social mobility. In the face of rapid technological changes and global competition, families from the lower-income group will be affected most.[+6 sentences] The families will be struggling to deal with day-to-day expenses and challenges and have very little time, money and energy left to focus on upgrading and enrichment for the children. Impact to their children can be great and it may be some time before the families' standard of living is improved. I acknowledge that sustaining social mobility is a great challenge. And I note many existing measures are present to seek to address social mobility. For example, we have quality education accessible by all, the revised housing policies, skills upgrading through SkillsFuture, initiatives such the Opportunity Fund and KidSTART, just to name a few. While I welcome these efforts, I feel that we can and should do more. I am of the view that to move the needle, there is a need to transform our approach. I see three main thrusts in this effort: one, target the young; two, continued support for the family; three, focus on building social capital.[+3 sentences] So far, the Government has taken the right approach in targeting the young and providing continued support for families. However, I believe there is scope to focus more on helping young people from lower-income families to build social capital. Social capital is the access to resources and networks that can help one move up the social ladder. I believe this is a key component in enhancing social mobility. I recommend that we look at two approaches: one, coordinated interaction between students from diverse background and two, creating a community network of support.[+4 sentences] In respect of the coordinated interaction between students, I think there is scope to work with various schools, especially with secondary schools, ITEs and polytechnics to create platforms for regular sharing or peer mentoring. Such sessions should include students with different academic capabilities and family backgrounds and can include sharing on study techniques and reading materials, for example. Interaction with students from different backgrounds can help develop a student's world view, develop his or her relationships and networks and create access to other resources that his or her family may not have. These platforms can be created through collaborations between different schools, as well as within students from the same school, where they can share resources or knowledge. In addition, this peer mentoring component could be something that we can incorporate as a condition or requirement in scholarships in appropriate circumstances. Another effort we can make is the creation of a community network of support with various VWOs, businesses and partners, so that there can be a pool of resources which is easily accessible to those from the lower-income background.[+12 sentences] The network should specifically target this group and link them up with groups of individuals with relevant expertise. For example, a young person from a low-income family who may be interested in music can be linked up with local renowned musicians. Such groups of individuals can help with sharing of knowledge and insights, and building relationships and networks. The effort in linking individuals with those with greater expertise and better connections will help build their social capital. There are many existing programmes that provide resources to lower-income families but there needs to be increased effort in creating interactions between groups from various income backgrounds. We have and should always continue to invest in our people. When our people are empowered and strong, Singapore will be strong. Deputy Speaker, Sir, allow me to end with a few words in Malay. (In Malay): For the 2016 Budget announcement, many commented on the Government's efforts to navigate the tide of global change and a challenging economic environment. However, perhaps among the general public, not everyone pays attention to the details of the Budget. The question that is perpetually being asked is, "What will I get this year?" Some may even question why they did not receive any assistance. The criteria established for the provision of assistance must be reviewed constantly so that those facing difficulties will not feel trapped.[+8 sentences] I think that the Government certainly must help those who need it. Nonetheless, I feel that it is equally important to inculcate the spirit and attitude of taking on the responsibility to help yourself as well as those around you. The Finance Minister spoke about the spirit of partnership; this is in line with the Government's call for Singaporeans to create the next chapter of the Singapore story together. We have to be mindful about the changes and competition globally. We must quickly prepare ourselves to obtain the knowledge or skills that can prepare us for any challenges that may come. We need to educate our children to have the courage to try and the desire to achieve excellence in their respective fields. Whether the burden is heavy or light, we will carry it together – I think that this proverb has a lesson for all of us. The Malay/Muslim community plays an important role in the nation's development and I am confident that we can work together to enhance Singapore's reputation internationally.
Mr Kok Heng Leun (Nominated Member)2709 words
[+21 sentences]Thank you, Mr Deputy Speaker, Sir, it is a privilege to stand before the Parliament and share my views about the Budget as an artist and a Nominated Member of Parliament (NMP) for the Arts. I am very aware of time, that I have only 20 minutes, and so I will be very mindful. First of all, I would like to begin by congratulating Minister Heng for delivering a Budget that seeks to place Singapore in good stead to face our future economic and social challenges. Let me first recount a performance that my company, Drama Box, staged in 2001. That was the year when there was the financial crisis, and some of you would have remembered it. The performance, in the form of forum theatre, was about a husband who was also a middle-aged PMET, who was retrenched and because of the retrenchment, was taking out his frustrations on his wife. Forum theatre is a form of theatre where the protagonist is facing a crisis and after the crisis is being played out, the audience is invited to replace the protagonist to try to find solutions to deal with the problem. In this particular story, both the husband and the wife are the protagonists. In one performance, many people replaced the role of the wife, speaking to the husband about the need to accept the change, all the Government schemes that were available, advising him and encouraging him. The husband understood all these, but he was still not placated. He was still very frustrated. Then, a woman came up. She sat the husband down, held his hand. The audience and myself were waiting for her to speak. But she did not. She just kept quiet. Finally, the husband asked her, "Why did you not speak?" She replied with a question to him: "你好吗?", that is, "Are you okay?" At that moment, I could hear the husband heaving a sigh of relief. When I, as the facilitator, asked her why she did what she did, she said, "在这样一种情况底下，人需要一点点的空间，一点点的时间", that is, "In such a difficult situation, people need some space and some time." I share this anecdote to highlight the importance of time and space during a crisis or when you are facing change or a loss. Government schemes can help Singaporeans prepare for structural changes in our economy, and to move into new jobs and responsibilities. However, schemes will only help Singaporeans if we also look at how our body, hearts and spirits are affected in these moments of change, crisis and loss.[+17 sentences] I quote, "Small acts of repair. Calming the hands in a troubled world. Restoring damage to renewed use." This quote comes from a US-based theatre company called the Goat Island, which believes that theatre is a small act of repair, repairing the body and the hearts that have been bruised by the experience of crisis, change and loss. Human beings are not like little bolts which can be melted down and made into nuts if there were not enough nuts. To change a mindset is not about switching into a different mode. It requires the emotions and the spirits to be engaged. It needs time. And it needs space. The woman who participated in that performance told us later that that was how she helped her husband who was retrenched during that same financial crisis. The performance became a demonstration of what is possible. It became a place for learning and sharing of wisdom by the public. It also became a place for rehearsal. Here is my response to the Budget, and I would like to ask these two questions: where is Art in the future of Singapore? Why is Art important in the future of Singapore? I am sure that if I searched hard enough, I will be able to find statistics on the arts in Singapore – how our audiences have increased over the years, the number of art works that have multiplied since the 1990s. Yet, the very fact that I am standing here, asking about the importance of the arts in Singapore, suggests that there is some cause for concern. To further reinforce that concern is the fact that the arts are not mentioned in this year's Budget.[+1 sentence] The word "culture" is mentioned, but in reference to the Ministry of Culture, Community and Youth. Surprisingly, the arts does not even get a mention in the section "Transforming our economy through enterprise and innovation". This, despite the fact that the arts powers innovation, which is important if we are to be future-ready in challenging times.[+11 sentences] Innovation is a primary objective of the arts and artists. The arts can be innovative in its creative process. We innovate, break old regimes and create new paradigms. The arts encourage play. To play means, first of all, you play within the rules of the tried-and-tested methods. And after a while, one must start playing creatively, go beyond the rules, tear apart those little parts and then you improvise. Then, only can one start to make new discoveries. Critical thinking balances innovation with responsibility. As we strive for change, we must also strive for sustainability. For example, how do we deal with economic growth, yet be aware of how it will impact the environment? The creative mind, coupled with critical thinking, can complement our usually pragmatic and logical approaches to problem solving. While we want to transform our economy through innovation, we also want the transformation to be equitable, viable and sustainable.[+31 sentences] Innovation also happens in the arts through collaboration. Composers, writers, film-makers and other artists have always collaborated with other disciplines, such as science, technology and education. Such collaborations are vital to the lifeblood of these industries. Let me illustrate with another story and, again, I am aware of time. This was an experiment that was conducted in 250 BC. Two equal length sticks were placed upright in the ground 500 miles apart. Then, at the exact moment, a person at each location would measure the length of the shadow. If the earth were flat, both shadows would be of the same length. But they discovered that the lengths were different, which means that people started to think that maybe the earth was round. And that was 250 BC. But it took another 1,000 years before we all agreed the earth was round. A triangulation must occur for us to make sense of this story. Two people collaborated, setting up the experiment and measuring the shadows. It took two of them, from two different viewpoints, to visualise the earth as round. It also took time – roughly a thousand years, a millennium – to finally arrive at a conclusion. It was through a collaboration on such a fundamental issue – whether the earth is flat or round that we are able to gain a more accurate view of ourselves. So, what does "collaboration" mean? Simply, it means two things – giving and taking. Giving is sharing, offering, so that one can contribute to, and feel invested in the process of nation-building. Taking is listening, engaging and the ability to accept criticism. Where criticism is concerned, it is always easier to give than to receive. And as artists, our works get reviewed and critiqued all the time. No artist, trust me, wants to read a negative critique of his or her work. But if we see the critic as someone who cares about the arts, our mindset will change. The critic is no longer an opponent but a collaborator. We are all in it together. Yet, we are different from one another. How do we manage difference? How do we learn not to be offended by difference? How do we respond if we were to be offended by difference? What if one person were to impose his ideas on another person? What if one group were to force their opinions and belief systems on others? I say this because, in many ways, the state has failed in mediation techniques. It is reactive, unable to effectively manage difference to find a common ground. For example, a few letters complaining about an artwork or a book may lead to that work or book being removed.[+62 sentences] But what about the many other people who do not have a problem and, in fact, appreciate the artwork or the book? How does this logic work? Where is the mediation? Should we encourage audiences to write in when they are not offended to balance those who write in who are? Being fair means being fair to all, not just those who write the angriest letters, shout the loudest slogans or garner the most signatures. That is not collaboration. This is not giving and taking. Collaboration is about being grounded yet open. It is about letting go of presumptions and judgements in order to create meaningful dialogue. Collaboration is also a way of demonstrating our resilience. One hears that word quite often these days. We must be resilient in case of economic downturns, in case of outbreaks of diseases, in case of terrorist attacks. And I do not disagree. But resilience is not just about being strong. It is about the ability to adapt and to accept change. To be resilient, we must first be able to tell our own story. When we know who we are, when we have the confidence to express ourselves, we will know how to manage changes within our means. The ability to tell our story is the first step towards empowerment. We will then realise that there is no one grand narrative but many micro narratives which collectively define who we are as a nation and as a people. That is the potency of art. It examines our relationship with the environment we live in. It examines our relationship with people we live with. It examines our relationship with ourselves. Why is art important in the future of Singapore? Art is part of our daily lives. Art is integral to our society. Art can contribute to the resilience and maturity of the populace. So, why are we not talking about art and innovation? Why are we not talking about art and the creative industry? Where is art? Perhaps, there is some apprehension. Living together in a tight space means difficult questions should not be raised for fear that some people might not be ready enough to be engaged. And art raises difficult questions. Our culture rewards results and success, but art promotes process and the value of failure. And it is precisely these intrinsic aspects of art that can help empower us to create a diversified, creative and sustainable future for Singapore. And art can prepare us to engage critically, with wisdom and empathy, like the story of the woman. The arts break rules. Artists break rules, not legal rules, but the rules of the creative process. Children do it all the time. They want to paint a green sky and a yellow sea. But as they grow older, they were told, "No, no, no the sky must be blue and the sea cannot be yellow. Where got such things?" How does one innovate if one does not ask hard questions? How does one innovate if one has to keep seeking permission to be playful, the permission to transgress, the permission to make mistakes? When artists create in Singapore, we are told the rule is: create art to foster social harmony and community bonding. If you do not do that, you are breaking the rules. But what if we want to create art that encourages critical thinking? What if we want to create art that asks difficult questions? Can this art be seen as positive, one that promotes social cohesion? Why not? I should reiterate that having open discourse does not mean having no responsibility. One needs to be accountable for one's words and actions. At the end of the day, the laws are still in place. But having a good debate and a deep exploration of our shared issues will only benefit everyone. It can start young. Why are we preparing our young only for study and good academic results but not for important and difficult life questions? In fact, young people want to talk about life's complexities. They want to know that what they learn in school can help them find their place in life, in society. As adults, we all know that life is not just about work and career. It is about responsibility for oneself, for others, for family, for society, and for the environment. Yet, we discourage the young from confronting difficult questions. We take away opportunities for them to learn critically, to be intelligent, creative and innovative. Art should be very much a part of our education in school. Hence, I would like to request our Ministry of Education (MOE) and the Ministry for Culture, Community and Youth (MCCY) to invest more in creative and critical teaching. Educators cannot facilitate creative and critical learning if schools do not allow themselves to be laboratories of learning and laboratories of knowledge. Nowadays, we go to school and learn so that we can get prepared for our careers. In Chinese, we call it the pursuit of 学业。学了就 业, that is, "Learn and you get a job".[+6 sentences] But the job market changes. The skills you learn might not be of use some time later. I prefer another term, the pursuit of "学问" – "学" is to learn, "问" is to ask. In "The Book of I-Ching", or also known as "The Book of Change", "君子学以聚之，问以辩之" – learn and accumulate knowledge, and ask so as to be critical about what you learned. We are so afraid we will offend others by what we ask and what we say, when, actually, we need to learn how not to be so easily offended. We need to be able to have a constructive voice that seeks to improve our shared environment and future. If the space for discourse is not going to be opened up, we will never become a nation of mature thinkers and innovators.[+13 sentences] We will continue to coexist, but never be truly inclusive. In our rapid-pace development, we need to spend so much time catching up, that if we do not find time to slow down, we may just lose our sense of being. So, what keeps us sane and grounded? What is our centre? Yesterday, Zaobao, 新汇点, or Crossroads, a weekly page about new migrants and foreigners living and working in Singapore, interviewed a permanent resident, Christophe, a French native. He said in the interview that after getting used to living in Singapore, he started to feel a sense of nostalgia. A new resident here, feeling a sense of nostalgia. In this interview, written in Mandarin, he said: “在西方国家，即使过了四五十年都没有察觉多少变化。可是新加坡一直不断在建设，原本惊叹的心情，现在已出现变化." What he said was that in the West, you would not notice any changes even after 40 or 50 years. But, in Singapore, because it is constantly building and constructing, when initially he was amazed by it, but now he feels differently. So, now, Christophe is beginning to be interested in discovering what would make this place a home. He started by participating in arts, and in discovering heritage places. So, what keeps us grounded, helps us take stock, reminds us we are human, we are people living in one place? Our literature, our music, our painting, our theatre, our cultural sites like Bukit Brown and many other tangible and intangible heritage.[+4 sentences] Mr Deputy Speaker, Sir, I am mindful of time. I would like to end with a quotation by Rebecca Solnit which states, "Democracy is built upon trust amongst strangers." So, let us begin trusting one another. Let us not fear alternative viewpoints or cave in to strident voices without listening to others. For centuries, the arts have provided a safe space for us to ask questions, understand one another better, and dream of a better communal future that embraces diversity.[+5 sentences] Sometimes, we do not have the answer immediately, but asking the right question is a step closer. It just takes time. Instead of saying there is no time, let us make time for it. And instead of saying no space, let us make space for it. Mr Deputy Speaker, Sir, with that, I support the Budget.
Mr Deputy Speaker11 words
[+2 sentences]Mr Kok, you are well within your time. Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)1162 words
[+1 sentence]Mr Deputy Speaker, I am heartened by the various targeted programmes to help our families. Many seniors will be assisted through the Silver Support payouts, needy households will get more cash assistance and families with children will benefit from First Step, KidSTART and the Fresh Start grants.[+10 sentences] These schemes build upon the foundation set by existing programmes. Aside from the funds set aside to support our families and communities, we must encourage more Singaporeans to be active volunteers as many of the problems within our communities cannot be solved through funding alone. I would like to focus on volunteering among our seniors. Volunteering is an important part of active ageing. It is an activity which allows the elderly to stay engaged in the community and derive a sense of satisfaction from giving back, and in turn, enable the community to tap upon his years of very rich experience. Research has also shown that elderly who have meaningful relationships and are engaged in their communities are happier and healthier as a result. Volunteering indeed gives them a deep sense of purpose. However, getting our seniors to volunteer on a sustainable basis is not easy. Attracting a group to one-off projects is easy but beyond that, keeping them motivated to come out of their comfort zones is challenging. Hence, I would like to propose incentives to draw more elderly to our community volunteering programmes. One possibility is a time bank, whereby every hour of volunteering clocked by participating seniors can be deposited, accumulated and exchanged for certain privileges such as priority in queues at polyclinics and public hospitals, free or discounted People's Association (PA) courses, or even a waiver of the $50 application fee for the Lasting Power of Attorney (LPA) after the fee waiver expires this September.[+18 sentences] In addition to recruiting and attracting seniors, we should also design programmes such that our younger generation can be involved. The PA can assist by facilitating the arrangements between schools and seniors' groups. Presently, many students benefit from the exposure to serving their communities due the Community Involvement Programme (CIP) requirements by their schools. Using the same LPA example, seniors can accumulate hours of volunteer service to exchange for a LPA waiver and application assistance from trained student volunteers from an Institution of Higher Learning (IHL). An assigned student can assist him in understanding the requirements and benefits of the LPA, and then guide him through the process and assist him with the application. The student can even help the elderly locate an accredited medical practitioner in his estate to certify his LPA. I think this is a good example of how two volunteers, one young and one senior, can bond through meaningful intergenerational interaction. We should endeavour to promote interracial and inter-religious bonding through similar volunteer programmes. Volunteering for a common cause is the best way to get people of different backgrounds to realise that beneath the labels of race and religion, we have a lot more in common as Singaporeans. We need the cooperation of our religious organisations to organise such interactive activities between different religious groups to promote mutual understanding and tolerance. While these initiatives may, sometimes, feel unnatural or contrived, we must persevere and resist retreating into our own cliques. More importantly, we must be mindful that we have to conscientiously put in the time and effort to create better relationships for a better home and a better nation for all. Another area of concern is the health of our elderly. With our rapidly ageing population, it is of utmost importance to encourage our seniors to take preventive measures, such as making lifestyle and dietary changes to improve their health. Good lifestyle and diets should start as early as possible. Making changes when one is even older and possibly more set in one's habits will be very much more difficult. Mr Deputy Speaker, in Mandarin. (In Mandarin): I hope the Health Promotion Board (HPB) will consider offering incentives to encourage the elderly to lead active lives and exercise more. Last year, the authorities launched the National Steps Challenge initiative.[+8 sentences] This was a very good way to encourage citizens to live an active and healthy life. If HPB can introduce more similar long-term programmes targeted at the elderly, I believe the response will be very good. Through these platforms, HPB can work together with businesses to provide discounts to the elderly. Suitable business partners could include Foodfare, shops which sell spectacles, hearing aides and mobility aides. Of course, to encourage the elderly to make healthier choices, the discounts should only be for "Healthy Choice" dishes. (In English): Maintaining good health is particularly challenging for women. Generally, more women than men are the main caregivers to the children and elderly in their families and they tend to neglect themselves. With more women also out in the workforce, they have a tough time balancing career and family demands and usually, their own health takes a backseat. Women also live longer than men, although a significant portion of their final days may be in poor health. I hope that MOH will consider new measures to provide more support to women, especially homemakers, in the area of preventive care. With the retirement age increasing to 67, more grandparents will have to choose between work and looking after grandchildren.[+1 sentence] I would like to urge the Government to consider giving caregiver grandparents the childcare subsidies that would otherwise be given to childcare centres. While a grandparent will probably earn more working outside, such a rebate will help lessen the financial sacrifice if the grandparent is inclined to look after the child herself or himself, especially when the child is an infant or very young.[+1 sentence] Finally, I would like to speak on the introduction of a cap of $80,000 on personal income tax reliefs which will take effect from Year of Assessment 2018. So far, there has been no limit on the total amount of personal income tax reliefs an individual taxpayer can claim. This change will affect working mothers with higher incomes the most because of the tax reliefs that they get from the Working Mother's Child Relief. Granted, these women earn high incomes but I would like to appeal for the cap to be lifted for those who are divorced or widowed as they usually face more challenges such as raising families on their own. Many of these women hold senior positions in their demanding careers and have to juggle pressing family needs as well. I hope the Minister will take into account their extenuating circumstances.[+2 sentences] Mr Deputy Speaker, permit me now to conclude by congratulating Finance Minister Heng Swee Keat for a Budget which is not only bold in strategy to transform our economy but also balanced with targeted initiatives to build our community and people, reflecting the collective wisdom of this Government and the many Singaporeans who have contributed actively through their feedback. This Budget deserves the support of every Singaporean.
Ms Tin Pei Ling (MacPherson)2665 words
[+7 sentences]Sir, thank you for the chance to speak and I would like to thank Finance Minister for delivering a strategic and progressive Budget that has its eyes firmly set on the future as well as not forgetting the needs of the day. Sir, Budget 2016, otherwise known as Budget SG51, is an important one as it sets the direction and foundation from which we strive towards a successful SG100. Listening to Finance Minister's Budget Statement, three things came to mind. Firstly, that next phase of growth has to be driven by innovation vis-à-vis manpower growth. Second, transformation will be extremely uncomfortable but without it, we cannot metamorphosise into the figurative beautiful "butterfly". And third, partnership is necessary to effectively effect economic and social change. These are relevant and much needed in today's context and I sincerely hope that the measures announced in the Budget will succeed, because this is an important first step towards Singapore's future. Building on, I would like to offer my thoughts and humble suggestions on what else I believe we should consider as well. I am supportive of the direction taken and measures introduced to catalyse our economic transformation. I also appreciate the measures aimed at strengthening our own capabilities so that we will not, as much as possible, be at the mercy of external elements such as foreign manpower.[+19 sentences] Much of our past growth was dependent on manpower growth, which we logically know cannot be sustainable, given our limited land area. Therefore, innovation is key. The schemes in this Budget are clearly aimed at supporting innovation, with a focus on technology, and I look forward to the positive changes with great hope and anticipation. If I may offer some humble suggestions to the chorus of recommendations from Members of this House. Firstly, the Government must continue to emphasise the importance of adaptation and the need for lifelong learning. It is already done but such emphasis must continue throughout the year and over several Budgets. Anchor this belief of adaptation and lifelong learning in the conscious and subconscious minds, so that it becomes our way of life. Second, as with any transformation, there will be sacrifices and pain. There will be inertia. While businesses should ideally learn to thrive on their own with minimal Government intervention, I fear the reality now is that businesses are so used to Government support that a strong initial push is necessary before the transformation can take on its own momentum. Hence, the Government has to facilitate this as much as possible. There are many good schemes introduced. But as a next step, it is important to help SMEs benefit fully from these schemes and realise that it is achievable. Nobody will bother trying if they think these are too difficult or impossible to achieve. Hence, helping SMEs to make quick wins when they enrol in the schemes would help to make the bitter pill more "palatable" for the SMEs. Partnering trade associations is a good move and these associations can not only help to coordinate industry-wide changes but also multiply the outreach. For example, they can help to actively share the quick wins and successful examples to motivate others to push on. Now that we have begun our journey to transform, there is no turning back. Therefore, we have to give it our best shot. The Budget's emphasis on innovation and partnership is correct and timely, and these should apply to the social sector as well.[+14 sentences] Despite limited resources and manpower, the demand for social programmes continues to rise and hence, effective partnerships are needed to ensure a more optimal application of resources. But we also need to rethink how we offer care for the more vulnerable, especially our elderly and our young. We need to innovate – whether it is through leveraging technology or changing the way we care for our vulnerable. Allow me to begin with the care for our elderly first and in Mandarin. (In Mandarin): Caring for our elderly is important for building our society. Firstly, we have a rapidly ageing population. We need to gear ourselves to enable a graceful and meaningful retirement for all Singaporeans. Also, we need to recognise that our elderly can be an asset and not a liability. We should harness their wisdom and strengths to help Singapore grow economically and socially. Secondly, nobody wants to age in a cold and isolated environment where nobody cares. Hence, we need to put in place the infrastructure and programmes as early as possible, because these take time to take effect and take root. We are setting the tone and example for our younger generations and our decisions today will determine the values that will guide our society in the future. I am heartened by the slew of pro-elderly measures introduced over the past years. But to achieve a truly caring society, we cannot solely rely on the Government or a few charitable organisations. Every one of us has to do our part. I am therefore excited by the announcement of piloting Community Networks for Seniors. This is not exactly an innovation in terms of how we care for our elderly, though it is different from the traditional approach of family-based or institutional-based eldercare. It can also help us achieve the vision of "ageing in place".[+15 sentences] I see this initiative as fulfilling two objectives. Firstly, I believe it can simplify the process of delivering assistance and care to our elderly and ensure that resources and support are fairly distributed to all seniors. Currently, the elderly are often confused by the myriad of social and healthcare schemes offered at the national and local levels. For example, they cannot master the differences between the Community Health Assist Scheme (CHAS) and outpatient subsidies, the uses of Medisave, MediShield Life and Medifund, and so on. Some are automatically administered, whilst some require application. Also, there is a tendency for well-intentioned organisations and volunteers to focus on rental blocks. This is necessary and has to continue because the elderly living in these blocks are genuinely more vulnerable. But we also know that vulnerable elderly do not reside exclusively in rental blocks. Moreover, even the more abled elderly need to be included socially, live a fulfilling life and have opportunities to continue to contribute. Secondly, as the number of lonely or single elderly increases, we must find a way to enable independent living. We can leverage on technologies to enable our elderly to live safely and independently at home, but whilst doing so, let us also make sure that the human touch is not inadvertently lost. We must prevent the elderly from dropping out of their social networks. Hence, I see this Community Networks for Seniors as a good way of putting that human touch back into their lives. In light of challenges and expected needs in caring for an ageing population, I would like to make two suggestions. Firstly, continue to invest in technological research targeted at eldercare and expedite the implementation of tested solutions that can enable our elderly, especially elderly with physical challenges and little familial support, to live independently at home. For example, build intelligent homes that can detect anomalies so that designated neighbours or Social Service Officers (SSO) can be alerted to intervene and help in a timely manner; make use of assistive technologies, controlled by speech or eye movements or mind, to enable a bedridden elderly to move around at home and execute daily living activities; make available an integrated digital platform with schedule optimising capabilities that allows the elderly to request for home care or any other social services or support in the comfort of their own homes without having to worry about what numbers to dial or which organisations have or do not have the services they need.[+12 sentences] As we move towards a "Smart Nation", this has to be given priority. The Government should also take the lead in this area. Secondly, actively recruit volunteers and aggressively promote the Business and IPC Partnership Scheme. Given the high demand for services and tight labour situation across all sectors, I doubt there will be enough workers to do what is needed. We have to review our manpower model more creatively. In my opinion, the way ahead will be that more Singaporeans, young and old, have to take on more responsibilities in the community – we need everyone to play a part anyway to make a caring society possible. We need to recruit more Singaporeans to volunteer to do so. But we also need to make sure that jobs are meaningful and the "job scopes" are better defined. There should be a central coordinating body within the respective communities for optimal manpower deployment – a function that perhaps the Community Networks for Seniors can assume. (In English): Next, I would like to touch on support for our young and families. I am heartened by the continued investment in the children of Singapore. We must continue to give our young a good and more equalised start in life. The First Step Grant is another step in this direction, given that some 5% of parents cannot even afford to deposit a cent in their children's Child Development Account (CDA). Hence, this grant ensures that any Singaporean child will have a minimum of $3,000 in their CDA from the moment they are born. Earlier on, hon Member, Ms Kuik Shiao-Yin, made the impassionate call for this to be given to all kids, regardless of the marital status of the parents.[+20 sentences] And I feel very touched by her impassionate call and I would also like to reinforce that call. KidSTART too is a step in the right direction. This longer-term and more holistic approach towards children of less privileged backgrounds is welcomed. I hope it will also focus on children from vulnerable backgrounds, such as single parent or very complex family situations. At the end, by giving the children of Singapore a good and more equalised start, it is really making sure that the future of Singapore also starts on a better footing. Over the years, it is also very heartening that the Government is determined to support families in Singapore and has implemented measures to help young Singaporeans achieve both parenthood and career aspirations, reducing their need to make trade-offs. Women have also been incentivised and encouraged to stay employed, even after being mothers. This is progressive and we must continue to do so. However, there are still some challenges that we must solve. One, childcare supply is still chasing demand. The Government is very actively working on this area but there is still some way to go. Can we consider alternatives other than care centres and familial support, which not everyone has? For example, organise and tap on "informal sources of labour", such as nannies and volunteers within the community to supplement infant care and childcare centres. There are many experienced women, or we know them as "aunties", or trained part-time caregivers who want to take care of infants and children and earn an income at the same time. The Government can help match demand with supply by creating an online directory to facilitate this. Interested parents who cannot secure a placement at the infant care or childcare centre can look to this platform for potential caregivers within the neighbourhood. Basic profile and credentials of these caregivers can be published in the directory. Parents and caregivers can then negotiate the price privately. In essence, whatever the format is, make this additional option more easily available for parents to consider. Two, we should continue to support working mothers and not discourage them. Some working mothers, who are PMEs in MNCs, shared with me that whenever a woman becomes pregnant, her career progression or promotion can get held back for one year. While they understand that the firms have to fairly reward others who inevitably have to step in to cover their duties during the downtime following birth, the opportunity costs are considerable.[+6 sentences] It is already challenging for women to succeed in corporate life, given that women are often the minority in the boardrooms and within senior ranks. With children, they have to perform the additional juggling act of being a responsible mother and a performing employee. So, it is extremely challenging for working mothers, a reality that can also be off-putting for young women who are still unsure if they should have children. In response, the Government had introduced a variety of measures to encourage childbirth and support working mothers. These are not new points. But I think there is one part of this year's Budget that risks becoming a disincentive. The personal income tax relief cap of $80,000 almost only hits working mothers, specifically those from mid-management and higher. Quite a few of the working mothers who are affected have reached out to me to express their unhappiness.[+1 sentence] They feel aggrieved not so much because of the reduction in disposable income, but more for the signal conveyed through this move. Rightly or wrongly, these working mothers feel singled out because their male contemporaries are generally unaffected by this move.[+9 sentences] Those who had enjoyed the working mother relief now feel penalised. Some wonder if the Government is asking them to have fewer children. Some wonder if it is really worthwhile to continue working hard to advance in their careers. Some wonder if this signifies that senior job roles are not meant for mothers or that mothers should not have higher career aspirations. Sir, I have no doubt about the need for a progressive, equitable and sustainable system, especially with the anticipated rise in social spending. But I think there are strong emotions evoked with this move and there is a need for some airing. I hope that the Finance Minister can help to shed some light and share what was the policy thinking behind this move. So, if I may boldly submit the following questions. Firstly, what was the rationale for making such a move at this point in time? Surely, the Government had known that the people affected are mostly working mothers.[+14 sentences] Would the Minister help to share the thought process and the options considered? Secondly, I believe everyone is for a progressive tax system. But I wonder if the gain from this move to make the tax system more progressive is worth the tangible and intangible costs inflicted on these working mothers. Lastly, could the Government have increased revenues via other means that may encourage healthier lifestyles and behaviours, for instance? As I look forward to my queries being addressed and the policy insights being shared, I would like to raise and reinforce two suggestions, with the hope of alleviating the challenges faced by working parents, especially working mothers. Firstly, allow fathers to share more of the maternity leave. This will signal the need for a more equal sharing of parenting responsibilities. It will also mitigate the perception that mothers are a liability at work. Secondly, continue to promote flexi-work but not just for mothers. This can enable fathers or even grandparents to enjoy greater flexibility at work and hence, spend more quality time to help care for the children. The family can then work out an optimal schedule amongst themselves. Initiatives to encourage employers to adopt flexi-work arrangements have already been in place for some time. But I think it is worth pushing it further and reinforcing the message more frequently. Also, the Government could perhaps emulate what it is already currently doing with the industry transformation, and that is to adopt a more targeted approach. For example, could the Government refine the current Work-Life Grant to encourage employers to tap on technology more so that face-time at work is less necessary?[+3 sentences] In conclusion, I concur with the overall direction and the themes of this year's Budget. We cannot have everything in one year's, Budget but I have confidence that over a few Budgets, much can be achieved. And with that, I support the Motion.
[+9 sentences]Mdm Speaker, thank you for giving me the opportunity to participate in the debate on Budget 2016. This year's Budget emphasises growth. A lot of money will be spent on transforming our economy through enterprise and innovation. This is crucial to ensure that Singapore remains relevant and competitive, so that there is growth. Growth will enable us to realise our aspirations and fund our essential programmes like education, healthcare and defence. But there is another important aspect of this year's Budget, and that is the social element, making sure that Singaporeans have a stake in our country and share the ownership of this place we call home. I am happy that the Minister for Finance has not forgotten about the vulnerable in our society – our young, our low-wage workers, persons with disabilities and, especially, our seniors. I have a special empathy for our seniors. Like our parents, our senior citizens have worked hard for us. Now, it is our responsibility to look after them.[+1 sentence] Mdm Speaker, I see that the Minister for Finance has assigned more resources to the Ministry of Health (MOH) – $11 billion in 2016, compared to $9.2 billion in 2015. I know we have managed to keep our healthcare spending over the decades on the lower end with our unique 3M approach – MediShield, MediSave and MediFund. I sat on the MediFund Board for several years and I know how it has helped so many of our people. We have improved MediShield to MediShield Life last year, providing universal healthcare insurance coverage for all Singaporeans. The Community Health Assistance Scheme (CHAS) was also enhanced in 2014 to help Singaporeans with outpatient primary care services in the private sector.[+5 sentences] I do not have the exact figures but, judging from my house visits and friends in the medical community, the scheme has helped many residents. But as our population ages, our healthcare expenditure can only go in one direction – up. We are already feeling the impact of the increasing number of seniors in my constituency. During my house visits, I have encountered more aged living on their own. Of course, many are productive, helping look after their grandchildren and generally living a happy and fulfilling life after retirement. To those that are not so fortunate, I am glad we are doing more to help with the Silver Support Scheme.[+33 sentences] But going forward, I feel that there is more we can do to make sure our healthcare budget can be better spent in three ways: first, we can make better use of primary care resources; second, we can better leverage on technology; and third, we can encourage active ageing and emphasise prevention rather than cure. Singapore has a good healthcare system with world-class hospitals and specialty centres, such as the National Heart Centre, Cancer Centre and Eye Centre. While we have a highly sub- Page: 11 specialised system, I believe we can make better use of our primary care system. Last December, while on a break in Australia, I met up with a Singaporean doctor practising in a suburb of Melbourne. In our discussion, we spoke about coordinated care. As a family general practitioner (GP), he would be the one assessing his patients' needs for surgery and coordinating with the specialist. After surgery, the specialist would send a soft copy of the patient's files and x-rays and the GP would follow up. I learnt that the role of the family doctor is important and useful for the long-term care of the patient. Currently, 80% of our GPs and family physicians work in the private sector. The remaining 20% work in our polyclinics and hospitals. In a recent visit to a public hospital, I was told that 80% of their cases are referrals from the polyclinics. It is common knowledge that our polyclinics are operating at near full capacity. Can we make better use of the 80% of GPs and family doctors in the private sector? Can we enable these doctors to handle the consultation with support from the specialists? This will make it more personable, build better patient-doctor rapport and also ease some of the loads off the public doctors in the polyclinics. Next, can we use technology to create a better experience for our increasingly ageing population? The Minister had shared in his speech about how robotics in our hospital pharmacies is improving accuracy and speed of services. I fully support this. We should do more. In the marketplace today, there are robots that can perform simple chores around the home, health bands that can monitor the state of the elderly, remind them to take their medication and send alerts when the users' health is compromised. Isolation is one of the biggest problems for senior citizens. Today, many Internet services help people stay more closely connected with family and friends. Should we harness the power of technology to help our elderly stay engaged? One example is a virtual retirement village where tech-savvy elders can connect, look out for and keep one another active and engaged. Finally, on outreach and prevention, let me share two stories. The first one is from our Tampines Pioneer Generation Ambassadors' (PGAs) house visits. Last July, our PGAs visited Mdm M and her husband to explain the PG package. Two weeks later, our PGAs received a call from Mdm M informing them that her husband had passed away. She was not sure whom to call. Our PGAs rushed to the pioneer's home and activated ambulance services for assistance. Our PGAs continued to befriend Mdm M and give her support to cope with her husband's demise. Mdm M is now an active participant in our community events. This is one of the many examples of friendship made possible through personalised outreach and the good work of our PGAs. As of June 2015, there are 670,000 Singaporeans aged 60 and above.[+4 sentences] Of these, 434,000 are PGs. I hope that the newly-launched Community Network for Seniors can have the same personalised outreach as our PG programme. I hope they can also engage our seniors who are not in the PG programme, to explain MediShield Life and understand their needs and interests. It is important that our seniors are aware of the medical assistance that is available to them while they are well so that if and when they are not well, they will know how to seek medical help. Last Christmas, I was at our PCF eldercare centre, and I met a new client, Mdm Loke, aged 72.[+2 sentences] She said that she used to have body aches and pasted many "koyok" plasters to relieve the discomfort. Since joining the centre, she had been doing morning exercises and activities. After a few weeks of participation, she began to feel better and did not need to apply any plasters or Page: 12 continue her rehabilitation therapy.[+1 sentence] She showed me her mathematics assessment book. As she did not have the opportunity to attend school, the programme coordinator decided to teach her mathematics.[+1 sentence] She was so happy learning simple addition and subtraction. This conversation left a strong impression on me on the joy of learning − that we should and can continue to learn at all ages. We should look at how we can harness SkillsFuture to roll out interesting courses in our Community Clubs to keep our seniors engaged. To our seniors, I say, "You can retire from work but please do not retire from our community".[+2 sentences] I implore our seniors to stay engaged and active with us and, together, we can continue to make our home, our Singapore, the best home for all of us. Mdm Speaker, I support the Budget.
Ms Jessica Tan Soon Neo (East Coast)2209 words
[+16 sentences]Madam, thank you for allowing me to join in the Budget Debate. At every Budget, like many Singaporeans, I ask the question whether the focus of the Budget addresses the right areas for Singapore and the segments that most require support. Over the years, I struggle with another nagging question: "Is the Government doing enough or is it doing too much?" While we want the Government to provide support for those who need it, we also must ensure that it does not lead to dependency on the Government that blunts our own abilities. So, what is the role of the Government? Building an environment and climate of stability and security for continued economic growth, providing quality education, training and enabling jobs − that is what I believe the Government must continue to do. Minister Heng, in delivering his maiden Budget speech, reminded us of Singapore's first Budget and its mission, which remains unchanged: "It is to find the ways to create opportunities for Singaporeans to grow, defend our home and our people." Budget 2016 and its priorities do outline the strategies to achieving this. What Singaporeans and businesses that operate in Singapore have to do is to apply ourselves to these opportunities to make an impact. A common thread in Budget 2016 is that of "Partnership". Minister Heng reminded us of what Mr Lee Kuan Yew had said: "For it is your job and mine… to make sure we survive. If Singapore is to have a future, we have to work hard at it – together". And I emphasise the point "together". In my maiden speech in this Parliament in 2006, I had touched on the point of "Hope" and what gives hope to Singapore and Singaporeans. Like many Singaporeans, I like the overt efficiency and effectiveness of Singapore and the fact that things work here. What I hold special though and what I value for myself and my children is the knowledge that there will be opportunity to participate and succeed in Singapore. We must continue to work together to continue to give this hope to all Singaporeans. I am encouraged that Budget 2016 has taken a more targeted and differentiated approach, making deliberate and calibrated measures to address both near-term concerns facing our businesses, especially SMEs, and the longer-term challenges of restructuring. The deferment of the levy increases for the Marine and Process Sectors and having work permit levies for Manufacturing remain unchanged for another year are a welcome move and a recognition of the challenges that these businesses face. The Industry Transformation Programme is targeted and sector-focused to support SMEs to innovate, scale up, as well as to seek new market growths.[+12 sentences] The Budget is also seeking to deepen partnerships to support the Trade Associations and Chambers (TACs) to build Page: 13 capability through the strengthened Local Enterprise and Associations Development (LEAD-Plus) Programme. Against this backdrop of Partnership for Budget 2016, I would like to touch on a few areas. Let me talk about opportunities, unemployment, building relevant skills and the Singapore Core. Against a backdrop of economic slowdown and the need to transform our businesses to address low productivity growth facing Singapore, we need to address the concerns of ensuring opportunities − and not just opportunities, but opportunities for quality jobs. With the pace of advances in technology and the disruptions that technological developments are having on jobs, we need to develop quality middle-income jobs, given the profile of our workforce. Many in this House have already spoken about the growing concerns about mature PMEs on job opportunities and the Ministry of Manpower's (MOM's) latest Labour Force Report on the redundancy rates. So, I am not going to elaborate further on that. But I would say that the trends are of concern because this group forms the bulk of the workforce and, at the same time, their re-entry into the workforce after redundancy. The trends on that have been a concern. So, we need to address the growing anxieties over the slowing economic growth and employment trends. Budget 2016 did outline the "Adapt and Grow" initiative, which is, and needs to be more than, just wage or employment support. While the focus must still be to help PMEs get good jobs, they require help to adapt to changing job demands and to grow their skills. The Career Support Programme (CSP), which has been in place since October 2015, encourages employers to employ mature Singaporean PMEs by providing wage support to employers for the first year when they hire PMEs who have been looking for jobs for at least six months in mid-level jobs that pay at least $4,000 and up to $7,000 a month.[+3 sentences] The important thing about this programme is that it helps workers settle into their new jobs and it requires employers to provide structured on-the-job training or to send them for external training. On the part of PMEs, they need to apply themselves to take on the challenges to acquire new skills to be able to take on these new job opportunities. But I still think that more can be done, in partnership with employers, to address employment opportunities for workers, especially PMEs, while also helping employers to address their manpower needs. So, in the same way of taking a targeted approach to help companies restructure, we should take a more targeted approach with organisations and businesses to address the changing job demands and growing the skills base for these organisations. I encourage the Government to do more and have clear plans on developing a Singapore Core in the workforce.[+4 sentences] At the Opening of this Thirteenth Parliament, I had outlined the need for employers to make deliberate bets on building a strong Singapore Core, given the rapid changes we are seeing in the workforce and to make a bet on Singapore talent. With a high level of literacy and education in Singapore, the Singapore workforce is a strong talent base for companies to tap on. The Singapore workforce is also known for strong work ethics and trust. So, while we require employers and workers to develop and reskill, what we need is also for the Government to provide support to employers to make these investments to building the Singapore Core. Along the lines of the Lean Enterprise Development Scheme (LED) for SMEs that was effected in October 2015, in how they can help businesses restructure to be a more manpower-lean organisation, the LED programme recognises the transitional manpower adjustments to enable Page: 14 companies to embark on transformational projects to redevelop and provide for these technology skills required.[+6 sentences] How can we drive a more concerted effort to accelerate and leverage the programmes, like LED and CSP, to provide quality employment for Singaporeans, especially the growing base of PMEs? This is the paradox. How do we ensure that we allow and stay open while at the same time build that Singapore Core by allowing companies a little bit more leeway, like in the LED programme, during the transition to have a little bit more flexibility on the workforce? Let me now touch on simplification. On this point of simplification and understanding the various schemes available, I think we can do a more effective job here. And I am pleased that there has been a deliberate shift to move from a scheme-centric to an enterprise-centric approach. A good first step is the launch of the Business Grants Portal.[+6 sentences] This, hopefully, will improve access and drive greater awareness of the many available schemes for businesses, especially SMEs. But again, I would say that more can be done because I have got feedback from various residents who have tried to access some of these schemes. I will just give an example of a PME who tried to access the Skills Upgrading Programme and was trying to upgrade herself. She was registering herself for a training programme last December. She paid the registration fees and did the necessary documentation. But like many other service providers that she worked with, this training service provider, when she asked what she qualified for, how much would she be funded for, she was told: "You wait and see. After we have made the application, then we will know." She had to continue to chase them and, finally, she was told that they did not submit her application because she did not qualify.[+6 sentences] Of course, being relentless, she decided she would go directly to the Workforce Development Agency (WDA) and she did. She found out that she did qualify, and she found out that she had to educate the service provider on how to ensure that she qualified for it. She is still pursuing it. I am glad she was perseverant and wants to upgrade herself and is doing that. But clearly, this shows that the schemes are there, but how do we ensure that those who need it have access and are able to use it? Now, I would like to touch on the point of the middle income. Feedback I received from residents, not just specifically from this Budget, but from the dialogues and the chats I had, was the need to do more for middle-income retirees. And I believe this sentiment was triggered because of the expectations on the Silver Support Scheme.[+3 sentences] Many did understand that this is not a broad-based programme, and that the support was meant for the lower 20% of Singaporeans aged 65 and above. But they still had expectations, as this is an ongoing support and features in our social support system. I do agree that there is a need to limit who gets the support and to ensure affordability. Minister Heng himself did share the difficulty in assessing and operationalising the scheme effectively and hence, the use of the three criteria in combination. But some feel that the use of housing type, like other means-tested schemes, does not recognise that retired middle-income seniors may need support as they are asset-rich because of their housing type but are cash-poor.[+14 sentences] The criteria of lifetime wages and level of household support are already quite stringent. The use of housing type did fuel the sentiment of why that was necessary, given that there are already stringent criteria. While support via the schemes may not be the answer for these middle-income Page: 15 retirees, I would ask that more be done to look at how support can be given to this group to unleash their fixed assets, as there are concerns. Many of them are running out of savings and are very anxious. At the same time, to ask them to sell off their assets seems to be the logical answer, but is probably pretty harsh. And I think some Members of this House have also spoken about it. Not directly related to Silver Support, but on the point of using housing type as a criterion for means testing, I would request that we relook at this criterion as housing type itself may not be the best because, in some cases, family support is provided and people do live with relatives in private housing. They do not own these assets, but in the means testing, they are still included in the assessment. I am reading a book by Stephen Covey, titled "The Speed of Trust". A point made in this book reminded me of what has made Singapore successful and will continue to do so, and this is the point of "Trust". Trust is a function of two things – character and competence. Both are required. People and businesses put their trust in Singapore because we have a track record of making things happen and many describe us as a country that is safe and reliable. This has not been easy to achieve and to continue to earn that trust, we need to continue to deliver on the trust. A key tenet of Budget 2016 is the need to continue to build capability and competence in our people.[+1 sentence] Stephen Covey, in the book, stressed that while it is natural for us to think of trust in terms of character, equally important is competence. Character is necessary for trust to exist in any circumstance but trust also requires the ability to deliver results and impact. Therefore, it is important, whether it is SkillsFuture or this whole investment in innovation, whether it is at the individual or the organisation level, we have to ensure that if we, as Singapore, want to continue to earn that trust, we need to build that competence and capability to be able to deliver that while we maintain the character of this country.[+2 sentences] So, Madam, people have made Singapore and what we have achieved possible. It is our people that will continue to make the difference for Singapore in the next 50 years. People are our only resource and we are a small nation.[+4 sentences] Working in partnership has made the difference. As we move to write our story for the next 50 years, let us remember that it is not only about what each of us will do but what all of us must do that will matter. So, while we cannot predict the exact outcome, we must be bold, dare to dream, prepare for it, work together and execute well. Madam, I support the Budget.
The Minister for Finance (Mr Heng Swee Keat)3201 words
[+3 sentences]Mdm Speaker, let me thank Members for their insights over the past few days. Many have put their minds to the question of how Singapore can make a good living in this changing volatile world, and many have put their hearts into the question of how we can support Singaporeans to live with strength, confidence and fulfilment. I value and appreciate this, as do my Ministerial colleagues, who will take up the specific issues during the Committee of Supply. In my Budget speech, I said that Budget 2016 is the beginning of our journey towards SG100.[+37 sentences] We want a future where our economy is abuzz with innovation and enterprise, and where our Page: 16 society is alive with caring and resilience. After listening to Members, it is clear to me that not only do we know where we are heading, we are committed to getting there together. Many Members have rallied to the call for partnership. The urgency and conviction behind Members' support for partnership have been palpable. This is most encouraging and promising for our future. So, we know our direction. We also know where we come from, the road we have journeyed to get here. Mr Heng Chee How is right about our hard truths: we have very real limitations as a small, resource-less country. But resource-less though we may be, we have inherited a legacy of resourcefulness from our Pioneers whose wealth of experience and hardiness serve as our down payment for the future. We can be held back by our limitations, or we can be like our Pioneers and break through our limitations. Our Pioneers have shown us that when there is a will, there is no way you will stop a hardworking Singaporean from doing the extraordinary for family, home and country. We know where we want to go. We know where we come from. It is the in-between, the getting-there, that is full of "unknowables". Mr Lee Yi Shyan shared, vividly, how the world is changing. The changes are coming so fast and furious that no one can say what the road ahead will be like. But even if we cannot tell the lay of the land ahead, there are many things that are up to us. How will we conquer each obstacle before us? How will we weather the storms? How will we pick ourselves up when we stumble? And how will we help our fellow travellers to go forward? In this Debate, I have been struck by how many Members spoke about our values, our mindset and our culture, and I certainly appreciate these points. Let me put what Members have said together in one word: Spirit. It is the spirit in which we do things, the spirit within which we take this journey, that will keep us true to where we came from and carry us through to where we want to go. From Members' speeches, we can sum this up as the spirit of enterprise and caring. Enterprise – to not be held back by what appear to be limitations, to overcome challenges, innovate, stay resilient and seize opportunities. Caring – to keep our Singapore a warm and giving home where we help one another through our personal challenges where we can each achieve our best, reach our dreams and go on to inspire and serve others. We know where we came from. We know where we want to go. And we are committed to moving forward together in partnership, in a spirit of enterprise and caring. Now, I will speak on how Budget 2016 enlivens this spirit of enterprise and caring for our journey of the next 50 years. Let me begin with the economy, which many Members have spoken on. Page: 17 Mr Chong Kee Hiong, Ms Sun Xueling, Mr Yee Chia Hsing and Dr Tan Wu Meng talked about global trends affecting Singapore and how our economy must remain outward-looking and forward-looking. Minister Chan Chun Sing and Mr Sitoh Yih Pin spoke on short-term challenges facing our economy and the impact these will have on our businesses and workers. Mr Patrick Tay and Mr Saktiandi Supaat provided suggestions on how we can transform our economy and what role the Government ought to play − a point which Ms Jessica Tan also raised earlier. These are all very valid points and I thank the Members for their thoughtful views on the subject. Mr Liang Eng Hwa said that "to achieve better lives and a stronger nation, we need to have the means and resources to get there". This is a timely reminder of why we need to grow the economy. This is what the Budget seeks to address and this is also why we have set up the Committee on the Future Economy.[+1 sentence] Many Members have spoken in support of our SMEs. Indeed, this Budget is tilted towards supporting SMEs. There are over 180,000 SMEs, accounting for nearly two-thirds of our employment.[+10 sentences] The success of our SMEs matters to our people's jobs and well-being. SMEs provide a range of services that are important for our daily life and add buzz to our neighbourhood. Some will grow to be our future large firms. Even if they do not, our society will be the richer to have the opportunity where people just try to do something. We want our SMEs to do well, we want them to succeed and we want a vibrant SME sector. But in order to support SMEs, we must recognise that they range from micro-enterprises in the heartlands, to fairly sizeable firms with an international presence. Some are in sectors that are doing well, while others are facing difficulties. Hence, as many of you pointed out, we cannot have a one-size-fits-all approach. As Mr Louis Ng noted, different people have taken away different messages from this Budget. Reactions across the different news outlets have also been different; even the headlines. Listening to all your comments, however, there is a common thread running through how we can help firms and workers. This common thread is to nurture, celebrate and reinforce the spirit of enterprise and not undermine it even as we provide support – to go for long-term vitality and not short-term fixes.[+40 sentences] A business leader once asked me this very intriguing question. He said, "In every place, from the poorest neighbourhood in Africa to the richest precinct in Silicon Valley, there are firms that succeed and firms that don't. Why?" Good question! Last year, both the Singapore Business Federation (SBF) and the Singapore Chinese Chamber of Commerce and Industry (SCCCI) honoured companies and business leaders from our founding days. The SBF award recipients include longstanding names, such as Shaw Theatres and Yeo Hiap Seng. The SCCCI award recipients include the founders of Lim Teck Lee, Pan-United Corporation and Sing Lun Holdings. Page: 18 These companies and pioneers started out in an environment with few grants, incentives and agencies to support them; a point which Er Dr Lee Bee Wah also raised. In many cases, they started from scratch or, as the Chinese say,"白手起家". So, whether you look across countries or time in our own history, why do some firms succeed while others do not? The common element for success is this: the spirit of enterprise. This is the critical element needed for economic vibrancy, in Singapore and anywhere in the world. Running a business is a complex thing because you will be faced with a myriad of unforeseen problems. The more problems one solves, the further one gets ahead. Solving problems also allows the entrepreneur to develop the entrepreneurial instincts to then see opportunities where others see problems. Assoc Prof Randolph Tan hits the nail on the head when he said that the principles that have propelled us since Independence are "self-reliance, openness and a determination to remain updated and relevant". These are what nurture a spirit of enterprise. One element of this spirit of enterprise is the need to look outwards and forward, to see challenges and opportunities in the world around us. So, I am very encouraged to hear Members speak of the implications of these changes. Mr Lee Yi Shyan reminded us of how robotics is shaping the global economy. Which country in the world buys the most industrial robots? Well, the country with the most people in the world – China! It is astounding, is it not? So, if even China, at their lower level of wages, is automating, what does this mean for us? Minister Chan Chun Sing related how e-commerce is changing the face of retail. As consumers, we want the best deals. So, I have heard of many people who go to a shop to view, feel and try products, then go home to purchase it online at a lower price. I do not know whether Members here do that, too, but you must have heard of people who have done so. So, retail shops are under stress. But some in the sector are looking ahead into the future. For example, Funan DigitaLife Mall, known for years and years for selling IT products, is closing to reshape itself to become "an experiential creative Hub". Mr Liang Eng Hwa cited insourcing trends in both the US and China. This means that the global supply chain which we are a part of is shrinking. China and the US will produce more and more of their goods at home. So, how do we continue to create value within the world, amongst the world's biggest markets? In this regard, Mr Heng Chee How and Mr Lee Yi Shyan reiterated that economic transformation is urgent and critical. We must, indeed, support our businesses' spirit of enterprise to look outward to the world and forward to the future, and take this task of transformation urgently. At the same time, many Members, such as Mr Saktiandi Supaat, spoke of the challenges faced by our SMEs in the near term. Some Members, such as Mr Ang Hin Kee, Mr Gan Thiam Poh and Mr Zaqy Mohamad, have asked for more support for SMEs in this period. I appreciate these concerns. One way of supporting this spirit of enterprise is to make sure that viable firms can survive this period of cyclical weakness. Otherwise, we lose precious capabilities that are difficult to rebuild later.[+1 sentence] Our people's livelihoods could also be at stake. Page: 19 This is why this year's Budget is carefully calibrated to address cyclical concerns without impeding restructuring.[+3 sentences] Members, such as Mr Ong Teng Koon, have expressed support for this support package. Costs remain a concern for many SMEs. Some members, such as Er Dr Lee Bee Wah, spoke about rental costs. In fact, rental costs have declined over 2015. Retail, office and industrial rents fell by 4.1%, 6.5% and 2.1% respectively.[+44 sentences] But I appreciate that the experience can be different for different firms in different locations. Now, that is why we are careful to shape overall macroeconomic conditions to be supportive of growth to make sure that we do not price ourselves out of the global market. We released more space, implemented anti-speculative measures and calibrated our exchange rates carefully. These are medium-term measures and we are seeing results. We are seeing results in terms of supporting firms even in the cost area. Others, such as Dr Lily Neo, spoke about manpower costs. Wages have been rising, which is good for our workers. Our workers do look forward to rising wages but it puts pressure on businesses, especially those with lower margins. We must understand where these cost pressures come from – they are fundamentally based on demand and supply. Our supply of land and labour is limited. But the demand for our resources is growing, which, in fact, indicates that our economy is still growing. So, prices are bid up. So, while we should be careful not to price ourselves out of the global market, we must accept that we cannot be a low-cost location. Even China, which used to be a cheap place, with its vast land and population – 1.3 billion people – is experiencing rising business costs. Their businesses are automating, their businesses are moving out from coastal regions to inland, as well as to cheaper locations outside China. So, we cannot permanently subsidise costs. All firms, large or small, in whatever sector, must compete on productivity and innovation. This is the way to reinforce the spirit of enterprise and to build vitality in our firms for the long haul. This is how we will compete. Enterprising firms understand this and build their business models with these hard constraints in mind. I fully understand that restructuring is painful. But it is necessary. It will ensure that our finite resources will not be trapped in "zombie" businesses, as Mr Ong Teng Koon warned. And, our workers will not be trapped in firms and sectors with poor prospects. Our concern about restructuring is, ultimately, a concern for our workers, our people. In this regard, several Members have spoken at length on what we should not do to undermine the spirit of enterprise. Ms Thanaletchimi and Mr Ang Wei Neng cautioned that Government support should not become a crutch. And as Dr Lim Wee Kiak pointed out, firms should not have the impression that the Government will eliminate risks and bail out any firm in trouble. Mr Vikram Nair also cautioned against institutionalising subsidies to industries as they can be difficult to remove. I appreciate Members' comments on how we can best support our firms in this period of weakness. But a business leader, Mr Steven Koh, put it to me this way. He said, "Government support is like push-starting a car that has gotten stuck in a difficult patch – it can get the car going again, but the Government cannot be pushing the car for miles and miles. It will run out of Page: 20 resources. So, once the car is moving, it has to rely on its own engine to go for the long haul." Wise words from a leader who has been in business for a long time. To go back to the question of why some firms succeed, we also observe that some economies and some regions of big countries produce more winners than others and have been able to create many more good jobs. Again, why is this so? What is happening in these places? Well, in these economies, the governments have played an important role, an enabling role – enabling enterprising individuals and businesses to go further than they could have on their own. Ms Jessica Tan just touched on this point and said it well. They have created a stable political and business environment, with clear policies and regulations, invested in R&D and first-class infrastructure and most of all, in their people through education and lifelong learning. They have also partnered business to grow the economy, while allowing market forces to work to channel resources to the most productive firms. In these countries, businesses and governments have come together to achieve external economies of scale – or, as academics put it, the Marshallian externalities – a point which Prof Hoon Hian Teck and I recently discussed. In short, the governments work to strengthen the spirit of enterprise in their firms and workers. In this Budget, we seek to one, help entrepreneurial firms scale up and internationalise; two, support automation to build capacity; three, encourage innovation; four, support our shops through the revitalisation of heartlands; and five, provide a broad range of support to SMEs so that everyone has the opportunity to upgrade, to raise capability and to compete.[+11 sentences] For our people, we seek to support the development of deep skills and match these to growth areas. Er Dr Lee Bee Wah sums it up well on how we can support the spirit of enterprise and how we can aim for long-term vitality. I quote, "In the short term, Singaporean firms might rightly expect some fish from the Government to keep their workers fed. But, ultimately, the country will run out of fish if they don't develop bigger, smarter and faster fishing ships to get fishes from international waters." And, indeed, the Government can help businesses to develop bigger, smarter and faster ships but ultimately, the captains of industry must navigate the ships and help our firms go the distance. As we move to the next phase of our restructuring journey, we will adopt a more targeted approach to helping firms. Different firms and industries have different needs. To drive real transformation, we need to calibrate our support to the needs of each firm and each sector. Indeed, Ms Denise Phua made a similar point about "not taking a cookie-cutter" approach. I thank many Members for their support for the shift from a broad-based approach to a more targeted, sector-focused approach to supporting industry. Now, several Members spoke on the Productivity and Innovation Credit (PIC) – was it effective, or was it abused? Notwithstanding some of the reports, let me clarify that the PIC has, in fact, largely achieved its objectives.[+1 sentence] From the start, PIC was designed to raise awareness among SMEs about productivity and importantly, to get SMEs to undertake basic productivity efforts, to get started. As at January 2016, 102,000 companies have benefited from PIC. This is about 70% of all active companies in IRAS' records for the Year of Assessment 2014.[+1 sentence] A very considerable number. Page: 21 Today, around 90% of SMEs are taking steps to increase their productivity, according to a survey by the Singapore Chinese Chamber of Commerce and Industry (SCCCI).[+5 sentences] With this broad-based take-up of productivity initiatives, we are now ready to move on to the next phase of restructuring, through the Industry Transformation Programme. Some may ask whether we are sure that the Industry Transformation Programme will succeed. As I said before, there is no textbook answer to policy; there is no textbook answer to innovation. So, in Government, we, too, need to embrace a spirit of enterprise – we have some clear ideas of where we need to go, what we need to do. But we must be humble and we have to figure it out dynamically, learning, improving and improvising as we go along, and working in partnership with businesses which know well what are needed. Based on our consultations, the consensus at this point is that this is the best way forward. Mr Liang Eng Hwa rightly pointed out, together with several others, that implementation will be key.[+2 sentences] And I could not agree more. This industry transformation will not be easy. As industry needs are complex, it will require strong partnerships. But we have the advantage of trust among firms, unions and the Government.[+6 sentences] If we do not dare to try, we will certainly fail. If we have the guts to try, we have a good chance of succeeding. And if we go at it together, we have the best chance of succeeding. Some Members have asked whether there is a spirit of enterprise in Singapore firms; is it well and alive in our firms and in our people? Let me highlight some examples. With your permission, Mdm Speaker, may I display some slides on the LED screens?
Mdm Speaker8 words
[+1 sentence]Yes, please.
Mr Heng Swee Keat9533 words
[+3 sentences]This is Wee Meng Construction, a local steel fabrication SME serving the construction industry. Like other SMEs, they could not attract young and skilled Singaporeans. So, they did three things. First, they adopted a new robotic cutting system, which increased the productivity of the cutting process by 18 times.[+1 sentence] Second, they mapped their productivity gaps to identify improvements. Third, they trained their staff to operate the new machines, increased the pay of trained staff by 10% to 20%, and built an in-house robotics team.[+22 sentences] So, now, new Singaporean employees join the firm, and they reduce their hiring of foreign workers. Their next step is to secure overseas steel fabrication projects. Wee Meng Construction is a good example of how we can automate, develop our people, scale up and internationalise. The technology that Wee Meng Construction has adopted is scalable across the sector and we will support such capability upgrading. Firms like Wee Meng give us hope. By turning adversity into opportunity, they embody the forward-looking resilience and enterprise that have carried Singapore this far. Another good example which I came across recently is Jean and Jeremy, a mother-and-son duo who own JMD Pacific, very near here, at Peninsula Shopping Centre. A traditional retailer, growth was slow and e-commerce was drawing sales away from brick-and-mortar stores such as theirs. So, Jeremy, who graduated from university, suggested to his mother to list her products online and use social media to do marketing. This immediately opened up access to a wider group of customers. Jeremy also helped to bring in sports and lifestyle products new to Singapore, and Page: 22 they became the exclusive distributor for some brands now carried by big stores, such as Challenger, Courts and Guardian. As sales moved online, they digitised their processes and ventured into overseas markets and into new product lines, such as sports and lifestyle products. It is an inspiring story of the transformation of family businesses and how even a retail store can take advantage of technology and e-commerce to move ahead. At the industry level, successful transformation can benefit all firms within the industry. I spoke of the spirit of partnership in the Budget Statement. Firms can achieve more when they work together on common goals. Some people have asked – after I raised this – why competitor firms would find it in their interest to cooperate. Firms can cooperate and compete all at the same time. They can compete in ways to differentiate themselves from one another, in different niches of the market, with different views on who has the best product or service. But they can cooperate on ways to help them all drive down costs, grow the markets and grow global mindshare. An example is the Collaborative Industry Project on 3D Additive Manufacturing where companies come together to share access to the state-of-the-art equipment at the Singapore Institute of Manufacturing Technology (SIMTech). SIMTech also works with companies to identify key technologies that can drive their future growth. For example, they helped Wavelength Opto-Electronic, an SME manufacturer of infrared optic components, develop a first-of-its-kind miniaturised laser equipment. This new system helped to grade the quality of the products and the company's annual sales have increased by over 20% since.[+4 sentences] The system has now gained interest from several other manufacturers, and Wavelength Opto-Electronic has been transformed from an equipment trader and component manufacturer to an Original Equipment Manufacturer. Quite a transformation! This is a good example of how industry-focused institutions can generate value for firms in their respective sectors. For us to have more such efforts, strong sector institutions with committed leadership are needed to drive collaborations and build up shared resources in each sector. Under the Industry Transformation Programme, a Government agency will be appointed to coordinate efforts and develop a Transformation Map for each sector.[+12 sentences] By working with industry, the reach of this programme can be greatly expanded. If private actors in each sector are willing to step forward to do something for their industry, the Government is very willing to support them. Today, there are over 300 TACs, some with more capabilities than others. Mr Lee Yi Shyan highlighted the Singapore Furniture Industry Council as a TAC, which has been effective in helping the entire industry to upgrade. I agree with many of you that not all TACs are playing the role that they could to reach out to firms in their industries. But where they are willing to step up, we will support them in their capability development through schemes, such as LEAD and LEAD-Plus. Separately, Mr Leon Perera suggested that a tool to benchmark productivity would be useful for SMEs. In fact, there are productivity calculators available to firms. One is SPRING's "Way to Go" portal. In addition, SBF, in partnership with DP Info, recently launched the Holistic Industry Productivity Scorecard (HIPS). These tools help companies measure their productivity based on key indicators and allow them to benchmark themselves against the industry norm. Since the launch of HIPS four months ago, 80 companies have used the scorecard. SBF aims to reach 30,000 SMEs by 2020.[+4 sentences] This is an example of how an industry association or business chamber is Page: 23 taking the lead in transformation. So, while I appreciate that many Members have called for the Government to do more, I think we should also celebrate such efforts by industry associations that are not told what to do. They take leadership, they take ownership, they know what the industry needs and they work together to create value for their members. Mr Ang Wei Neng and Dr Teo Ho Pin spoke about how some SMEs may have difficulties attracting talent. In 2013, the Ministry of Trade and Industry launched the SME Talent Programme to help match SMEs with students.[+4 sentences] I am happy to say that since then, more than 450 job matches have been made and over 1,000 internships have been conducted, benefiting over 190 enterprises. The Singapore-Industry Scholarship is another joint initiative between firms in multiple industries and the Government that addresses the issue of talent recruitment. I am very proud of this scheme. I launched it in 2012 because I felt strongly, like many of you in this House, about building Singaporean leaders in industry. Since its launch, around 50 organisations are on board and more than 350 scholarships have been awarded.[+39 sentences] Incidentally, one important criterion which I used for having firms on this is that it is not about a scholarship but about mentorship. Are you willing to develop the talents that you have? If you are, you are on board; if you are not, then we will not admit you to this scheme. I am also very encouraged that business leaders themselves have been avid about mentoring and sharing experiences. Three examples come to mind. First, the Bosses' Network set up by Mr Hong Ting Liang which brings SMEs together; second, the Workforce Advancement Federation, started by Mr CB Chan of Goodrich Global, which focuses on learning and building a sustainable workforce; and third, the Business Leaders' Alumni Club, run by Ms Susan Chong of Greenpac, which organises sharing sessions with CEOs. Industry transformation, sector-by-sector, can be promising. I want to thank Ms Denise Phua for her suggestion of flexibility and enlightened partnership, and the need to have a targeted approach and the "3As" framework. Indeed, the "3As" framework is a way for us to look at how we can support the spirit of enterprise. I would also like to thank Assoc Prof Randolph Tan for cautioning against the risks of entrenchment of sector-based interests. Indeed, we must guard against this. Even as firms cooperate, they must not engage in anti-competitive practices. Let me now speak on the topic of innovation. I thank Ms Chia Yong Yong, Ms Tin Pei Ling and Asst Prof Mahdev Mohan for their thoughtful suggestions. Some Members, such as Ms Kuik Shiao-Yin, said, quite rightly, that building a culture that supports innovation is critical, that culture comes before strategy. I am optimistic that we can do this. Last Friday, I visited The Hangar by NUS Enterprise as well as LaunchPad@one-north, two innovation zones which bring together professors, students and innovators. I quite like the name of "Hangar" in NUS because it is where ideas take flight. There, I met people working together to build exciting startups. Let me highlight two. First, Rabbit Ray. They seek to make a difference for children seeking medical treatment. This is Ms Esther Wang, the founder. She designed a patient engagement device in the form of a toy Page: 24 rabbit that explains medical procedures to children in a medically accurate but relatable and comforting way. For this, Esther won the Shell LiveWIRE Top 10 Innovators Global Award. The second example is WaterROAM, which seeks to make a difference to those in disaster and rural areas in need of clean water. They are a startup that has developed a potable water filtration system that can turn dirty water into drinkable water in the same time it would take to run it from the tap. The young man who showed it to me gamely drank the water to show me that it worked. This has allowed it to be deployed in disaster and rural areas. Why do I highlight these two examples? What struck me about both startups is that their innovation started with the aim of meeting a human need. In the case of Rabbit Ray, the innovation was less in the technology than in the design, with a focus on improving the lives of children seeking medical treatment. Esther is now working on a doll that helps children who have to undergo chemotherapy. In the case of WaterROAM, it is to meet the need for potable water for residents of disaster-hit zones and in rural areas, in the poor areas of the world. I am very happy to have young people like them who understand that innovation is not just about technology or gizmos but really about meeting human needs, making the world a better place and how they can make an impact in the lives of others. There are many other examples of creative people with the desire, skills and belief to make a difference. So, how do we nurture this creative environment that allows innovations to flourish? I agree with Mr Azmoon Ahmad and several others that curiosity needs to be stimulated from young and, indeed, we will be making changes to our education system to nurture this. Meanwhile, we must continue to improve the environment for innovation to thrive. To do that, we need to connect the many dots. That is why we set up SG-Innovate – to connect innovators to smart money, mentors, markets and experts in the R&D area. The thrust of my Budget speech is that innovation must be pervasive and must be present in all sectors of the economy and in all firms, including SMEs. That is what I meant by "there is no sunset industry, only sunset thinking", a point which Mr Thomas Chua elaborated on very well.[+11 sentences] That is why we also placed resources in the revitalisation of the heartland. It is never about confining innovation to enclaves, as Assoc Prof Daniel Goh seems to suggest. To paraphrase Asst Prof Mahdev Mohan, the process of innovation is not a precise science. It is an art that requires us to be patient, take the long-term view, persevere and continuously adapt. We need to change mindsets, as many of you have said, but it is an art and we have to be patient. Many Members have spoken about the impact of the economy on people and jobs. Several, such as Mr Yee Chia Hsing and Mr Zaqy Mohamad, have asked whether there will be good jobs available as our economy evolves. Others, like Minister Chan Chun Sing and Asst Prof Mahdev Mohan, were concerned about whether our people will have the skills to take up good jobs. Mr Melvin Yong, Mr Gan Thiam Poh and others also spoke on how we can help retrenched workers or new entrants into the workforce find the right jobs. In fact, all over the world, people are concerned about jobs as major economies grapple with job losses and structural unemployment. In some countries, there is overcapacity. China is rebalancing its economy from heavy industries to services and may lay off over 1.5 million workers from the coal and steel industries alone.[+6 sentences] Page: 25 In other places, such as the US and Europe, under-investment has held back economic and employment growth. Under-employment and structural unemployment due to skills mismatches are issues that many economies are grappling with. We are in a better position because we have invested in creating jobs and enabled our people to acquire relevant skills. Our overall unemployment rates are low compared with other countries. Ms Sylvia Lim said that the 1.9% figure for the unemployment rate does not tell the whole story. But the picture does not change much even if we look at resident unemployment or any other indicators. At the end of 2015, the unemployment rate was 2.9% for residents and 3% for citizens, which most economists would regard as close to full employment, as there is always some degree of frictional unemployment in any economy. The labour force participation rate has risen from 66.2% in 2010 to 68.3% in 2015, which is higher than the Organisation for Economic Co-operation and Development (OECD) average. The OECD average is about 60%, so we have a very high labour force participation rate. And importantly, real median income has grown by 3% per annum over the last five years.[+32 sentences] Overall, our economy is still creating jobs. The ratio of job vacancies to job seekers remains above one. In fact, if you go to job sites, whether it is Indeed.com or the MOM Jobs Bank, there are many jobs being advertised, including, of course, in the classified advertisements. I understand the anxieties of Singaporeans about jobs because it is not just about jobs. It is about our families. We cannot take for granted that there will be good jobs and incomes in the future. To address these concerns, we need a coherent approach. First, create the right jobs; second, develop the right skills; and, third, enable the right match. So, it is about right jobs, right skills, right match. First, creating jobs and more, creating the right jobs. Assoc Prof Randolph Tan said, "It is no mean feat to continue to generate jobs in an increasingly sophisticated economy packed into one of the most congested cityscapes in the world." Indeed, this is no mean feat. We not only need to create jobs but given our high-cost structure, given the high level of wages already, to create jobs of high value that meet the aspirations of Singaporeans. To do that, our firms must be competitive and productive. I showed this slide when I presented the Budget Statement. This scatterplot shows average productivity and average wage per worker. The higher the productivity of the firm, the higher the wages that they pay to each worker. It shows that productive firms generally pay higher wages. This is why industry transformation is so important. This is why we need to transform enterprises, transform industries and transform through innovation, because Industry Transformation is the engine, the means for us to create better lives and better jobs for our workers. All these changes will require changes which will require us to create new companies and jobs which will require new skills. Page: 26 Some Members have asked whether the Industry Transformation Programme is just about helping firms. Some workers have asked, "Does it help us?" I want to emphasise this very important point that, ultimately, this programme is about helping our workers and our people. As part of this transformation, firms must also redesign jobs and develop their staff. Several Members, such as Mr Ang Hin Kee and Mr Melvin Yong, pointed out how important it is for firms to automate and redesign jobs and train their staff in an integrated way, so as to bring out the best in every employee and allow everyone to catch up. I am happy to say that many firms are doing this and reaping the benefits. Let me share another example. Take Feinmetall, a precision engineering firm I recently visited, where I met Mr Winson Ng, a young polytechnic graduate who joined Feinmetall after his course in mechatronics at Singapore Polytechnic. After working for five months, he was sent by Feinmetall for advanced training in Germany. Upon returning to Singapore, Winson noticed that one of the processes used to bend needles for semiconductor wafer testing could be done better. He conceptualised a way to automate it, then worked with a systems integrator to develop a machine for it. As a result of this innovation, productivity increased four times and operations run 24 hours a day![+17 sentences] The machine also reduced the training time required for the process, from nine months to one week. It is impressive: investing in one young man by sending him to Germany and when he came back, the firm increased productivity four times and reduced training from nine months to one week. The other staff are now redeployed to higher value-added jobs within the firm. Winson's training at the polytechnic and in Germany, combined with his on-the-job experience, enabled him to generate insights and innovate successfully. That is why I have been emphasising that employers play a very, very critical role in enabling the development of their people, not just in upgrading their firms. Firms that take care in making such investments, ultimately, see dividends. A man like Winson, a young polytechnic graduate who is able to conceptualise a machine that has such impact, gets better prospects in life. We must continue to build a conducive workplace environment that empowers staff to continue learning and improving. I hope that all firms will invest in their people, young and old, and start a virtuous cycle of higher skills, higher productivity and higher wages, which can then be reinvested to develop the firm further. Let me now touch on the next important ingredient – developing the right skills. While firms create the right jobs, our people must also develop the right skills to take on these jobs. Preparing our people for the future starts from an early age, when our children develop the fundamentals and a love for learning. As Assoc Prof Fatimah Lateef, Mr Darryl David, Ms Rahayu Mahzam and other Members have said, we must build the confidence of our young, broaden their learning and stimulate their curiosity as early as possible. It is a powerful force that will keep them learning and help them overcome challenges in their lives. To deepen lifelong learning, we launched SkillsFuture with a focus not just on the skills of today, but also on skills for tomorrow. Actually, we have made good progress. Let me cite some data. In 2015, over 260,000 residents took up WSQ courses and 22,000 were enrolled in part-time diploma, post-diploma and degree-level programmes in our polytechnics and publicly funded universities.[+5 sentences] I salute our people for their diligence. I have met many people who are pursuing part-time courses, and I know it is not easy to juggle the demands of work, family and studies. Their Page: 27 spirit of resilience and lifelong learning is most commendable. The success of SkillsFuture depends on everyone playing their part, not just employees, but also employers. The Government will provide support and resources for those who are willing and motivated to acquire new skills and deepen their skill sets. Under SkillsFuture, we are developing an online, individualised learning portal for individuals to plan their careers and lifelong learning. The portal will be launched in phases starting from 2017.[+9 sentences] Some of you will be happy to know this – accounts will be given to students from Primary 5 and upwards so that they can begin to plan for their future learning and skills development. We are taking the comments made by Members about starting young quite seriously. These initiatives will equip our young people with critical skills for the workplace and the capacity to learn throughout their lives. I have touched on right jobs and right skills. Now, we need the right match. Jobseekers can avail themselves of a suite of employment and training assistance. These include Professional Conversion Programmes and the Career Support Programme. WDA and NTUC's Employment and Employability Institute help match workers and jobs and provide training to improve the employability of workers through their Career Centres. They successfully placed over 14,000 job seekers in 2015 – quite an impressive number. Besides employment and training assistance, wage support is also provided in some cases. This year's Budget builds on these programmes with the launch of the Adapt and Grow Programme, which will provide support for more Singaporeans to reskill and gain employment. As I mentioned in the Budget Statement, we expect to more than double the current outreach for PMETs from 2,000 per year to over 4,000.[+60 sentences] We understand the anxiety of some who have been displaced and that is why these programmes are being enhanced and its outreach doubled. The Minister for Manpower will speak further on this at the COS. As new industries and new types of jobs emerge, we will need to take our skills and job matching efforts even further. We, too, have to innovate in this area. That is why we launched the TechSkills Accelerator for the ICT sector. It will pilot a new model for how Government partners major IT employers, associations and industry to offer training, certification and job matching services, three-in-one. It will also reach out to those without ICT background. Some of you might ask if it is possible to develop ICT skillsets without any background. Well, there are certain specific areas that IDA had identified, such as user experience and user interface design. If this pilot succeeds, we will replicate it in other sectors, as many of you have suggested. What is critical is to sustain the long-term vitality of our labour market. No short-term fixes, but long-term vitality. Several Members have listed the various market innovations over the years – in managing our dependence on foreign manpower, promoting local employment and helping vulnerable groups of workers to find jobs and supplement their incomes. I thank all Members for the thought and care that you have put into suggesting improvements to our labour market and skills development. Assoc Prof Randolph Tan proposed auctioning the right to hire foreign manpower. Mr Desmond Choo suggested broadening the apprenticeship system and partnering the labour movement on career guidance for young people. Mr Zainal Sapari suggested further ways to help our low-wage workers. Mr Patrick Tay suggested enhancements to the Career Support Programme and setting up a support network for unemployed PMETs. Dr Teo Ho Pin suggested setting up Centres of Excellence for SkillsFuture learning, in partnership with trade associations and professional bodies. Mr Lim Biow Chuan, Mr Azmoon Ahmad and other Members spoke about providing retrenchment benefits to Singaporeans. We will study these proposals carefully. Page: 28 I just want to echo a point which Assoc Prof Randolph Tan also made. We must be careful about how we intervene in the labour market. We cannot simply copy one bit from one country and then another piece from another and hope to make sense of it. There has to be a clear philosophy and a clear sense that the various measures must cohere to be effective over the long term. And importantly, we must not undermine the sense of independence and efficacy and the spirit of self-reliance and resilience in our people. Now, let me end this section by sharing a story that Mr Heng Chee How and many other Members will find inspiring. I met Mr Sundaram Velosamy and Mr Ong Moh Hong when I visited Pan Asia Logistics (PAL). Mr Sundaram is an interesting story because he started working in the logistics sector in 1989 with an "O" level certificate. He has a keen desire to learn and upgraded himself by studying part-time for certificate and diploma qualifications, building up to a degree in 2013. After he joined PAL in 2012, he was sent to Germany for training to understand how to use the automated storage and retrieval system. When he returned, he applied what he learnt and increased the productivity significantly. Mr Ong joined the firm in 2014 at the age of 66, just as the firm was implementing a new IT system. Age was not a barrier either for Mr Ong or his employer. Interestingly, Mr Ong has been doing logistics work for 29 years, all the while in manual positions. When I asked him how it feels to join a firm which is just starting a new IT system, he replied that it was a great opportunity to learn. So, he learnt new IT processes when he joined the firm at the age of 66. Today, Mr Ong and Mr Sundaram are role models for the team and help mentor younger staff. As Mr Sundaram said, "There is no use if I keep it to myself. I must pass on the knowledge to others. I must mentor them, so that they can do better and also mentor others." This is a very good example of lifelong learning, of mentoring and of a company that invests in developing its staff. And importantly, of treasuring senior workers and believing that you can continue to train older workers. As Mr Ong said, older workers also have a long runway. I commend both Mr Ong and Mr Sundaram for their pursuit of lifelong learning and PAL for creating an inclusive culture of constant development for their staff. Our approach to enable our people to access good jobs and stay employable can be encapsulated in one phrase: "Right Jobs, Right Skills, Right Match". Creating full employment and good jobs is a major challenge, a difficult journey. But I am confident that we will be ready for the future because I have confidence in Singaporeans, I have confidence in Singapore and I have confidence that we will work together. Let me now talk about the spirit of caring and resilience. Many Members, including Dr Lim Wee Kiak and Ms Joan Pereira, highlighted the importance of empowering our seniors to lead active and engaged lives. Mr Faisal Manap, Mr Darryl David, Mr Christopher de Souza and a number of Members talked about Government support for families and the needs of the young. I am heartened that many Members, including Dr Tan Wu Meng and Mr Henry Kwek, support the initiatives to encourage philanthropy and volunteerism. I will focus on three main topics – strengthening social support, reaching Singaporeans in need and building a caring and resilient society. Mr Vikram Nair and Ms Rahayu Mahzam spoke about the need to support low-income families, especially those with children. We invest in all our children to help them achieve their potential, Page: 29 paying particular attention to those from less advantaged backgrounds. Housing subsidies that help low- and middle-income families own their homes have been increased. We are now looking beyond general affordability. Fresh Start will help some families own a home again if they are willing to work hard for a second chance. I thank Mr Saktiandi Supaat for supporting this scheme. Preschool subsidies have been increased significantly. Low-income families pay as little as $3 a month for childcare and $1 a month for kindergarten.[+2 sentences] Middle-income families also get support. We are going further for a small group of young children who may need even more support. The KidStart pilot will draw together Government and community resources to provide these children with learning, developmental and health support, even before they enter school.[+1 sentence] In addition, there are now more resources for families, regardless of income. For each eligible child, parents may receive a Baby Bonus Cash Gift of $8,000 or $10,000, depending on birth order; the MediSave grant for newborns of $4,000; and now, the new Child Development Account (CDA) First Step grant of $3,000. In total, parents of eligible children receive between $15,000 and $17,000 in the first 18 months of their child's birth.[+1 sentence] By the way, this is in addition to tax reliefs and other leave benefits. A child who attends primary and secondary school also receives around $11,000 a year in educational subsidies.[+11 sentences] A child from a lower-income household would receive more. There are also substantial subsidies for all Singaporean students at our Institutes of Higher Learning (IHLs) and bursaries for those from lower-income families. I must also point out to Mr Dennis Tan that apart from the CDA grant, the Baby Bonus Cash Gift and the MediSave grant for newborns do not – I emphasise, do not – require co-matching. Moreover, our preschool and education subsidies benefit all, but are especially generous to children from lower- and middle-income families. If you look at it in its entirety across all the different schemes, substantial support is given to parents to have children, especially for the middle-income households, and with even more targeted support for those who start with less. While the CDA First Step is $3,000, we must not forget that there are existing Baby Cash Bonuses of $8,000 or $10,000, plus MediSave grant of $4,000. Ms Jessica Tan earlier raised the issue of assurance for seniors in retirement, and several Members have also spoken on this. So, let me now touch on this subject. Over the last 10 years, we have strengthened the four pillars of our social security system; namely, home ownership, healthcare assurance, CPF and Workfare. In particular, we have provided our seniors with greater assurance. Through CPF LIFE and MediShield Life, we are increasing risk-pooling to provide more support in the face of life's uncertainties and also during retirement. These have been complemented by increased Government subsidies for seniors across all healthcare settings, including subsidies for MediShield Life premiums, GP clinics via CHAS, and for eldercare. We also pay extra interest on CPF, with the first $30,000 in CPF earning up to 6% interest from the age of 55.[+2 sentences] The Workfare Income Supplement (WIS) has been further enhanced in this Budget. I thank Mr Gan Thiam Poh for his support for the enhancements to Workfare and would like to clarify to Mr Pritam Singh that, as I announced in my Budget speech, we are raising the qualifying income ceiling to $2,000, not $1,900. With the past enhancements, WIS is now a significant supplement for low-income workers of up to 30% of their income.[+2 sentences] Besides Workfare, the Pioneer Generation Package provides a special generation with additional support. Adding up our transfers to retiree households, healthcare subsidies, S&CC rebates and the GST Voucher, we provide substantial support for retirees living in 1- and 2-room HDB flats. Even if Page: 30 we consider only those living in 3-room and larger HDB flats – up to Executive Apartments, on average, this worked out to around $5,000 in Government transfers per retiree in 2015.[+4 sentences] About 70% of this is in healthcare subsidies and amounts to substantial support for our seniors. Silver Support is a major enhancement to our social security system. I thank Members, including Ms Jessica Tan, Mr Zaqy Mohamad and several others, for their suggestions to look into the criteria for Silver Support. Let me now touch on three points. First, let me reiterate that Silver Support is a modest but meaningful supplement targeted at the bottom 20% of seniors, with some support extended to the next 10%.[+46 sentences] In implementing the scheme, we are mindful of the impact Silver Support can have on our society. Many Singaporeans are proud to be able to provide for their loved ones. Silver Support is not meant to replace other forms of financial support for our seniors, including personal savings, CPF, family support as well as the Pioneer Generation Package. We must be cautious that Silver Support does not undermine values, such as filial piety, or lead to a divisive mentality among citizens. Thus, Silver Support is not the only source of help for the neediest seniors, whose basic needs are served by Public Assistance, which has been enhanced in this Budget. The second point I want to make is this – no single criterion is enough to identify seniors in the bottom 20% to 30%. It is, therefore, reasonable that we combine three criteria of lifetime wages, housing type and household support in our assessment. We acknowledge that there may be some seniors, as highlighted by Mr Lim Biow Chuan, Mr Darryl David and several others, who may need help but do not qualify automatically. Seniors in these exceptional circumstances can request CPF Board to review their eligibility for Silver Support and we will consider the merits of each case. Finally, we have to carefully calibrate the coverage of Silver Support. It starts off with $320 million a year and will increase as our population ages. From the outset, we should ensure that the scheme remains sustainable in the long run. Mr Alex Yam asked whether payouts can be made monthly instead of quarterly. Let me point out that, unlike Workfare, which is given for work done, Silver Support provides a forward payout. We are paying ahead in three-month tranches. So, it is a forward payment, which gives seniors the flexibility to manage their expenses. If we move to monthly payouts, we will reduce such flexibility. Several Members requested greater support for caregivers through some form of monetary compensation. Now, I recognise that it is not easy to be a caregiver. I have met many and I have great respect for what they do. But, as a society, we have to be careful not to monetise relationships. And this is a subject that would have to be carefully studied. MOH and the Ministry of Social and Family Development (MSF) will elaborate on the relevant efforts at the COS. I would also like to commend Ms Chia Yong Yong for her very moving plea for all of us to better understand persons with disabilities. I strongly agree that we should continue to empower them to realise their full potential. MSF will elaborate on the third review of the Enabling Masterplan in the COS. Let me now address an issue which several Members have raised, which is support for middle-income households. Ms Thanaletchimi and Mr Azmoon Ahmad asked why there is no tax rebate or, more broadly, measures targeted at the middle income, in this Budget. Page: 31 To begin with, about half of our workers do not pay any income tax. The income tax burden is low for the majority who pay, including the middle-income group. I had earlier spoken on our efforts to strengthen existing measures that benefit middle-income households and provide active support for housing, education and healthcare. SkillsFuture is another example. All these measures are not as direct as putting money in people's pocket, but it has a meaningful long-term impact on the careers and future of Singaporeans. The most important support for all Singaporeans, including the middle-income, is employability and good jobs, a point which Ms Thanaletchimi mentioned in a recent TV programme, that the best social security is job security, and I would add that the best way to ensure job security is deep skills and adaptability. That is why we are investing in those areas. Even though I devoted a considerable amount of time in this Budget to explain the Industry Transformation Programme and measures to support our SMEs, our aim is very clear – to enable Singaporeans to have good jobs, more opportunities and a better life. We have to go for the long haul and these are important ways to support all families, especially middle-income families. Providing a tax rebate from year to year is not enough to address the fundamental concerns of our middle-income group. We must, as Assoc Prof Fatimah Lateef pointed out, preserve a spirit of resilience and self-reliance and focus on a sustainable way to build better lives for all. Let me now touch on reaching Singaporeans in need. As we spend more, we must take extra care to spend well. I welcome Miss Cheryl Chan's comments on the importance of improving the way care is delivered, especially for the elderly. Let me share my thoughts on how we can maximise the impact and reach of our schemes. To better serve Singaporeans, we have made some moves to improve service delivery in the "last mile", especially to the elderly and vulnerable. The first is reaching out proactively to those in need. A good example is the Pioneer Generation Ambassadors (PGAs), which Miss Cheng Li Hui spoke about. Over the past one-and-a-half years, they have reached out to 250,000 Pioneers, or 60%, to explain the benefits of the Pioneer Generation Package (PGP) and MediShield Life.[+9 sentences] Our ambassadors form a close relationship with our Pioneers, explain Government policies to them and help them access the various schemes. Let me share with you how our ambassadors reach out. An example is Mr Shahul Hameed and his wife. Mr Shahul is 74 years old with a heart condition and usually stays at home. Our ambassadors visited him to explain the benefits of the PGP and MediShield Life. They also took the chance to introduce Mr Shahul to active ageing programmes in his community to help him make friends while keeping fit, while taking care of his heart condition. These are practical ways in which we are reaching out proactively. The second move is to bring help closer. Previously, those looking for short- and medium-term assistance under ComCare had to approach one of the five Community Development Councils (CDCs). Today, they can approach 24 Social Service Offices (SSOs) across the island for assistance. Page: 32 Along with Family Service Centres (FSCs), 95% of the island's residents who need help have access to it within two kilometres of where they live or work.[+2 sentences] This is an important milestone, but we are still striving to bring help closer to those in need. And with more experience, we will do better. The third move is integrating assistance from Government agencies and VWOs. We are expanding the Social Service Net (SSNet), our integrated information sharing and case management system that links MSF with other Government agencies, as well as VWOs.[+36 sentences] Agencies can better calibrate their support to help each citizen and better address their needs. Administrative hassle, especially paperwork and forms with multiple agencies, will be reduced for citizens. And I think this is especially important for those who need help, as Dr Tan Wu Meng has mentioned. But we can do even better in partnering the community. We can do better. I was extremely heartened by my visit to the Henderson-Dawson ward and the Thong Kheng Seniors Activity Centre last week. This area is one of the older estates, with almost one in six of the residents aged 65 or above. Many more neighbourhoods will be like Henderson-Dawson. It is important to ensure that every neighbourhood is a good neighbourhood for seniors to age with dignity, lead active and healthy lives and stay engaged with the community. Well, I am glad it resonates with all of you. Every neighbourhood is a good neighbourhood for seniors. Forging close-knit partnerships is key. Henderson-Dawson is an example of how various parties come together, with good leadership of advisors. It was difficult at the start but, over time, the various partners built trust to work together and pool resources to better meet seniors' needs. These include activities for seniors, like morning exercises, free lunches and educational talks on topics from nutrition to fire safety. The elderly themselves contribute to these efforts, to help care for one another. They demonstrate a keen sense of collective responsibility and feel a strong obligation to the community. So, I echo Ms Joan Pereira's and Ms Tin Pei Ling's call for more senior citizens to volunteer as a good way to stay active and engaged. The Ministry of Culture, Community and Youth will provide an update on the Silver Volunteer Fund, which encourages seniors to give a part of their time for good causes, in the COS. I would like to share the story of Mdm Chia Chen Kum, who is 70 years old. Her husband passed away a few years ago. However, she discovered new meaning in life when she started volunteering at the centre. She said, and I quote in Mandarin, because she spoke in Mandarin, "来自社会，归回社会. 这样也是应该的. 除非我真的不可以动, 我才没有办法. 我可以做的我就一定帮忙的". She said, "Having received from society, it is only right that I give back. Unless I cannot move and I have no way. Whatever I can do, I will definitely continue to help." This is the great feisty attitude of an elderly − great resilience and great sense of care for others. These are very moving and inspiring words. We must all step forward to care for our fellow Singaporeans and renew our shared commitment to building a better society. And this is particularly important as our population ages. Community partnership will be a major area of focus moving forward. The Community Networks for Seniors pilot will bring local stakeholders and agencies together to study the needs of seniors and help them take preventive care. Looking ahead, as several Members have suggested, we can do even better to plan our estates and social services, as well as crowd in the community to make Singapore a model for social Page: 33 service delivery as well as successful ageing. Ultimately, it is not about Government schemes but about building a caring and resilient society. As Mr Kok Heng Leun said, "We must all pitch in to take care of one another and solve community problems together." This is the only way we can nourish the ties that bind us together as a society. Over the past two years, the Government provided $500 million in matching grants for the Care and Share Movement.[+10 sentences] I am delighted that this has generated significant donations from the public. More importantly, over 200,000 volunteers participated. Singaporeans have shown great generosity in spirit and we hope that this can be sustained. We will continue to encourage charitable giving by matching, dollar-for-dollar, any additional donations through SHARE to ComChest. Besides providing resources, businesses have a role in helping the social sector and supporting employee volunteerism. Let me give two examples. Quirk, a local integrated marketing communications agency, supports Project Dreamcatchers, an initiative by the National University Hospital to empower youths living with chronic illness. The youths will be producing artwork that will be showcased in an exhibition later this year and Quirk is assisting with the branding and collaterals. A group of drivers in ComfortDelGro are active volunteers, delivering meals and driving around those in need. These are all examples where businesses and employees use their expertise for good causes. The Business and IPC Partnership Scheme (BIPS) pilot is designed to support more partnerships between businesses and Institutions of a Public Character (IPC) and encourage employee volunteerism.[+15 sentences] I acknowledge the issues raised by Ms Denise Phua, including possible crowding out of cash donations, over-subsidising volunteerism and the cap that affects IPCs that really need help. We studied these issues and decided to pilot the scheme to encourage businesses towards volunteerism, but with appropriate caps. Our larger intention is to kickstart a movement beyond cash donations, to get businesses and to mobilise resources. It is a pilot. We will monitor these carefully. But I would like to stress that it is not only about tax incentives. At the end of the day, it is about businesses seeing themselves as responsible corporate citizens and becoming more active partners in building a caring society. Finally, I was heartened by the enthusiastic response to last year's SG50 Celebration Fund, with passionate Singaporeans coming forward to celebrate our jubilee year. We will make it easier for Singaporeans to enrich our society with ground-up initiatives. As many Members have pointed out, it is not through the Government's efforts alone, but a collective effort, that we can build a caring and resilient society. We hope that Singaporeans from all walks of life will step forward. Over the past few days, several Members, including Mr Liang Eng Hwa, Mr Chong Kee Hiong, Ms Foo Mee Har and Mr Henry Kwek, have spoken on the importance of fiscal sustainability even as we tackle Singapore's economic and social challenges. As Members have pointed out, Singapore's spending needs will grow in the coming years. First, healthcare. Over the next 10 to 15 years, we will experience a rapid ageing of our population. Today, one in eight Singaporeans is aged 65 and above. This will double to one in four Page: 34 Singaporeans in 15 years.[+26 sentences] In some areas, such as Outram, the future is already here, with one in five residents aged 65 and above. An older population will invariably mean an increase in healthcare needs. For instance, the hospital admission rate for elderly today is three to four times that of younger people. Countries, such as Japan, went through a similar experience. Over the last 25 years, Japan's healthcare spending has doubled as its proportion of elderly doubled. Singapore's experience will not completely mirror Japan's, but our healthcare spending will certainly rise and we must prepare adequately for our needs. Second, we will need to refresh our infrastructure and build new ones, to create new economic opportunities and better homes for the next 50 years. For public transport, we will be investing significantly more over the next five years. This includes the doubling of the rail network from 178 kilometres today to about 360 kilometres in 2030. Changi Airport's T5 will be developed to enhance our connectivity to Asia and globally. Third, we must continue to invest in our defence and security, which underpin our economic and social prosperity. As Mr Christopher de Souza and Dr Lim Wee Kiak have noted, the threats of terrorism and cyberattacks have grown. To keep our homes safe, we must invest. As our "must haves" and "good to haves" increase over time, Mr Sitoh Yih Pin correctly pointed out that we must continue to uphold the principle of "living within our means", so that we create enduring benefit and not enlarging burden for ourselves, our children and grandchildren. While our spending needs are growing, our revenue growth will be slowing as our economy matures. The experiences of many advanced countries warn us how easy it is for spending to become unsustainable and impose a growing burden on future generations. How then should we ensure that our spending needs are met? First, we must place priority on building a vibrant economy, which will then grow our revenues. A vibrant, competitive economy creates opportunities and jobs for our people and generates the revenue to meet our needs. Second, we must spend prudently and spend right. This is about being efficient and being effective, so that each dollar reaches out to the right groups to help them in the right way. Third, we must design our overall fiscal system so that it is fair and progressive. We must tax and spend in a way that is progressive without disincentivising enterprise and efforts. Our system of revenues and expenditures must always be fair and progressive. Only then can it be sustainable across generations. Several Members have asked if our personal income tax relief cap, which serves to increase progressivity, runs contradictory to encouraging procreation. Er Dr Lee Bee Wah, Ms Joan Pereira and Ms Tin Pei Ling have commented on this, and I thank them for their views and for reflecting their residents' views.[+1 sentence] Let me explain. We have introduced the cap on personal income tax reliefs to apply to the total amount of all reliefs claimed.[+3 sentences] There are 15 personal income tax reliefs, each serving a worthy objective. Taken together, however, they can unduly reduce total taxable incomes for a small proportion of individuals. After studying the reliefs, we concluded that we needed to moderate the effects of large amounts of reliefs claimed, in order to preserve equity in our tax structure. We have to maintain fairness between different groups of taxpayers, in particular, between those who earn Page: 35 more and those who earn less. We have thus imposed a cap to make our personal income tax more progressive.[+1 sentence] Let me emphasise once again that the vast majority of taxpayers are unaffected by the cap. Ninety-nine percent of tax resident individuals can continue to claim their reliefs fully. For those claiming Working Mother's Child Relief (WMCR), even with the cap, nine in 10 of those claiming WMCR are not affected.[+48 sentences] This includes those with more children – slightly over eight in 10 individuals claiming WMCR on two or three children are not expected to be affected by the cap. Over the years, we have added and significantly enhanced various schemes to support parents in having children. I touched earlier on our substantial support for Marriage and Parenthood, including the Baby Bonus Gift, MediSave grant, the CDA and now, the First Step grant. As I have pointed out, subsidies to all Singaporean children for education in school, at preschool and the IHLs are all very significant. With all these measures, it is clear that the Government remains committed to supporting Singaporeans in fulfilling their marriage and parenthood aspirations. In fact, our support for families also extends beyond monetary support and includes our wider push to make it easier for families to balance their work and life commitments. This includes our recent efforts to extend parental leave. As Er Dr Lee Bee Wah pointed out, it is about having the right mindset. Fundamentally, having a child is about the joy of parenthood. Senior Minister of State Josephine Teo, in charge of the National Population and Talent Division, will elaborate more on our marriage and parenthood strategy during COS. From time to time, we will have to make adjustments to our schemes in order to continue targeting our support at those who need it. But we should not be evaluating Budget measures solely from the individual's perspective in a particular year, which would be narrowly focused on the individual winners and losers. We must avoid thinking, as Ms Kuik Shiao Yin eloquently put it, that we are in a "high-stakes competition of win-lose" and that there is "no win-win". Instead, our larger goal is to make every Singaporean a winner in the long run. And this must be our goal; it cannot be otherwise. When we help one group, we are actually helping others, too. When we support our SMEs, we are supporting good jobs for our workers. When we support our seniors, we are helping the families who are taking care of them. When we invest in our young to help them maximise their potential and seize opportunities and have a good career, we are also helping to ensure that they have the means to support their own families when they start one as well as support their loved ones, their parents in their retirement. When we keep our tax burden low, especially for the middle income, everyone benefits. We have to see things in totality and over the long term and not set one measure against another, or one group against another, and one year versus another year. It has to be seen in totality over the long run. Mdm Speaker, let me now conclude. I come back to our journey together towards the future. This is a long-distance journey. We are in this to keep Singapore going and thriving for the long, long haul. This is our responsibility to future generations. To take this journey, we have to keep our eyes on the road, keep our eyes on the horizon, and keep our eyes out for the people we journey with. Page: 36 Keep our eyes on the road. Every journey, even the longest journey, is taken one step at a time. And so, too, with a country – though we keep our sights on the distant future, we move towards it one Budget at a time. If we gaze upon the distance and do not look at the road immediately in front of us, we risk falling into a hole. And we will never reach our destination. Or we will take injury and recovery before we get there. In this Budget, we have taken targeted steps to address short-term pressures to make sure that we do not fall into the hole. So, I urge Members to help those who are facing pressures to make the best use they can of the measures which we have announced. Apart from keeping our eyes on the road, we have to know our direction and we have to know ourselves, too. How far do we hope to go? And do we have it in us to go that distance? We have to budget for our journey. We cannot use up all our supplies at the start and we have to have ways to grow our store of supplies. We have to spend more as our needs grow, too. So, we must continue to grow our economy so that we can have resources to spend more on growing needs and we must continue to spend those resources wisely. It is not possible for the Government to keep handing out goodies for everyone, year after year, as several Members have pointed out. Instead, each Budget must build on the previous ones to carry forward the momentum to future Budgets. How do we keep our eyes on the horizon? Our firms need to look outward and look forward – to find new markets, grow capabilities, transform. Look ahead, see opportunities where others see only problems. The Committee on the Future Economy will continue to look towards the horizon, to plot out what we can of the road ahead, so we can take the right steps for a vibrant, strong future economy that creates good opportunities for our people.[+2 sentences] Each of us, too, must continually learn, get the skills that the world needs. We must have the resilience to overcome personal setbacks and adapt to change. For this reason, we will keep investing in SkillsFuture.[+18 sentences] I hope Singaporeans will make full use of SkillsFuture and that all employers do their part to redesign jobs, facilitate learning and build a better future not just for their companies, but for the people who help their companies to run. Ultimately, the Government must know when to step in and when to step back. We must not inadvertently undermine the spirit of enterprise and the natural workings of markets, or undermine the spirit of caring and resilience such that we weaken the bonds of family and community. Instead, we must reinforce critical values and our spirit as a society. Resources, hard won and wisely managed, will nourish us for the road ahead. Our values and our spirit – these are what will truly energise our journey. Madam, I believe that none of us wants to reach that destination alone. The purpose of this journey is to journey together and to reach our destination together, as one united, cohesive people. To me, there is no meaning to this journey, unless it is a common journey. We must look out and care for one another as we journey. Is someone getting tired? Is someone struggling? What can we do to keep all of us going together? At the heart of this, we must recognise that every Page: 37 member of our society is not just valuable, but precious. We must have that resilience in us to face each challenge as an opportunity to learn and grow, to emerge from setbacks better and stronger. We must have that humility in us to respect and learn from everyone, no matter their paper qualification or job title. And we must have the generosity to share, be it in actual things, time or ideas. I do believe, Madam, the more we share, the richer we are for it. By giving and sharing, that is how we transform our world and how we may ourselves be transformed for the better. We have sought in Budget 2016 to strengthen our resilience and to bring out the natural instinct for care and partnership in all of us.[+11 sentences] So, keep our eyes on the road. Keep our eyes on the horizon. And keep our eyes out for one another. Madam, we have a long road ahead. I thank this House for the attention it has given to Budget 2016, our first step in our journey towards SG100. It will be bumpy, it will be full of unknowns. Amongst the unknowns are not just challenges but victories. There are many innovations ahead of us that we cannot yet imagine, many personal and shared triumphs, many moments of humanity, unity and beauty that will keep defining our Singapore. Through all the good and bad unknowns of the years to come, I hope our spirit of enterprise and caring will run strong. I am honoured, and excited, to partner fellow Singaporeans on this journey. Let us get to work, together.
Mdm Speaker16 words
[+3 sentences]We have a bit of time for clarifications. Please keep your clarifications short. Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)75 words
[+2 sentences]Thank you, Madam. I have one clarification for the Finance Minister. Earlier, in his round-up speech, he acknowledged that Singaporeans are worried about their jobs, and he mentioned that the Government was reviewing how it could better support people who lose their jobs through some difficulties, including perhaps reviewing the retrenchment benefits.[+1 sentence] I would like to ask the Minister whether this review would also include looking into the feasibility of some sort of redundancy insurance.
Mr Heng Swee Keat64 words
[+7 sentences]Madam, I thank the Member for her clarification. I am glad she raised it. In my speech, I mentioned many suggestions which have been raised by various Members. I said that all these suggestions will be studied carefully. I also mentioned that we have to have coherence in our policies. It is not about one or two specific measures. So, let me clarify that.
Mr Leon Perera (Non-Constituency Member)122 words
[+2 sentences]Mdm Speaker, just two brief points of clarifications with the hon Minister for Finance. Firstly, will the Minister consider creating the equivalent of a national secretariat for developing local enterprises? The Singapore Business Federation has suggested a Minister for SMEs.[+1 sentence] If we see this as a critical national priority, then that would argue for the whole-of-Government approach, similar to the approach taken, for example, for climate change, for population and for ageing. Page: 38 My second clarification is a follow-up to the one raised by Mr Faisal Manap and Mr Dennis Tan and others, which is that, for the children support schemes, such as KidSTART, that have been announced in Budget 2016, will these also apply to children born out of wedlock?
Mr Heng Swee Keat170 words
[+9 sentences]On the first question on whether there will be one SME centre and so on, this issue has been raised in this House on many, many occasions. In fact, not just in this House but among business leaders. This is a subject which will always be studied but, as I had said, let us take a very practical approach at this point. I have mentioned the Industry Transformation Programme in the Budget speech and spoken about how we are appointing agencies to take the lead in every sector. In each sector, you have companies large and small and they interact very intensely in their particular way. This is an important initiative. I would like to focus our efforts and attention to integrate the efforts of different agencies, to integrate the different schemes and to make an impact in those areas. As to the second question, again, this issue has been raised by several Members. I will leave this to the Minister in charge of MSF to address during the COS.
Er Dr Lee Bee Wah (Nee Soon)26 words
[+1 sentence]Mdm Speaker, about this tax relief cap – can the Minister explain one more time, because I do not quite understand why this was carried out?
Mr Heng Swee Keat169 words
[+1 sentence]I thought I have explained at length. [restates an earlier point]As I have said, we now have 15 different types of tax reliefs.[+4 sentences] Over the years, we have, on the one hand, added or enhanced various reliefs and the end result is that we now have quite a large number of reliefs for which individuals can claim a significant amount of tax reliefs. That reduces the amount of taxes that are paid. On the other hand, in the case of support for raising children, we have also been increasing a whole range of different support, be it the Baby Bonus, MediSave grant, preschool subsidies, childcare subsidies, schools and so on. So, if you look at the support that has been given, we studied it very carefully and we think that it is time for us to review, so that the tax system, both in terms of expenditure and revenue, remains fair and progressive; that we have to be equitable across different groups and that those who have higher incomes will pay more.
Ms Foo Mee Har (West Coast)114 words
[+3 sentences]Mdm Speaker, I would like to ask the Minister whether KPIs and performance standards have been set to track the returns on our investments for the various productivity schemes, as the Minister had explained that it would get tougher with expenditure. I think it is absolutely critical that the productivity schemes we put in place will bear returns. Clearly, this road that we are charting is a new road but how are we going to do this next journey in a much more deliberate, much more proactive way, so that when we are down the path and we think that we need to change course, we have KPIs to guide us to do so?
Mr Heng Swee Keat338 words
[+18 sentences]I thank Ms Foo Mee Har for her question. I recall vividly Ms Foo raising this issue during her speech, along with many interesting suggestions. First, in terms of whether there are KPIs, let me say that in designing any scheme, first and foremost, we do our best to try and make sure that these schemes will achieve the intended objectives. For particular schemes, whether it is for productivity or innovation, it is not easy to have one single measure to say that, "Well, we succeeded because of this or because of that." The nature of the workings of the economy is such that various factors interact to produce certain outcomes. In many cases, you do not see immediate results. Page: 39 If you take, for instance, investments in R&D, if you look at the example in the US, there are some very basic findings that found their way into application many, many years down the road. And so, this is something where we have to be patient and where we should not measure the wrong thing. Having said that, we are very careful in the design of all our schemes to make sure that they have the best chance of success and to make sure that, as far as possible, that the private sector also has a stake in this. Public investments ought to be made in areas for which there are what economists called "market failures", where there are externalities for which the Government will invest in. But at the same time, we have to do it in a way that catalyses private investment and private spending. There are ways of going about doing it. We measure specific schemes from time to time, looking at particular areas. There is no simple measurement. If you ask me, at the end of the day, does it work? Well, does the economy remain vibrant? Do we continue to grow the economy and create jobs? Not over one or two years but, as I have said, over the long haul.
Mr Low Thia Khiang (Aljunied)24 words
[+1 sentence]I would like to ask the Minister, in his view, what is the new and most salient programme or measure in this year's Budget.
Mr Heng Swee Keat78 words
[+2 sentences]Mr Low, I distinctly recall that you were here when I delivered the Budget Statement. I recall you sitting through a number of the discussions. And I thought many Members, as well as members of the public, have said, "You have been very clear about the priorities." So, I would urge Mr Low to read my speech carefully and perhaps also to read the reports and discuss with fellow Members here what they took away from the speech.
Mr Louis Ng Kok Kwang (Nee Soon)25 words
[+1 sentence]May I ask the Minister if he is considering backdating the start of the First Step grant and also refining the public consultation process, please?
Mr Heng Swee Keat320 words
It is not the general practice to backdate particular schemes. This is done only under very exceptional circumstances.[+12 sentences] As for Mr Louis Ng's question on whether we will start the consultation earlier, first, let me say that my round-up speech does not allow me to address every suggestion that Members have put up. Do bear with me because, I think we had 13 to 14 hours of debate. If I addressed every point, you may end up hearing me for 13 to 14 hours! Let me address this specific point – although the formal Budget consultation process starts in a very intense period just before the Budget, the way in which the Budget process works and in which Government agencies work, is that this is an all-year-round exercise. This is an all-Ministries exercise. Throughout the year, we gather feedback, we study data and we look at what needs to be done. We gather feedback from businesses, from people and various sectors, not just the Ministry of Finance (MOF) but every agency, every Ministry. I would like to assure Mr Louis Ng that the work does not start only a month before the Budget! We also have various feedback mechanisms, be it REACH or the various exercises that we hold. This year, we even did something special – we had SGfuture dialogues as part of the Future of Us exhibition. There were extensive discussions with the public. So, it is not as if the Budget process only starts a month before; it cannot be. Page: 40 Also, let me clarify that many businesses prefer to give their feedback closer to the Budget, as the economic situation and business concerns are clearer.[+3 sentences] We have tried to ask for earlier feedback but many of the businesses said, "That would not be appropriate." I would like to assure Mr Ng that this is not a last-minute exercise. It is an all-year-round, 365-day, whole-of-Government exercise.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)140 words
[+4 sentences]I would like to ask the Minister about the innovation hubs. There is a lot of focus on sexy and exciting startups, which is fine and good. But what about the brick-and-mortar, traditional kinds of family-owned SMEs that we have? How can they connect with these innovation hubs? What are the plans that the Government has to connect these SMEs to the innovation hubs so that they can draw on the innovation expertise, the research that is coming out of NUS and NTU? I understand that SPRING has the Centres of Innovation where these SMEs can connect to polytechnics and certain research institutes.[+1 sentence] I am wondering whether the Centres of Innovation can also be co-located in, let us say, the Jurong Innovation District and One-North, so that the SMEs can have an avenue and channel to tap into the expertise.
Mr Heng Swee Keat459 words
[+22 sentences]I thank Assoc Prof Daniel Goh for his clarification. First of all, I do not understand why Assoc Prof Goh connects what I said about innovation with it being about new and sexy industries and new things. He then contrasts this against SMEs. If he had followed my Budget speech carefully, seen the video that I showed on the Jurong Innovation District and heard all the examples I had given both then and today, he would know that I devoted a whole section to talk about innovation and made a number of points. Let me repeat them. First, I said innovation has to be pervasive. Second, every firm should be innovative, whether they are large companies or SMEs. Third, they must innovate, regardless of the business that they are in. This is a point that Mr Thomas Chua picked up when he spoke about there being no sunset industry, only sunset thinking. If Members could look at the examples I have quoted, every single one of them is an SME, including the mother-and-son team in JMD Pacific, which is a gift shop that has now turned to e-commerce. I had given examples about Feinmetall, Pan Asia Logistics (PAL), Wee Meng and so on. These are not what you would regard or would call the "sexy" industries. These are good old industries. At the Budget itself, I gave the example of a food manufacturer, and I spoke at length about how the food manufacturers have come together. These are all SMEs, but they innovated, and not only innovated, they came together, integrated and internationalised. I must say that I am a little surprised that somehow the Members got the impression that all I am talking about is “sexy” industries. Now, as to the Member's point about whether the innovation centre should be in the Jurong Innovation District, I recall that the Member mentioned in his speech that innovation should be pervasive and we should be spreading out the different centres. If you look at our innovation centres, they are all over, including the Polytechnics and research institutes. In fact, I personally find it very inspiring that in the examples that I have given, businesses, large and small, in different industries all over, are innovating. Page: 41 Many Members, including Mr Azmoon Ahmad, Ms Kuik Shiao-Yin and Asst Prof Mahdev Mohan, have all spoken up that, at the end of the day, it is about our mindset and it is about an approach, and we must encourage that. I hope that we do not perpetuate this wrong impression nor give a wrong representation of what I said in this House. I tried to be very clear that innovation has to be pervasive across all sectors, across all firms, large or small.
Mdm Speaker8 words
[+1 sentence]Assoc Prof Daniel Goh, keep it short, please.
Assoc Prof Daniel Goh Pei Siong77 words
[+6 sentences]Thank you. I appreciate the representation that the Minister has corrected. The question really is how the SMEs can tap into the innovation research and expertise of the Universities. So, I am not saying that the Government is not promoting innovation in the SMEs. I appreciate that actually. But the question for me is quite specific – how the SMEs can connect to the innovation research and expertise in the Universities, and can the Government facilitate that?
Mr Heng Swee Keat356 words
[+11 sentences]Assoc Prof Goh's specific points – how do SMEs connect with innovation, research and expertise? Again, I actually devoted a large part of my Budget speech and today's summary to how this is being done but perhaps let me explain it again. First, in the Budget speech, I mentioned a number of things. I gave examples of how the research institutes are reaching out to SMEs. Today, I quoted two examples from the Singapore Institute of Manufacturing Technology (SIMTech). SIMTech and various centres of innovation in our polytechnics, universities and research institutes are reaching out to SMEs. Second, I mentioned The Hangar in NUS and what is happening in the universities. Even new small businesses that are starting up are making use of this space. I also mentioned LaunchPad. And LaunchPad is another example where new SMEs are going. There are many help schemes for our SMEs. First of all, I mentioned SPRING's schemes: we have the Innovation and Capability Voucher and the Capability Development Grant. And in this Budget, I devoted a lot of time to talk about the Automation Support Package.[+9 sentences] I also devoted a lot of time, as well as in my other media interviews, talking about the need for us to have industry-level transformation. What do I mean by industry-level transformation? It means that we study the entire industry. We look at the common problems where you can have a common solution and, with that common solution, everyone benefits. So, again, I gave the example of the national trade platforms as one of those things that we are building but, of course, that will come in a few years' time. Today, SPRING and other agencies have a number of schemes that are already helping SMEs access technology. In fact, the work in R&D and technology adoption is not only ongoing but will be enhanced. I actually spent a lot of time, both in my Budget speech, this round-up speech and my public comments between the Budget and the round-up, on what needs to be done. So, I hope that Assoc Prof Goh has followed my speech, as well as my public comments.
Ms Kuik Shiao-Yin (Nominated Member)91 words
[+4 sentences]We are putting a lot of hope in SkillsFuture and I do believe it is a potential game-changer. I would just like to clarify: who are the stakeholders who are involved in ensuring the quality of the SkillsFuture courses? This is because my staff and I have attended quite a diversity of WSQ courses ourselves and the quality can be quite varied. Is there Page: 42 also a whole-of-society approach to who feeds back on what are the kinds of SkillsFuture courses we are offering and how that can be changed?
Mr Heng Swee Keat195 words
[+1 sentence]I thank Ms Kuik Shiao-Yin for her question. The quality control for SkillsFuture would be done by the MOE Higher Education Division, MOM and WDA. I agree with the Member that ensuring a high level of quality control is important. But let me first emphasise that SkillsFuture is not just about courses.[+9 sentences] SkillsFuture is a lot broader than that. It is also about how the polytechnics and ITEs work with companies to place students in the Earn and Learn Programme to develop their skills. It is also about employers – how employers need to play a role. I feel very strongly about this, that employers need to play a very important role in developing their people. And not just developing their people but, as Mr Ang Hin Kee pointed out, that it is about integrating what they are doing, for example, in automation, with how they are developing their people. I gave the example of Feinmetall earlier. It is an excellent example. The company sent this young man for training and he came back, continued to learn, continued to be mentored and made a breakthrough for his company. And that is the spirit of SkillsFuture.