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Rearrangement of Business›Motions4 turns · 304w
· 0 highlighted
motion-757recorded 2016-08-15
The Deputy Leader (Mr Desmond Lee)125 words
[+4 sentences]Mdm Speaker, pursuant to Standing Order No 35, may I seek your consent and the general assent of Members present for a business Motion to be taken now and for the Motion standing in the name of the Minister for Social and Family Development as set down in the Revised Order Paper Supplement for today be taken at this day's Sitting. Madam, Mr Joseph Schooling made Singapore history by winning an Olympic Gold medal on Saturday, 13 August 2016. The Minister for Social and Family Development will be moving a Motion later today to record the congratulations by this House for his achievements. As such, we seek Members' general assent to dispense with the requisite period of notice for the filing of such a Motion.
Mdm Speaker27 words
[+2 sentences]I give my consent. Does the Deputy Leader of the House have the general assent of hon Members present?
Mdm Speaker8 words
[+1 sentence]Deputy Leader, please proceed with the Business Motion.
Mr Desmond Lee144 words
[+3 sentences]Mdm Speaker, I beg to move, "That, under Standing Order 10(2), the Motion standing in the name of the Minister for Social and Family Development as set down in the Revised Order Paper Supplement for today be taken immediately after the Introduction of Government Bills." We have a number of Bills set down for Second Reading on today's Order Paper. So as not to delay the discussion on this historic Motion, I seek the House's agreement to have the Motion taken before the Orders of the Day. [(proc text) Resolved, "That under Standing Order 10(2), the Motion standing in the name of the Minister for Social and Family Development as set down in the Revised Order Paper Supplement for today be taken immediately after the Introduction of Government Bills." – (proc text)]
Rearrangement of Business›Motions1 turns · 163w
· 1 highlighted
motion-781recorded 2016-11-07
The Leader of the House (Ms Grace Fu Hai Yien)163 words
[+1 sentence]Mdm Speaker, I understand that a Message from the President addressed to Parliament is to be read to the House. As the Message is on a matter which the House will be considering at the Second Reading of the Constitution (Amendment) Bill, I seek the House's agreement for the Message to be read at the time when the Constitution (Amendment) Bill is to be taken.[+1 sentence] Mdm Speaker, I beg to move, "That, under Standing Order 10(2), the Message from the President conveying his views on the Constitutional Amendments be taken at the commencement of the Second Reading of the Constitution of the Republic of Singapore (Amendment) Bill." [(proc text) Resolved, "That, under Standing Order 10(2), the Message from the President conveying his views on the Constitutional Amendments be taken at the commencement of the Second Reading of the Constitution of the Republic of Singapore (Amendment) Bill." – (proc text)]
[+1 sentence]Senior Minister of State Indranee Rajah.
The Senior Minister of State for Law (Ms Indranee Rajah)1311 words
[+8 sentences]Mdm Speaker, I beg to move, "That the Bill be now read a Second time". Innovation is crucial for our nation's continued economic growth. It allows our enterprises to create new products and services, and gives them a competitive edge over their rivals. Enterprises need to be able to effectively protect and commercialise their intellectual property (IP) to preserve their competitive edge. The Committee on the Future Economy recognised this when it stated that a strong IP ecosystem is needed to support innovation and technology adoption. The Patents (Amendment) Bill introduces several improvements to our patent system. These amendments allow our patent system to better support innovators. Madam, the main features of the Bill are as follows. First, we will broaden the grace period provision to better allow inventors to protect their inventions, while facilitating the spread of new ideas and technologies. Second, we will close the foreign route to obtaining a patent in Singapore to improve the quality and consistency of granted patents. Third, we will implement procedural amendments to allow applicants greater flexibility in the application process and to improve operational efficiency at the Intellectual Property Office of Singapore (IPOS).[+27 sentences] Let me, first, touch on broadening the grace period provision for patent applications. To provide some background, let me briefly describe IPOS' patent search and examination process. Before a patent is granted for an invention, it must be "new" and "inventive". An IPOS examiner searches publicly available information at the time of the patent application to understand the current state of technology. This is known as the "state of the art". The examiner then examines the invention in the patent application against the "state of the art" to determine whether the invention is, indeed, new and inventive. This is the standard practice for all patent offices around the world. Under this system, if an inventor publicly discloses his invention before applying for a patent, this information will form part of the "state of the art". So, when he subsequently applies for a patent, the invention may not be assessed to be new or inventive. The Patents Act contains a "grace period provision" that allows for limited circumstances under which the disclosure of an invention will not be considered part of the "state of the art". For example, if the invention is disclosed at one of the international exhibitions on a limited list, or is disclosed in the publication of a learned society, it will not be included in the "state of the art" if the application is filed within 12 months of the disclosure. This grace period provision encourages knowledge sharing and promotes learning while preserving the inventor's commercial interests. Clause 2 of the Patents (Amendment) Bill expands the situations covered by the grace period provision. Clause 2(b) will allow any disclosure of the invention originating from the inventor to be covered by the grace period provision. In other words, the grace period provision will not be limited to disclosures at specific international exhibitions or in a learned society publication. This broadening of the grace period provision is in line with practices in the United States (US), Australia, Japan and Korea. It updates our legislation so that our patents regime can be more consistent with modern realities and practices. Advances in communication technology have connected people across the globe in ways not previously envisaged, and disclosures of technology occur in many situations not contemplated by the current Act. For example, inventors may need to reveal the invention to potential investors, or share it online to reach out to a larger community of experts. It should be emphasised that disclosing an invention before applying for a patent still carries risks. Not all jurisdictions have a similarly broad grace period provision. We would, therefore, strongly encourage inventors to always be judicious about disclosing their inventions before applying for a patent. IPOS will work with stakeholders and IP professionals to ensure that this message is conveyed clearly to patent applicants. I now turn to the amendments in clause 3 of the present Bill relating to the closure of the foreign route to obtaining a patent in Singapore. This is another step in our quest to improve the quality of patents granted in Singapore. In 2013, IPOS' in-house patent examination unit commenced operations, marking the first time Singapore had the capabilities to examine our patent applications. In February 2014, we tightened our patent system to only allow a patent to be granted if it meets the patentability requirements in our law. However, at that point of time, we allowed patent applicants to rely on foreign examination reports for the same invention to enter our system. We are now proposing to close this route so that all patent applications are fully examined by our examiners against our standards of patentability.[+11 sentences] This will increase the quality of our granted patents and marks the further maturation of our patent system. Let me explain how closing the foreign route improves the quality of patents granted in Singapore. Patent applications undergo search and examination before a patent is granted. There are currently three search and examination routes in Singapore. First, under the "local route", the full search and examination are conducted by IPOS. Second, under the "mixed route", applicants submit the search report issued by the foreign patent office for the same invention, and IPOS conducts only the examination. Third, under the "foreign route", applicants submit the full search and examination report issued by a foreign patent office for the same invention, and IPOS conducts only a limited-scope Supplementary Examination. The limited-scope Supplementary Examination does not cover the same grounds as a full examination. In particular, the invention is not assessed on the key requirements of being new and inventive. Thus, patents may be granted under the foreign route for inventions that would not have met the standards for patentability under the local or mixed route. This is because these foreign route patents were assessed to be new and inventive by a foreign patent office, whose standards may differ from Singapore's. Clause 3(a) of the present Bill, therefore, closes the foreign route option. For patent applications filed on or after the prescribed date, they must go through either the local or mixed route. Patents will be granted only after full examination based on Singapore's laws and practices. This will, therefore, ensure the quality of Singapore granted patents and increase stakeholders' confidence in the validity of these patents. This amendment aligns our patent system with that of major jurisdictions, such as the US, Japan and Europe, which do not provide for the foreign route mechanism and require all patent applications to be fully examined by their patent offices.[+11 sentences] IPOS has been actively engaging the patent profession on the closure of the foreign route. With this change, local patent agents and IP lawyers will adjust their practice to take on higher value work as all the patent applications they handle will have to undergo full examination by IPOS. The Patents (Amendment) Bill will also implement procedural improvements to the application process. Clause 3(c) will allow patent applications greater flexibility in switching between search and examination routes. This will make our patent application process more applicant-friendly. Clause 3(d) will allow IPOS to treat an application as abandoned if the applicant does not, after receiving a search report, request for an examination report within the prescribed timeframe. This will improve IPOS' operational efficiency. It will also facilitate the release of new ideas and technologies for the public's use if the patent applicant is no longer interested in obtaining protection. The Bill implements a number of improvements to the patent application process. It is part of our efforts to better support the national innovation agenda by helping companies protect and sharpen their competitive edge, grow and create good jobs in Singapore. Mdm Speaker, I beg to move.
Mdm Speaker4 words
[+1 sentence]Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah)715 words
[+18 sentences]Mdm Speaker, innovation, entrepreneurship and new ideas are key ingredients in a vibrant economy. It is our duty to ensure the IP surrounding these are firmly protected on our shores. The law on patents is a key jigsaw piece in the protection of these intellectual rights. I, therefore, rise in support of this Bill. Singapore has come a long way in its IP laws. From our early years as a nation, Singapore has strengthened our laws, such that they support our changing economy. Information, innovation and proprietary rights are key aspects of our present and future economy. Therefore, the safe protection of IP is crucial. Patents are particularly important. They allow innovations to be protected, and I should declare here my interest as a litigator whose practice includes, in part, IP litigation. In terms of filing patents, Singapore has entered into important international treaties to establish and advance Singapore's status as an IP hub, such as the TRIPS Agreement, or the Agreement on Trade-Related Aspects of Intellectual Property Rights. Singapore's strong laws protect and promote innovation and have attracted parties from other countries to register with us. Since our early years, we have moved from re-registration of United Kingdom (UK) Patents to outsourcing the search and examination process to operationalising our very own office, IPOS International, to handle the search and examination process. The Patent Prosecution Highway allows fast and efficient search processes by collaboration with other countries, such as Japan, US, Australia, Germany, UK, Korea, China and Mexico. In fact, Singapore's search and examination reports may be delivered within 60 to 90 days. Singapore is also the first Supplementary International Search Authority to carry out searches in Chinese. Furthermore, IPOS International has become recognised by the World Intellectual Property Organisation as an International Searching Authority and International Preliminary Examining Authority (ISA/IPEA). These important and foundational steps were key to the promotion of Singapore as a safe and predictable IP hub based on the rule of law. These steps have allowed us to enhance our IP regulatory framework even further.[+1 sentence] Hence, the amendments today that we debate. This Bill broadly seeks to: (a) ensure the high standard of Singapore's patents by the closure of the foreign route; and (b) broaden the grace period for the determination of novelty.[+1 sentence] Firstly, clause 3 of the Bill marks the closure of the foreign route. Under that foreign route, Singapore relies on the search and examination report of other countries and does a supplementary examination.[+7 sentences] This second, all foreign, route is based on the reliance on the final results of the search and examination report of a corresponding application, corresponding international application, or related national phase application. It works on the presumption that the reports are reliable and accurate. But to ensure the quality of patents, it is better, if not much better, if we conduct the substantive evaluation ourselves. Having said this, we should not underestimate the load. Instead, we should approach the task with a large amount of preparation. On this related issue, could the Minister kindly elaborate on what has been done to ensure that even with the closure of the foreign route, Singapore will continue to be an attractive place, and an attractive financial place, to file patents? Would the Minister also confirm that we have reliable resources to meet any demand at cost-effective prices? The second amendment is to be found in clause 2 of this Bill. That clause seeks to broaden the grace period for the determination of novelty.[+2 sentences] This allows the inventor to disclose information without jeopardising his patent application. As a result, inventors may very well be able to attract investors or publish scientific papers without needing to wait for a patent. This gives innovation a safe space in which innovators can seek funding without compromising the protection of their inventions. It has been reported that the revised IP Hub Masterplan that caters to entrepreneurship and innovation will be released in April.[+5 sentences] This is to be welcomed. Keeping abreast with the shifts in our economy is important, especially the protection of IP. However, this cannot be done without a reliable regulatory framework in the form of IP laws. This Bill is one such law. It will further consolidate Singapore's position as an IP hub and, Mdm Speaker, I therefore support it.
Mdm Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)538 words
[+1 sentence]Mdm Speaker, Singapore has come a long way from being described as "the piracy capital of the world" in the 1980s, to having an IP regime that is consistently ranked in international surveys as one of the best in the world. I rise in support of these amendments which balance strengthening the IP rights regime which encourages investment in research and development and innovation, while recognising that excessive protection of products or services that are not truly novel can hinder innovation and entrepreneurship. This Bill discontinues the supplementary examination route and requires at least the examination to be done in Singapore. This creates a more rigorous check on the quality of patents and ensures that successful patents are truly deserving of legal protection. I also welcome the new section 14(4)(e) which broadens the 12-month "grace period" exception to determining whether an invention is novel, as this takes into account business needs and practical realities.[+11 sentences] First, it is entirely plausible for a would-be inventor to disclose details of his invention in reasonable circumstances outside the narrow exceptions listed in section 14(4) to (7). Previous case law has set a high standard that novelty would be ruined as long as even one member of the public has unrestricted use of the information. This is problematic, especially where would-be inventors, in their excitement or by slip of tongue, informally discuss details of the invention with family members or close friends. The heavy penalty of unpatentability and the wastage of months or years of working worth large sums of money is unfair, and the law should be flexible enough to allow for such minor disclosures to be excused. Second, the two narrow exceptions for prior disclosure, namely, display at an international exhibition or by description in a paper read before a learned society, are unduly restrictive. It is conceivable that would-be inventors make disclosures that are entirely reasonable for their professions, especially in the scientific fields. For example, scientists often give journalistic interviews or write scientific journals on laboratory breakthroughs that they have discovered, even before commercialisation of a product from the said discovery. Such disclosures are commonplace in Science, Technology, Engineering and Mathematics (STEM) academia, where articles in prestigious journals could determine the standing of a scientist in his community. To have no invention patentable from such a disclosure would unfairly impose a period of silence on the scientist, who may only publicly disclose his breakthrough until after the date of patent filing. I wish to raise just one point for clarification. The new section 14(4)(e) refers to "disclosure of matter constituting an invention to the public" while existing sections 14(4)(a) to (d) merely refer to "disclosure". Can the Senior Minister of State clarify if there is any substantive difference in terms of what amounts to disclosure between the wording in section 14(4)(a) to (d), and that of 14(4)(e)? Do we retain the common law understanding that disclosure even to one person not under an obligation of confidence constitutes disclosure to the public?[+2 sentences] Mdm Speaker, the amendments are welcomed changes, which create a patent landscape conducive for Singapore's transformation into an innovative economy. I look forward to more local innovators taking advantage of and flourishing under our robust IP protection regime.
Mdm Speaker6 words
[+1 sentence]Senior Minister of State Indranee Rajah.
Ms Indranee Rajah711 words
[+2 sentences]Mdm Speaker, I thank the Members who have spoken, for their support of the Bill. Mr de Souza asked about initiatives to ensure that Singapore remains an attractive place to file patents. IPOS has arrangements with patent offices around the world to allow applicants to use a Singapore patent examination report to expedite applications in other jurisdictions.[+7 sentences] First, there are the various Patent Prosecution Highways (PPHs) that Mr de Souza mentioned. These arrangements cover important markets like China, the US, Europe, Japan, Korea and Australia. IPOS is also part of a similar arrangement in the Association of Southeast Asian Nations (ASEAN), known as the ASEAN Patent Examination Co-operation (ASPEC) programme. All in, the PPHs and ASPEC cover more than 30 jurisdictions. IPOS also has an agreement with Cambodia to allow the re-registration of a Singapore patent in Cambodia. Hence, with a Singapore granted patent, a business can access a combined market of over 20 million people. In February, IPOS also announced reductions in its patent search and examination fees. The fee for requesting a search and examination report will decrease by 25% with effect from 1 April.[+11 sentences] A further discount will be given when the applicant chooses to rely on the search report or preliminary examination report issued by IPOS as an ISA and IPEA under the Patent Cooperation Treaty (PCT). All these connections to larger markets outside Singapore are aimed at making Singapore an attractive place to file patents. In addition, we are also positioning Singapore to capture patent work, even when applicants are looking to file patents in other jurisdictions and not in Singapore. Being a PCT International Searching and Preliminary Examining Authority, IPOS is able to provide search and examination services to applicants who file in other jurisdictions via PCT. Besides Singapore, IPOS can do this PCT examination work for applicants from the US, Japan, Mexico, Indonesia, Vietnam and Cambodia. Further, given the large Chinese market, IPOS' ability to search Chinese patent documents can be an additional attraction for these PCT applicants. Through these measures, IPOS hopes to attract patent work to Singapore, even in cases where an applicant might decide not to file in Singapore. This will create more work for IP professionals, such as patent agents. Mr de Souza also asked whether we are adequately resourced to handle the increased workload from applicants switching to the local mixed routes: yes, we are. There are two aspects to this. First, the Ministry of Law and IPOS will continue to ensure that there is a sufficient pipeline of skilled IP manpower to provide patent agent services. In this regard, IPOS and the Singapore Institute of Management (UniSIM) have announced the launch of a Master in IP and Innovation Management this year.[+1 sentence] Graduates from the patent agent specialisation track of this programme can go on to take the Patent Agents Qualifying Examinations to become patent agents. Second, IPOS' patent search and examination unit has more than 100 examiners with expertise across a wide range of technologies.[+8 sentences] The unit will be able to handle the anticipated increase in work. From PCT statistics, IPOS is the top, out of 21 international authorities, in terms of timeliness to issue International Search Reports. Mr Louis Ng had a point for clarification regarding the new section 14(4)(e) inserted by clause 2(b) of the Bill. Sections 14(4)(a) to (e) each describes different circumstances of disclosure to the public that are to be disregarded during the determination of the "state of the art" which the examiner considers in assessing whether the invention is "new" and "inventive". Section 14(4)(e) is intended to extend the circumstances of disclosure that are to be disregarded beyond those stated in the current section 14(4)(a) to 14(4)(d). For all the grounds in section 14(4)(a) to (e), disclosure even to one person not under the obligation of confidentiality constitutes disclosure to the public. Mdm Speaker, I beg to move. . (proc text)]
The Minister for National Development (Mr Lawrence Wong)862 words
[+7 sentences]Mdm Speaker, I beg to move, "That the Bill be now read a Second time". The Architects Act was enacted (a) to provide a framework for the registration of architects; (b) to regulate the qualifications and practice of architects; and (c) to enable the Board of Architects (BOA) to license corporations, partnerships and limited liability partnerships. The last set of amendments to the Architects Act took effect on 1 December 2005, which included enlarging the composition of BOA and enhancing its disciplinary process. Today, with globalisation, more architects are likely to provide architectural services in foreign countries and territories in addition to their country or territory of registration. In particular, many of our locally registered architects are well recognised for their skills and professionalism and many of them are already expanding their businesses overseas. Hence, we need to amend the Architects Act to facilitate our locally registered architects to provide architectural services overseas. At the same time, we must regulate foreign architects who provide architectural services in Singapore. The proposed changes in the Bill will seek to give effect to arrangements made between BOA and the appropriate foreign registration authority of any country or territory outside Singapore, for the mutual recognition of the qualifications and standards adopted by each of the parties to the arrangement regarding the practice of architecture. It will also enhance disciplinary proceedings and penalties and allow limited partnerships to provide architectural services in Singapore.[+15 sentences] Let me go through these in turn. Firstly, on Mutual Recognition Arrangements. For locally registered architects seeking to practise overseas, they must, first, be recognised in Singapore before they engage in the practice of architecture in a participating overseas jurisdiction. By that, we mean any country or territory outside Singapore in relation to which a mutual recognition arrangement is in force. The need for such domestic recognition is a standard feature of the mutual recognition arrangements we have currently with various jurisdictions. For example, Singapore, Australia and New Zealand have a Trilateral Agreement under the Asia-Pacific Economic Cooperation (APEC) Architect Framework. Singapore has also signed the ASEAN Mutual Recognition Arrangement on Architectural Services with other ASEAN member countries. Such a domestic recognition allows for the qualifications and experience obtained by an architect in the country or territory where he or she is already registered to be recognised by the participating overseas jurisdictions. This will make it easier for Singapore-registered architects to practise abroad in a participating jurisdiction and will open up opportunities for them overseas. Likewise, a foreign architect from a participating jurisdiction can be registered in Singapore to engage in the practice of architecture in Singapore, subject to the following conditions. First, the foreign architect must meet the registration requirements as agreed to by BOA and the registration authority of the participating overseas jurisdiction, pass the necessary examinations as approved by BOA and also pay a prescribed fee. The amended Act will also allow BOA to impose any prohibitions, restrictions or conditions as to the practice of architecture in Singapore when registering a foreign architect. For example, BOA may impose a restriction on a foreign architect to only provide architectural services in Singapore in collaboration with a local registered architect with a valid practising certificate on a project basis, rather than doing so independently. I would also like to take this opportunity to clarify that an architect providing architectural services independently in Singapore as a Qualified Person is required to be a registered architect with BOA and must have a valid practising certificate. This does not change even with the amendments in this Bill. Next, on Disciplinary Proceedings and Penalties, the proposed changes in this Bill also seek to enhance the disciplinary proceedings and penalties currently provided, which include the following: (a) BOA will be allowed to appoint independent investigators, where necessary, to enable the Board to more effectively deal with disciplinary proceedings; (b) the maximum penalties for certain offences in the Architects Act will be raised to ensure sufficient deterrence; (c) a new offence is created under the new section 12(1A), which makes it an offence for a person to engage the architectural services of another person in relation to any building works unless the other person is authorised under the Act to supply architectural services; and (d) a person will not be allowed to use the word "architect" or any of its derivatives as part of the name of an architectural practice if the person is not authorised under the Act to supply architectural services independently.[+2 sentences] This is to avoid misleading the public that the person is authorised to provide architectural services. Thirdly, on Licensing of Limited Partnerships. In view of the fact that the Limited Partnership Act was enacted in 2008 to provide for the establishment and registration of limited partnerships, the Architects Act is now also being updated to allow for the licensing of limited partnerships that provide architectural services in Singapore.[+2 sentences] Finally, Madam, the amendments proposed in this Bill are timely. They will enable our Architects to operate more effectively in a globalised world and also ensure that BOA continues to play an effective role in supporting the growth of the profession.
Mdm Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)547 words
[+9 sentences]Madam, I commend the stricter regulations brought about by this Bill. It also expands the powers given to BOA to ensure architects in Singapore stay in line thus strengthening honest work in the profession. I support the enhancements to the current Act and the new definitions introduced to offer clarity to the practice. Architects I have spoken to inform that industry practitioners have already been practising along these lines even before regulations were set in stone, but codifying these good practices into law is a progressive step forward. Madam, I have three comments to make, based on conversations I have had with architects. Firstly, can the Minister clarify why there is a need to increase the maximum penalty the Board can impose on a registered architect from the current $10,000 to $50,000? Has there been a rise in cases in recent years? Secondly, with the amendments to section 6, I assume it will now be easier for architects in Singapore to do quality work overseas, benefiting less developed countries in our region. Singapore is more advanced and sophisticated in our Building Legislation and Codes of Practice, and this Bill will now place Singapore in a better position to bring our expertise to areas which could benefit from technical support. With the amendments, foreign registered architects will also be able to work in Singapore. The APEC Architect Framework allows registered architects in each of the countries to work independently, while ASEAN architects under the ASEAN Framework Agreement have to work in collaboration with a licensed Singapore architectural firm or practice.[+18 sentences] The safeguards are different, depending on the agreements. Can the Minister clarify what is the required registration process with the Board? The Minister has mentioned this earlier, but I understand that architects from APEC have to take a domain-specific test. What about architects from ASEAN? In Singapore, some submissions by architects to authorities include a self-declaration to confirm that the qualified person has duly complied with the requirements from the authorities. If something goes wrong, architects may lose their licence and be removed from the Board. If something goes wrong, for projects done by overseas architects under this "mutual recognition" scheme, what penalty would that incur? Do they lose the practice licence obtained in their country? Training and exposure for architects in less-developed countries may not be adequate to familiarise them with Singapore's building codes and standards. If there are no tight controls to limit the overseas architects to practise in Singapore, the standard of architectural practice here could be affected. Architecture is already a very competitive market with limited jobs and many firms, and some architects overseas quote cheaper fees, offering poorer quality work. As such, how can we offer mutual recognition, yet protect the profession in Singapore? Lastly, the Board can appoint a public officer, or any other person, to investigate offences against architects. Investigators have the power of search and require persons to provide information for investigations. This confers extensive powers to investigators. Can the Minister clarify who he envisages "any other persons" to be? Perhaps, investigators should only be limited to employees of the Board, who will be more familiar with the rules and regulations. Madam, these comments notwithstanding, architects have a professional responsibility towards society and I stand in support of the Bill.
Mdm Speaker2 words
[+1 sentence]Ms Thanaletchimi.
Ms K Thanaletchimi (Nominated Member)249 words
[+3 sentences]Madam, I rise in support of the Bill. The Bill sets out the general qualifications and requirements for architect registration. It brings about improvements to safeguard the interests of both the architects providing the service and the clients who sought their services. Essentially, the amendment to the Bill allows for the recognition of architect qualification and standards with the arrangement between the BOA and those territories or countries outside Singapore.[+7 sentences] This will, indeed, open up more opportunities for these professionals and allow them to extend their expertise and services overseas with fewer hurdles. At this stage, I wish to seek the following clarification on the amendments. In regard to section 4C, if a tie occurs in the voting for the President of BOA, how will the tie be decided? Section 11(2), which explains the recovery of payment from the architect, how can a person recover the amount paid to an unauthorised architect? Will he/she have to file a civil suit to recover his/her money? As stated in section 31(k), will the appointed investigator be allowed to authorise or appoint a team of support for the investigation work? And which Ministry oversees this Act? Section 15A, which is a new section that spells out the recognition of registered architects in any participating jurisdiction, is this restricted to foreign architects to obtain any of the qualifications listed in the BOA website? And importantly, how do we preserve the standards of overseas architects who are practising in Singapore vis-a-vis the Singapore architects?
Mdm Speaker3 words
[+1 sentence]Minister Lawrence Wong.
Mr Lawrence Wong1123 words
[+3 sentences]Mdm Speaker, I thank the Members who have spoken and also for their support of the Bill. Ms K Thanaletchimi and Mr Louis Ng sought several clarifications on the administration of the Architects Act, and I will clarify the queries that they have. Let me start with Ms Thanaletchimi's query on the election process for the President of BOA. If there is a tie of votes that she had asked, another round of secret ballot will be carried out.[+5 sentences] And should there be another tie of votes, the successful candidate will be determined by the drawing of lots. This is already set out in the rules of the Procedure for the Election of the President of BOA. So, this is already in place. In fact, these rules are read out before the commencement of any voting. Ms Thanaletchimi also sought a clarification on section 11 of the Bill, about the recovery process should the person pay money to an unauthorised architect and how would they recover the money in a Court. Indeed, as she has asked, the person would have to file a civil suit to recover the money paid to the unauthorised architect and this is consistent with the recovery process for other professions as well.[+7 sentences] Ms Thanaletchimi asked about qualifications. The new section 15A provides for the recognition of local registered architects who intend to supply or offer to supply architectural services in any participating jurisdiction. For anyone, including foreign architects who are seeking registration under section 15(1)(a) and 15(1)(b) to practise in Singapore, the qualifications recognised by BOA are already listed on its website. They can refer to that for any clarification. Mr Louis Ng sought clarifications on the registration process under the new section 15(2A) for foreign architects from a participating jurisdiction. Let me briefly set out what this process entails. First, a foreign architect will need to be qualified and recognised in his/her own country, the original country or territory of registration for mutual recognition, based on the agreed criteria set out in the mutual agreements between BOA and the registration authority of the participating jurisdiction. Following that, the foreign architect will have to pass the examination set by BOA to ensure that he/she has the knowledge of the practice laws, rules and regulations and other conditions of practising in Singapore, and then pay the prescribed fee, before this architect is entitled for registration under the new section 15(2A).[+22 sentences] The need to pass an examination set by BOA before the foreign architect can seek registration will hence also apply to ASEAN architects recognised under the ASEAN Mutual Recognition Arrangement on Architectural Services. This was the query that Mr Louis Ng asked. So, yes, ASEAN architects will also have to take the examinations. And with these examinations, that is the way we can ensure standards are not compromised. Mr Louis Ng also enquired about penalties for foreign architects who are registered with BOA under the new section 15(2A), and how we can offer mutual recognition while protecting the profession in Singapore. Perhaps, I would like to explain this in two parts because there are foreign architects who qualify to practise independently in Singapore under the new section 15(2A). These foreign architects who can qualify to practise independently will be required to maintain a valid practising certificate and they will be subjected to the same disciplinary procedures and penalties as anyone who is registered under the existing section 15(1) with a valid practising certificate. At the same time, the offences committed will be reported to the foreign architect's original country or territory of registration, where the relevant authorities there will also follow up with the relevant penalties. So, this is for the first category of foreign architects who can qualify to practise independently. The second category of foreign architects are those who can only practise in collaboration with a local registered architect on a project basis. They will not be issued a practising certificate by BOA and so they are not Qualified Persons who can offer architectural services independently in Singapore. For this category of foreign architects, in the event of a suspected offence, BOA will write to the foreign architect's original country or territory of registration. The foreign architect will then be subjected to the investigation and disciplinary proceedings and relevant penalties imposed by the relevant authorities there. BOA can also reject future applications from such a foreign architect to register for collaborations, depending on the seriousness of the offence committed, because a new registration for practising in collaboration with a locally registered architect is required for every new project. So, if an offence is committed, BOA will take that into consideration before issuing any new registration. Next, on the increase in penalty which is something Mr Louis Ng asked about. This increase in the maximum penalty is to ensure that there is sufficient deterrence against any potential wrongdoings. In fact, the higher level of penalty has also been benchmarked and is similar to that imposed by other professional boards in the medical and legal professions. Both Mr Louis Ng and Ms Thanaletchimi sought clarifications for the new section 31(K), which empowers BOA to appoint investigators to investigate into the commission of an offence under the Act. I would like to explain how this process will work out. Under the current Act, BOA will form an investigation committee which will be chaired by a Board member and comprise two other registered architects with more than 10 years of practising experience, and a layperson. The investigation committee is in charge of evaluating the findings and making a recommendation to the Board on the investigation. The new section 31(K) allows BOA to appoint an investigator or more than one investigator to assist the investigation committee, such as assisting to obtain evidences. Such a person may be a retired Police Officer who is familiar with our laws and knows how to conduct proper investigation and search for evidence. BOA and the investigation committee will make their own independent decisions and disciplinary decisions after the hearing. But appeals on BOA's decisions can be made to the Minister.[+5 sentences] This is in answer to Ms Thanaletchimi's query. Madam, I believe that I have addressed the issues raised by the Members. I would like to once again thank them for their support for this Bill. With that, Madam, I beg to move. . (proc text)]
Early Childhood Development Centres Bill›Second Reading Bills39 turns · 20,421w
· 131 highlighted
bill-290
Mdm Speaker3 words
[+1 sentence]Minister Tan Chuan-Jin.
The Minister for Social and Family Development (Mr Tan Chuan-Jin)40 words
[+2 sentences]Mdm Speaker, I beg to move, "That the Bill be now read a Second time". With your permission, Mdm Speaker, may I ask the Clerks to distribute the document that illustrates the points that I will cover in my speech?
Mdm Speaker11 words
[+1 sentence]Yes, please.
Mr Tan Chuan-Jin2444 words
[+1 sentence]As part of the Government's commitment to give every child a good start and to make Singapore a great place for families, we have undertaken various efforts to raise the affordability, accessibility and quality of our early childhood sector. In support of this, the Early Childhood Development Agency (ECDA) was established in 2013 to regulate and develop the sector.[+1 sentence] To be effective, ECDA has to work in close partnership with the operators of around 1,800 childcare centres and kindergartens in Singapore. Today, parents of over 165,000 children entrust their children to these centres each day.[+17 sentences] Such trust is possible because of committed and passionate teachers, as well as quality centres, and all this is underpinned by a sound and robust regulatory framework that upholds quality. Regulatory standards underpin the foundation of a good quality preschool, much like the stacking ring toy that we played with when we were young, the one with the concentric circles, increasingly smaller. We find that in pre-schools today, it is a toy that helps children to develop their fine motor skills, it comes in different colours and so on. The biggest ring is at the base and it forms the foundation. The Early Childhood Development Centres (ECDC) Bill seeks exactly to be that strong and reliable base for the sector − to consistently provide good quality programmes that give our young parents peace of mind when it comes to the safety, well-being and development of their children. In short, this Bill will ensure higher and more consistent quality standards across the early childhood sector. Before I go into the key provisions of the Bill, I wish to thank Members of this House, the early childhood sector and the public for their support and valuable suggestions. The proposals in the Bill were made through extensive consultations over the past two years with operators, parents, teachers, early childhood experts, industry partners and the general public. Parents who came for ECDA's focus group discussions − I think they came to appreciate and realise the amount of effort that operators and teachers have to put in to ensure that the preschool is safe and conducive for their children's development. ECDA received strong support on the need to raise centre quality, and we also calibrated our proposals based on the feedback received from the different stakeholders. Mdm Speaker, let me now move on to the key provisions of the Bill. Members will notice that the Bill focuses on early childhood development − we emphasise holistic care and education as an integral part of our children's growth. In this regard, childcare centres and kindergartens will be collectively regulated as "early childhood development centres" under a common licensing framework, which this harmonised Bill is better able to support, rather than being separately regulated under the Child Care Centres Act and Education Act, as they are today. What this means is that, instead of the current "lifetime subscription" model for kindergartens, where they are registered one-off under the Education Act, all centres will now run on the "renewal subscription" model, which is already the practice for childcare centres today under the Child Care Centres Act. Centres, essentially, will be approved to operate for a period of time and will be re-assessed when they renew their licence tenures. This requires centres to consciously put in effort to maintain their standards to continue their operations for another tenure. Key areas of focus include physical space norms and design, environment safety and hygiene, programme staff quality and, of course, staff-to-child ratios. Under the new framework, we will increase the maximum licence tenure to three years, up from the current two years for childcare centres.[+1 sentence] Better quality centres will be awarded longer licence tenures, and this will incentivise them and encourage them to perform better. The new three-year licence tenure recognises the strong core of centres with consistently good regulatory track records of at least two consecutive two-year licences. This is a substantial portion of childcare centres, at over 500 centres today.[+21 sentences] ECDA officers will continue to conduct unannounced visits to centres periodically to ensure that centres maintain their standards. The focus of this Bill is to regulate what we currently define today to be childcare centres and kindergartens. The Bill, therefore, provides for the exclusion and exemption of premises where specialised services are provided to a niche group. It also excludes centres regulated under other legislations for distinctly different purposes, or operated by or on behalf of the Government, and hence directly accountable to this House. Examples include enrichment centres, standalone foreign system kindergartens, kindergartens affiliated with foreign-system primary schools, or kindergartens by the Ministry of Education. Such entities are currently not under ECDA's purview and will similarly not come under this new Act. As many of us can agree, people, especially teachers, are at the heart of every early childhood development centre. Parts 3 and 4 of the Bill have provisions to enable better and more consistent quality of staff who interact with children, especially early childhood professionals, given their important role during children's formative years. For example, the Bill will ensure that all principals and teachers meet the prevailing professional qualification requirements before assuming their appointments. In addition, all persons working in centres will also need to be approved by ECDA for their suitability before they can start work at the centres. This will cover, for example, principals and teachers, cooks and cleaners, as well as enrichment vendor staff. All individuals will be assessed on their track record, especially pertaining to children's safety. One benefit of a common regulatory framework across the early childhood sector is a common administrative process to register staff. This facilitates our teachers' movement between childcare centres and kindergartens, which many teachers had called for earlier. I also believe that this regulatory framework will further enhance the professional standing and standards of our early childhood educators. Nevertheless, my Ministry is very mindful of the manpower and other ground constraints faced by operators. They have given us feedback, and we do understand them. As a regulator, ECDA will strive to ensure that its administrative processes are efficient and that its regulatory requirements are responsive to operators' needs, while ensuring sevice quality and the safety of our children. For example, ECDA is exploring allowing non-teaching staff, such as cooks and cleaners, to support trained teachers in supervising outdoor play time. The constant dialogue that we have with the sector must continue, so that the feedback can come back to us and this allows us to calibrate these proposals. As with any enterprise, good governance and management are critical success factors for early childhood development centres. Under clause 19, ECDA will continue to prohibit unsuitable persons, such as those with poor regulatory track records, from managing the centre's business as board directors or chief executive officers and so on.[+8 sentences] The new Bill will further prohibit recalcitrant operators, whose licences had been revoked, from operating centres under another proxy. This allows ECDA to prevent such persons from continuing to misdirect centres. ECDA will also penalise licensees for knowingly allowing such unsuitable persons from managing their centre's business. As the operating environment of the early childhood sector is dynamic and needs to be updated from time to time, clause 51 of the Bill will provide for subsidiary legislation to effect more specific operational requirements. This will provide more clarity on the responsibilities of operators and centres. Under the subsidiary legislation, we intend to enhance some requirements and introduce new ones to raise quality standards. We will continue to consult the sector on this. We will take reference from sector best practices and ECDA's prevailing guidelines. For example, as announced by the NurtureSG Taskforce last week, centres with full-day programmes will need to conduct at least one hour of physical activities daily, up from half-hour currently, and half-hour of which has to be conducted outdoors.[+13 sentences] Exposure to the outdoors will be beneficial for our children in preventing the early onset of myopia. Even as we raise standards in the sector, we will streamline certain requirements which are no longer applicable, for greater efficiency, especially those that place unnecessary administrative burden on our teachers. The sector warmly welcomed these proposals when we consulted them earlier this month. Just as how the Bill provides requirements for the set-up of centres, the Bill also provides requirements for the orderly closure of centres, under clauses 14 and 18. This is in view that, in the past, there had been cases where centres abruptly close. While this has been few, the impact on parents and children involved can be quite significant. Thus, to minimise such occurrences, ECDA will be empowered to require centres to put in place measures to ensure orderly closure. These include giving parents and teachers advance notice of the upcoming service disruption and ceasing the enrolment of new children to the centre. Operators have worked hard to build the trust of parents by meeting the baseline standards. Today, errant operators form a small minority of the sector but they undermine the hard work of the rest of the sector. ECDA takes regulatory breaches seriously and a more comprehensive and graduated penalty framework will enable ECDA to effectively and swiftly enforce requirements to safeguard the safety and well-being of our young children. That is our foremost priority. More importantly, it serves as a deterrent against errant practices and behaviours. With this new penalty framework, administrative lapses will be decriminalised and replaced with administrative regulatory sanctions. This will allow us a wider suite of regulatory sanctions ranging from public censures, administrative financial penalties of up to $5,000, a security deposit, remedial measures and a shortening of licence tenure.[+5 sentences] The type of penalty imposed eventually will depend on the severity of the breach and whether it was a repeated occurrence. The penalty will be proportionate to the breach. At the same time, I would like to reassure operators that ECDA will continue to adopt a measured and developmental approach in enforcing requirements by advising centres to rectify problems. One new regulatory sanction I would like to elaborate on is the requirement of a security deposit. I am aware that operators are concerned about this requirement. The current intention is for the security deposit to apply only to the small number of centres with poor track records, such as centres with two consecutive six-month licences, which is the lowest licence standard.[+1 sentence] This security deposit is intended to spur such centres to raise their standards. We are also mindful that the security deposit amount should be calibrated appropriately and not be overly onerous on the centres. We are looking at a $10,000 amount, which is twice the administrative financial penalty amount for contraventions.[+2 sentences] I encourage centres with a six-month licence to take their regulatory gaps seriously, and to rectify their breaches quickly, so as to avoid being required to put up a security deposit. At the same time, the Bill provides for criminal penalty for contraventions which pose a more serious risk to the safety and well-being of our children, for example, the operation of unlicensed centres. Under the Bill, such contraventions will incur a fine of up to $10,000 and/or an imprisonment term of up to 12 months.[+5 sentences] The maximum fine amount has been adjusted to align with recent legislation like the Private Education Act. Certain offences will be made compoundable at up to half of the maximum fine amount under clause 42. Before ECDA determines any contraventions, its officers will investigate the cases thoroughly and establish the facts from a variety of sources. Very often, a child may be involved in a case, which makes investigations more complex. Hence, ECDA officers will need enhanced investigative powers to effectively carry out their duties under the Bill. Beyond the current powers to inspect centres, ECDA officers, under clause 37, will be empowered to search centres, interview persons, take photographs and videos of the centre, and obtain the necessary documents from the centre.[+4 sentences] These are powers similar to those available to other regulators in Singapore. As we put these powers in place, we will establish internal processes to ensure that ECDA officers carry out their investigations fairly. I have just outlined the broad regulatory framework. We are expecting to commence the Act over the next year after gazetting the detailed regulatory requirements in subsidiary legislation and publishing the administrative procedures in the Codes of Practice. As kindergartens are less familiar with a licensing regime, under clause 54 of the Bill, kindergartens will be given one year from the commencement of the Act to obtain their licences.[+16 sentences] Since 2015, ECDA has also been conducting sector briefings to explain and consult on the new requirements, as well as conducting customised on-site guidance for kindergartens. In fact, I understand that, actually, many kindergartens have already been making adjustments to prepare for the new framework. From my interactions with the sector, I am confident that almost all our operators would be able to meet these requirements. I believe that clear and appropriate regulatory requirements are crucial in raising standards in the early childhood sector. For example, during my visit to Creative Thinkers Kindergarten in August last year, the principal, Ms Sakinah Dollah, shared that a clear, common understanding among the principals, teachers and support staff of ECDA's regulatory requirements will help centres to organise themselves better and to improve. Mdm Speaker, to summarise, the ECDC Bill is an important milestone in raising the quality of early childhood care and education in Singapore, so that we can give every child a good start. It will provide parents with greater confidence that we are making Singapore a great place to raise families. We received strong support from parents, teachers and operators on the need for this enhanced regulatory framework. The Bill proposes, first, a common licensing framework for childcare centres and kindergartens. Second, all persons working in centres will need to be approved by ECDA to ensure their suitability to work with young children. In addition, there will also be clearer and more consistent requirements to guide centres in their operations. Finally, the requirements will be enforced through a more comprehensive and graduated enforcement framework with enhanced investigative powers to strengthen ECDA's oversight of the sector. ECDA will also work with centres closely to facilitate a smooth transition. To conclude, the proposals in the Bill will help to set a firm and consistent foundation, positioning the early childhood sector well for the future. It complements the many, many efforts by the Government to partner the sector to improve the quality, accessibility and affordability of early childhood development services in Singapore. With that, Mdm Speaker, I beg to move.
Mdm Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)739 words
[+3 sentences]Mdm Speaker, the early childhood sector in Singapore has expanded significantly over the years. While we now have more choices of operators and services, quality and standards can differ greatly. I stand in support of the Bill to further regulate the sector to improve the quality of these centres and to protect the safety and well-being of our children. One of the key provisions in this Bill is for all centres to be licensed.[+3 sentences] Licensing should improve quality. But we should be mindful of compliance costs. How will ECDA mitigate against centre operators from passing on compliance costs to parents? Right now, the fee variation is significant − from over $600 per month to $2,000 per month in high-end childcare centres.[+12 sentences] Both Anchor Operator and Partner Operator (POP) schemes are useful in moderating fees. However, fees of others outside of such schemes might continue to rise. Will further steps be taken to moderate the costs by having more centres involved in these schemes? Or should centres justify significant fee increases to ECDA? Mdm Speaker, let me continue in Mandarin. (In Mandarin): Mdm Speaker, many young families have to cope with the high cost of living − anything from daily living expenses, maintenance of parents and expenses to take care of their young children. The cost impact can be quite high for the young parents. Both husband and wife must work to maintain the cost of living. Childcare centres, therefore, have become a necessity for young families. Currently, Singaporeans can enjoy a $300 basic subsidy. From April 2013, the Government provided an additional subsidy for families with income below $7,500. This is at the 40th percentile. From 2011 to 2015, the median fee of a full-time childcare centre has increased 25%, but the subsidy given to middle-income families has remained at $300 since 2008.[+10 sentences] I urge the Government to give a higher subsidy during this period of economic downturn to mitigate the financial burdens of young parents. There are also women who cannot take up full-time jobs due to family needs. However, current policies only allow non-working mothers to receive a subsidy of up to $300. While the intention to encourage mothers to go back to work is good, many mothers have no choice but to stay at home, especially those who have to take care of their parents and young children. What is more, there is not much flexible work in Singapore. These mothers may face even heavier financial burdens. I hope the Government can increase the basic subsidy for non-working mothers, a gesture which can be seen as "sending coal amidst snow". (In English): Mdm Speaker, let me resume in English. Another aspect of this Bill looks at ensuring holistic care and education of our children. This is critical and laudable. Recent studies show that obesity in school children has risen from 10% in 2000 to 12% in 2014.[+13 sentences] Our war on obesity and diabetes must start with our young children. The NurtureSG taskforce has given thoughtful and important recommendations. They include ensuring that children have adequate exercise, sleep and healthier food. I hope these recommendations can be adopted widely because healthy lifestyles need to start at a young age. I hope that ECDA will require operators to provide healthy and well-balanced meals for the children under their care. Madam, I would also like to better understand how ECDA intends to support centres in improving their curriculum or standardising core components. Having a "better" curriculum certainly goes beyond preparing for primary school education. It is also about life values and developing a love for learning. Because of the centricity of early childhood education to a child's future learning, there would be value in ensuring certain core components are taught in the curriculum. Would ECDA consider such limited standardisation? Improving the curriculum also means that teachers will have to be properly trained and equipped. Since this Bill also provides for teachers to have greater professional standing, what kind of support will ECDA offer to smaller centres that are lacking in manpower and may face challenges in getting their teaching staff to go for courses and further training? Will centre operators also be required to review the salary of their teachers and staff and consider increasing their salaries as they become more professional? Notwithstanding the above suggestions, the Bill is important and critical for nurturing the next generation of younger Singaporeans.[+1 sentence] I support the Bill.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)1496 words
[+1 sentence]Mdm Speaker, I am a father of two young boys, the oldest in Kindergarten 1 and the youngest likely to enter Nursery 1 next year. I am thus speaking from the point of view as a parent and I support the Bill.[+1 sentence] I support the Bill for two reasons. First, the proposed legislation would formalise many of the existing good regulatory practices that are already in place and tweak some to maintain a good balance. Second, and more importantly today, the proposed legislation opens up the possibilities of developing the preschool sector.[+20 sentences] In this regard, I will speak of the three potentials of enhancing innovation, professionalism and affordability in the preschool sector. But before I do so, I want to clear a nagging issue with the Minister, which has been bothering me since I read ECDA's response to the specific feedback back in November 2015. The explanation given by ECDA to the exemption of the Ministry of Education (MOE) Kindergartens from the regulatory framework is that this is in line with the fact that the Council for Private Education regulates private education institutions under the Private Education Act, while all national schools, polytechnics and the Institute of Technical Education (ITE) come under MOE. Now, this argument is rather weak. On what grounds should the regulation of the preschool sector be organised in a similar way as the education sector? The two sectors are very different in purpose and pedagogies. The preschool sector entails the application of childcare skills as well as holistic education approaches that recognise the difference between early childhood development and late childhood education. Furthermore, in the education sector, the national schools serve as the primary and centralised arbiter of standards and allocation of public resources, with private schools only playing the role of augmenting public-led education to raise our young people to become productive workers, enterprising leaders and good citizens. Since the November 2015 response by ECDA, the Council for Private Education has been turned into the Committee for Private Education and absorbed into SkillsFuture Singapore. There is no equivalent in the preschool sector. The pre-school sector is a lot more diverse and decentralised. Even as the Council for Private Education was no equivalent to ECDA, which regulated almost the entire preschool sector, except the few MOE kindergartens, it is certainly no equivalent now as the Committee. ECDA, not MOE, sets the standards. MOE is only one of the players in the preschool sector. Symmetry may be beautiful, but it is wrong in this application. What we need to ask instead are the role and function of MOE kindergartens in the preschool sector and whether the role and function, therefore, justify the exemption. If MOE kindergartens cater to a specific constituency, say, low-income families, but seeks to be consistent in standards with the ECDC Bill and the Singapore Preschool Accreditation Framework (SPARK), then there is no justification for the exemption. There is also the strange suggestion in the ECDA public consultation response that since MOE is directly accountable to Parliament, there is no need for the inclusion of the MOE kindergartens under the regulatory framework. Surely, Parliament cannot be expected to perform the role of ECDA, since it is a legislative body and cannot play a regulatory function to closely hold MOE kindergartens to consistent standards. Let me turn now to the three potentials. The first is the potential of enhancing innovation. It is good that ECDA will be empowered to regulate the curriculum of childcare centres and kindergartens under the licensing regime.[+24 sentences] It is also a positive thing that ECDA said in its public consultation response that broad guidelines would ensure the programmes are developmentally appropriate while giving centres the flexibility to customise lesson plans. I believe this is a crucial stance to maintain and I would urge ECDA to keep this openness to the diversity of early childhood education models. I also hope ECDA would consult widely with stakeholders, professional bodies and educational experts before rejecting any particular curriculum, so as to protect the diversity as much as possible. The preschool sector is poised to be a field of innovation. There are some interesting innovations on this front spearheaded by the Lien Foundation. There is an inclusive preschool set up by Lien Foundation and the Asian Women's Welfare Association for typically developing children and children with special needs to learn and play together. There is also the collaboration between Lien Foundation and the National Trades Union Congress (NTUC) First Campus to develop model preschools for the heartlands and for training teachers and conducting research on early childhood education. The Lien Foundation examples are well-publicised examples. They are not the only examples of innovation. Many smaller preschools are quietly innovating. The regulatory framework must remain broad-based and not primed for consolidating and centralising the preschool sector and ECDA must remain open-minded and consultative to continue to encourage innovation. The second potential is the potential for enhancing the professionalism of early childhood educators. It is good that ECDA will be overseeing the registration of early childhood professionals and the accreditation of early childhood training programmes for now. I believe it is right that ECDA gently rejected the call for an independent professional body to register the programme staff, as there is no such body that can properly perform such a task at this point in time. However, having said this, I believe there is scope to aim to increase the participation of professional bodies in the registration of professionals and accreditation of the programmes, so as to develop the overall professionalism of the preschool sector. It is a positive thing that ECDA develops the standards for registration and course accreditation in consultation with stakeholders, representatives of the professionals and the education experts. But taking input for implementation is not the same as opening up the process to participation by the professional bodies so that these bodies could grow and develop. The development of these professional bodies should not be neglected by ECDA. These bodies play an important role in providing platforms for the sharing of expertise and innovation and the exchange of knowledge and best practices. In the spirit of Budget 2017, ECDA would do well to aim to forge and deepen partnerships with these professional bodies, so that the preschool sector could also prepare for the future economy so as to prepare our children for the future economy. The third potential is the potential for enhancing the affordability of early childhood education. Research has shown that preschool education is crucial for reducing inequality. Children who are ill-prepared and lacking the foundation for formal schooling tend to do badly in school, while putting a child in preschool improves her chances of graduating from college. Affordable quality preschool education is, therefore, the great leveller, improving the odds of low-income families breaking out of the poverty trap. One of the main fears related to this legislation is the increase of regulatory and compliance costs that would be passed on to parents through increased fees.[+2 sentences] In its public consultation response, ECDA reassured the public that regulatory costs would be low for operators who have been complying with existing regulations. This is fair enough, since much of the regulatory framework is already in place and this legislation is a formalisation and consolidation of the existing regulations. Nevertheless, there will be some regulatory costs and knock-on effects on fees. This, therefore, presents the Government with the opportunity to review its subsidy schemes, especially with the view of ensuring low-income families can afford preschool education for their children.[+1 sentence] In this respect, I would like to call for two things. The first is for the per capita income eligibility criteria for the Additional Infant and Child Care Subsidies and the Kindergarten Fee Assistance Scheme to be based on four or more family members in the same household, including at least two dependants, rather than on the existing five or more family members with more than two dependants.[+2 sentences] The four family members with two dependants demographic is more aligned with the low-income family profile. This will allow more low-income families to benefit from more subsidies in a context where fees are under cost pressures to go up. The second is to open up Kindergarten Fee Assistance Scheme (KiFAS) subsidies to eligible parents of children enrolled in kindergartens operated by Partner Operators (POPs) and voluntary welfare organisations (VWOs).[+6 sentences] POPs complement Anchor Operators (AOPs) in keeping fees affordable while ensuring the quality of the programmes. Likewise, kindergartens operated by VWOs are non-profit institutions and help keep fees affordable. I do not see any reason to keep POPs and VWO operators out of KiFAS. The subsidies would not benefit the operators, only the low-income families who would have a greater selection of kindergartens to choose from. Mdm Speaker, I hope this Bill will set the stage for enhancing the innovation, professionalism and affordability of the preschool sector. Notwithstanding the unjustified oddity of exempting MOE kindergartens from a good regulatory framework, I support the Bill.
Mdm Speaker4 words
[+1 sentence]Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah)678 words
[+11 sentences]Mdm Speaker, I stand in support of this Bill for it is much needed and timely. In order for parents to have the added possibility of the mother returning to the workforce, the quality of the care of their children is, understandably, extremely important. Hence, the enhanced regulatory framework to ensure excellence in care and education is crucial. Through an enhanced regulatory framework, this Bill seeks to ensure and advance the quality of care and education in the preschool sector. This is important as more young parents in Singapore look to preschool centres for care management. As preschool centres are geographically spread out across Singapore, centre-based care becomes more convenient and attractive to parents. Furthermore, as more women and seniors participate in the workforce, the need for quality preschool services has increased. There is a real need to increase the support for young parents who may prefer centre-based care over care given by domestic workers or nannies. This need to ensure quality is especially important as more parents require longer hours of care for even younger children. What I am referring to is the shift in enrolment numbers from kindergartens to childcare centres. Kindergartens are normally half-day, while childcare centres provide longer hours. Last year, it was noted that over the past three years, kindergarten enrolment dropped by about 6% and the number of kindergartens dropped from 500 to 480. On the other hand, childcare enrolment shot up by about 50%, from 76,000 to about 100,000.[+1 sentence] Furthermore, the demand for infant care for children under 18 months has increased. Since 2012, the number of infants enrolled in infant care has increased by 60%, now accounting for about 10% of the infants.[+18 sentences] This trend is projected to increase in the next few years, especially since increasing centre-based infant care featured in the Budget Statement last week. These changes necessitate an enhanced regulatory framework to ensure continued excellence in a growing and important service sector. This Bill seeks to maintain and advance the quality of care and education by preschool centres through various angles, with the child's well-being as a priority. For example, clause 6 of this Bill introduces a licensing framework for both kinds of preschool centres. This furthers the accountability with regard to kindergartens, which were previously able to come under a one-off registration process. Another example is found in clause 10(3)(e), which may require licensees to undergo an audit. Further, clause 12 provides that a security deposit may be required and may be calibrated according to the licensee's track record and its likelihood to attract regulatory action proceedings. This adds another accountability mechanism, this time, a financial one. The Bill also deals with the leadership of the early childhood development centre. Under clause 8(3), it places importance on the key appointment holder's character and the fitness to operate in an application for a licence, while clause 19 ensures that this is continued by a possible disqualification of a key appointment holder. Besides safety, quality education is ensured at multiple stages and levels, including grant of licence under clause 10(3)(b), and the educators deployed and employed under clauses 23 and 30. This Bill also provides for measures to help protect the children's well-being. For example, clause 17 empowers the Chief Licensing Officer to issue directions to act in a certain fashion or refrain from doing something with immediate effect if there are circumstances that may endanger the safety, well-being and welfare of children or other individuals at the early childhood development centre. Another key aspect of this Bill which I support is to ensure the reliability and continuity of the care centre. It is imperative that parents are not stuck in stressful limbo when a centre closes. Therefore, the initiative under this new law to mandate that assistance be provided to parents for alternative care placements and education arrangements, when a centre closes, is key. It is for this reason that clause 18(4)(g) is to be supported. In conclusion, this Bill is a timely move that advances the quality of care and education in the early childhood years.
Mdm Speaker2 words
[+1 sentence]Ms Thanaletchimi.
Ms K Thanaletchimi (Nominated Member)270 words
[+8 sentences]Madam, the Bill seeks to regulate the operation of early childhood development centres. It contains the regulatory framework for operators of early childhood development centres. It provides the approval framework for those performing the duties and approval framework for third-party education providers. The Bill is also a timely and forward-looking one as it takes effect with the repeal of the Childcare Centres Act. Madam, I would like to seek the following clarifications in regard to the Bill. Section 3 states that the Bill does not apply to certain centres. Why does this Bill not apply to preschools run by the Government, such as the MOE kindergartens? Should it not be that standards be applied to both the Government and privately-run preschools? Section 17 spells out the directions concerning the safety and well-being of children. Thus, the licensee who fails to comply will be imposed a fine of up to $10,000 or not exceeding 12 months' imprisonment.[+7 sentences] How does an agency make sure that every licensee complies with the directions and not wait until someone whistle-blows or complains? Section 23 states the approval for performance of and deployment of individuals to perform prescribed duties. Preschool teachers play an important role in detecting developmental issues among children. Will there be training for teachers in caring for children with special needs? Also, the Bill does not provide much reference or guide on the qualifications and experience required for such teachers. What other fees or charges are to be paid in respect of the services and other areas mentioned in section 51 under "Regulations"? Madam, notwithstanding these, I rise in support of the Bill.
Mdm Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera (Non-Constituency Member)1427 words
[+1 sentence]Mdm Speaker, it is important that we regulate our early childhood development centres sensibly and responsibly to ensure good outcomes for our precious children who will carry the light of Singapore forward into the future. While I do not oppose the intent of this Bill, I shall raise questions about specific provisions and its implementation.[+1 sentence] Firstly, the requirements spelt out in this Bill, for example, on registration of personnel under clause 25 in the context of the shortage of qualified childcare teachers, as well as the greater administrative requirements, may trigger many smaller independent centres to either merge with or be acquired by larger players or else close down altogether. I am concerned about the status of smaller centres that may offer niche services, for example, to children with special needs.[+4 sentences] Madam, the quality of education and childcare services should come first. The interest of children should come first, ahead of industry considerations. But at the same time, if we foster an industry landscape which is effectively an oligopoly of the AOPs, POPs and MOE kindergartens, that may pose some risks in terms of losing an element of diversity and of competition. Diversity is important, particularly in respect of centres catering to children with special needs, as I mentioned. In fact, in the year 2000, Dr Aline Wong, then Senior Minister of State for Education, said and I quote, "Today, different preschool providers with their different philosophies and approaches to child development offer a wide range of preschool education models in Singapore. There is merit in this arrangement as it promotes healthy competition and provides a fertile arena for innovative practices." I would like to ask the Ministry: does it expect a major consolidation in the industry as a result of this Bill?[+13 sentences] If so, what will be done to ensure that this takes place in a way that protects diversity and choice while also safeguarding the interests of the children? For example, will other Government agencies like the Standards, Productivity and Innovation Board (SPRING), reach out to the sector to provide advice and the systems in respect mergers and acquisitions or alliance possibilities? Next, on licensing requirements, will ECDA demonstrate flexibility on a case-by-case basis in line with the spirit of the regulations? The case in point may be where individual teachers may possess good qualifications from institutes abroad or at home and could be required to undertake an abridged or accelerated form of the current Pre-School Qualification Accreditation Committee (PQAC) accredited advanced diploma that is required. Will ECDA practise flexibility and accept different pathways to accreditation of personnel, taking into question individual professional qualifications and their experience, or will it rigidly require all professionals to conform to the same PQAC-accredited pathway? Next, will the Ministry consider setting up an independent advisory body to inform policy formulation? This was the recommendation from a study authored by Dr Lynn Ang for the Lien Foundation in 2012 referring to the preschool sector. And I quote from the study, "While the increasing Government involvement to regulate the sector is generally welcomed by most participants in the study, there is a concern that the overwhelming influence of Government may stifle the independent voices of preschool teachers and other stakeholders. As such, a consultative approach to policy development and implementation is seen as key in galvanising support and moving the sector forward." "One example of a consultative approach could entail the setting up of an independent advisory body comprising representatives from different key stakeholders, such as preschool teachers, service providers, teacher training providers, health professionals, family educators, community workers, social workers, parents, VWOs and other relevant agencies and experts who are involved in the care and education of young children." Madam, such a consultative approach to policy formulation recommended by experts, as I quoted above, is advisable given the rapid pace of research and innovation in this field. Since the Opening of the 13th Parliament in January 2016, the Government has stated that one of its key themes is partnership. Such consultative policy formulation and implementation would demonstrate that such commitments are being honoured in practice and not only in rhetoric. Next, as my colleague Assoc Prof Daniel Goh has argued, the exemption for MOE kindergartens is hard to accept.[+7 sentences] In its consultation paper of 20 November 2015, ECDA said that the MOE kindergartens are exempt because of strict oversight from MOE headquarters and because MOE is accountable to Parliament. This seems to conflict two functions − broad oversight on the one hand and operational inspection responsibility to ensure quality standards and service delivery on the other. If, indeed, MOE's regulation of MOE kindergartens is stricter than the standards required under the ECDA Act, that is problematic from the standpoint of equity. If it is on par with the standards required under this Bill, will it not be more reasonable and efficient to transfer supervisory oversight over MOE kindergartens to ECDA, thus alleviating the oversight burden on the part of MOE headquarters and levelling the inspection and enforcement playing field? Lastly, Madam, I would like to make a very exploratory suggestion. The quality of preschool education has been shown to be a critical factor in determining educational success downstream. This was argued by an Economist Interlligence Unit (EIU) report entitled "Starting Well" commissioned by the Lien Foundation in 2012. The same well-known report placed Singapore 30th in the global ranking of preschool education quality, and 21st in terms of affordability.[+12 sentences] We do face a challenge of inequality in Singapore with Gini coefficients above the 40 level. These have been coming down, which is a positive development, but they are still very high by the standards of other developed countries. Madam, breaking the poverty cycle should be a priority for Singapore. Not only is this right thing to do from the standpoint of social justice, not only will this help cement social solidarity and protect us from the divisive politics that is being seen in some other countries in the world today, it will also help unlock talent that could power our economic future, fire our imagination and inspire our spirits. One of the children in a large poor family living in a Housing and Development Board (HDB) rental flat today could be the next Ron Sim or Sim Wong Hoo, the next Joseph Schooling, Yip Pin Xiu or Theresa Goh, the next Iskandar Jalil, the next Catherine Lim. We know how important it is to ingrain good learning habits at a very young age. Children who miss the boat because their families lack the money or understanding to invest in their preschool years will struggle in primary school and are likely to become demoralised, widening the gap with their peers. This could be why the director of a social service centre I spoke to shared that he is now seeing cases which are the children of the at-risk clients he served over 20 years ago. It is well-accepted that programmes that reward poor families for keeping their children in school can play a helpful role in breaking the poverty cycle. The pioneering programme globally in this respect was the Bolsa Familia programme in Brazil which has inspired many similar programmes around the world. The Bolsa Familia basically incentivises, and I am saying this at the risk of some over-simplification, poor families to keep their children in school. It is also well-known that many other developed countries offer partly free preschool education. In Sweden, all children receive at least 525 hours per year free of charge, beginning from when the child reaches the age of three. In the longer term, and as a first step, will the Ministry explore the idea of making a more aggressive financial intervention to provide free, good quality kindergarten and childcare to all at-risk children in poor families, perhaps tied to certain conditions?[+1 sentence] There is already an initiative which the Minister launched previously, KidSTART, that can serve as the platform for a more expansionary vision here. Moreover, there is anecdotal evidence that children from many poor, low-income families sometimes attend kindergartens or childcare centres only a few times a month which is the minimum to continue receiving the KiFAS or Cebtre-based Financial Assistance for Childcare subsidies.[+1 sentence] In other words, absenteeism by children from poor families may be very high. Will the Ministry conduct a study of this absenteeism phenomenon and also consider policies to address this?[+1 sentence] Such policies could include making preschool compulsory or providing some conditional benefit to parents from such families to ensure high attendance rates, which is the idea behind the Bolsa Familia policy.
Mdm Speaker4 words
[+1 sentence]Mr Yee Chia Hsing.
Mr Yee Chia Hsing (Chua Chu Kang)392 words
[+6 sentences]Mdm Speaker, this Bill aims to raise the overall quality of early childhood care and education through a harmonised regulatory framework for kindergartens and childcare centres. I welcome this Bill as it seeks to ensure higher and consistent standards across the early childhood care education sector. As the number of young families having both parents working becomes increasingly common, the need for childcare or infant care becomes more urgent. I am glad that this Bill will give young parents assurance that the safety and welfare of their children will be protected and that the childcare centres their children attend will be professional and of high quality. Apart from the various monetary incentives the Government has provided, I think this is a right step towards providing a more holistic approach to encourage and help young couples start their family. Mdm Speaker, I would like to offer three suggestions for consideration. First, I would like to suggest that ECDA works with MOE to co-locate primary schools and childcare centres.[+3 sentences] The main benefit will be that young parents who send their elder child to school need not make a separate trip to send their younger child to a childcare centre. These parents will also have the option of engaging the school bus service to send both children. My second suggestion is regarding training. Early childhood educators must attend an ECDA-recognised course or diploma programme conducted at ITEs, polytechnics or ECDA-accredited training agencies, such as the SEED Institute or MMI Academy. To further alleviate the shortage of childcare staff, can the Ministry consider setting up a new institution to train more early childhood educators?[+1 sentence] My third suggestion is also regarding staffing, which is a big issue, as many childcare centres have trouble hiring staff. I observe that currently, childcare staff is relatively young.[+1 sentence] I would like to ask ECDA if it can consider doing a human resource study to see how to reach out to those who have been retrenched or may be considering a mid-career change to join this industry. This will be a win-win situation as it will help alleviate the manpower shortage faced by childcare centres, as well as help our middle-aged workers.[+2 sentences] To conclude, we need to do everything we can to provide the high-quality early childhood care and education that every child deserves. With that, Mdm Speaker, I support the Bill.
Mdm Speaker5 words
[+1 sentence]Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon)834 words
[+14 sentences]Mdm Speaker, early childhood education takes place during the formative years, a time when a child is most receptive to learning. It is crucial to their development and sets the cornerstone of their adult years. It is good that the Government is constantly reviewing the needs of this sector. I support this Bill which I feel will help to improve the learning experience and development of the children in their preschool years. I am pleased to note that the relevant authorities are now empowered with more investigation powers. It also should be a requirement across the board that a robust system be in place to screen all staff who work at the centres. Background records must be accessible and up to date. Certainly, anyone with a history of hurting children or have pedophilic tendencies must be weeded out. I hope the Ministry will share the measures taken to do this. I would like to raise some potential issues with these rules. As with all changes, transition is often a matter of concern, especially for the smaller centres where they could be facing manpower and resource constraints to cope with the change. Can the Minister share with the House how this transition period can be best managed, such that the provision of childcare and education will not be disrupted in any centre? We are already facing childcare shortages, especially in new Build-To-Order (BTO) areas where families are younger. This Bill should not make the shortages worse. Under this Bill, for a centre to engage a third-party education provider, it is mandatory to apply to the Chief Licensing Officer (CLO). I propose that third-party education providers should also be licensed, and the centres can then take their pick from a list of the licensed providers at any given time.[+5 sentences] This would be more efficient when a centre needs to engage providers on an ad hoc basis. Under the same proposed rule, centres cannot give guest speakers, performers and the like any rewards without a licence. Can we make this rule more flexible, as not all talents can afford to be generous with their time? In light of the current staff shortage in the industry, those who are undergoing training should be allowed to function as relief teachers or teaching assistants. This will give them valuable hands-on exposure, while helping to ease the manpower crunch. Of course, a longer-term solution to the manpower crunch is to review the salaries of childcare teachers, especially the disparity with MOE teachers.[+13 sentences] I note with concern that some centres are exempted from this Bill. They include MOE preschools and kindergartens. Why? Why are MOE preschools and kindergartens exempted? Is this double standards? Is it that they are unable to meet the key performance indicators? I think there should be more uniformity across schools catering to the same type of education level. This means subjecting MOE preschools and kindergartens to the same Act, or else subjecting the private preschools and kindergartens to the same requirements as the MOE's. In fact, it is good to subject MOE preschools and kindergartens under this same Act. This can ensure that whatever requested by ECDA is practical and is something that can be done. In fact, if there is anything that is not practical, something that needs to be fine tuned, MOE can then whisper to ECDA. Enrichment centres, therapy services, standalone playgroups, children's gyms and student care services are also exempted. These are common places where children are sent to for learning and to be cared for. There must be adequate regulations to protect their well-being, health and safety. I request that while they do not need to comply with all the rules in this Bill, the Government should look into a simpler set of rules for them.[+13 sentences] For example, their staff should also be registered. Please let me summarise in Chinese. (In Mandarin): Both the parents and childcare centres are concerned about whether they will be affected by the new regulations. For example, if a smaller centre did not apply for a permit in time, will the authorities help them to make sure that students are not affected? In addition, some centres are exempted from this Bill including MOE kindergartens. Why is this so? Why are MOE kindergartens not regulated under this Bill? Is this not double standard? I understand that these kindergartens already have a set of stringent rules in place but consumers may feel that the Government did not apply the same standard, or that some kindergartens are better than the others. I feel that there should be uniformity when it comes to educating children of the same age. In fact, centres under MOE should set an example to make sure that ECDA's requirements are practical and reasonable. Other types of pre-school education centres, such as children's gyms and enrichment centres, are also exempted from the Bill. Can the Government stipulate a set of simpler rules to protect the children when they are at these places, too?
Mdm Speaker4 words
[+1 sentence]Mr Ang Hin Kee.
Mr Ang Hin Kee (Ang Mo Kio)671 words
[+1 sentence]Mdm Speaker, I stand in support of the Bill. Currently, there are over 1,300 childcare centres in Singapore, with close to 500 of them offering infant care services at the same premises.[+3 sentences] Together with about 500 kindergartens, they provide preschool services so that our children can receive quality care and education in their foundation years. Amongst them, there are small and medium enterprises as well as bigger ones with more than 10 branches each. Regardless of the scale, it is important that all operators deliver high levels of professional care and services. Under this Bill, operators with ill practices will either shape up or exit the market.[+11 sentences] The tightening of the regulatory framework to raise centre quality by safeguarding the well-being of the children and, to a certain extent, the staff, is to be applauded. Madam, I would like to also declare my interest as the Executive Secretary of the Education Services Union. At the union, we, too, received complaints against the management of childcare centres by early childhood educators. These concern issues with regard to salaries and even abdication of responsibilities by the management. These incidents serve as reminders on the need for a rigorous system to ensure that lapses in management can be detected early or prevented. I feel that we do need to avoid some unintended consequences and strengthen work in other areas. Firstly, with tighter compliance, some early childhood educators are concerned that operators may unfairly pass on all responsibilities to them in cases where non-compliance or gaps are detected. It is disconcerting to the educators if it is perceived that operators command the rights and can transfer all or a majority of the responsibilities to their staff. Hence, I urge the Ministry and the trade association to take a firm stance against operators who do so. We, in the union, stand ready to work with the Ministry and trade association to work out proper guidelines when operators conduct checks and inquiries. At the same time, I hope the licensing framework also takes into account where there is evidence of unfair treatment meted out by the operators against their staff. Will the Ministry consider having measures to encourage whistle-blowers from among the centres to come forward and share their insights if they know of any ill practices?[+1 sentence] Furthermore, sudden and unexpected closure of centres have also resulted in loss of income for the teachers and staff. I know of operators who have been cited by the authorities to pay staff who are owed wages but they have been uncooperative. I hope the regulatory agency will be given more muscle to compel the operators to comply, rather than having the staff to resort to filing civil claims.[+10 sentences] In this context, the Ministry can coordinate with the Ministry of Manpower (MOM) or the union to find out more details. Secondly, on unintended consequences, smaller operators with limited resources may also find it tough as they gear up to comply with the new regulatory requirements. Many of them are genuine in wanting to provide and deliver professional quality care to their children. We should not end up with only big players who are the only ones who can meet the requirements. I hope the Ministry and trade association can work together to assist smaller operators transform their operations, not just to meet the higher compliance requirements but also to ensure that their staff upgrade, their operations are streamlined and they take advantage of available technology. Finally, a less than desirable situation will see even bigger operators raise fees to deal with higher compliance costs. I can understand that operators need additional resources and time towards putting in place administrative tracking to fulfil the compliance requirements. I hope that under the strategies identified by the Committee on the Future Economy (CFE), assistance will be available to help centre operators do more with the same resources. This should help to bring about significant improvements in the overall efficiency for both the operators as well as the sector. Madam, I support this Bill.
Mdm Speaker3 words
[+1 sentence]Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)490 words
[+1 sentence]Mdm Speaker, I support the Bill. Regulating childcare centres and kindergartens under a single framework ensures consistency in the enforcement of standards and other operational requirements.[+3 sentences] I congratulate the Ministry for a well-thought through piece of legislation, and commend the effort to engage all stakeholders in the process of drafting this Bill. In this regard, I hope that the Ministry will consider seriously some suggestions on the planning of preschool centres. On top of setting high standards and enforcement measures for operations, health, safety and teaching methods, we ought to recognise that our preschool centres cannot help families effectively if they are not there where and when they are needed. It is, therefore, important for our preschool centres to be located at accessible and convenient venues. There can be better planning in advance so that the building of new childcare centres and new BTO flats can take place almost simultaneously.[+7 sentences] This will ensure that there will be sufficient places for the enrolment of children in the estates. More often than not, the building of flats and childcare centres/kindergartens does not take place concurrently and parents would have to opt for other childcare centres around their neighbourhood, most of which may also be located further away. For a few housing estates with high childcare demand, the long waiting list for the choice childcare centres is a great source of frustration amongst parents. More and more families these days have both parents who are working. We cannot assume that there is a grandparent or domestic helper available in every household to take care of the child in the event that there is no vacancy. In addition, we must consider the role of grandparents who are involved in childcare. Often, these grandparents are the ones who send their grandchildren to school. By building the new childcare centres alongside the BTO HDB flats, it will ensure convenience for these senior citizens who would otherwise have to walk long distances or take public transport with the children to and from the centres. I hope for a greater degree of coordination between the Ministry of National Development, including agencies like HDB, and the Ministry of Social and Family Development (MSF), so that the issue of childcare vacancies does not burden parents, especially when we want to encourage young parents to consider having another child.[+1 sentence] Finally, when building childcare centres, we should also plan ahead for the health and exercise requirements of our preschool centres. Given the new recommendation by the NutureSG Committee for preschool children to have at least one hour of physical activity per day, incorporating facilities within the childcare centre to enable this would be essential.[+3 sentences] This will promote a more active lifestyle amongst the preschool children. By learning the importance of healthy eating and exercising, the children would be able to inculcate these good habits from young. Hopefully, these measures will decrease the number of obese children entering Primary school in the future.
Mdm Speaker3 words
[+1 sentence]Miss Cheryl Chan.
Miss Cheryl Chan Wei Ling (Fengshan)870 words
[+11 sentences]Mdm Speaker, as we encourage families to have more children, the need for caregivers rises correspondingly. These days, most young families are dual-income, and children would be placed with the childcare centres very early in their lives. In the past, children are placed at the childcare centres for shorter hours, like those equivalent to a play school or a kindergarten. Today, the role of these childhood development centres have expanded both in terms of the scope and extent of caregiving. Many centres are not simply learning and interactive grounds for our young infants, but also seen as a preparatory school before they begin formal education. With more demand, different options of child-minding facilities have emerged over the years. However, often, there are inconsistencies among the operators. With parents placing more responsibilities and expectations on our centres, it is thus necessary to have a framework that regulates and guides the basic operations. I see this effort as a first step to ensure the minimum standards amongst operators in order to facilitate an equivalent early childhood development centre. In doing so, there will be a few areas where potential concerns may arise, and I seek the clarifications from the Minister, and would like to provide some suggestions. One, cost of operation. Will the cost of operating a centre increase in tandem with the need to comply with these new regulations?[+2 sentences] While it is understandable to have a range of prices from different centres that cater to varying groups and it is the parents' choice to decide what best meets the needs of their child, the affordability of these centres must always remain accessible to a broad group of children. Two, availability of resources. Does the Ministry have an indicator of the impact these new rules will have on our existing centres and the new centres to be built?[+4 sentences] Under current conditions, there is already a shortage of certified persons who can perform duties in a childcare centre. For some centres, the intake of the children is much lesser than the enrolment capacity allowed as they have insufficient staff-to-student ratio. As I understand it, sometimes, the intake was managed in accordance with the availability of staff to ensure that each child can safely progress from nursery to kindergarten within the same centre. Depending on the allowable duties specified subsequently, this may further worsen the staffing situation. Would the Ministry consider different sets of qualification criteria for non-teaching staff where relevant experience, rather than ECDA's recognised educator certifications are being used?[+8 sentences] Can the ratio of non-teaching staff be increased to assist the teachers with the workload of having to care, teach and manage the administrative tasks? An appropriate balance can be made in accordance with the classes of licence that will be issued. I believe this may help to strike a better balance, create employment and relieve some of our short-term staffing shortages in the industry. Three, compliance. In this Bill, there is no mention on the frequency of audits and whether a standard checklist will be made available for the centre's staff to have information documented and prepared on an ongoing basis. This will help reduce the administrative load and preparation time of our centres when it comes to audit as they are usually operating close to 5.5 days each week. Four, serious violation and cessation of operators. As much as we hope this will not happen to any of the centres, but pre-emptive measures must be taken to safeguard the children and staff. What is the notice period that will be given to the parents and staff should such an incident arise?[+17 sentences] Both the staff and parents will need assistance and adequate time to look for alternatives, if available. With the current vacancy limitation, finding a suitable alternate arrangement may prove to be a tall challenge. Five, the third-party education service providers. Businesses of third-party education service providers have flourished in the preschool sector over the past few years. More are set to join this industry. While there is nothing wrong in providing options and variety for children to learn, the approach in which it is offered has created inequality amongst the children. Today, in many centres, these additional curricula are optional classes. Sometimes, the classes are held within the centre and, other times, at external locations. The issue is that not all families can afford to send their children for additional classes. These children often have to sit out or take rest breaks while seeing their friends continue to be engaged and learning. It is unknown to us what psychological effect this may have on a young child. Furthermore, we should not be practising differing standards on the children at that tender age. Thus, I urge the Ministry to reconsider if there is a need to have additional classes conducted by third-party service providers, unless the learning opportunity is given to every child enrolled. Mdm Speaker, children are our country's most valuable resource and every child should have an equal opportunity to experience and learn. The framework that we seek to introduce here will be a step in the right direction. I hope this will bring about more consistency and give our parents some peace of mind. I support the Bill.
Mdm Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)1257 words
[+1 sentence]Mdm Speaker, I stand in support of this Bill and I thank ECDA for the extensive public consultation it has conducted. Notwithstanding the many positives in the Bill, I would like to seek several clarifications from the Minister, many of which have actually been raised already.[+1 sentence] Firstly, the decision to include licence conditions is certainly a good move as it is testament to the effort to ensure that the quality of early childhood development centres is maintained. However, it appears that an audit of an ECDC may not be compulsory.[+4 sentences] Can the Minister clarify under what circumstances would an audit be required? I do understand that ECDA already conducts such audits and the officers generally visit centres at least once a year. Why not then codify this into the Bill? Secondly, mandating the provision of a security deposit would be helpful in incentivising a licensee to operate within the boundaries of the relevant laws and regulations. Can the Minister clarify why we are not making the provision of a security deposit compulsory for all licensees?[+4 sentences] In cases where a security deposit is required, can the Minister clarify under what circumstances will the security deposit be forfeited? In addition, can the Minister provide a range of the amounts of security deposit required? Thirdly, the requirement of a licensee to give the CLO prior notice before ceasing operations or surrendering a licence is a good mechanism in this Bill. This gives parents time to search for alternative ECDCs for their children. Can the Minister specify the minimum notice period for the licensee to issue such a notice? Fourth, I understand that MOE kindergartens are not regulated under this Bill.[+34 sentences] Many Members in this House have also shared the same concern. While ECDA has provided explanations publicly about this, I urge the Minister to reconsider as it does seems like there are double standards here. This new Act should apply to all parties, regardless of whether they are operated privately or by the Government. Lastly, Mdm Speaker, I understand that, on curriculum, we will continue to provide broad guidelines to ensure that programmes are developmentally appropriate. I urge the Minister to ensure that we do not become too focused on academics. These are children who are under seven years old. I see that there are already assessment books for kindergarten children and I see that there are already tuition classes for them as well. We must remember that for these children, play is important and perhaps should be the focus of our ECDCs. Dr David Whitebread from the University of Cambridge stated in his paper "The importance of play" that: "What is increasingly recognised within the research and policy communities, however, is that one vital ingredient in supporting healthy intellectual, emotional and social development in young children is the provision of opportunities and the support for play." His view is also supported by the European Parliament which, on 12 May 2011, adopted a resolution on "Early Years Learning" in the European Union, which notes that the early years of childhood are critical for children's development and highlights that "in addition to education, all children have the right to rest, leisure and play". I hope that this is the direction we are heading in, that we remember that they are kids after all, and kids need to play. Mdm Speaker, as we enact this piece of legislation, perhaps it is timely to remember that the best teachers are the parents and the best ECDC is really our homes. This, we cannot legislate. We cannot legislate that parents spend time with their children nor can we legislate that parents impart the rights values to their children. This is entirely up to us parents, and the lessons we teach our children are far more important than the lessons in school. Ultimately, children copy what their parents do and it is their parents' behaviours that shape theirs the most. We cannot spend every minute with our children but perhaps an important time is bedtime. My daughter's favourite bedtime story is "The things I love about bed time". I must have read this story close to 100 times now. On Sunday night, she fell asleep after I read her this story and, for the first time, I read the notes for parents and caregivers at the end of the book. I should have read that much earlier but, at least, I am honest. It said, "spending time with your child as they prepare for bed is a wonderful opportunity to develop and maintain a close and loving bond. Playing a fun bedtime game, sharing a story, listening to them recount their favourite moments of the day, discussing dreams and future events they are looking forward to, praising them for a task well done, and telling them how much you love them − all of these things create an environment in which your child will feel happy, safe, secure, loved and valued. Ultimately, these are simple rituals that contribute to an increase in the positive emotion of your child. For you as the parent, this is precious time in which you can be consciously and constructively be involved in building a positive state of mind. Your child will hopefully internalise this optimism and it will guide them on a path to a full and happy life." I have to admit that I wished I had read more bedtime stories to my daughter and, in writing this speech, it made me reflect on this and I hope that all parents think about this as well, about how important a role we play as parents and teachers. I look forward to reading this book another hundred more times to my daughter and another 200 hundred times to my twins. In fact, I read them both this story this morning and they probably heard the story many times already when they were in my wife's womb. Mdm Speaker, it seems that whenever there is a Bill by MSF, I have something to share about my parenthood journey and, this time, I am happy to share that my twins were born last week. They were so eager to come into this world that they came two months early. These two little girls gave us quite a scare last week and, to be honest, it has not been an easy week. I have actually told the twins that last year, I asked Minister Heng whether he can backdate the start of the First Step Grant which was announced during Budget 2016. I told the twins that the Minister said "no" and so, I urged them to please be born after the Committee of Supply (COS) Debates, after any new parenthood policies are announced. As always, children never listen and so I pray that for any new policies that Senior Minister of State Josephine Teo and Minister Tan Chuan-Jin will be announcing shortly, the start date will be the beginning of this year and not with immediate effect from the date of the announcement.[+6 sentences] On a positive note, I now have three daughters whose birthdays are about a week apart. So, we can have one birthday party for three kids. That is perhaps the best "budget". Mdm Speaker, this Bill is an important step forward for early childhood education but we must remember that it is only a part of the equation. We must remember this quote by George Santayana, and it reads: "A child educated only at school is an uneducated child." Mdm Speaker, I stand in support of this Bill.
Mdm Speaker9 words
[+3 sentences]Dr Chia Shi-Lu. Not here. Mr Gan Thiam Poh.
Mr Gan Thiam Poh (Ang Mo Kio)500 words
[+3 sentences]Mdm Speaker, I rise in support of the Bill. Our childcare centres and kindergartens are as varied as the uniforms, or lack of, for the children in their care. There is a wide range of fees, programmes and facilities. Yet all of them must meet certain health, safety and teaching standards to ensure that the children are well-cared for and ready for our primary schools. Hence, I fully support regulating all pre-schools under a single regulatory framework for consistency. The new framework will further safeguard the interests of our children and their parents through requirements, such as getting operators to clearly state their registration and admission processes and giving parents sufficient notice if they decide to increase their fees.[+7 sentences] I am happy to note that centres will continue to have the flexibility to customise their lesson plans within broad guidelines which ensure that the programmes are developmentally appropriate. However, the Bill does not address how the Ministry will ensure that centres charge reasonable fees. Some centres claim that they offer unique, high-quality programmes and charge fees which can match our universities' tuition fees. Although this is a free market, some degree of control by the Ministry would be helpful. I was reassured to find out that new administrative requirements are clear and will not be too onerous upon the operators. Operators should have no difficulty adhering to the new regulations, minimising operational inefficiencies and costs, while safeguarding centre quality and standards. Notwithstanding, I would like to ask the Minister whether operators will be expected to employ designated operation, administrative or compliance staff to ensure that they are running their centres according to the new framework. Due to the proposed longer licence tenure, I urge the Ministry to conduct unannounced audits more regularly.[+1 sentence] Currently, such audits are conducted at least once a year. Would the Ministry consider increasing the frequency to at least twice yearly to ensure that centres maintain their standards?[+9 sentences] I am also concerned about the impact of temporary centre closures in the event of disease outbreaks. There are clear conditions under which centres will be permitted to start running again. However, during the closures, many families will be left in difficulty, due to more dual-income families and grandparents staying in the workforce longer. Finding someone or somewhere to take care of their children will be a big challenge. I hope the Ministry will address this and share what contingency plans it has for such situations. Finally, I hope the Ministry will provide more guidance and support to operators in caring for children with special needs within their centres. Embracing such children and helping them to integrate into the preschool community should be the way forward, instead of segregating them. If the parents feel confident enough to enrol them, it means that their conditions are usually manageable with some conditional help and empathy. While they will need extra care and concern, if the Ministry can facilitate operators' partnership with referred specialists, the interests of these children will be safeguarded.
Mdm Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1165 words
[+3 sentences]Mdm Speaker, the traditional light-touch approach that the Singapore Government has adopted in the early childhood industry has, in my opinion, worked well. This has led to the flourishing of the early childhood education landscape where parents can send their children to different schools with different pedagogies that cater to differing needs, wants and aspirations. Over time, however, that has led to an adverse impact where children, depending on their social economic status, could possibly have different starting points in life depending on the preschool, kindergarten or childcare centre that they attend. While I think that aggressive interventions and heavy regulations in the early childhood sector are not necessary at this point in time and the element of choice for parents is important, it would undeniably be useful for MOE and MSF to set a basic curriculum and establish a regulated baseline pedagogy and a certain level of quality to ensure that our children, regardless of socio-economic background, have the opportunity to enjoy a certain basic standard of quality early childhood education.[+13 sentences] I see the amendments proposed in the Bill as a positive step where the Government is sticking to its light-touch approach, yet, at the same time, adjusting the system so that it continues to serve the broad interests of the community by offering diversity and choice to parents. I would now like to touch on three amendments to the Bill that I think resonate with me the most. Aside from having a well-developed curriculum that emphasises learning through exploration and play, the quality of educators is perhaps the next most important factor that determines whether children will have an enriching early childhood education. I am glad that the Bill will strengthen what the Minister calls a robust regulatory framework on the operations of an ECDC. This, in my opinion, will complement the on-going initiatives to elevate the service standards of the industry. Currently, it is mandatory for all teachers and allied educators to undergo supervised training so that they have the proper qualifications to teach in a preschool. It would thus be appropriate to impose a similar regulatory framework to curb the proliferation of schools that are not run by licensed operators. In the same spirit of creating a stronger safeguard, I would urge the Government to consider defining and clarifying what constitutes an ECDC. Would home-based classes that focus on delivering structured curriculum be considered an ECDC under the Bill? Or would enrichment centres that conduct speech and drama classes or creative thinking for preschoolers be considered as ECDCs? How would specialised set-ups, such as those providing occupational therapy or unique training for special needs children, be classified? It is important for us to be granular in our approach and define in unambiguous terms what an ECDC is. At the current moment, there are several avenues and channels for aspiring early childhood educators to get trained in the field. The amendment to clause 23, where approval must explicitly be sought for persons who perform duties at ECDCs, will further enhance the quality of early childhood education by ensuring that all teachers and allied educators have the relevant qualifications and skills to teach our preschoolers.[+2 sentences] Presently, aspiring early childhood educators can get trained at early childhood diploma programmes in the polytechnics and via training provided at the SEED Institute. In line with the SkillsFuture initiative and the CFE's recommendation to acquire and utilise deep skills, I hope that there will be more avenues for our aspiring early childhood educators to be trained. In particular, I would like to suggest that incentives be given to mid-career switchers to attend mid-career conversion courses that induct them quickly into the sector.[+6 sentences] In my opinion, mid-career switchers can be a valuable source of manpower to a sector that is currently experiencing a labour crunch. In fact, many mid-career executives are parents themselves, and they can bring with them important parenting skills that can help improve the overall standards of care and classroom delivery. Aside from creating training platforms for early childhood educators to attain the much needed foundational skills, I hope that the Government can put in place some form of continuous education programme so that our educators can continue to upgrade their skill set over time and be in sync with the latest teaching methods and pedagogies. This is especially important for those who wish to deepen their career in the field and eventually take on a leadership role in their respective schools and it is also in line with our SkillsFuture initiative and the CFE's strategic thrust mentioned earlier. Specialised continuous education will create multiple pathways of career progression by giving early childhood educators the platform to hone and deepen their skills in specific areas of interest, such as pedagogy development, developmental psychology, or even early childhood assessment and intervention. The deepening of skillsets will naturally allow these educators to have meaningful career progression and be paid a higher wage when they become specialists in their field. The amendments to clause 29 that stipulates the regulatory requirements imposed on ECDCs when they deploy third-party education service providers are a step in the right directions towards raising safety and quality standards.[+1 sentence] ECDCs, in their course of operations, will inevitably work with third-party education service providers to offer enrichment or physical education programmes. In instances such as these, it is important that third-party education service providers be thoroughly assessed for their suitability and whether they have the right level of competency to offer such services. It would disastrous if classes, such as gymnastics, are being conducted by untrained third-party providers who do not have the right level of competency or awareness about safety.[+1 sentence] Children are exposed to higher risk of getting hurt when they attend classes conducted by these unqualified trainers and it is important that we assess all such trainers thoroughly to minimise such risk. As an addendum to the Bill, I hope that the Government can clarify whether clause 29 will be applied to vendors who provide non-educational service to ECDCs, for example, food and beverage (F&B) vendors who supply food to the centres. Going further, would the Government consider mandating vendors that supply food to children in preschools and primary schools to provide a well-balanced diet that is suitable for young children? It might thus be fruitful for the Health Promotion Board and MOE to jointly work on a regulatory and certification framework, together with MSF, to assess vendors that provide F&B to preschools, childcare centres and kindergartens, so that our children can enjoy nutritious and well-balanced meals in schools.[+4 sentences] Mdm Speaker, in conclusion, the various amendments tabled in the Bill are meant to help tighten the current licensing framework. I believe these amendments will align the sector towards achieving a common standard while the sector moves towards attaining a higher quality of service. As a parent of two young children, I am heartened and reassured by the amendments in this Bill. As a Parliamentarian, I conclude my speech in support of the Bill.
Mdm Speaker2 words
[+1 sentence]Minister Tan.
Mr Tan Chuan-Jin6067 words
[+7 sentences]Mdm Speaker, I thank the Members of this House for their suggestions and support of the Bill. Clearly, it is without a doubt that many of us recognise the importance of early childhood development, not just because we are parents but a lot of studies have shown the impact that good development work can have on children. The Member, Mr Louis Ng, reminded all of us that it is not just from the ECD, but really, at home as well. This is something important for us to remember. A fair number of points raised here do not pertain to the Bill, but they are important points with regard to the importance of the early childhood effort. I will address some of these subsequently in a few days' time during the COS debates; others, I will address them on other occasions. But I will take the opportunity to make some general points to address some of the perspectives highlighted by some Members. What is clear is this − the early childhood component for our children is vital, which is why we set up ECDA. It is an independent agency but jointly overseen by MOE and MSF.[+28 sentences] Both Ministries are very intimately involved. As I will illustrate later, MOE plays a very significant role in developing the curriculum and learning pedagogies and the rest of the industry take reference from it. It is also important to note that this whole set-up is not just driven from the top. There is a lot of effort in engaging the various stakeholders. We cannot do it without that, because it is a very varied space and there are many different schools of thought. Some of the examples that Mr Leon Perera highlighted, for example, from Lien Foundation and the many different trials that are ongoing, these are strongly supported by ECDA. We do want to explore the different ways of education. You may not want a single approach, because there are many different schools of thought. They are effective in different ways and they are effective for different children. We want to see how these different curricula can play out, how we can implement it, and how we can scale it, not necessarily across the board. In some instances, we want to scale it across the board; in some instances, in very boutique areas where it addresses the needs of specific children. We work with different stakeholders. For the special needs sector, one of the concerns highlighted was whether, as a result of these moves, it would impact some of the smaller players. From a purely intellectual and theoretical basis, I would agree that it would sound sensible to allow a thousand flowers to bloom and to have many different players. But having a very practical perspective on this, from dealing with the industry with many different players, I would say that the reality is not quite the same. There are very good small players. I visited a number of them; very interesting programmes but, unfortunately, probably not able to scale up because a lot of its success is centred around the person who is driving the programme. It is very manpower-intensive, which may be difficult to scale. We want to be able to encourage some of these centres to continue. But there are also childcare centres which leave much room for improvement and really do need to level up. So, I would agree that we want to encourage experimentation, but we also want to ensure that our children receive a good standard of education and care, which is the main objective of this effort. It is an important sector, which is why we are doing what we are doing. It is important to engage all the different players. It is also important for us to explore but, at the same time, have a certain structure and approach, and that is the way we have taken it. I am very heartened and encouraged by the strong recognition by all of you on the importance of this Bill. Notwithstanding the various comments, Members clearly recognise that there is that need to ensure higher and more consistent quality standards across the early childhood sector. This can be done without necessarily squeezing out some of the smaller players. I am sure that many of our early childhood professionals and operators are similarly encouraged. The process has taken over two years, because it is a very involved process.[+9 sentences] We did not want to drive it down from the top; many different stakeholders have been consulted. Where there were areas of concern, we have gone back and forth for a slightly longer period of time to take on board their feedback. What I am encouraged by is, like many Members, many of the stakeholders are strongly supportive of us taking this step. I believe that this Bill is a step in the right direction, because we do need to give every child a good start and to make Singapore a good place to raise families. On a point raised by Assoc Prof Daniel Goh with regard to lower-income children, I would completely agree that early childhood is important for all children, but for children who come from particularly challenged backgrounds, it becomes even more critical. That is also why we set up ECDA. We realise that in those early years, for those of us who are able to provide our children with exposure and development, our children are able to grow and develop well before they reach primary school. But we realise that there is a gap. For some of the children who come from more disadvantaged backgrounds, they enter Primary 1 with a fairly significant gap from the rest of their peers. Some are able to bridge that and carry on and run, but others struggle and might not be able to bridge that gap. Hence, it is important to impose, to some degree, a level of standard in terms of affordability, accessibility and quality of preschools, to make sure that as many children are levelled up as much as possible.[+2 sentences] The way we have structured subsidies also seeks to ensure that lower-income families will not end up not sending their children to preschool because they cannot afford it. Even down to a couple of dollars, children will be able to attend some of these establishments. Importantly, KidSTART is aimed at working with children from this segment. It is in a pilot stage with 1,000 families.[+14 sentences] But we intend to see it through and expand it; this is where it is not just in terms of the ECDC itself, but actually an all-encompassing approach to see how we hand-hold and work with the families along the journey. So, I want to assure the Members of this House that there is very little doubt in our minds about the importance of this effort and especially the work to be done with the lower-income families. Mr Christopher de Souza remarked that the Bill is much needed and timely. It is definitely so. A sound and robust regulatory framework guides centres and safeguards the sector against errant practices and behaviours. This sets a strong foundation for the sector to further innovate teaching and learning practices and to develop higher quality programmes. Many of the smaller centres appreciate the fact that some of these guidelines and parameters are set, as these allow them to bring themselves up to a higher standard, because they do not have the scale or the resources necessary to level themselves up on their own. I thank the Members very much for all the various suggestions. Let me address some of those in the manpower sphere. For instance, Miss Cheryl Chan suggested considering alternatives to paper qualifications when determining staff suitability. Assoc Prof Daniel Goh suggested increasing the participation of professional bodies in the registering of professionals and accreditation of programmes. He also suggested that it is important for us to consider those who have qualifications from overseas. Mr Yee Chia Hsing suggested a new training institute to ensure sufficient teachers in the sector. Indeed, we share our Members' concerns on the manpower constraints and this is one area we are paying very close attention to. In recent years, ECDA has rolled out a range of initiatives to attract, retain and develop good early childhood professionals.[+4 sentences] Many of these initiatives have been co-created with partners, such as SkillsFuture Singapore, preschool operators, industry and professional associations and the union. We note Assoc Prof Daniel Goh's suggestion for greater participation of professionals in the process of accrediting training courses and qualifications. This is already done in the development of teacher registration and course accreditation standards where our early childhood professional representatives and subject matter experts are invited to provide their expertise. With regard to recognising those who have qualifications from overseas, we do encourage the respective childcare centres and kindergartens to put forward the names of these individuals so that we can evaluate them on a case-by-case basis. Through the ramping up of subsidised training places, including the work-and-study arrangements for mid-career entrants and ECDA's Training Awards for aspiring teachers, we are seeing a very encouraging response, such as higher enrolment numbers in the early childhood polytechnic courses and more mid-career entrants joining the sector.[+8 sentences] To echo Mr Darryl David's emphasis, in fact, many are mid-career entrants. No matter what we do in this sector, frankly, without people, this is not going to work. Some of these steps have been taken. The response has been encouraging, but we are not letting up on that front. We need to keep up at making sure that we not only bring in numbers but ensure the quality of the people who are coming in as well. Many of them are very passionate, the mid-career ones especially, because they have reached a stage of their lives where they are looking at doing something different. Some of them are parents themselves who recognise the importance of early childhood development, and we really welcome them on board the sector. For the teaching staff, including infant educarers, ECDA has, in recent years, moved to open alternate entry pathways for them to upgrade professionally. When in-service educators apply for training courses, ECDA recognises their prior learning and working experiences beyond their paper qualifications.[+26 sentences] That is something that Miss Cheryl Chan raised and we will continue to move in this direction. We will touch more on these efforts to support the manpower needs of the sector, to provide more accessible, affordable and quality pre-school places at the upcoming COS debates. On curriculum requirements, some Members, such as Mr Desmond Choo, noted that our preschool sector provides a diverse range of programmes for parents to choose from, so as to best cater to their preferences and the different needs of their young children. Under the Bill, we will continue requiring centres to have programmes that are age-appropriate and holistic. Assoc Prof Daniel Goh would be glad to know that within the regulatory framework, centres will continue to have the flexibility to innovate and customise their specific curriculum to suit the needs of the children. In fact, this is to be encouraged. For good practices, we will be more than happy to take them on board and see how best to introduce them to more establishments. In the examples cited, ECDA has certainly supported many of these ideas and we will continue to do so. As a reference, centres can refer to MOE's Nurturing Early Learners Curriculum Framework when designing and implementing their kindergarten curriculum. Learning through play is a key component for the framework. For those who are concerned that we are over-schoolifying the whole process − no, we are very mindful that play is a very important part of early childhood development. In fact, MOE is a very important player in this whole effort. They are driving the curriculum framework development; again, not only on their own, but also leveraging on the experiences of other subject matter experts on this. And certainly play is a very key component of their emphasis as well, which is why MOE has stepped in to look at MOE Kindergarten as well. And I will address the issue later with regard to their exemption. For the early years, of three years old and below, centres can refer to ECDA's Early Years Development Framework. This framework also takes a strong alignment with the MOE framework. With regard to nutritional and outdoor physical time requirements highlighted by some Members, I agree with Mr Desmond Choo that increasing access to healthier food options for preschool children will help them develop good dietary habits for life. We should do that at home, and not just depend on the preschool. We do what we can at preschool, but home is where it all starts. It is very important to remember that I do not need a Bill for good parenting to take place, and, frankly, the best influences come at home. So, let us not forget that. I also second Mr Louis Ng's point that we should provide more opportunities for children to play. As mentioned earlier, play is a very central focus in the curriculum, especially playing outdoors. Studies have shown clearly that having outdoor activities makes a lot of difference in terms of preventing myopia, and in developing a more resilient and hardier population. This is something that we welcome. As announced by the NurtureSG Taskforce last week, ECDA will specify more detailed nutritional requirements to ensure that children receive nutritious, balanced and varied meals. We urge families to also look out for these guidelines to follow them at home. These include not allowing centres to serve sugary drinks and deep-fried food, and catering for the regular provision of fruits and calcium-rich food. The physical activity time for full-day programmes will also be increased to an hour daily, up from half an hour today, and half an hour at least to be conducted outdoors and more, if you can.[+23 sentences] As I have earlier explained, this Bill will also provide for subsidiary legislation to be gazetted. Members have highlighted how do we do this, that or the other? A lot of these will come in the form of subsidiary legislation that will be gazetted. Certainly, the suggestions that have been put forward today will be taken on board as we finalise some of these detailed requirements. Of course, there are concerns that many Members have raised and I am fully aware that there will be challenges. It is not straightforward. When you put in place new measures, it is not an effortless process. But it is an important one and stakeholders recognise it; centres recognise that it is necessary, and they have also flagged out their concerns to us. This was expressed by many Members, including Ms Thanaletchimi, Miss Cheryl Chan, Ms Joan Pereira, Mr Darryl David, Mr Desmond Choo, Mr Yee Chia Hsing, Mr Gan Thiam Poh, Mr Ang Hin Kee, Mr Louis Ng and Mr Leon Perera. Many of these concerns have also been expressed during our many different consultation sessions with the public and the operators. Let me briefly summarise these concerns. One, which Mr Leon Perera specifically highlighted, was whether the higher cost will impact on the continued operations, and whether this is compelling a consolidation of centres, and forcing some of the smaller players to close, especially those catering to children with special needs. Secondly, there is a potentially higher cost to operators, especially the smaller ones. Does it, in turn, translate into higher fees for parents and administrative burdens on operators and teachers? With regard to the closure aspect, we expect most kindergartens would smoothly transit to the new Act. We have reached out to many different players, including the smaller ones. They recognise the importance and some of the challenges. Since 2015, many kindergartens, with the support of ECDA, have already started making preparations to meet the new licensing requirements. We have been in constant dialogue. Our whole effort is not about penalising and weeding out the smaller players. It is actually about helping those in the industry who are passionate about educating our children. How do we help them to level up? It is very much, as I have mentioned earlier, a developmental approach that we are taking. In addition, kindergartens will be given up to a year after the gazetting of regulations under the new Act, which is expected to be about late 2017 or early 2018, for them to obtain their licences.[+30 sentences] That said, there will be closures because, every year, we do have a number of kindergartens and childcare centres that will close or have a change in licensees for various business reasons. Some kindergartens also convert to childcare centres to better serve the needs of parents. Just a very quick note, we work very closely also with the special needs sector. So, we are very mindful. We are working very closely with many of the special needs centres, and many of them do not have a huge concern in transiting to this new regime. In fact, many of the very progressive and interesting childcare centres and kindergartens are trying out different types of approaches. In fact, many of them are fairly well-run, which is why, in many ways, they are doing what they are doing. These establishments do not have a problem transiting to the new regime under this Bill. These are all very important concerns. ECDA is also undertaking many other initiatives to support the sector in this whole transition process. To continue, as we have mentioned, affordability remains a key cornerstone of our whole approach. So, ensuring quality and affordable early childhood development services for parents remains paramount. Apart from broad-based support that ECDA has been providing to the sector to meet the new requirements, I would like to assure Members that we will take a gradual and calibrated approach. Some Members have raised the issue of potential fee increases arising from the higher requirements and their impact on families. Indeed, common wisdom would highlight that there is a trade-off between being cheap, good and fast. In fact, some Members have also asked, "Why are we doing inspections once a year? Let's do it twice a year." So, there is a balance needed. We recognise a need to ensure standards and to level up the sector. At the same time, how do you balance that against onerous requirements? As can be seen from Members' inputs, there will be tensions, and trade-offs will invariably be done. Firstly, let us look at how we can make the regulations that are important flexible and streamlined at the same time. How do we do it? As we have highlighted in CFE, it is about the doing. How do we actively do this? We have been practising that in terms of ECDA's engagement with the sector, and we have been able to put this into practice as far as we can and, at the same time, not compromising on quality. ECDA has field-tested the requirements on a variety of centres, both large and small, to see how it can be operationalised. I would like to assure this House that the requirements in the Bill and the regulatory framework are calibrated with that in mind, to meet some of these higher order requirements but, at the same time, try not to increase costs unnecessarily by making requirements flexible, so that it is not onerous. We are quite assured that it should pretty much unfold in that direction. For those who do have challenges, we will work closely with them. For example, we have a new longer three-year licence tenure which is intended to reduce the administrative costs of centres with consistently good regulatory track records.[+11 sentences] Mr Louis Ng highlighted that centres will need to undergo regular assessments before their licence renewals to demonstrate that they have maintained their standards. We encourage centres to meet the standards and, if they do, they can have a three-year licence. In addition, ECDA will continue to conduct unannounced audits. Mr Gan Thiam Poh suggested we should do more audits. For those who have challenges, we will pay closer attention, and we will visit them more often to help them level up their standards. But we do need to strike a balance and I think Members appreciate that. As I have mentioned earlier, many of the new requirements have already been implemented as part of the sector's best practices. Hence, it is not as if with the introduction of this Bill, a whole new slew of initiatives is coming in. Actually, many of these have been unfolding in various forms in the past couple of years. For example, ECDA's advisory recommends centres to have air purifiers during haze periods. ECDA is looking into making this requirement in subsidiary legislation. In fact, as a result of the effort in the past one to two years, many centres are already well-prepared for this, especially as ECDA has earlier provided funding support to centres to procure air purifiers during severe haze episodes. We also do not plan to increase regulatory requirements around staffing numbers and space allocation, which are the main cost factors for centres.[+8 sentences] We believe that the prevailing requirements are adequate in our current context. Some flexibility has also been catered for these requirements, as new requirements are added. For example, Miss Cheryl Chan suggested allowing non-teaching staff to support teachers more. I mentioned earlier that there is no reason why the operational staff cannot help trained teachers supervise outdoor play time. Centres can also use neighbourhood playgrounds to fulfil their outdoor space requirements. In fact, ECDA has even gone down to help centres look at how to manage their costs. For example, for the requirement on first-aid kits, ECDA has looked into the items and the quantity of each item. While the first-aid kit items are not going to drive costs up in a significant way, ECDA has gone into details to work with various centres, especially the smaller ones, who are reaching out because they do not have the resources and the set-up to look at some of the good practices in detail. ECDA's advantage is that, because of their oversight over the rest of the sector, ECDA can bring into play many good practices which can be imparted to other players. We have also extended funding support to the not-for-profit kindergartens to help them defray staff immunisation and also minor renovation costs.[+7 sentences] In addition to these, given that affordability is a concern to many parents, ECDA has also ramped up the supply of more quality and affordable places. This is something I have been talking about regularly, and this includes more places offered by AOPs and POPs. We have also made subsidy enhancements in recent years, and we note Assoc Prof Daniel Goh's suggestion to expand the support given, especially for lower-income families. That is something that we completely agree is important. A lot of it will come under the KidSTART effort, which is something that I have mentioned before. We intend to make sure that it succeeds and takes off on a more extensive basis. Mr Gan Thiam Poh and Mr Desmond Choo asked for the Government to have some degree of control over fees to ensure that fees are affordable to parents. Today, there are quality targets and fee caps on the AOP and POP centres, which serve nearly half of the sector.[+1 sentence] For the remaining operators, we see the need for operators to determine their own fees, as their programmes may have different cost structures and they may need to adjust their fees from time to time to ensure business sustainability. While the Bill will not determine the fees of different preschools − this will be addressed separately − we will continue to require centres to provide sufficient early notification of any plans to increase fees and explain the fee increase to parents.[+2 sentences] This will help to ensure that fee increases are done in a transparent and fair manner. With regard to the affordability of fees, that will be dealt with separately and I will talk about that in the COS debates. Following feedback from parents, ECDA is also looking into requiring centres to publish incidental charges.[+10 sentences] These are the finer regulatory details, such as field trips, supplementary enrichment activities and to make enrichment activities optional, which means centres must continue to provide classes for children who do not opt for these programmes. This approach creates greater flexibility and fee transparency for parents, allowing parents to make informed choices and manage their costs better. Administrative workload is something that many of us are concerned about. It is a valid concern and something that we are very mindful of as we embark on this journey with this Bill. We certainly want teachers to spend more quality time on our children than on administration. When you speak to teachers, what they want to do is to teach, not to spend time doing administration. But we also realise that to run a system in a systematic way, where you not just teach well but are also able to replicate that on a sustainable basis, you need structures and processes. Hence, it is important for us to not run away from that, but to make sure that it is not onerous. ECDA has taken a focused effort to streamline administration and make it flexible, as I mentioned earlier. For example, over the past year, we have been working with the sector to streamline the new regulatory standards checklist for operators' own preparatory self-assessments, so that they know what to look out for. To Mr Gan Thiam Poh's query, we do not require operators to employ designated administrative or compliance staff.[+27 sentences] Most operators should be able to manage the new framework with their existing resources. We have spoken to many of them, in terms of how they envisage themselves adapting to address the needs of this Bill. Besides streamlining the regulatory standards checklist, ECDA has also released a series of very useful templates that centres can use to guide and track their day-to-day operations. ECDA will also be enhancing its information technology (IT) systems to allow centres to interface with ECDA more seamlessly on regulatory matters. Technology can go some way to make this more efficient and easier for centres. We agree with Mr Ang Hin Kee's suggestion on the value of tapping on technology to keep costs down and free up teachers' time for our children. Beyond streamlining requirements, ECDA has collaborated with the Association for Early Childhood and Training Services and the Infocomm Media Development Authority of Singapore to identify smart solutions to help teachers with their daily administrative duties, such as temperature and attendance taking. As we embark on the journey towards Smart Nation, it should encompass all manners of activities that we are undertaking. These solutions were showcased at the Early Childhood Conference in September last year, and many operators have signed up since. With regard to the exclusion of MOE kindergartens, Ms Thanaletchimi, Assoc Prof Daniel Goh, Er Dr Lee Bee Wah and Mr Louis Ng raised the question about why MOE is excluded. I can understand the concerns raised. Let me make a couple of points. ECDA is an agency that is overseen by MOE and MSF. Both Ministries take a very active interest and role in shaping this space. This is the reason why ECDA was set up. We are very clear that the formative years are vital. Education is a long journey. We have in place our primary, secondary, tertiary education, and so on. That continues to be improved. What we have prior to ECDA was a space which was left to the market. We thought it was important for us to step in. This is why it is not just an MOE effort, but both MOE and MSF are stepping into that space. MOE continues to drive the curriculum in very significant ways; MOE is not just focused on primary school education. There is a need to look at the pedagogy that is involved leading up to that stage. As a result of being involved in MOE kindergartens, MOE is also looking at how that whole continuum extends into the early primary school years, including how to harmonise this whole effort and how that streamlines into the longer-term development effort for education. MOE is not a fringe player coming in, or one of those small establishments that has no background. They have been intimately involved in the process from Day 1. MOE kindergartens will fulfil ECDA's requirements, along with the rest of the industry.[+10 sentences] The ECDC Act is intended to regulate the standards of private kindergartens and childcare providers. The MOE kindergartens are run directly by the Government, and they have an Act that governs it, similar to the way MOE runs primary and secondary schools and junior colleges. This is not to say that MOE runs their kindergartens the same way that primary schools are run. They should be run differently; the approach is different. The MOE kindergartens will continue to be regulated under the Education Act, along with other national schools. This is an approach similar to how we approach the other parts of the education space. MOE maintains strict oversight of the MOE kindergartens and will be directly accountable, as they are accountable to this House, with regard to broader education. On the one hand, Members feel that bringing them on board under the ECDC Bill would be sensible, and I can understand that. On the other hand, there is another Act that is already governing them. MOE is also intimately involved, and they will meet the requirements that are demanded of the rest of the other centres as well. With regard to Miss Cheryl Chan and Mr Louis Ng's questions on closure arrangements, ECDA is studying the advance notification period for centres which intend to cease their operations, which will happen from time to time for various reasons.[+8 sentences] We agree that sufficient time is needed for parents to look for alternatives. In determining the notification period, ECDA must strike a balance between the feasibility of the time period for centres – because there are real practical concerns from their perspective as well, and centres would not wish to prematurely alarm parents – against the need for early warning. We will see how we can work that out. To Ms Thanaletchimi's question, we will maintain the prevailing professional qualification requirements and this information is available on ECDA's website for all to refer to. As I mentioned earlier, for those who have other qualifications that do not quite fit, if the centre feels that they want to put the person forward, the centre can do so and we can look at it on a case-by-case basis. To clarify on Mr Darryl David's point on third-party enrichment vendor staff suitability, we will start by making simple assessments of these individuals' track record. We do not intend to specify any professional qualifications required of these individuals, since these enrichment classes are optional and encompass a very wide range of niche activities from sports, drama to cooking to whatever it may be. It will not be addressed within this Bill, but it is something that we will look at and work with the sector to see to what degree we want to define the requirements for some of these individuals concerned. To Ms Thanaletchimi's question on directions for emergencies, ECDA intends to issue directions under clause 17 only for emergency cases, such as hazardous haze episodes, where children's safety is at stake and centres need to act swiftly to safeguard their well-being. As such, it is a criminal offence for any non-compliance, liable up to a fine of $10,000 and imprisonment of 12 months, as determined by the Courts.[+3 sentences] I note Mr Gan Thiam Poh's concern on the impact of temporary closures arising from disease outbreaks on parents. I would like to assure Members that it will only be invoked as a last resort, or only during emergency circumstances. To support working parents, the Government has also enhanced child and infant care leave provisions over the years. With regard to the security deposit, this is something that Mr Louis Ng raised, I have also touched on the application of the security deposit as well as the proposed amount. We are applying the security deposit on a small number of centres with poor regulatory track records as a form of assurance from them on their commitment to improve, while recognising that the majority of our sector, by and large, is performing well.[+13 sentences] Should there be a need in the future, this approach can be reviewed and we are open to it. The security bond may be forfeited as a form of regulatory sanction against breaches, as provided for under clause 16. I note some of the other issues in the early childhood sector that were raised by Members. As I mentioned, some of these are beyond the scope of the Bill. Regarding more support for centres and early childhood teachers caring for children with special needs, as raised by some Members, ECDA and my Ministry will continue to work with training institutes and education providers to equip preschool teachers with the necessary skills to support children with developmental needs, such as rolling out professional development courses for in-service preschool teachers who want to enhance their skills in this area. We are quite assured that for centres that are operating in this space, transiting to the new arrangement should not be a problem. On the concerns whether putting in place some of these requirements will force some of these special needs centres to go out of busines, that is very unlikely to happen. On the co-location of centres with primary schools, as raised by Mr Yee Chia Hsing, many of the MOE kindergartens are already located within primary schools, bringing convenience to parents who have children in both MOE kindergartens and the primary schools that they are located in. That is the approach that MOE is looking at with regard to the MOE kindergartens. On employment terms and disputes between centres and their teachers, as raised by Mr Ang Hin Kee, we thank Mr Ang and the Education Services Union for the good work in supporting our early childhood teachers who found themselves caught in unfortunate circumstances. Early childhood professionals could also approach MOM to file a complaint against violations of the Employment Act. These concerns are important as they support the overall functioning of the sector as well as some of the points that I mentioned earlier. But the Bill focuses on ensuring children's safety, well-being and welfare in centres. I will also be talking about some of these concerns during the COS debate, and we will have other debates on some of those topics in this House in the future.[+1 sentence] In conclusion, Mdm Speaker, the early childhood sector has made very important and good progress in recent years. This Bill is a very important milestone in our journey in raising the quality of early childhood care and education in Singapore, for our children, our families and, from a national perspective, for our future. This Bill will complement the many initiatives that the Government has introduced to enhance the quality, accessibility and affordability of early childhood development services. This will ensure that every child, regardless of his or her background, can have a good start in life. It is important for us to ensure that every child has that good start. It will also further strengthen our commitment to make Singapore a good place to raise families.[+6 sentences] Again, just to reiterate, we do not need a Bill to make sure that we raise strong families. This is something that all of us can do. It takes a whole nation to play a part. If we are able to put our hearts and soul into this, both at home and in the sector, we have every reason to be optimistic for our future. Because once you lay a strong foundation, there is a high probability and a good chance that our young children can grow up to be responsible citizens and contribute back significantly to our nation. Once again, I thank Members of this House for their support of this Bill and the very meaningful debate today.
Mdm Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera119 words
[+6 sentences]Thank you, Madam. Just two brief clarification questions to the Minister. The first is just to be a bit more specific on the requirements for licensing of personnel within the early childhood sector. For those individuals who have strong qualifications either from abroad or locally, would the Ministry actually consider an abridged or accelerated version of the PQAC-accredited advance diploma to allow them to serve? The second clarification is really in regard to the point I raised about absenteeism. If such a system is not already in place, would Ministry consider requiring early childhood centres to flag out to the Ministry children who are persistently absent as potential candidates for KidSTART when that programme is expanded in the future?
Mr Tan Chuan-Jin267 words
[+17 sentences]Mdm Speaker, I would like to thank the Member for his two supplementary questions. With regard to the first, indeed, we will look at the individuals' qualifications that may not fit our criteria today, especially qualifications from overseas. We will look at whether, in their case, a more truncated or accelerated programme is possible. There is a balance that needs to be struck. But it is something that we are open to looking at. With regard to the second question, it is a very important one. It is important for us to realise that part of the challenge is that while we may make some of these schemes and subsidies available, the challenge is with the children's attendance. Because you will find that for some families, and for a range of reasons – there is not one reason particularly – intermittent attendance is actually worrying. The opportunities for development and exposure are there for the children, but for whatever reasons, the children do not attend. We do know some of the factors that are involved. In fact, this is something that I am quite particular about personally. As part of our effort with KidSTART, working with the families, it is not just about the children, it is about the family, too. So, addressing absenteeism, ensuring the children have regular attendance in preschools will be a very important component of this effort. Once we are able to do that, it will go a very long way. It is not just about working on the children. We need to work with the family. So, I completely agree with that.
Mdm Speaker8 words
[+1 sentence]Mr Dennis Tan, please keep your clarification short.
Mr Dennis Tan Lip Fong (Non-Constituency Member)60 words
[+4 sentences]Thank you, Madam. Just a quick clarification for the Minister. Will the new regulations lead to increased compliance cost which may, in turn, lead to increased fees payable by parents? I am asking this because, currently, I think the existing fees are already a burden to many parents and I would like to know how the Ministry will manage this.
Mr Tan Chuan-Jin519 words
[+1 sentence]Mdm Speaker, I have attempted to address this at length during my speech but it is worth repeating. From one perspective, one could naturally imagine how this could lead to higher compliance cost and so on. We do not anticipate there to be significant cost increases as a result of this Bill.[+11 sentences] Why do we say this? In the process of coming up with this Bill, we have been working very closely with the industry on how to unfold this, how these various measures would kick-in in very practical terms. Childcare centres today, for example, already operate under a licensing regime. We are not starting from ground-zero. We have already embarked on that journey, and many of these players are already quite far on that journey. We are now, in some sense, formalising it. ECDA is also streamlining its regulatory requirements. We are very mindful as we implement this new Bill. Even as we implement this, the requirements are not cast in stone now. Along the way, there may be push-back from the industry as certain unknown processes may turn out to be more cumbersome than they need to be and they add to costs. For this, we will look at it and see how to best calibrate it. For kindergartens, for example, ECDA will provide more time for them to transit and, as I mentioned, they will be given an additional one year from the time that the Bill kicks in formally. We do not expect the compliance cost to be onerous and, therefore, we are not expecting the Bill to translate into higher fees.[+6 sentences] It is important, and I would say this, because I also do not want centres to then say, "Oh, there is a new Bill; so, no choice, we have to increase fees." Just a message to everyone, the new Bill should not lead to fee increases. Generally, the main cost drivers for preschools are rental and teachers' salaries. And we have no plans to change our space- and teacher-per-child requirement as they are currently satisfactory. It is very important to take note of that. This, hopefully, is also for centres to take note that the main cost drivers are not changed under these requirements. ECDA is also studying other ways to lower cost of operations, for example, providing more flexibility in manpower deployment, something that we will be looking at to support the sector, by allowing operational staff to assist trained teachers and so on.[+3 sentences] This space continues to evolve and we intend to strengthen it in many different ways not addressed under the Bill. These approaches that we are taking would also help centres carry out their responsibilities effectively without unnecessarily incurring costs in a very significant way. . (proc text)]
Mdm Speaker39 words
[+5 sentences]I propose to take the break now. I suspend the Sitting and will take the Chair at 3.55 pm. Order. Sitting accordingly suspended at 3.35 pm until 3.55 pm. Sitting resumed at 3.55 pm.
[+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 2017 to 31 March 2018", (proc text)] [(proc text) recommendation of President signified; presented by the Senior Minister of State for Finance (Ms Indranee Rajah); read the First time; to be read a Second time on the next available Sitting of Parliament, and to be printed. (proc text)]
[+2 sentences][(proc text) recommendation of President signified; presented by the Senior Minister of State for Finance (Ms Indranee Rajah); read the First time; to be read a Second time on the next available Sitting of Parliament, and to be printed. (proc text)]
[+2 sentences][(proc text) presented by the Senior Minister of State for Law (Ms Indranee Rajah); read the First time; to be read a Second time on the next available Sitting of Parliament, and to be printed. (proc text)]
[+2 sentences][(proc text) presented by the Senior Minister of State for Finance (Ms Indranee Rajah); read the First time; to be read a Second time on the next available Sitting of Parliament, and to be printed. (proc text)]
[+2 sentences][(proc text) presented by the Senior Minister of State for Finance (Ms Indranee Rajah); read the First time; to be read a Second time on the next available Sitting of Parliament, and to be printed. (proc text)]
[+7 sentences]Mdm Speaker, thank you for this opportunity to start the Debate. The general response from the businesses to this year's Budget has not been positive. From the media reports, we have read strong statements from the Singapore Business Federation, Singapore Chinese Chamber of Commerce and Industry (SCCCI), Association of Small and Medium Enterprises and the other trade associations and chambers (TACs) expressing disappointments with the Budget for not doing enough to help businesses cope with the immediate challenges. It is understandable and natural for businesses to always seek an even better business environment. It happens in all countries to varying degrees and for as long as we can remember. I did some quick homework to satisfy myself as to whether this barrage of criticisms by the businesses are fair and justifiable, or whether the Finance Minister is, indeed, doing the right thing from an economic management and, of course, from a prudential standpoint. So, let us start with the most recent economic numbers to see if the economy is, indeed, in a dismal state. In the latest fourth quarter gross domestic product (GDP) numbers, the economy grew 12.3% quarter-on-quarter. It is the strongest quarterly growth recorded in six years and it translates into a 2.9% year-on-year growth for the fourth quarter.[+2 sentences] Granted that the key driver from the surge in growth came mainly from two manufacturing sectors, namely, the semiconductor and pharmaceutical sectors, but we can expect spillover effects to other sectors supporting these two sectors, such as precision engineering, transport, warehousing, financial and other supporting services. Importantly, we have also seen credible growth from the services sector which accounts for about two-thirds of the economy. The sector grew by 8.4% quarter-on-quarter and 1% year-on-year.[+9 sentences] So, clearly, from a data standpoint, we are not seeing the sort of sharp contraction similar to what we saw in recent downturns. Hence, it may not warrant the Government to roll out a massive rescue package to save the economy but rather to continue with and enhance existing schemes to assist businesses, which include the cash schemes, like the Wage Credit and the additional Special Employment Credit (SEC). These are in addition to the other assistance measures in the Budget, some of which were recommended by the Committee on the Future Economy (CFE). So, in my view, the Finance Minister has struck the appropriate balance here. However, it is worth noting that we are seeing the new realities of our economy setting in. Firstly, the uneven nature of the growth and, secondly, the overall low and flat growth trajectory. This probably explains why some businesses are feeling downbeat. In particular, businesses are beginning to feel the effects of life under a slower 2% growth environment, compared to what used to be a 3% to 5% growth a few years ago. It is showing up in their order books in the form of fewer orders and, as a result, more competition and compressed margins while, at the same time, seeing business costs continuously creeping up. If we further overlay the picture with the employment situation, then we are beginning to see troubling signs that we ought to be concerned about. For the fourth quarter, last year, total employment grew by only a lower 1,900 compared to 2,700 in the previous quarter and much lower than the 16,100 in the same quarter in 2015.[+16 sentences] This could be due to a combination of cyclical downturns in some sectors and structural shifts taking place within the economy which lead to higher job mismatches. As we intensify digitisation, we can expect possible job losses but there will also be new jobs created for those who can adapt. Under such circumstances, giving out broad-based short-term cash grants to businesses will not reverse these trends. It requires a whole-of-system approach to deal with the challenge. The CFE and Budget 2017 do have a host of recommendations and measures to address this development, including the Adapt and Grow initiatives and specific industry transformation support. For businesses, the perennial concerns are still about the costs of doing business in Singapore. I do agree that the increase in water prices and diesel duty do not help the situation, even as the businesses can understand the reason for the hikes. For example, I read last Thursday in Lianhe Wanbao about how the food industry and food manufacturers are most concerned with the hikes as both water and diesel are their major inputs in the food production chain and there are no direct rebates in the Budget to help them. We do know that there is no turning back on having less air pollutive fuel and to have better air quality, as that is what we want. We want better environment. We also know that the cost of an additional drop of water will cost more as we tap more of the expensive sources of water going forward. These are irreversible trends. Rather than look for short-term painkillers, let us tackle the problem head-on and collectively work on longer-term alternative solutions. For example, in the case of water, perhaps the food industry's Industry Transformation Map (ITM) can be the platform where industry players and all stakeholders come together to seek longer-term solutions and working with the Public Utilities Board (PUB) and the Agency for Science, Technology and Research (A*STAR) for both research and development (R&D) and resource support. Mdm Speaker, this year's Budget carries with it the added vital task of implementing the recommendations from CFE and the all-important mission of renewing our economy. Hence, necessarily, Budget 2017 would be more heavily weighted in the areas of economic transformation and setting our sights on the medium- to long-term horizon. The Government Parliamentary Committee (GPC) for Finance, Trade and Industry supports the key thrust of the strategies outlined by CFE to decisively position Singapore to capture the opportunities of the future economic landscape. The comprehensive set of recommendations is a good start to deepen transformation.[+12 sentences] We noted that a number of the suggestions put up by the GPC, primarily on the supply-side areas, were also in the report. Some have critiqued that the CFE report offers no new ground-breaking ideas and that it was lacking in detailed execution plans. It is, indeed, not the usual approach. However, we are in uncharted territory in this new fast-paced ever-changing landscape, having a well thought out strategy and clear directions as to where we should go will put us in pole position. But the important next step is to develop quick response capabilities that can react swiftly and seize opportunities whenever they present themselves and these opportunities are likely to come in shorter cycles with greater injects of newer unknowns in play. Many of the key ideas of CFE were well-shared and ventilated during the one year of public engagement and, hence, most of the recommendations come as no surprises, though they are not any less impactful. We know that this is the to-do list on hand and what is more crucial is to get as many done as soon as possible and to do them well. That will make a transformational difference. Since not everything is cast in stone and more plans are being hatched on the move, I hope the Government can still take new ideas on board to transform the economy, and I have some of my thoughts and suggestions here today. Building strong digital capabilities is among the foremost priorities. We must quickly capitalise on our competitive edge to stay way ahead of the curve, so that we can exploit the powerful multiplying effect that digitisation can bring. Jack Ma recently said that Alibaba aims to be the fifth largest economy in the world with its e-commerce platform and digital connectivity. So, the sky is the limit in this space. We need to accelerate adoption of digital technologies by small and medium enterprises (SMEs).[+1 sentence] There is no other more enterprise-centric way to carry this out than to go one-on-one with enterprises, offering step-by-step advice on the technologies to use at each stage of the growth, roping in resources from the Infocomm media Development Authority (IMDA), the Standards, Productivity and Innovation Board (SPRING) and other lead agencies, giving some funding to those that are ready to pilot emerging infocomm technology (ICT) solutions and starting with sectors that are in greatest need to improve productivity. All that I have just said is actually what the SME Go Digital Programme is all about and that is the way to go.[+16 sentences] At the national level, the Government should also see building nation-wide digital capabilities and infrastructure as a public good and to go beyond just playing the enabling role. Often, decisive actions are needed to fast-track or build such capabilities ahead of time. The private sector may not always be commercially aligned to the ultimate national objectives and may have other nuances or take longer to mobilise, for example. A case in point is the setting up of the national digital payments system, which was suggested by the GPC for Finance, Trade and Industry to CFE, where leaving it to the private sector may take ages to happen, given the multiple commercial stakeholders involved. The Government should also hasten the proliferation of sharing economy platforms, enabling trade and e-commerce connectivity across and up and down the economy. In the area of innovations, the GPC believes that enterprises should leverage on R&D as a key competitive driver. Through the ITM platforms, more R&D support, such as Research, Innovation and Enterprise (RIE) 2020, can be made available to promising local enterprises to develop breakthrough and trendsetting products and services. Currently, most of our R&D resources are being utilised by very large companies. We need to "bite-sized" this R&D funding support so that it is within the scope of smaller enterprises and, through ITMs, to cluster businesses together to seek joint solutions to common challenges, such as water and carbon emissions. Mdm Speaker, the Global Innovation Alliance and SkillsFuture Leadership Development initiatives are sound attempts to build international innovation networks. In the new landscape, superior global connectivity will be the key success factor. It can expand Singapore's economic spaces and add excitement and vibrancy, notwithstanding a slower 2% to 3% home-based growth. On internationalisations, given recent global political developments and the anti-free trade sentiments in Europe and the United States (US), we clearly need to further expand and diversify beyond traditional markets. There is scope to pursue more opportunities within the ASEAN markets, riding on the growing middle class and its expanding infrastructural needs. We would need to further expand consular and International Enterprise (IE) Singapore's presence in these locations, expand air links and develop closer multifaceted ties, including setting up more location-based business councils with the local jurisdictions. Amidst all these initiatives, the oxygen for businesses to scale up, innovate and venture overseas is funding and capital, which was also addressed in the CFE report. Besides the international financing schemes, such as the International Finance Scheme (IFS), which has been enhanced, we must also have available long-term risk capital and seed funding to take direct equity stakes in promising local enterprises or ventures with the aim to help companies expand the regional footprint and anchor value in Singapore. Hence, I welcome the setting up of the $600 million International Partnership Fund (IPF).[+1 sentence] Indeed, this is one of the bold ideas of CFE. Under this initiative, the Government will commit capital through a Temasek-linked fund to co-invest with a Singapore-based company. Such equity injection, which tends to be longer term in horizon, would be a good source of patient capital as well as a confidence and rating boost for the company.[+3 sentences] It also gives the Government a greater handle in keeping the company's headquarter and core operations rooted in Singapore. And should the company's owner decide to cash out and sell their stakes, the Government's equity stake in the company would be better able to help retain the value in Singapore. These requirements should be clearly stated in the investment mandate. Besides the state investment agencies as provider of patient capital, the GPC also urged the Government to encourage locally-established and "patriotic" foundations and family offices to be another source of capital for local enterprises' efforts to boost innovative capabilities and scale up.[+5 sentences] We have seen that in some countries, for example, in Sweden, there is this Wallenburg Foundation which will invest in companies to pursue their own Swedish national interest. Mdm Speaker, cost of space is often cited as an impediment to startups and new enterprises. We should expand the availability of low-cost spaces. Last year, France opened Europe's biggest accelerators with space for 1,000 startups in a refurbished Paris train station. There are many more such newly set up accelerators in Europe today, very much like our Block 71. State land that is earmarked for medium- to long-term use could be leased out on short-term leases with temporary built-in structures.[+18 sentences] Also, from overseas experience, precincts near the Institutes of Higher Learning (IHLs) tend to be good fertile ground for like-minded innovators to gravitate towards and a community of innovators to spontaneously form. I hope the Ministry of National Development can consider making available unused buildings or spaces in locations near IHLs, such as Clementi and West Coast, which are near to the National University of Singapore, Dover Road, near Singapore Polytechnic, to foster closer social networking and economy shaping between IHLs and the innovators. On skills, Mdm Speaker, the key word in CFE and Budget 2017 is to go deep. The message is loud and clear. So, while I can appreciate the need to make training more accessible via e-learning platforms, I am not sure that a modularised and technology-enabled training programme can achieve the right depth and rigour to meet the needs of the market place. But I fully agree we need to strengthen on-the-job skills utilisation and to urge employers and TACs to take the lead in the design and structuring of skills upgrade. The nexus between skills acquisition and utilisation will be better aligned if employers and TACs take ownership. In addition, I hope that the Government will also consider three other suggestions related to skills and jobs that the GPC has earlier put up. Firstly, we should allow more flexibility in admission for mid-career applicants to enter the Institutes of Technical Education, polytechnics and universities. Mature students, with their rich life and workplace experience can bring useful perspectives to the classroom, even as they learn new skills there. I like a particular line in the CFE report, which said "we need to go beyond the pursuit of the highest possible academic qualifications early in life to focus on acquiring and using knowledge and skills throughout our lives." I hope the Ministry of Education and the IHLs can start making changes in this area and turn these words into action. Also, I hope companies can be incentivised to provide sabbatical leave to long-serving employees who may wish to take stock of their accumulated skills and experience, take learning breaks to reskill and re-energise. This is consistent with enhancing long-term employability in the future economy. Many of the Fortune 500 companies already have such practices. Secondly, to expand post-secondary education options with more polytechnic and ITE places and the range of course offerings. We should also review the curriculum of junior colleges and to consider placing a greater emphasis on applied learning, beyond just pre-university education. It is also timely to study and weigh the long-term benefits of national A-level exams in the new future landscape. Thirdly, we should carry out deeper analysis on Employment Pass and S-Pass data to understand the skills and expectation mismatches within the workforce.[+9 sentences] After all, these are real observable data on why we could not find Singaporeans to fill those jobs. With the deeper understanding, we can map out the right skills development programme to reduce mismatches. Information gaps are among the reasons why there are mismatches between employers and employees. I am glad that CFE and Budget 2017 have undertaken to step up the functionality and user experience of the national Jobs Bank. We need to harness the value of the whole-of-economy data to do a better job in matching jobs. Mdm Speaker, in the interest of time, I will not speak on the ITMs but I will cover them during the Committee of Supply (COS) debate for the Ministry of Trade and Industry. The transition to a more entrepreneurial, international and innovative economy will obviously come with risks. And the best way to mitigate these new risks is to always maintain a strong financial position, ready to act with effective measures when the situation warrants and have the internal resilience to weather external shocks that will definitely come time and again. Amidst all these, we must maintain social cohesion, alongside capable political leadership. As individuals take on more career risks and the nature of work changes due to innovations, there may be the need to further strengthen the social safety nets while maximising opportunities for Singapore workers.[+4 sentences] We must avoid the discontentment and divisions that we recently saw happening in Europe and the US to globalisation. Mdm Speaker, the Budget is a package of good policy intentions and, in the Singapore context, almost always medium to long term in focus. In the last 10 years of Budgets which I have debated as a Member of this House, I can only remember one year where the Budget was almost entirely short term. That was in 2009 when the economy contracted by 17% the quarter preceding and a negative growth of 2% to 5% was forecasted for that year. The circumstances then warranted decisive and timely action by the Government to save jobs and to help businesses, and the centrepiece item for that year's Budget was the $4.9 billion Resilience Package.[+6 sentences] Everyone would love to have a Budget package with tasty, immediate goodies. I would love it, too. However, we would find our fruits tastier, if they were harvested through hard work and prudence from plans put in place many Budgets ago. That has been the spirit of Singapore Budgets since our Independence and has been core to our values. We should continue to do it this way, even in the future economy. Madam, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast)2031 words
[+4 sentences]Mdm Speaker, thank you for allowing me to participate in the Budget Debate. Madam, as we discuss this year's Budget, we cannot ignore the changes and how these changes are impacting Singapore and our lives economically, socially, culturally and even our environment. The intensity of the pace, scope and scale of this change is what is different. The rapid changes are driven by the combination of globalisation and technology that are removing the constraints of geographic boundaries and limitations and blurring the lines between the physical and our digital world. Reactions and feedback to the Budget reflect the anxieties and optimism that people are feeling with the impact that these changes are bringing. It is against this landscape of rapid global changes, new opportunities and challenges and a maturing economy that Minister Heng had emphasised that we need to reposition ourselves for the future. He had categorically stated that measures for Budget 2017 for our economy, society and fiscal policies must "take a learning and adaptive approach". He said that we will "try new methods, continue with them when they work well, cut losses when they do not, and draw on feedback and experience to adjust and refine our plans.[+15 sentences] That is the Singapore way". This "learning and adaptive approach" may be uncomfortable, and I think the feedback we received has indicated that it is uncomfortable for many of us, as we are used to certainty and clear plans. But given the pace, scale and impact of these changes we are seeing, none of us, not even the Government, can predict the future. Rather, we must take some bets directionally, and that enables us to be ready but be prepared to adjust and adapt to the changes that will unfold. It is no longer simply about picking the right bets, having the right skills and then just executing. With the uncertainties that unfold, nurturing a culture of learning and having the mindset and flexibility to adjust and adapt will be key. Otherwise, we will be irrelevant. The measures in this Budget focus on the quality of growth in a future economy that is anchored on building the capabilities of enterprises, deep skills in our people and enabling innovation. I believe that, together with the ITMs, these are the right strategies to enable businesses and our people to stay relevant and thrive in the future. But to achieve deep capabilities, skills and innovation is not easy, because it will require structural changes and partnerships between large and small enterprises, local and foreign, educational and research institutions, trade associations, unions and the Government. I would like to touch on two points in my speech. One is the strategy for economic growth and innovation, and the other around ensuring a caring society and inclusive growth in helping those impacted by the transformation. To build enterprise capability, the Budget outlined the need for enterprises to use digital technology, embrace innovation and scale up. It is evident that enterprises, both large and small, cannot ignore leveraging digital technology to transform their businesses. Many are already facing the impact of the disruption brought about by technology. The introduction of the SMEs Go Digital Programme to help SMEs adopt digital technology and solutions is a necessary initiative.[+16 sentences] Although many SMEs today do see the benefits of leveraging digital technology to transform their businesses and address the changing business environment, many do not have the skills or resources to do so and have not done so or do not even have the plans to do so. Klaus Schwab, and I thought he shared this very well and I wanted to share the thoughts that he shared about the Fourth Industrial Revolution, because he talked about the demand and supply side impact on businesses. On the supply side, what he shared was that new technologies in many industries are creating entirely new ways of serving existing needs, enabling new ways of working and significantly disrupting existing industry value chains. Access to global digital platforms for research, development, marketing, sales and distribution has enabled new entrants to compete and thrive by improving the quality, speed or price of what they deliver. On the demand side, technology has also enabled a change in how products and services are being consumed and new services and business models are emerging to address demands and creating new markets. Obvious examples that many of us are familiar with, are online shopping, from Grab to Uber, Deliveroo and Airbnb, just to mention a few. These are giving competition to established incumbents, both large and small, from all industries, whether it is retail, transportation, F&B, hospitality, learning. The barriers to entry have been lowered and new entrants are driving new demands and addressing new demand areas as well. Going digital is important but I do want to stress the point that we must be cognizant that it is not about going digital. Rather, becoming a digital business is a means to an end. It is key that our enterprises, both large and small, as they embark on their digital transformation, keep the consumer at the centre of their strategy. The importance of using data as a key business currency to understand and get insights of both the demand and supply side opportunities and challenges, will be key for businesses, and being able to stay relevant. As our businesses leverage digital platforms as well, they need to continue to build credibility and trust. Keeping data secure and ensuring that their digital platforms stay secure will be critical. Building cyber security skills is an area that all businesses will require. But for SMEs, this is going to be an extremely challenging area, given the challenges they are already facing in the adoption of digital technology. The SMEs Go Digital Programme needs to have clear plans on how our SMEs can build digital resilience as they leverage digital technology.[+2 sentences] Another area I would like to touch on is that driving transformation and growth need strong leadership. As we know, successful reinvention, business change and innovation require strong leadership. The introduction of the SkillsFuture Leadership Development Initiative is definitely welcomed. But I do see that the emphasis of the programme seems to be on developing these leaders to support companies expanding overseas and going global.[+1 sentence] That is important. But it is also important to stress the need that this initiative gives similar attention to building capable leaders to lead and drive businesses in Singapore.[+9 sentences] In order for our businesses to expand and scale up, they need strong leaders to make decisions, transform and grow the businesses locally. There are good examples of multinational corporations (MNCs) already doing this. There are those examples today, but we need more. Because with the pace of change, this needs to be done. Let me touch on an area that I feel needs some focus, given the current economic climate and our businesses' transformation platforms. There are real fears amongst our workforce that these changes will not only disrupt jobs but displace jobs. The measures announced in the Budget and the ongoing measures to help our people access, acquire and deepen skills are needed and welcomed. I am not going to speak about the specific measures but I would like to touch on one segment of the workforce, that is, the middle-income and middle-aged. While there are other segments of the workforce impacted by the disruption, this is a talent base that is significantly impacted by the transformation of businesses. With an ageing population, a highly-educated workforce and professionals, managers, executives and technicians (PMETs) forming more than 50% of our workforce, this group will need attention to manage the transition in work to different roles, across industries or from employment to becoming entrepreneurs.[+12 sentences] Across several economies, we are already seeing a growing discontent amongst those in the middle-income group. We must ensure that the measures are effective in enabling this segment to deepen their skills and adapt and grow. Driving innovation will require deep skills. I want to also share a point that we need to ensure that this group continues to see that the opportunities that they have are not about transitioning and not just about finding employment, but that they can find fulfilling jobs and see an opportunity to improve their lives and those of their families. The then US Vice-President Joe Biden, in a keynote address at the World Economic Forum Annual Meeting 2016, told participants "the middle class is about possibilities − the possibilities for anyone willing to work hard to achieve a decent life". He said that a thriving and growing middle class has been the main reason for social stability in the world's democracies. It is our own responsibility to make sure that this group continues to be able to thrive, because they are impacted by the changes that we are seeing in businesses. I strongly believe that if we strengthen the Singapore Core and give our people confidence and hope in the future, we will have a culture of growth and learning, but we must continue to remain open. Because it is only when we are able to stay open can Singapore benefit from strong partnerships and learn from foreign companies, both large and small. I would like to touch on one last point about making sure that we help those who are lagging to adapt to the changes. On the point of definition of who needs help and how the help is extended, when distributing rebates and subsidies given, we all understand the finite resources and budgets. I agree that there must be criteria for qualification. Our current approach uses size and value of housing type as the primary factor for qualification.[+16 sentences] The criterion is also not based on ownership, but on the type of housing you live in. While logical, this may no longer be as valid or accurate. There are some living in Housing and Development Board (HDB) flats who may not be worse off than someone living in a private property. This is not a straightforward matter and it will need further study what needs to be addressed. But I feel that we need to relook our approach. I am not asking that we grow the size of the number of people getting help, as it will not be fiscally sustainable to do so. What I am requesting is that we relook at the distribution to ensure that those who need help do receive it. On social inclusion, as we build a society that is moving on and moving on fast, it is important, another aspect of inclusion is about helping people feel that their contributions matter. We already have many platforms of recognising people from all walks of life and professions and we must continue to do so. I recall NS50 is a recent example of a platform to recognise the efforts of National Servicemen, past and present, including bringing them together and sharing their experiences. Because it is through the experiences, having the platforms that we can feel part of, that would make people feel included and bring us forward together. Mdm Speaker, Budget 2017, as with all Budgets, is about the future. I have spoken on many occasions in this House of ensuring that Singaporeans continue to have "hope" and see Singapore as the home and place for each and every one of us to aspire and build a better life for ourselves and our families. We have seen in recent times how many economies are driven by fear and anxiety and facing pressures to become more protectionist. To this point, it is apt that the theme for this year's Budget is "Moving Forward Together". The journey we are embarking on is not going to be easy. But while there are challenges, there will be opportunities. This Budget is a rallying call for us on the need to build our capabilities and pull together to ensure that Singapore and Singaporeans continue to grow and thrive in an uncertain and rapidly changing world, but recognise that we must remain open, so that we can continue to learn, partner and benefit from all that is happening around us.[+1 sentence] So, Mdm Speaker, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera (Non-Constituency Member)2385 words
[+13 sentences]Mdm Speaker, Singapore's economy is at a crossroads. In the past, lies an economy driven by foreign direct investments, state initiatives and capital and labour inputs. In the future, lies the dream of an economy driven more by productivity and innovation, local enterprises and private initiatives. How do we move from A to B? CFE outlined a few broad strategies. Some have criticised these for being too broad, but I do acknowledge that there are details contained in the ITMs and other Governmental statements outside the CFE report. There was also not a great deal that was new in the CFE report. A few new ideas, like the Global Innovation Alliance, for example, but not many. For the most part, CFE referred to and affirmed existing initiatives. I acknowledge, however, that we should not value novelty for novelty's sake. If indeed, what we are doing now has little room for improvement because it is delivering results, then so be it. But is what we are doing now delivering the results that we need? Madam, our economic growth in 2015 and 2016 was about 2%, the slowest since the financial crisis year of 2009. As at December 2016, jobseekers continue to outnumber job vacancies in Singapore for the first time since 2012. Low headline unemployment belies deepening insecurity in the job market, with rising redundancies, reports of under-employment and more people taking up jobs in the less secure gig economy, not all from choice. As it is well known, productivity performance in recent times has been poor and far below our target.[+25 sentences] According to one city-level study cited by the Prime Minister in 2012, our per capita GDP is not even among the top 20 cities worldwide. Madam, let us take another indicator − net births of companies. That refers to the formation minus cessation of companies, companies, generally being larger and more economically-weighty entities than proprietorships. In the last three months of 2016, the net births of companies have plunged. Since December 2015, this indicator has registered negative net births of companies four times − in four months out of 13. The total net births figure for 2016 was about 6,000. For the previous four years, it ranged between 12,000 and 21,000. In fact, in the last 10 years, this figure has fallen below 10,000 only twice. In 2009, the year of the financial crisis, and last year, 2016. Madam, our SME sector employs two-thirds of Singaporeans. The SME sector situation is seriously challenged at the present moment. Madam, we all want Singapore to be exceptional, to be a shining Red Dot. But how can we make sure that the Red Dot does not dim for our children and our grandchildren? What was lacking in the CFE report was a deep self-examination about why we are producing these kinds of results. From deep self-examination, and even self-criticism, could come fresh thinking. Our drive towards high productivity is not new. It began decades ago. Yet, we have produced weak results. The US, Korea, Hong Kong and Australia have better real productivity growth compounded on an annual basis from 2004 to 2014, according to one analysis published in The Straits Times on 24 April 2016. Madam, we recognise the problem with our total fertility rate (TFR) in the 1980s, and yet we have not succeeded in reversing the decline, so much so that our TFR today is among the very lowest in the developed world. Yet other developed countries have reversed their TFR decline, such as Japan, France and some Scandinavian countries. To take a micro example of what I am referring to here, Budget 2017 announced a new SkillsFuture Leadership Development Initiative (LDI) to groom corporate leaders, which is good. Yet an initiative to groom Singaporeans to become leaders in global companies had already been announced several years back. What lessons were learnt from that? Turning now to Budget 2017, is it a Budget that deals with the economic situation we are in? The Minister for Finance said that 2016 was an expansionary Budget, meaning to say, in crude terms, and at the risk of some over-simplification, that the state was pumping in more money into the economy than it was taking out, because the basic deficit was $5.6 billion in 2016. In 2017, the basic deficit is projected to be $8.2 billion or about 2% of GDP, which would imply an expansionary budget again, even if the deficit turns out to be smaller by a few billions due to conservative budgeting, as it almost certainly will be.[+21 sentences] But what if we properly reflect the cash going out of the economy to the state in the form of land sales, projected to be $8.2 billion in 2017, net of other elements that may not be reflected, such as the actual cash spending of endowments and funds? Once all of these items are accounted for, is the Budget as expansionary as the basic deficit of $8.2 billion would suggest? I would like to ask the Government if it can include a section in future Budget Books that presents our National Budget and quantifies the surplus or deficit according to the methodology prescribed by the International Monetary Fund. Such transparency is important to enable Singaporeans to make up their own minds as to whether future Budgets are, indeed, an effective response to current economic realities. Madam, the recent Budgets from the Government have tended to follow a pattern − racking up a surplus in the early part of the Parliamentary term and then incurring deficit spending towards the end of the term, close to the General Elections. So much so that some economists now openly predict the Budgets in certain years will be election year Budgets that spend off the accumulated surplus from the preceding term of Parliament. Has the Government held back on fiscal stimulus in 2017, so as to keep ammunition in reserve for closer to the elections? Seven hundred million dollars in construction projects have been brought forward. Has the Government considered bringing forward projects in other areas of expenditure than construction − ICT projects, for example? This will provide a greater and more sectorally-balanced stimulus. My colleagues will comment and discuss in detail on the water price hike and other price hikes and taxes. But let me make a few observations now. The timing of these price hikes seems more synchronised to the political cycle than to the economic cycle. The economy is facing numerous problems and net births of companies are plunging. Is this the right time to raise the electricity tariff, gas price, parking fees and, last but not least, the water price, all within the space of a few months? Madam, what is the justification for these price hikes and their timing? Hitting the economy with these multiple price hikes within the space of a few months may make good political sense, because people have three years to forget them, before the next General Election. But do they make good economic sense? Why introduce all these price hikes now at a time of relative economic fragility, when they could tip some SMEs at the margins over the edge, when they increase the hardships faced by Singaporeans beset with job market insecurities? Why not introduce some of them later when there is an up-swing in external demand? Next, I will speak about local enterprises. Budget 2017 has not made a decisive shift towards building local enterprises as an engine of value-creation, alongside MNCs and Government-linked companies (GLCs).[+3 sentences] This is a huge missed opportunity. There are some initiatives to address SME funding, and there are some new measures announced at this Budget, for example, tweaks to IFS and the new Globalisation Fund. These are welcomed moves to be sure, but is this enough to uncage our local firms? Commercial and industrial rents and land costs are still very high relative to the region's.[+13 sentences] When this was debated in the COS in 2016, the reply was that we do not need more measures, because the retail and industrial space market was already softening due to market forces. However, the Government should understand that for entrepreneurs, it is not all about the costs today, but what will be the costs tomorrow. An entrepreneur will not invest blood, sweat and tears to build the business, only to see commercial rentals surge due to market forces and wipe out his/her commercial viability in five or 10 years' time. They think about the long-term future outlook. A larger share of JTC in commercial and industrial space and a smaller share held by real estate investment trusts, as was the case in the past, or another similar suite of policies, would help to underscore that long-term assurance to entrepreneurs and would-be entrepreneurs. Madam, we also need to step up education about entrepreneurship to our students, and I have raised this in past Parliamentary Questions. Time does not permit me to delve too deeply on this subject, but we can and should do more to enable our students to understand how entrepreneurship is both a viable and a socially meaningful calling. Right now, I fear that most of our aspiring students dream of becoming civil servants or working in an MNC. On funding, in New Zealand, for example, an SME can obtain a bank loan for a merger and acquisition project overseas based on a certain price-earnings ratio. In countries like Switzerland, Germany and Japan, local banks have close ties to local companies in particular states or prefectures, and both parties see a commonality of long-term interests. Is such funding easy to obtain in Singapore? Of course, I fully recognise that not all ideas and companies are fundable. But that is precisely the point. Should we not make our support to companies much more selective − with much more generous support at higher caps given to companies which truly have the track record of results and the acumen and ambition to succeed globally, with that sort of support being scaled down, if the results are not delivered, or if the results do not benefit Singapore? Should we not move decisively away from schemes of an administration mindset to a results-driven mindset in SME development?[+7 sentences] It is this kind of tough-minded results-driven approach which enabled Japan and Korea to groom world-leading companies in the 1960s and 1970s, companies that, to this day, employ many people in their home countries, both directly and indirectly, in the form of complex chains of suppliers and sub-contractors. Madam, one of the opportunities missed by CFE and Budget 2017 is about fostering risk-taking. It is no coincidence that the countries with the most innovative companies and disruptors are also the countries which have a larger role for social safety nets and risk-pooling. There are two aspects that stand out. One is managing the risks of redundancies from ever shortening product lifecycles and continuous disruption. Here, Ms Sylvia Lim has proposed the redundancy insurance scheme during the Budget Debate 2016. The second is retirement adequacy. Most Singaporeans do not have enough in their Central Provident Fund (CPF) to live on when they retire, as the Prime Minister discussed in his National Day Rally speech in 2013, necessitating some kind of monetisation of their HDB flat, which is not always an easy straightforward or happy process, or continuing to work till they are much older.[+12 sentences] This is due to high property prices depleting the CPF Ordinary Account. Managing these risks are important if a globalised open economy and society is to thrive. We must create enough security and confidence for Singaporeans to become the disruptors, and not the disrupted. There have been some measures announced to address these issues over the past few years, but the basic structural impediments remain. Most households are exposed to cyclical economic risks without robust safety nets and risk-pooling, reinforcing a tendency to focus on short-term cash flow. This makes it less likely that they will set up companies, take risks to innovate, take time off work for education, reskilling or training, because they cannot afford to. Lastly, Madam, our education system excels at training literacy and numeracy to a high standard. The Government takes pride in our Programme for International Student Assessment (PISA) scores. But equally important to competitive success in the 21st century are "skills" like lateral thinking, creative problem-solving, leadership, communication and self-confidence, as I spoke about during COS 2016. Can we sustain the current high academic content workload and add the cultivation of these softer attributes on top, like the icing on a cake? Will our students be able to cope with these demands? Some recent research suggests that there is generally an inverse correlation between a country's PISA score and that country's Global Entrepreneurship Monitor (GEM) score which measures entrepreneurial qualities. An over-emphasis on high stakes academic testing may hold back the cultivation of these elusive entrepreneurial qualities.[+1 sentence] I am not arguing that we should reduce our PISA scores in the hope that our GEM score will go up, nor am I saying that having both a high PISA and GEM score is impossible. In fact, Finland is one such outlier country which has high scores on both metrics. But in striving for very high academic standards we must always measure, publish and debate the impact of that academic workload on the cultivation of other qualities in our young people to ensure the right balance.[+1 sentence] My colleague Mr Png Eng Huat has spoken about the need to study the reasons behind the vast tuition industry in Singapore. Raw academic performance can always be inflated upwards with enough academic pressure from schools and families, enough tuition, model answers, 10-year series and discipline.[+3 sentences] But to what end? Are we helping our children compete in the world of disruption that they will live in when they grow up? Madam, in conclusion, while we do recognise the positive moves in Budget 2017, we question the timing of some of the measures that will raise costs as well as their necessity and justification. We question whether more can be done to support a beleaguered economy at this time. And above all, we question the missed opportunities to make decisive bold moves in local enterprise development, risk-pooling and education to pivot Singapore towards truly finding its place in the sun in the 21st century.
Mdm Speaker3 words
[+1 sentence]Mr Thomas Chua.
Mr Thomas Chua Kee Seng (Nominated Member)851 words
[+3 sentences]Mdm Speaker, in Mandarin. (In Mandarin): Mdm Speaker, Members of Parliament, good afternoon! Today, my topic is, "Successfully transforming the Singapore economy amidst adversity". To complement the CFE's mid- and long-term strategies, this year's Budget has unveiled some concrete solutions, centred on innovation, digital economy and internationalisation to build up Singapore's mid- to long-term core competitiveness.[+5 sentences] This is a far-sighted approach. After the Budget Statement, as President of SCCCI, I have heard many feedback from businesses. They are more concerned about short-term measures. After the Government announced the increase of water tariff and diesel tax, some related industries immediately felt the impact. Water cost affects millions of users and would have an impact on every industry. The Government has decided to raise water tariffs to ensure the sustainability of our supply and to defray the costs of building NEWater and desalination plants, as well as the operational cost of water supply.[+12 sentences] But businesses feel that infrastructure is part of public service and the Government should not compute this on a commercial basis. The major concern of businesses is operating costs, while the Government's concern is the nation's mid- to long-term competitiveness. How to strike a balance can be challenging. Currently, Singapore's external business environment is changing. Countries which were previously more advanced than we were, are now becoming less expensive; countries which were less expensive than us, have become more advanced. Our Singapore companies have to innovate in order to adapt to this new business environment. The Government encourages companies to innovate and internationalise. This is the right approach. At the same time, businesses also hope that the Government could apply a new mindset to plan its expenditures. Going forward, there are still many areas that need expenditure, such as social development, healthcare, environmental protection, defence and foreign affairs. In order to increase revenue, the Government is likely to continue to adjust other taxes. Let us look at some numbers. In 2011, the Government's total expenditure was $46.6 billion, and by 2017 it had increased to $75.1 billion, which is more than 60%.[+18 sentences] Government revenue comes from two sources, one is taxes and fees, and the other is the Government's investment returns. The economic outlook will not be rosy in the days ahead. If businesses cannot raise their competitiveness and increase their profits, tax revenues will not increase. Similarly, the Government's investments are inextricably linked to the economic situation. If the economy is weak, there would be no magical formula to turn stone into gold. Two idioms come to my mind. One is "broaden the sources of income and cut costs" and the other is "live within our means". The meaning of the first idiom is to increase income and save on spending; the second idiom means to spend based on one's income. As the saying goes, "If a man has nothing to worry about in the long-term, he will definitely have something in the short-term to worry about." We have domestic and external factors to consider. The domestic factor is that for many years now, we keep increasing the budget on certain areas, but the results cannot be seen. Now, should we not begin to review if this is the right way of spending? Just because it was correct before does not mean it is correct now. Our thinking should not be based on what we are used to. We should avoid "being blinded by group-think". Here, I am quoting Minister Chan Chun Sing. Externally, there is a protectionist wave emerging globally, and the wave is becoming increasingly stronger. Hence, we should prepare ourselves to address this adversity. Given the unpredictability of the external environment, not increasing business costs, maintaining Singapore companies' competitiveness, strengthening the profitability of companies would mean increasing the national revenue.[+5 sentences] Mdm Speaker, adversity is not to be afraid. Compared to more than 50 years ago, Singapore is, overall, much stronger. We have advanced infrastructure, top-class port and airport, and an extensive network of undersea cables and a comprehensive financial, legal and education system. Many MNCs have set up their regional headquarters in Singapore. Our own companies should also use Singapore as their regional headquarters and venture overseas boldly. The Government should give support to those local companies which have the gumption and are willing to do so, be they traditional industries or emerging industries.[+6 sentences] No one should be left behind. I hope the Government would do its best to reduce business costs. At the same time, businesses should also review the internal factors which could contribute to their operational problems to see whether it is their product quality and service standards that are not up to the mark, or it is their business model that is outdated. During this economic transformation period, companies, especially chambers and trade associations, should play a more proactive role. They should work closely with the Government, based on their industry's specific circumstances. Everyone should come together to think of ways to revive and promote the Singapore spirit, a spirit which has steered Singapore into success in the nation-building days, to overcome adversity and head towards success!
Mdm Speaker4 words
[+1 sentence]Mr Lim Biow Chuan.
Mr Lim Biow Chuan (Mountbatten)1170 words
[+11 sentences]Mdm Speaker, I rise in support of the Budget. There are many things that I like about this year's Budget. I like the fact that the Government is trying to prepare Singapore for the future economy and to sustain employment for the seniors. I like the budgetary provisions to help all of us build an inclusive society and to strengthen our economy. The CFE's recommendations are important and relevant proposals. If well executed, they will help Singaporeans prepare ourselves for the future economy. I also believe that the young couples hoping to start a family would appreciate the generous increase in housing grants. It is a clear indication that the Government cares for our younger generation. I hope that younger Singaporeans hoping to start a new family will consider the option of buying a resale flat with the increased housing grant. I also want to say that I appreciate the increase in Goods and Services Tax (GST) Voucher, U-save rebates, the cash special payment and the increase in service and conservancy charges (S&CC) rebates. All these would provide much needed relief for the average Singaporeans who face higher cost of living expenses. The additional support of up to $100 million for the voluntary welfare organisations (VWOs), $6 million for the self-help groups and the support for people with disabilities and mental health conditions send a very strong signal that this Budget is to enable all of us, as Singaporeans, to move forward together.[+11 sentences] However, Madam, allow me to express the concerns of many smaller businesses which are facing serious struggles to survive in an unpredictable economy and which are also facing declining sales. The reality is that not every business is doing well over the past few years. Some of these businessmen were hoping that Budget 2017 would provide them with some form of financial relief or reduced costs. However, it seems that their hopes may not materialise. The feedback which I have received is that many of the budgetary measures in this year's Budget would only help a specific segment of the business community. The focus of the Government is to strengthen capabilities for the future. Thus, for some of the smaller businesses, this year's Budget may not be a major event. It has little positive impact for them. Instead, some of the measures taken to protect the environment and the water price increases may hurt them more. I do not believe that businesses are hoping for a handout from the Government. What they are appealing for is a business climate which is less costly and friendlier to businesses. As it stands, property-related costs are still very high. I urge the Government to consider some additional measures, for example, a rental rebate for all tenancies where JTC or HDB is the landlord, or a property tax relief which landlords of private properties must pass on to their tenants.[+4 sentences] Although there is an SME working capital loan, the feedback is that not many SMEs are aware of the loan or how it works. There is also the perception that it is not easy to get such loans. How can the Government do more to reach out to the many SMEs which are looking for a lifeline for their businesses? Can the Government elaborate on its plans to conduct more outreach to the SMEs on all the available help? Would the Government also consider a one-year stay on any foreign workers' levy (FWL) hike until the economic situation has stabilised?[+12 sentences] Next, allow me to express my concern for the middle-income Singaporeans. I have a large number of such middle-income residents in my constituency. Many of them are PMETs who are living in condos or five-room flats. I also have a number of retirees living in private homes which they had bought many years ago after saving for many years. For this category of residents, they feel that they have been left out in this Budget. They feel penalised simply because they were trying their best to live their aspirations in the past. For the retirees, they have no income and are relying on their savings, pension or their children to provide for them. For the PMETs, their income is unlikely to rise due to wage freeze in many companies. Yet, these retirees and the middle-income PMETs will face increases in water pricing, car park and S&CC charges. Some of the PMETs may also face job insecurity. This group will not benefit from many of the support measures of Budget 2017. If they stay in HDB flats, they may receive a smaller S&CC rebate. If they stay in private properties, they will not benefit from the GST U-Save vouchers, the S&CC rebate or the GST cash special payment.[+6 sentences] And the retirees also do not benefit from the tax rebate. So, I urge the Government to consider ways in which we can allow the retirees and middle-income Singaporeans to share or enjoy the growth of the country and to move forward together as a nation. We should find other more equitable ways to share and redistribute the country's wealth rather than rely on home type as a proxy for measurement of their wealth. Let us do more for the middle income so that they too can find the theme for this year's Budget, "Moving Forward Together", a meaningful theme for them as well. Finally, I also want to urge the Minister to consider a stay on water price increases for this year. There is never a good time to raise prices for utilities. However, increasing the price of water in times of economic uncertainty is definitely not a good time.[+1 sentence] Let me stress that I totally agree with the Finance Minister that water is critical to our survival and we need to take adequate measures to conserve water. But sadly, the 30% increase in water prices seems to have detracted from the main intent of the Budget. And due to rumour-mongering, many people seem to have been so caught up and so concerned over this 30% water price increase such that they seem to have forgotten or ignored the various other measures that the Government has introduced to help Singaporeans mitigate the price increase.[+3 sentences] Thus, it seems to have distracted many of us from the much important message that all Singaporeans need to focus on, which is how to plan our future, how to develop stronger capabilities in a fast changing world. That is the main message of the Budget but, seemingly, when I go for feedback sessions, everybody's first question is about the water price increase. And I felt that it is really an unnecessary distraction for all of us. If it is really not possible to defer the water price increase, then I hope that the Government would consider measures to ensure that businessmen do not profiteer from this water price increase. And this may be similar to the Committee Against Profiteering (CAP) which was set up some years ago when the GST was raised.[+1 sentence] Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)2177 words
[+9 sentences]Mdm Speaker, my initial reaction to the Minister of Finance's Budget Statement last Monday was deep dissatisfaction and disappointment. I thought a lot about it in the next few days. Was I disappointed because this Budget contained relatively few goodies for SMEs, workers and consumers? This was the first question that crossed my mind. Many businesses and Singaporeans expressed the same sentiment, as reported in the papers and as can be read online on social media. It is understandable. This time round, the support given by the Government is targeted rather than broad-based. We have gotten too used to spectacular Budgets with goodies for everybody and the fireworks of snazzy phrases, pictures and presentations. Yet, there is nothing positively spectacular in this Budget. Instead, the negatives stand out in ominous light, especially the big 30% hike in water prices. I stared at the "Budget in Brief" for a very long time, putting aside my sentiments, trying to make rational sense of the Budget, to see the pattern and trend that have to be there.[+1 sentence] So, I stared and stared. Then, it came to me, this is a "Wait and See" Budget.[+19 sentences] It clicked. This is why Minister Heng opened the Budget Statement signalling a time of VUCA − the volatility of populist politics, the uncertainty of economic protectionism, the complexity of technological disruptions, the ambiguities of the changing global order. In such a context, it is prudent to wait and see before committing national resources to a set path with a clear destination. When everything is up in the air, we need to wait and see, to keenly observe the trajectories of the things being thrown up to decide which gems to catch and how to catch them. Wait and see does not mean to do nothing. I read an article in the Harvard Business Review that helped me see the pattern and logic of the "Budget in Brief" I was staring at. This was an article written by two US Marine Corps officers who switched careers to become business consultants. They wrote, and I quote: "As Marine officers, we always ate last, ensuring others had food on their plates before ours were filled. During down-time, we kept our teams busy with training opportunities so they could broaden their skills, which also curtailed complacency. When it was dark and cold in the field, we made a point of being present on the lines, not hiding out in a warm tent, to show our teams we were right there with them. Through our actions, we demonstrated that we were willing to go without food, free time and comfort to ensure our people knew they were supported. The result? Our teams felt cared for and valued, and they demonstrated their loyalty through their initiative and engagement." Waiting means to keep ourselves busy with training and development. Thus, many of the Budget initiatives are focused on the long-term development of business capabilities and enhancing the affordability and accessibility of training for our workers. Seeing means to be vigilant and being prepared to respond quickly to opportunities and exigencies. Thus, many of the Budget initiatives have to do with road-mapping and transformation-mapping, and prototyping, testing and experimenting. As the Marine officers related, waiting and seeing also means cultivating strong bonds of trust through shared engagements. Thus, many of the Budget initiatives emphasise partnership, alliances and integrated spaces. If I were to summarise this "Wait and See" Budget into three main thrusts, they are: (a) training and development; (b) mapping and testing, and (c) partnership and team building.[+9 sentences] Despite my initial disappointment and dissatisfaction, I believe this Budget is making the right moves of waiting and seeing in these three thrusts. But I do not think we should dismiss the negative sentiments of disappointments and dissatisfaction with this Budget. They are also signals to possible deficiencies and gaps in the Budget. I believe they point to one defect that the Government can do a lot better to address. This is the psychological effect of insecurity induced by the VUCA environment. It is getting very dark and cold in the field and ordinary Singaporeans are feeling unsettled by the uncertainty. We need to understand and alleviate this psychological insecurity. There are three ways to improve the psychological security and mental well-being of ordinary Singaporeans, even as they are exhorted to train and develop themselves as they wait and see. First, we should maximise the availability and accessibility of the training programmes as far as possible. Second, we need to strengthen the safety nets for middle-income households who are financially squeezed on several fronts and threatened by employment insecurity.[+6 sentences] Third, we should transform the current management culture of top-down leadership to one of service-based leadership, which is more conducive to fostering real partnerships of trust. The first way to improve psychological security is to maximise the availability and accessibility of training and development for workers. We should not under-estimate the sense of security that comes with knowing that there are many options available to us for deepening our skills or changing tracks to pursue new dreams. I have three substantive points to make in this respect. The Adapt and Grow programmes are excellent for promoting functional skills and the practical placement of jobseekers. But we should not forget the psychological impact of the various conditions and restrictions that the programmes place on workers. For example, young PMEs have to wait for six months of unemployment before they become eligible for the Career Support Programme.[+4 sentences] The new Attach and Train initiative is interesting. Notwithstanding the details to be elaborated later by the Minister for Manpower, I ask that the Government pay close attention to the psychological aspects of attached participants, as there is a risk that the attachments could backfire if participants find themselves treated as mere interns and not as valued would-be employees. Regarding the Global Innovation Alliance, going forward, it would be good to open up the Innovators Academy to mid-career workers who would like to explore opportunities and build up experiences in innovation. Many entrepreneurs are not born straight from the universities, but become enterprising innovators after accumulating years of experience in the marketplace. Regarding continuing education and training degree programmes, this would be a good time to accelerate the placement of adult learners in part-time programmes in our universities to 10% of each cohort from 2015 onwards as recommended by the 2012 Committee on University Education Pathways.[+4 sentences] I understand our six universities have been launching various types of work-study programmes with SkillsFuture support and in partnership with industry. But many of these programmes are understandably starting out slow and small, and targeted at young adults heading to university and not adult learners. I hope this would accelerate to cater to adult learners who defer their university education to later and even to mid-career switchers, especially since the size of cohorts heading to university would start to shrink due to plunging birth rates two decades ago. The second way to improve psychological security is to strengthen the safety nets for middle income households. The 30% hike in water price and the carbon tax when implemented, will have knock-on effects on the costs of living, as all areas of everyday life are affected by the use of water and electricity.[+2 sentences] Middle-income households do not have the benefit of the enhanced financial transfers to low-income households to soften the impact of the water price increase. Compared to low-income and high-income households, middle-income Singaporeans will feel the head-on impact of the increase in costs of living most strongly. In this respect, the personal income tax Rebate of 20% capped at $500 does not benefit the middle income worker as much as the high-income earners. For example, a worker earning the median gross monthly income with a taxable income of around $40,000 will only receive $110 tax rebate.[+5 sentences] On the flip side, high-income earners will be receiving the full $500 tax rebate. This effectively means that the Government will be subsidising the expenses of high-income earners many times more than the middle income workers. Middle-income workers need the rebates a lot more in order to soften the impact of the water price increases and the knock-on increases in costs of living. Middle-income workers are also facing higher risks of retrenchment and under-employment. While the Adapt and Grow programmes help to mitigate the fallout from retrenchment and encourage retrenched workers to reskill and return to employment, the Budget could do better to provide for short-term relief to allow workers to find their feet and not be mired in temporary cash-flow problems that could distract them from training and job-seeking. The Government could consider introducing redundancy insurance to even out the risks of retrenchment and provide short-term support.[+14 sentences] Short-term tax deferments would also help retrenched workers to manage their cash flows. The third way to improve psychological security is to promote service-based leadership. Management thinker Robert Greenleaf introduced the concept in 1970 in his famous essay, "The Servant as Leader". In contrast to traditional leadership involving the top-down exercise of power and the taking of individual credit from the team's work, the service-based leader focuses on the growth of the people they are leading and the well-being of the communities they serve in. The SkillsFuture Leadership Development Initiative announced by Minister Heng is an excellent initiative. It is a belated recognition that we need to consciously cultivate Singaporean leaders in all our industries. We have focused on talents who could follow through the logic of development and faithfully execute the plans. What we need now are thought leaders and visionaries who could inspire teams of talents and workers to collectively chart and create new pathways of growth. However, to maximise the return of investment in leadership to ordinary Singaporeans, we should focus on cultivating service-based leaders. Traditional leaders who are focused on their own power and achievement may well achieve the same level of growth as service-based leaders, but the benefits will not be equitably distributed to workers and the community. On the other hand, because service-based leaders are committed to the personal and professional growth of their workers, growth will benefit everyone. In turn, this will foster committed and engaged workers who will use their initiative and give their best and all to the team's efforts. The two Marine officers I quoted at the beginning of my speech, consciously applied this concept of service-based leadership to build up a cohesive team of well-trained and deeply committed warriors. Instead of producing an elitist group of leaders commanding regular troops, they forged an elite fighting unit. Conversely, traditional leaders will treat workers as expendable units to be constantly evaluated for their performance, and stigmatised and culled if they no longer meet certain standards. I think it is very clear how this can be detrimental to the psychological security of our workers, with ripple effects beyond the affected companies and industries, as can be seen in the Surbana terminations. I believe this is the missing ingredient in our drive to improve productivity and inspire engaged workers. Thus, I urge the Government to emphasise service-based leadership in its industry transformation mapping exercises, in the SkillsFuture Leadership Development Initiative and in the Future Economy programmes to deepen partnerships to share expertise and solutions.[+9 sentences] Mdm Speaker, I have come to accept this "Wait and See" Budget for what it is. It is down-time and the Government is encouraging Singaporeans to get busy with training and development, mapping and testing, partnering and team building. We are preparing for the fight to come. But it is also getting dark and cold in the field. It is unnerving to many Singaporeans. The price hikes and the looming tax increases do not help. A sense of insecurity is setting in. Other than the three ways to improve psychological security even as we train and prepare, I have highlighted above, there are two things that the Government, the political leaders, can do. First, we are still not getting a sense of the big picture of the changes in the global order and how Singapore features in this big picture. What are the different scenarios of the future we are facing? We seem to be still focused on internationalisation, but do we have a plan if nationalistic protectionism takes root and spread? What are the worst-case scenarios and the known unknowns, and how should we prepare for these?[+1 sentence] We need to have a shared understanding of what we are fighting and what we are fighting for. Second, as the example of the two Marine officers show, when it gets dark and cold in the field, being present on the lines with the troops and not hiding out in a warm tent is a tremendous demonstration to our people that they are being fully supported and truly valued.[+1 sentence] It is not my place to lecture the Government leaders on what they should be doing to be present on the lines with the workers and small businesses, but it is my duty to register that there is a need for it.
Mdm Speaker8 words
[+1 sentence]Dr Tan Wu Meng, you have a clarification?
Dr Tan Wu Meng (Jurong)144 words
[+7 sentences]Thank you, Mdm Speaker. I just have a couple of clarifications that I would like to ask about the evolving corpus of the Workers' Party economic model. I understand that the previous speaker Mr Perera had mentioned land sales could be lost revenue. I was wondering if Assoc Prof Goh might elaborate on what he views as an appropriate level of land sales to front our current Budget. For example, what percentage of land to sell in this term of Government and what percentage of gross domestic product (GDP) the sales should be? Secondly, I was also wondering in terms of supporting our SMEs and standing with our people, as Assoc Prof Goh has mentioned, what his view would be on the optimal level of foreign manpower in our SME sector? Should be it more, less, or the same amount as we have today?
Assoc Prof Daniel Goh Pei Siong23 words
[+2 sentences]Mdm Speaker, I have not mentioned these two points in my speech. So, I am not sure what I am supposed to clarify.
Mdm Speaker9 words
[+1 sentence]Dr Tan, do you want to respond to that?
Dr Tan Wu Meng36 words
[+2 sentences]The point was raised by Assoc Prof Goh's colleague earlier, and there is a thread about standing with our people and our SMEs. So, I was wondering whether these points might be clarified at some point.
Mdm Speaker21 words
[+2 sentences]Mr Perera or Assoc Prof Goh, would you like to respond? Mr Leon Perera, do you want to make any clarification?
Mr Leon Perera192 words
[+1 sentence]I thank the hon Member for raising those points. On the first point, he asked about the optimal level of land sales. In our speeches, we have not put forward a model of land sales nor have we put forward an alternative Budget model. What we have asked for previously is to understand the expansionary or contractionary effect of all the measures in the Budget, including land sales, including possible cash spending from the Government and funds that may not be reflected in the basic and primary deficit as well as the overall surplus or deficit. We want to have that clarity because that is needed to assess to what extent the Budget is really expansionary.[+3 sentences] On the second point, this is something that we did not touch on in our speech. I think for SME development, we did give a number of ideas and suggestions. I do not think we brought up our proposals on manpower per se in the speeches that we made. So, I do not wish to comment on that at this point. I direct the Member's attention to ideas and suggestions we made about local SME development.
Ms Foo Mee Har (West Coast)1577 words
[+4 sentences]Mdm Speaker, Budget 2017 strikes a delicate balance between providing sufficient support to bridge near-term challenges and taking bold steps to invest in new capabilities in our firms and workers for a brighter future. Businesses had expected more help in this Budget to ride out the challenging operating environment. Support is promised, but in a targeted manner, instead of being as broad-based as in the past − I support that this is a more efficient approach. When studying the Budget financials, we should all be concerned about our weakening fiscal position. For five consecutive years, total growth in revenue has outstripped growth in operating revenue, and our Budget is getting tighter every year. This is the third consecutive Budget that reflects a basic deficit. We expect only a modest overall surplus of $1.9 billion after taking into account the significant Net Investment Returns Contribution (NIRC) of $14.1 billion from past reserves.[+5 sentences] Additional funds that were afforded by the inclusion of Temasek in the NIRC starting year 2016, not too long ago, appears to have been exhausted quickly − this is worrying. The Finance Minister spoke about the implications of rising long-term expenditures, particularly in healthcare and infrastructure, and the need to prepare options to strengthen the revenue base. This has rekindled fears of new and higher taxes, including GST hikes. There are those who would advocate tapping our reserves further and others like myself who would call for a cap on how much we should take from NIRC to fund our expenses. Clearly, Singapore must find a sustainable fiscal footing for our future generations and we need a thorough review of both expenditure and revenue. On expenditure front, I applaud the Finance Minister for sending out a strong signal of fiscal prudence, with the permanent 2% downward adjustment from the budget caps of all Ministries and Organs of State.[+24 sentences] I would like to ask the Minister what other budget mechanisms are in place to encourage savings across the Ministries, including rationalising roles and functions of agencies as well as extracting cost synergies from cross-agency collaboration. Madam, even as the Government continues to enhance the social safety net, we must keep up the disciplines of means-testing, targeted supported and co-payment, to preserve the value of personal responsibility. Madam, a healthy and growing economy is the only sure way to sustain a healthy revenue stream. I am encouraged by the efforts of the CFE. The seven strategies put forward by CFE form a comprehensive plan to capture the opportunities of the future economic landscape. But it is one thing to strategise, but quite another to execute. The 22 sets, I counted, of recommendations spelt out in the CFE report all seem to be the right things to do. But, taken together, I cannot help but felt a little overwhelm with the long list of tasks ahead to reposition Singapore. From deepening our knowledge of markets, acquiring better skills, strengthening innovation ecosystems, to developing and implementing 23 Industry Transformation Maps (ITMs). These lofty objectives demand significant change and adaptation involving Government agencies, companies and people, working in unison. How Singapore executes as a team, with each pulling its own weight, will make the difference. A common theme in the CFE's recommendations is for the Government to create enabling environments, within which companies become nimbler and more innovative, to cope with the rapid pace of innovation and increasing competition around the world. In this context, I commend the Monetary Authority of Singapore (MAS) for leading the way. To meet their ambition of building a Smart Financial Centre, MAS instituted the concept of "regulatory sandboxes" to enable fintech experiments and trials of promising innovations, to be tested in the market with appropriate safeguards. The sweeping reforms announced recently by MAS have made it easier for smaller firms and budding entrepreneurs to secure financing for their businesses. MAS intends to simplify the venture capital regime, introduce dual-class share structures, strengthen the role of finance companies and develop private market platforms. It is also actively laying down technology infrastructure to drive innovation, including an electronic trade finance platform, infrastructure to enable the pervasive use of e-payments and an industry know-your-customer utility, the first of its kind that I know of, that will greatly improve productivity of banks when on-boarding clients and managing money laundering risks. These wide-ranging policy measures set a great example of forward-looking regulations which creates a dynamic ecosystem that enables growth and innovation. If more sectors adopt a similar approach, it will go a long way towards enhancing Singapore's vibrancy and competitiveness, and accelerate our pivot towards the future economy. Madam, the Government should critically review how it can help businesses manage operating costs. The high cost of rentals is often quoted as prohibiting the setting up of new businesses and the survival of businesses. Is there a way for entrepreneurs to be offered affordable premises to kick-start their businesses, in the same way that the Government actively intervenes to keep housing affordable with HDB flats, and food prices affordable using hawker centres? JTC Launch Pads is a great initiative, but we need more platforms where businesses can operate in low-rent spaces acting as public offices located across Singapore. I would like to ask the Government to consider deploying some of their vacant properties for this purpose. From a recent Parliamentary Question, I understand there are as many as 1,000 Government properties that are vacant, pending lease, redevelopment or demolition, some of which stay vacant for extended periods of time.[+8 sentences] State lands that have been earmarked for medium-to-long-term use could also be leased out on short leases with temporary built-up structures. Making some of these premises accessible as public offices, at nominal rent for a limited period of time, will help businesses bootstrap their operations and develop the critical mass needed before they transition to private market rentals. In this year's Budget, there are many initiatives to help businesses scale their operations, go international, go digital and innovate. With the development of ITMs for 23 sectors, covering 80% of our economy, the Government has offered support to all sectors, not just selected ones, to seize growth opportunities and make the necessary transition. Through ITMs, industries with good growth prospects can take advantage of global opportunities and technology whilst domestically-focused industries, such as food services, will get support to increase productivity and upgrade jobs. So, regardless of which sector it is in, every business has a fighting chance of realising their fullest potential and reposition themselves for a brighter future. Madam, our people will need to move in lockstep with these changes, if they are to thrive in this new economy. It is heart-breaking to encounter stories of families impacted by retrenchments, and my sense is that increasing numbers of PMEs, especially older ones, are being displaced. Whilst I appreciate that Adapt and Grow has launched an extensive set of programmes to help workers take on new jobs, I call on the Government to consider some short-term measures to help families cope during this transition. For example, during periods of unemployment, would the Government consider suspending the retrenched workers' payment of income tax instalments and allow some flexible use of CPF to pay mortgages, so as to help them keep their homes?[+4 sentences] The Economist magazine published a special report in January on the need for lifelong learning. It is apparent that if 21st century economies are not to create a massive underclass, policymakers need to urgently work out how to help their citizens learn while they earn. The need for new and constantly updated skills in the new economy is universal, and many countries are ill-equipped to do so. Unfortunately, lifelong learning in most societies is undertaken by those who are already doing well, and is therefore likely to widen the gap of inequality rather than narrow it. Singapore had the foresight to launch the SkillsFuture movement nationwide in 2014 as our next wave of development, and we must make sure our approach is an inclusive one, benefiting all Singaporeans along the journey.[+2 sentences] Mdm Speaker, even as we work to continuously enhance the SkillsFuture system, it is critical for Singaporeans to expect that their current full-time jobs may be disrupted, and take ownership of preparing for their next careers well before their current ones becomes obsolete. My worry is that not enough of us accept this as a personal risk and do not proactively seek to future-proof ourselves. Some of those who lost their jobs may have found relief as Uber drivers − itself a fortuitous result of industry disruption − but I fear this too could be a short-lived job, with the advancement of self-driving technologies.[+8 sentences] Jobs are hybridising. With longer life expectancy and unending shifts in the jobs market, the ability to learn will be the key skill to nurture, along with the willingness to do so. Madam, Budget 2017 has drawn us a map to reposition Singapore strongly. The path ahead will not be easy, there are mountains to climb and rivers to cross, whilst the weather changes constantly. But we will not travel alone. Our firms and our people must be the agents of change, taking greater charge of our own destinies, learning and improving, whilst the Government fosters enabling environments in which to grow and thrive. Whether we succeed in reaching our destination depends on how we prepare together, support each other and keep pace with one another as we stay the path. I support the Budget.
Mdm Speaker3 words
[+1 sentence]Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Non-Constituency Member)806 words
[+3 sentences]Mdm Speaker, in Mandarin. (In Mandarin): Mdm Speaker, in Mandarin. I am very concerned with some of the measures announced in this year's Budget. First of all, the increase of water tariffs by 30% and the imposition of water consumption tax. In this year's Budget, the announcement by Finance Minister to raise water tariffs by 30% left many Singaporeans anxious.[+2 sentences] Not only was the increase of water tariffs sudden, the scale of increase is also higher than expected. At the same time, the Government has also decided to impose a water consumption tax, which will increase the burden of the people during this water tariff hike. Although the Government has said that it will be giving rebates to some families through GST vouchers U-Save rebates, most Singaporeans and industrial/commercial users will be affected, as they do not fulfil the criteria to enjoy rebates or will be receiving only token rebates.[+13 sentences] Companies and industries that uses a lot of water, such as the food and beverage (F&B) industries, will be affected the most. I am concerned that this large increase in water prices will have adverse knock-on effects, leading to price hikes of other daily necessities and increasing the cost of living, which will in turn, increase the burden of the people. How can the Government ensure that the rise in water tariffs will not lead to price increases at hawker centres, coffee shops and other products? Many industrial and commercial activities require the use of water. This rise in water tariffs mean that operating costs and living expenses will increase. With uncertainties in our economic prospects and growth, the hike in water tariffs will make the situation worse. So, I would like to know if the Government will offer assistance to industries that will be adversely affected by the increase in water tariffs, especially those that require a lot of water. What puzzles me, is that the Finance Minister has mentioned in his Budget Statement that water is essential to our survival, so the pricing of water must reflect the higher production cost of desalinated water and NEWater. My question is, we have had desalination and NEWater plants for some time now. In recent years, water reservoirs, desalination plant and water supply from Malaysia and other water issues have been better resolved. We already have more choices when it comes to water supply. Then, why the sudden mention of higher cost of water? Why was this not mentioned in recent years? Second, I am also very concerned about the increase in diesel tax by 10 cents per litre, which applies to car diesel, industrial diesel and bio-diesel.[+7 sentences] The reasons given for the increase in diesel tax are, firstly, diesel is a source of pollution; and secondly, to encourage users to reduce consumption by imposing diesel taxes. I can understand and agree with the problem of pollution, but I do question the timing and scale of increasing diesel tax. I believe that it is not the right time to increase diesel tax under the current difficult economic situation. The tax increase will cause diesel prices to go up and this will directly affect transport costs, such as those of taxis and buses, as well as school buses and buses ferrying workers. Can the Government assure the people that our transport cost will not increase? Can the short-term road tax rebates ensure that transport costs will not increase? The Finance Minister has also announced a cut in Special Tax for diesel cars. For taxis, even if taxi companies were to return the savings of $850 from the reduced special diesel tax to taxi drivers, the taxi drivers would still have to come up with cash to make up for the increase in diesel prices.[+7 sentences] This is calculated based on the distance of 250 kilometres to 500 kilometres that a taxi needs to travel every day, assuming they will need to consume 25 litres to 50 litres of diesel a day. Diesel is the general fuel for delivery trucks, vans, lorries and other heavy vehicles. With the 10-cent increase for every litre, transport and delivery costs will also increase, and this will also affect the operating costs of businesses that depend directly or indirectly on transport services. Mdm Speaker, after the budget was announced on 20 February, the general consensus among businesses is that SMEs and Singapore-based companies are not getting sufficient help from this Budget amidst the difficult and uncertain economic climate. The increase of diesel tax at this point will only add on to their operating cost. In view of the economic uncertainties and anxieties over job prospects, it is regrettable that the measures announced by the Government in this budget have not given the people a stronger sense of security. Instead, they have increased the cost of living of the people.
Mdm Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1695 words
[+7 sentences]Thank you, Mdm Speaker. The world today is quite different from the one that many of us are used to. Many countries that were once champions of globalisation and trade are experiencing fundamental shifts in their political orientation and attitudes towards globalisation. Economically, the VUCA environment that businesses are operating in has led to the shortening of business cycles and the increasing occurrence of creative destruction. The biggest causalities of these changes are jobs. Employees in every sector and industry are at risk of experiencing structural unemployment that resulted from skill obsolesce. The danger of being replaced by automations or algorithms is real. In view of these economic headwinds and strategic challenges, we must continue to safeguard the employment of Singaporeans by creating good jobs and by helping our economy transit into the next phase.[+9 sentences] While we are living in the VUCA environment, Mr Deputy Speaker, Sir, earlier on our colleague Assoc Prof Daniel Goh mentioned this image of us living in darkness and in fear. I think, perhaps, that may be exaggerating the image somewhat. I do not believe that we are living in a wait-and-see mode, but rather using the analogy of military exercises, it is more of a mode that we are anticipating what will happen, we are preparing for what could come up next. This is something that I feel very strongly about. It is easy to take a big broad brush and try to solve a situation by bombarding with artillery, for example. What you end up with is you have very much collateral destruction. I think the Prime Minister is aware of the impact of too much artillery in a situation. I prefer to see us not so much as Marines but a Seal Team Six, Mr Deputy Speaker, Sir, whereby we work fast, we work sharp, we are small, we are nimble, we are strategic. And we are far from a people cowering in fear and darkness. I believe that we use this time to focus, we use this time to regroup, we plan our strategy and we move forward. So, this year's Budget is really a strategic one that aims to help Singapore grow despite this global uncertainty that we are living in.[+1 sentence] It also reflects a paradigmatic change in how the Government views our economy. The shift from the traditional intensive-driven Budget to the current strategies-driven one demonstrates the Government's appreciation that Singapore's economy is, indeed, becoming increasingly more complex and intertwined with the rest of the world.[+13 sentences] We need to take a mid- to long-term view of our economy and implement a Budget that will continue to meet our long-term objectives. Yes, there are several "pain points" in this year's Budget where the prices of some goods and services have to be adjusted to reflect the cost of providing those services or to increase social awareness about environmental sustainability. But these "pain points", however, are also mitigated by the various grants and subsidies that that Government will implement. These policies will ensure that those in our society who need an extra helping hand should not be in a significantly worse off position after the adjustments. I would like to elaborate on some initiatives in the Budget that I think will help to continue to steer Singapore on this right path to keep us going as that "nimble" Seal Team Six. First of all, helping SMEs. We all agree that SMEs form the bulk of the number of businesses in our economy. Despite their significant contributions to our economy, however, our SMEs do face serious challenges moving forward. First, many continue to lack in their digital capabilities and the ability to tap on newer technologies to improve productivity and service delivery. Second, they lack the resources and expertise to truly internationalise. Finally, there are few, if any, holistic industry-wide initiatives to help them transit their businesses to the new economy. I am glad that the Government is cognisant of these challenges and the Budget has targeted programmes to help our SMEs overcome them. It is crucial that we help our SMEs scale up their digital capabilities in the era of e-commerce and "click 'n' mortar" businesses. While it is unlikely that digital platforms and online business models will completely supplant traditional modes of business, our SMEs cannot afford to assume that they can continue to operate the way that they have been operating. So, the implementation of the Industry Digital Plans and the setting up of the SME Technology Hub will provide our SMEs with the much needed baseline assistance to digitalise their businesses, and I am eager to hear more details from the Ministry of Communications and Information during the committee of Supply debate.[+6 sentences] We should, however, go beyond this baseline assistance. The crux to a successful digital transformation is to have a talent pool that businesses can tap into. This is especially important for SMEs since SMEs are traditionally not the first choice of employment for many of our graduates. While the Government can help to nurture a pool of digital talent, I believe SMEs themselves need to ensure that they can provide a good career path for these talents. The career paths in SMEs can be increased by potentially increasing their level of internationalisation. An SME with regional or global presence is definitely in a better position to offer attractive careers to digital talents and also other professionals, as the scope and nature of their operations will offer the requisite job challenge and development opportunities. The International Partnership Fund proposed in the Budget will help catalyse the regionalisation of our SMEs.[+7 sentences] The devil, of course, is in the details of implementation. The Government is not in the business of picking winners and losers, so guidelines and assessment processes must be put in place to ensure that the funds that are set aside are used to support SMEs that have the best potential to internationalise. The assessment criteria and methods must be appropriate and transparent, and support must be given to high-potential SMEs regardless of their size. Mr Deputy Speaker, Sir, I would like to speak a little on supporting families in housing. The Government has, in recent years, implemented a number of different measures to help Singaporeans own their own homes. I am glad that this year's Budget has continued on this trajectory by providing greater financial support to Singaporeans who wish to purchase a flat in the resale market. This group of Singaporeans are typically those who wish to start their family and also want to live near their parents for the supportive network. The current CPF housing grants for both 4- and 5-room flats are similar at $30,000. The new grant structure, however, would provide those who purchase a 4-room flat a higher grant than those who purchase a 5-room flat.[+2 sentences] While I appreciate the rationale that the Government would not want to subsidise those who purchase bigger flats too much, as they are likely be from a higher income group, I think we cannot ignore that some consumers might choose to purchase a 4-room flat due to the fact that it is more expensive than a 5-room flat because of its location, age and other factors. Conversely, some consumers with a lower income might have to purchase a 5-room flat, as opposed to a more expensive 4-room flat in other locations, due to their family requirements as well. In view of these idiosyncrasies, would the Government consider providing a percentage-grant based on the purchase price of the flat? But this amount would be subject to an absolute ceiling amount, and whichever amount is then higher would be given to the qualifying purchaser as the housing grant.[+3 sentences] On to household measures, Mr Deputy Speaker. The recent Budget saw increases in the prices of water and diesel, and soon, Town Councils will be increasing their S&CC rates to meet rising costs, especially with regard to servicing and eventually replacing lifts. Singaporeans are concerned that that is too many bullets to bite at a go. Although Singapore has experienced modest GDP growth over the past few years with real median wage growing by 2.6% per annum, from 2009 to 2016, the impact of these growth figures has not be felt equally across all sectors of the economy and strata of the society.[+10 sentences] Indeed, some segments of the population are concerned that the recent increases would pose additional constraints on their finances, and these concerns are somewhat justified. I am thus heartened to know that the Budget has provided various avenues of support through the form of GST Vouchers, S&CC rebates, and personal income tax rebates. As Singapore's economy enters a period of low growth and more employees are at risk of losing their job due to structural changes in the economy, I hope that the Government will review its existing assistance schemes from time to time so that it remains responsive to the needs of the people. Mr Deputy Speaker, Sir, this year's Budget is unique in its approach in laying the necessary foundations to support Singapore's growth for the next five to 10 years. Rather than having a broad-based Budget that hopes to raise all boats by lifting the overall level of the tide, the Budget is measured and its initiatives are targeted at giving specific help to those that need help the most. More importantly, it reflects the Singapore ethos of fiscal prudence and the belief that the future of Singapore depends on the strong partnership between Government, business and people. And I stress again, we are people that are not cowering in the dark or in the cold and the wet, we are people that are getting ready and preparing ourselves, whatever may come next. It is not so much wait and see but being prepared. I believe that implemented well, this year's Budget, together with the recommendations of the Committee on the Future Economy, will form a roadmap that will help us to navigate the global uncertainty and possible economic headwinds that Singapore will face. With that, Mr Deputy Speaker, Sir, I conclude my speech in support of the Budget.
Mr Murali Pillai (Bukit Batok)1064 words
[+7 sentences]Mr Deputy Speaker, I have three points to make in my speech. First, in connection with the Government's measures to support businesses, I wish to highlight the cash flow problems faced by some SMEs arising from big companies holding back on prompt settlement of their invoices. From feedback received, some big companies leverage on their economic power against SMEs by delaying payment on invoices for goods and services. If the shoe was on the other foot, these big companies may not hesitate to impose interest for late payment in addition to the principal amounts. Micro SMEs are in particular vulnerable because, on one hand, they do not want to upset the commercial relationship with the big companies. Yet, on the other hand, especially in a period of slow economic growth, the delay in payment may tip the SMEs to cash flow difficulties, higher litigation risk and even insolvency. To ameliorate the effect on these SMEs, I have two suggestions. First, I wonder if the Government could consider extending the scope of the SME Working Capital Loan, under which the Government assumes the risk for loan defaults, to allow SMEs to collateralise their receivables owed by big companies for loans at low interest rates.[+2 sentences] This would give SMEs more flexibility in managing their cash flow. Whilst factoring arrangements may be available to SMEs, this comes at a cost and means a further erosion of their profit margin. Second, I suggest that the framework in the BCA Security of Payment Act for the building and construction industry, which allows the employer to make payments directly to a subcontractor when the main contractor fails to do so, be extended to other industries where such multi-tiered relationships also exist.[+2 sentences] In this way, SMEs may, in appropriate situations, utilise the framework to obtain payment on overdue invoices. The next point I wish to make concerns the Wage Credit Scheme. Under this Scheme, the Government co-funds 40% of wage increases for Singaporean employees earning gross monthly salaries of $4,000, which is roughly about the 50th percentile of wages in Singapore, and below. This Scheme is extended by two years under the Government's plan to continue supporting businesses.[+17 sentences] As may be recalled, the Wage Credit Scheme was introduced in Budget 2013. The purpose behind the Scheme is to help businesses cope with rising wage costs in a tight labour market. The idea is to encourage businesses to invest in and make productivity gains. These gains are to be shared with the employees. In light of the Government's decision to extend the Scheme, may I please ask if the assessment in this economic climate is still that the businesses are continuing to face a tight labour market vis-à-vis employees at the 50th percentile of wages and below? Also, I would be grateful if the Minister could please let us know whether the effort to improve productivity amongst the businesses participating in the Scheme is paying off. I do appreciate it may be difficult to get details or data on a specific industry basis, but perhaps, at least at the general level. Without the linkage to productivity and sharing of the gains with the employees, we run the danger of providing just a wage subsidy which, given the second extension of this Scheme, may become a crutch for the Government. This is something we should avoid. Finally, I refer to the Government's plan to implement a carbon tax at a rate of between $10 and $20 per tonne of greenhouse gas emissions from 2019 on upstream emitters. I note that the industry consultation on the proposed carbon tax will take place from March 2017 with the final carbon tax and exact implementation schedule decided thereafter. In principle, I support the premise behind the imposition of a carbon tax; that Singapore should do her part to address climate change, to create a sustainable environmental future for our children and generations after. Indicating a carbon tax range, as opposed to a specific rate, however, may create some uncertainty as companies would not be in a position to properly make business decisions in anticipation of the precise carbon tax rate which can be anywhere between 10% and 20% per year. This may have knock-on effects, for example, companies prematurely passing costs to consumers in advance of the implementation of the tax, something we must certainly guard against, or not provisioning or investing sufficiently to mitigate the effects of the carbon tax on their businesses. As a comparison, with respect to the GST, the Government issued a White Paper on GST on 9 February 1993, in which the 3% rate was stated. Thereafter, the GST Bill was introduced later in the same month with the rate of 3% also stipulated in the Bill itself. Further, during the debate of the GST Bill in Parliament the following month, the Government gave an undertaking that the GST rate of 3% would not be changed for at least five years. For the above reasons, I respectfully suggest that the consultations be speeded up and a decision be made as soon as practicable on the precise carbon tax rate, the implementation schedule and the measures to ease the transition for affected companies.[+5 sentences] With the uncertainty removed, the companies will be able to focus on the improvements they need to make to reduce greenhouse gas emissions. Notwithstanding the points that I have made, I support the Budget. In my view, the hon Minister for Finance has, in his speech, properly identified the main economic challenges that we face as a country and clearly outlined a rigorous plan to strengthen our economy and allow us, as a nation, to continue to move forward together. In this regard, I respectfully disagree with the hon Non-Constituency Member of Parliament Assoc Prof Goh's categorisation of this Budget as a minimalist Budget. A cursory review of these Budget details will reveal otherwise. Just for an example, $600 million is being set aside for the Wage Credit Scheme to allow companies to use this Scheme to pay wage rises for Singaporeans. In particular, the serious investment in relation to helping Singaporeans deepen their skills, companies to deepen their partnerships, and to basically look out for opportunities in the digitalisation space.[+2 sentences] So, this is far from being a static Budget. It is a Budget that would allow us to reposition ourselves and focus on the opportunities for the future.
Mr Deputy Speaker2 words
[+1 sentence]Mr Iswaran.
The Minister for Trade and Industry (Industry) (Mr S Iswaran)18 words
[+1 sentence]Mr Deputy Speaker, may I have your permission to use some slides in the course of my speech.
Mr Deputy Speaker2 words
[+1 sentence]Yes, please.
Mr S Iswaran4199 words
[+8 sentences]Sir, thank you for allowing me to join in the debate. In the week of the CFE report and also the Budget Statement delivered by the Finance Minister last week, there has been much discussion on the economy in the lead-up to this particular debate. There are three central questions that we need to think about. The first is where the opportunities are; the second, how do we position ourselves to seize them, and the third, what do we need to do to deal with some of the short-term challenges. These involve important policy decisions and trade-offs. These are questions that several Members have echoed today. I would like to share my views on this. First on the economy as a whole. Last year our economy grew at 2%, with growth picking up in the final quarter.[+1 sentence] Between 2011 and 2016, we averaged 3.1% which is comparable to other advanced and regional economies. The CFE expects annual growth of 2% to 3% over the next decade.[+5 sentences] This may be less than what we have been accustomed to in the past, but it is totally consistent with our stage of economic development, our demographic profile. So, we need to ensure that within the context of where we are today, we continue to emphasise productivity and innovation as part of the basis for our continued growth. Because even at these levels of economic growth, which are not insignificant by international comparisons, it will continue to allow us to create opportunities for our businesses and jobs for our people. This point is further enhanced when we consider the context that we are in, that is the region. We are in the heart of a region that is an important driver of global economic growth. The Association of Southeast Asian Nations (ASEAN), China and India are bright spots, with the ASEAN-5 countries expected to grow at 4.9% this year, China at about 6.7% and India at about 6.6%.[+7 sentences] Their growth emanates not just from the key regions and main cities or metros that we are all quite familiar with but, in fact, they come from the next tier of cities and regions with which we might be less familiar. In China, from the Central and Western regions; in India, from secondary cities like Coimbatore, Pune and Jaipur; and in Indonesia, cities like Semarang and Medan offer interesting opportunities. In fact, the recent data that the Singapore Tourism Board (STB) put out on visitor arrivals, which was strong last year, were actually significantly supported by the efforts that STB made in the secondary markets and regions with the consequential response from the markets. So, we need to go beyond traditional spaces and we need to deepen our knowledge and acquire a more nuanced understanding of these new markets. In tandem with this growth in the region, we are seeing rapid urbanisation and the rise of the Asian middle class with greater disposable incomes and sophisticated demand in sectors like retail, lifestyle, F&B, education and healthcare. These opportunities play to our strengths, those that we have developed over the years. One example I want to cite is in the area of infrastructure and urban solutions. McKinsey estimates that the demand for infrastructure in emerging Asian markets, particularly China, Southeast Asia and South Asia, will grow by about US$20 trillion between 2016 and 2030.[+7 sentences] China's Belt and Road initiative has heightened interest in regional infrastructure projects, whether it is road, rail, ports, airports. India's plan to build 100 smart cities needs adaptable and high quality urban solutions. Our infrastructure and urban solutions companies are generally held in very high regard and they can participate in these opportunities, in partnerships with their Chinese, Indian and Southeast Asian counterparts. This is not just an opportunity for the big players in this space. In fact, it extends to SMEs like Memiontec and WaterTech Private Limited, who tapped into the demand for small-scale water and energy solutions in the region, and there are many of these that are emerging. This is one of the reasons why in this Budget, in particular, there was an effort to enhance the measures that we have already taken to support infrastructure. If Members would recall, when the Economic Strategies Committee concluded its findings, this was about six, seven years ago, one of the initiatives was to set up the Clifford Capital which is just to finance many of our infrastructure projects. In this Budget, a key initiative is really the extension of our International Finance Scheme to Non-Recourse Financing.[+51 sentences] I will elaborate on that but, essentially, it is aimed to help our smaller businesses who are in this space to go regional, to seek out new opportunities. The other area I want to emphasise is the digital economy which also presents unprecedented opportunities. Think about it. The smallest company can now seek out customers in the furthest markets as long as there is digital access. What it means also is that through the digital platform, they can transact with their business partners, they can coordinate logistics and they can effect payment systems. This is literally transformative and it is transforming industries and offering new ways to overcome our constraints and seek out new opportunities. That is why in the CFE, we have emphasised the importance of enabling our companies to harness digital technologies and platforms. Some companies have already made the move. I can just give Members one example from a somewhat traditional sector − HipVan. It is a company in the furniture business but they have inverted the traditional furniture business model by going online. Customers transact with them over the Internet and then they work through logistics and delivery, and this is a new model for this company, quite different from what we understand to be furniture businesses. So, companies are already moving and similarly, we are seeing good collaborative initiatives from big players and others coming on board. For example, just today, Singtel, which is a co-founder of the 99% SME movement, announced a partnership with Lazada to set up an SME e-marketplace. That will help SMEs step into a wider online customer base. I can go on and give Members many other examples, whether it is in advanced manufacturing and Internet of things, and so on. But my key point is this. There are significant opportunities available to us. Our challenge is ensuring that our companies, especially our SMEs, are geared up for the longer term, so that they can seize these opportunities. This is especially important if we are to sustain our competitiveness because others around us have also seen this and are also adapting. It is a race. But we think it is a race that we can compete in quite effectively. So, a key focus of the Government's economic efforts is, indeed, in how we bring about such transformation. Hence, the ITMs. They are the key modality with three broad areas. First, to grow top-line and scale, through support for companies and internationalising and financing. Second, to stay competitive by supporting capability development, both to innovate and to raise their productivity. Third, to develop deep skills in our workers. In all of these efforts, the primary focus and beneficiaries are our SMEs. I want to emphasise that. They are the primary focus and beneficiaries. And this is for good reasons. Firstly, they are of a significant part of our economy. They account for about half of our GDP, two-thirds of employment. If you are really going to effect change and transformation in industry in the economy, the SMEs are key change agents. They have to accept the reality, embrace the change and be change agents. Secondly, individually, SMEs often lack the scale to make the investments that are necessary to cope with the changes taking place and to benefit fully from the technologies that we are talking about. Finally, we also believe that SMEs are a key engine of growth for the future in Singapore, and integral to the competitiveness of our economic clusters. As they scale, SMEs will create more opportunities and jobs for Singaporeans. So, the Government is resolute in our commitment to help our SMEs make this transformation successfully. Large companies do not necessarily need this breadth and depth of support. In fact, it is the small companies that need them. Let me outline five areas in which we are actually delivering this support. Firstly, internationalisation. If you are a company taking the first steps towards internationalisation, you can tap on International Enterprise's Market Readiness Assistance and Global Company Partnership Scheme, and so on. It has about $40 million in grants. Essentially, the aim is to help our businesses go international. Some are taking tentative steps, others are a little bit more experienced. But they have to go into newer and more risky markets. In general, we are trying to help them to take that move forward. I want to stress here that the Government can be an enabler, but we cannot make the decision for the company. But once a company makes the decision ‒ the leadership and the people ‒ we can support them in the effort. In this Budget specifically, there is a $600 million International Partnership Fund.[+4 sentences] It is a co-investment effort with firms as they expand overseas. In other words, beyond loans and financial assistance and grants, the Government is prepared to come in through equity as well. This is an important commitment on the part of the Government, and we are putting our money where our mouth is, quite literally. Secondly, financing. The Government has a suite of loan programmes which will collectively catalyse $5 billion in loans up to 2020.[+5 sentences] I do not want to get into a laundry list, but it includes, for example, the SME Equipment and Factory Loan, which is for expansion overseas. So, if you are going overseas, you have done your market studies, you have decided you want to go, but there is capital expenditure (capex), this scheme helps you. You have got to make the move. The MAS has also recently reviewed regulations that will enhance the ability of finance companies to provide financing to SMEs. I mentioned earlier the infrastructure sector. In this Budget, the specific announcement was on the Internationalisation Finance Scheme for Non-Recourse Financing to help SMEs participate in these opportunities.[+3 sentences] This scheme is designed to encourage financial institutions to provide non-recourse loans to SMEs once projects move into the post-construction stage, so that SMEs can free up their balance sheets to take on new projects. The constraint today is that, if you are a small business going in for a $50 million or $100 million project in the region, you will have to tie up your resources either through personal guarantees or corporate guarantees, and it limits your ability to take on new projects. This scheme is targeted to help our businesses do more and do it in an effective way. Over the next five years, we expect to catalyse $600 million dollars in loans, which will probably correspond to about $1 billion in infrastructure projects.[+5 sentences] And I am talking here about the small businesses, not the big players. Thirdly, on innovation. We want SMEs to create new products and services ‒ that is what they want to do as well ‒ to differentiate themselves in the market, but they are constrained by resources that are available. I think several Members talked about this earlier. So, we have a range of schemes. One is to help SMEs commercialise intellectual property through our network of Centres of Innovation, and a substantial amount of funding has been committed, about $100 million for this.[+7 sentences] And to help them build up their innovation capabilities, we also have the secondment of our public sector researchers through our SMEs. They go there, they help them come up with their research and development (R&D) blueprint, and they also, in many cases, end up joining the SMEs, sometimes to the chagrin of the research centre's director. But, in general, we are supportive of this because it is an important productive flow of talent between the public and the private sectors. In this Budget, there are two specific ideas which have been mooted and pushed out. One is A*STAR's Tech Access Initiative. Basically, it is to help SMEs access the more costly specialised equipment and to also get training and advice. In other words, this may be in our research institutes, and SMEs cannot afford to have it on their own, but they can go in there and use it under certain arrangements. The Headstart Programme, where A*STAR allows SMEs to enjoy royalty-free and exclusive IP licences for up to 18 months until recently. With this Budget, it has now gone up to 36 months.[+13 sentences] The fourth point is on capability development. The SMEs can tap on this grant ‒ Capability Development Grant ‒ for larger scale projects. So, if it is automation, there is the Automation Support Package, and I think Members are familiar with the scheme that was introduced last year. There is also the Innovation and Capability Voucher. Importantly, the point I want to stress is, we have what we call the Partnerships for Capability Transformation. This is where SMEs collaborate with big companies in order to develop new capabilities. This is key, because many of our SMEs are an integral part of a cluster. They work with the core company ‒ a big player ‒ international, local or foreign. And the SMEs' capabilities reinforce the competitiveness of the cluster as a whole and its sustainability in our environment. Many Members have talked about the Go Digital Programme. I do not propose to elaborate on it other than to observe that this is, again, a key plank. Big companies do not need a Go Digital Programme. It is the SMEs that need it, and that is why we are doing it. In total, we have about $1.5 billion of grant support for such capability development of SMEs.[+7 sentences] Finally, a word on skills. We are making significant investment in developing the skills of our people. Members are very familiar with this through SkillsFuture. The SMEs can tap on these, whether it is SkillsFuture initiatives like the SME Talent Programme, SkillsFuture Mentors Scheme, and the SkillsFuture Earn and Learn programme. I have taken Members on a tour of the kind of things that we are doing with our companies. Sometimes, the criticism is "Oh, it is all too complicated and so on". It is not so much that there is too little, but there is too much and too variegated. Even on that score, our agencies have worked on how we can make Government support more accessible to SMEs. So, they have got the Business Grants Portal, SME Digital Technology Hub and the new Intellectual Property Master Agreement.[+28 sentences] But let me cut to the chase. If you are an SME, you have a need in these areas, go to an SME Centre or go to one of the economic agencies. There is no wrong door. They will help you navigate and sort it out. That is a backend issue. The key point is we have this plethora of support. So, I am surprised when Mr Leon Perera earlier said that we have missed an opportunity to strengthen local enterprises. I have just given Members a complete ‒ and this is not an exhaustive ‒ list of the various initiatives that we have undertaken. So, how is it a missed opportunity? Perhaps, the key point the Member was trying to make is that the Government should get into the business of picking more winners, because I think the Member described it as a bold initiative. Go in there, back a company. If it fails or does not meet up to expectations, pull out. It is an interesting idea, but Mr Perera has omitted important details and how we would execute this and why the Government would be the right party to do this. Because if the Government backs a company, it goes with whatever initiative, and then the initiative goes south, and then Government decides that it is going to withdraw the support, I think we can anticipate the kind of debate we would have and, indeed, the kind of questions that Mr Leon Perera will then pose on "Why did you do it in this way? Why did you waste your funds here?" or "Why did you withdraw your support?" So, I think we have to have a sense of perspective and balance. The Government is an important enabler. The Government is taking a view on certain industries and directions that we want to go. But, fundamentally, what we are trying to say is this: you are in an inherently more uncertain environment. Therefore, the emphasis on the broad range of capabilities that I have outlined and the broad scheme of measures that we have, are going to be the key platforms to raise the industry as a whole. Sure, the companies that are prepared to move further and go faster will receive more support. But that does not mean that we are picking winners. The winners are picking themselves and adapting to our schemes. I want to emphasise that the impact of such schemes is really significantly amplified when we can get a collaborative effort going. That is why we have stressed the role of trade associations and chambers. We do not want to substitute business judgement or trade associations' and chambers' assessment of market conditions with bureaucratic views. We want it to be a complementary exercise. One example I want to just share with Members is the logistics industry. Container Depot Association (Singapore), or CDAS − probably not something that many Members are familiar with. But they have been involved in a major effort in terms of launching electronic container trucking system and they want to track the movement of their trucks, and it is going to enhance their supply chain and how they introduce efficiencies and the way they deploy their fleet and so on.[+8 sentences] This is an initiative that the CDAS came up with. They worked with SPRING Singapore and they got this executed. We want to see more of this because they understand the need, their members tell them what their issues are, we can appreciate that there may not be enough resources, but that is where we come in and may complement. Similarly, Singapore Logistics Association (SLA) has made initiatives in terms of going into a new market overseas and how they can help smaller businesses do that and also in the training of our workers. So, I hope Members would agree with me that there is actually no lack of Government resolve or resources that are available to support our companies, especially our SMEs, make the transformation. But I know that there is a view ‒ and I think many of us have echoed that sentiment here ‒ that the current reality is the issue. We have challenges because of the cost and the pain and so on. The reality is also that the economic situation is variegated. You have sectors like electronics that grew at 15% last year. You have a sector like transport and storage that grew by 2.3% last year. You have a sector like marine and offshore engineering that has contracted for nine successive quarters.[+10 sentences] How do you come up with a programme that is supposed to help SMEs in all of these, beyond the measures that we have already undertaken? So, these variations are there because the different sectors face diverse cyclical and structural challenges. For example, lower oil prices ‒ and some might argue that this might be a permanent shift ‒ have changed the demand patterns for the marine and offshore industry. It does not mean that they cannot do business, but they may have to adapt and also look at new opportunities. The retail industry is going through a major change because of disruptive technology, in particular, e-commerce. In fact, the adoption of e-commerce in Singapore is at a lower rate, compared to many markets around the world. So, if anything, the challenge is going to get greater, not lesser. It would really be quite futile for us to argue that we should resist such an overwhelming system level change, which, in fact, in aggregate, will bring benefits to consumers through businesses that respond to it and adapt to it and to the economy as a whole. Having said that, I think we are very clear that we recognise that there are immediate challenges that our SMEs are facing and we will continue to provide certain forms of short-term relief where they are necessary and through the system of broad-based support that we have built up over the years. One example is the Wage Credit, the Special Employment Credit and the extension of the additional SEC in this Budget to end of 2019. Collectively, this is about $1 billion in cash pay-outs to businesses in March this year.[+1 sentence] It is no mean sum. It is a significant outlay from the Government to alleviate some of the cost pressure on our businesses. Also, in terms of liquidity, we have introduced the SME Working Capital Loan in 2016, which has basically catalysed about $700 million in loans to about 4,300 SMEs.[+20 sentences] If you go beyond that, and you look at the broader pattern, I think there was some reference to rental and other business costs. I know that this is an area of concern. It comes up in many of our industry engagement exercises. But the reality also is that industrial, retail and office rentals have all deep fallen, and they fell in 2016 as well. And we, on our part, will continue to maintain a steady pipeline of industrial land and space to ensure that there is competitive pressure in the market and rentals remain affordable. So, let me put it together to say that we have not introduced further broad-based measures because they are not quite warranted and properly not even appropriate for the circumstances that we are in. But have sustained what we already do − in some cases, extended down − and at the same time, put in place additional customised support for specific industries because of the circumstances that are quite divergent. As many Government leaders have said, we will continue to track the situation closely and to intervene where necessary. So, if I can just give you an example − Marine and Offshore Engineering sector. Last December, we introduced the bridging loans and international finance scheme. It is not a panacea; it is not going to prevent consolidation which will occur to some extent in the industry. But what it will do is help address some of the liquidity issues that some of the strong companies are facing and potentially, also help them get financing for expansion when they go for new projects overseas because there was a general tightening for financing in the sector. Another example is in the construction industry. It has been weighed down by the property market slowdown and economic uncertainties but we are bringing forward $700 million of public sector infrastructure projects which will start in financial year (FY)2017 and FY2018. These measures are an illustration of the Government responding with a more targeted response and support for SMEs and other businesses. It is a complement to the broad-based measures we already have in place, in response to the varied needs in the economy. And importantly, it is one aspect, even as we look at the longer term challenge and how we need to gear up for that. Mr Deputy Speaker, Sir, if I can summarise, we have significant opportunities before us. But to seize them, we have to invest in the capabilities of our economy, of our people and our enterprises, and especially so, with our SMEs. The most durable solution really lies in moving up the value chain, innovating, offering products and services that others are not offering, and adopting methods and techniques that will allow us to close some of the big gaps in productivity that we see when compared to international best practices. As for the Government, we are resolute in our support, through broad-based and targeted programmes, to help our SMEs make the transition successful. We do not engage in the art, or perhaps, Mr Perera thinks it is the science of picking winners, but we will support companies that are prepared to make these important transitions because they see the benefit and they are prepared to take the important steps to move the organisation. In all of these efforts, the SMEs would be our central focus. Ultimately, creating a vibrant, competitive industry with strong capabilities is the surest way of ensuring success of all our businesses, including the SMEs. And so, we look forward to working closely with the trade associations and chambers, and the unions to ensure that we have a diverse enterprise eco-system, from startups to SMEs, to large local enterprises, to multi-nationals − we have a thriving SME community, and an economy that is rich with opportunities.[+1 sentence] Thank you, Deputy Speaker.
Mr Deputy Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)2236 words
[+1 sentence]Mr Deputy Speaker, this year's Budget has brought the focus on cost of living issues by way of an increase in water prices amongst other things. This increase comes on the back of a 15%-odd increase in HDB car park charges, higher electricity and gas charges and the announcement of higher S&CC all in the space of about three months.[+2 sentences] The Straits Times noted that the Government feedback channel, Reaching Everyone for Active Citizenry @ Home (REACH), had identified cost of living as a key pre-Budget concern among Singaporeans. I have a few questions for the Government to understand the decision-making processes around the latest round of increases in water prices. The last time an announcement was made to raise water prices in 1997, prices were raised by 120% for households and 30% for industrial and commercial users over a four-year period.[+10 sentences] The Government has stated in previous parliamentary replies that it prices water according to its Long-Run Marginal Cost (LMRC). To this end, the water tariff, water conservation tax and used water charges or waterborne fees are priced to reflect the cost of producing the next drop of potable water, which is, I quote, "is likely to come from desalination and NEWater." In announcing the opening of the fifth NEWater plant last month, the Minister for the Environment and Water Resources noted that there has been upward pressure on costs because of increases associated with asset replacement, energy and manpower. Can the Government share details on how the components of LMRC for water pricing are computed by PUB and how it assesses when to increase the price of water? Can the Government also clarify if the maintenance and upkeep, and the associated manpower costs of current PUB assets, including thousands of kilometres of transmission networks and so forth, would have already been factored into the calculation of LRMC before the latest round of price hikes? Even so, it would be helpful to understand which variables of LRMC have changed from 1997 when the last price hike was announced, what is the range within each variable, and how often is the LRMC determined or re-determined? Can the Government also share how much it costs each desalination and NEWater plant to produce water today, especially since some of these plants operate on a private-public partnership basis? How do they compare with plants directly run by the PUB? Finally, when the PUB refers to the long run in LRMC, what sort of time horizon is used for projection purposes and what are the population parametres for these projections? Are we looking at 2061 when the Water Agreement with Malaysia comes to an end, or is it when the PUB expects a doubling of Singapore's consumption in absolute terms for a much larger population and when 85% of our needs are projected to be met by NEWater and desalination? If this is so, what are the projections for expected water price hikes as the population grows? It is noteworthy, Mr Deputy Speaker, that the PUB was able to bring down the cost of NEWater production from 2002 to 2004 from $1.30 to $1.15 per cubic metre as a result of more competitive membrane technologies.[+4 sentences] In 2003, a Straits Times article quoted then Prime Minister Goh assuring Singaporeans that, and I quote, "the price of PUB water, which now costs $1.52 a cubic metre, would stay below $2 for some time, reversing all earlier projections. The sums were redone because desalinating sea water was cheaper than thought; and NEWater, even cheaper to produce." The same year, it was reported that the Tuas desalination plant desalinates water at the cost of $0.78 per cubic metre. This compared very favourably against about $0.90 per cubic metre produced by the Ashkelon desalination plant in Israel, considered in 2003 to be the one of the cheapest producers of desalinated water. In 2008, Sembcorp, which secured the bid to design, build, own and operate the fifth and largest NEWater plant, submitted a first-year price of about $0.30 to produce a cubic metre of NEWater.[+8 sentences] A 2011 Business Times' report also noted that Singapore would produce the world's cheapest desalinated water by 2013. How does the PUB adjust its LMRC projections with the advent of new technology so as to keep water prices affordable and to keep its profits within reasonable limits, on an on-going basis? From Parliamentary replies in the past, it would appear that energy is the real cost variable that can be difficult to track with a sufficient degree of accuracy. In view of the lower cost of producing water over the years, can the Government reveal how much NEWater and desalination costs have fluctuated over the years as a result of energy prices? In 2008, the Siemens Water Technologies Team was awarded a $4 million grant from the Environment and Water Industry Development Council (EWI) for successfully designing a more energy efficient desalinisation technique which produced a cubic metre of drinking water on 1.5 kilowatt hour (kWh) of power as compared to PUB's current desalination method using 3.5 kWh per cubic metre. In addition, the 2015 PUB annual report highlights PUB's collaboration with a US water technology company which has piloted electro-deionisation technology which has achieved reductions in energy consumption in the desalination process by more than 50%, and this pilot would be expanded in 2016. Can the Government share details of this project and its prospects going forward? Separately, Mr Deputy Speaker, the announcement of an increase in water tariffs bookends a two-odd year period when Singaporeans were repeatedly reminded of water scarcity issues as a result of very low water levels in the Linggui reservoir in Malaysia, a water supply source five times the size of all of Singapore's reservoirs. At the start of each respective year, the water levels were at 84% in 2015, 49% in 2016 and 27% in 2017. We have been informed by the Minister of Foreign Affairs in response to a Parliamentary Question in January this year that there is a significant risk of the water levels in the Linggui Reservoir falling to 0% this year should there be a dry spell in Johor. In view of the low water levels in the Linggui Reservoir from 2015 onwards in particular, how often has Singapore drawn less than the 250 million gallons a day it is legally entitled to under the 1962 Water Agreement and what has been Singapore's average daily rate of abstraction from the Linggui Reservoir since 2014?[+7 sentences] To that end, what role, if any, have the low water levels in the Linggui Reservoir played in the latest water price revision especially since the Government's position as late as 2013 confirmed no need to raise water prices? In the middle of last year, on the back of the Singapore International Water Week, a PUB official stated that should the Linggui Reservoir fail, there ought to be no cause for panic in Singapore as there were new and indigenous capacities in Singapore to meet such a contingency in the form of NEWater and desalination. However, the Minister of Foreign Affairs only last month stated that the failure of the Linggui Reservoir would cause severe problems for Singapore and Malaysia. Can the Government elaborate what are its contingency plans in the event of such an eventuality? Do these contingencies include the possibility of another rise in water prices, especially the water conservation tax since its policy rationale is aimed at reminding the taxpayer about the importance of saving water and separately, to account for the LMRC of desalination and NEWater? That would also prompt a corollary question as to whether the latest water price revision was set with a view to account for the complete failure of the Linggui Reservoir. Even so, in the middle of 2016, it was reported that Johor was studying plans to divert water from two rivers into the Linggui Reservoir. The first proposal was to build a low wall to channel about 50mgd of water from the Sayong River catchment area at the cost of about RM$250 million. The second plan called for the building of a dam at the Ulu Sedili Besar River to transfer about 110mgd to the Johor River at the cost of RM$660 million.[+9 sentences] At the end of the last Leaders Retreat between Prime Ministers Lee and Najib in December last year, it was reported that Malaysia was looking at measures to increase the supply of water at the Linggui Reservoir. Can the Government comment, in the event Malaysia successfully diverts water to the Linggui Reservoir allowing Singapore to draw its full entitlement of 250mgd or more, would such an outcome end up reducing the price of water for consumers in Singapore? And if so, would Singapore consider co-funding the diversion of the two rivers or re-negotiating some aspects of the Water Agreement with a win-win prospect in mind especially since Singapore has not hesitated to supply Malaysia with more treated water than it is required to in its time of need particularly in times of drought and over the Ramadan period last year? This brings me to my final point about the public messaging on water conservation policies and the outcomes the Government seeks from the water conservation tax and how these outcomes can be improved. About a month before the 2015 General Elections, the Prime Minister said, "In Singapore, water will always be a precious resource. Never take it for granted or waste it." In the middle of last year, on the back of the Singapore International Water Week in a piece entitled "How Singapore Will Never Go Thirsty", the PUB chief executive officer announced that Singapore, in spite of being water-poor, had "significantly overcome the challenge of water scarcity" and later that "Singapore is not short on water". While I understand the PUB official was showcasing to an international audience the good work over many decades of our water specialists, there is a risk that over amplifying self-sufficiency can have a dampening effect on efforts to encourage water conservation. The fact is self-sufficiency comes at a high price for the consumer. In fact, Singapore's per capita water consumption rates have been dropping steadily from 2005 when it was 162 litres per day to 151 litres per day today.[+6 sentences] It would appear that the answer to the question of whether we can reduce consumption without price increases is a yes − perhaps not as resounding a yes as the experts would wish for − but a yes nonetheless. Even with our hot and humid climate and cultural practice of not using dishwashers, perhaps as a result of the spices, sauces and seasonings in Asian cooking, progress on water conservation has been steady and continuous. Rather than to look solely at water pricing to promote conservation, the Government should look at new policies further tightening regulations on the sale of sanitary appliances such as mixers and shower heads which discharge excessive water, so as to nudge consumers to use more water-saving appliances. Some experts have also proposed pricing strategies used elsewhere like in Spain which hosts a price structure that provides for a 10% rebate should a household's water consumption pattern show a 10% decrease compared to the year before. What these creative pricing strategies suggest is the prospect of a different approach towards water conservation taxes to promote a more efficient usage of water. We already see PUB nudging Singaporeans in this direction by informing consumers of the consumption patterns of their neighbours and the national average in our monthly bills. What may truly push a renewed commitment to a water conservation drive is to significantly alter a consumer behaviour towards a tax regime that differentiates between efficient and inefficient usage of water by lowering taxes for consumers who use less water. For example, a household of four which meets the national average consumption can have their water conservation tax remain at the current 30% of the tariff rate. Depending on additional usage, PUB could establish an ascending or descending scale relative to consumption. This has better prospects for water conservation as real savings would be given to individual households, building on the current two-tiered approach between households that consume more or less than 40 cubic meters of waters. This approach would also be more targeted and would cohere with the objective of saving water as opposed to the Budget announcement which bluntly increases the water conservation tax from 30% to 50%, and 35% to 65% for all households.[+2 sentences] To conclude, Mr Deputy Speaker, a piece in The Straits Times last week argued that the water price only reflected the reality of increasing water stress worldwide and that bigger hikes were needed to curb wastage. The comments to that story were unexpectedly, rather animated. I believe a deeper explanation from the Government about how it prices water and its long-run cost imperatives would enable the public to better understand and rationalise this water hike in addition to improving public understanding on this issue. This would be important as the water price hike occurred on the back of many other municipal prices increases which could arguably have been better phased to reduce the impact on the average Singaporean for whom cost of living concerns are an increasing issue.[+1 sentence] There remain concerns among Singaporeans who fear the knock-on effect of the water price hike on daily necessities and I hope the Government will address this point too.
[+1 sentence]Mr Leon Perera, you wish to raise a clarification?
Mr Leon Perera15 words
[+1 sentence]I would like to make some clarificatory points to the Minister for Trade and Industry.
Mr Deputy Speaker11 words
[+1 sentence]You are asking to raise a clarification about the Minister's speech?
Mr Leon Perera1 words
[+1 sentence]Yes.
Mr Deputy Speaker15 words
[+2 sentences]Okay. Please note that you are not supposed to raise new matters in the speech.
Mr Leon Perera67 words
[+5 sentences]Sure. Thank you, Mr Deputy Speaker, for giving me a chance to make a few points. I would like to thank the Minister for Trade and Industry for his detailed and comprehensive talk on the schemes available to SMEs. My first point is really on the results of these schemes. There are many and various schemes and some of these schemes have had precursors, for example —
Mr Deputy Speaker36 words
[+2 sentences]Mr Leon, I need to interrupt you. You are not supposed to raise new matters. If you want to raise a clarification about the Minister's speech, raise the clarification but do not make another speech, please.
Mr Leon Perera344 words
[+1 sentence]Okay. So, my clarificatory point would be: does the Government actually track how many SMEs take advantage of these schemes and grow, and stop becoming SMEs and actually become global companies?[+2 sentences] Is there a number to that? Are those results being tracked? And if in fact those results are tracked and those results are not good, then would that not suggest that there is a role for the Government to take a more active stance in grooming these companies?[+2 sentences] The second point is relating to funding. I would like to ask the Minister whether there is any data from SMEs through surveys and other means to suggest that the funding needs that they have are being sufficiently met by existing schemes and by other funding providers within the funding ecosystem. Because I certainly do hear feedback that the funding needs are not fully met. And would the Minister not acknowledge that if so, would there not be a role for the Government to actually be more interventionist to provide funding at higher levels of caps for those SMEs which have self-selected themselves by demonstrating a track record of results as opposed to SMEs who remain SMEs for decades.[+4 sentences] My third point is really on the issue of long-termism, which I raised. People will not become entrepreneurs if they feel that, structurally and culturally, the environment is not conducive to SMEs. There are many schemes, there have been in the past. But some of these schemes have limits. Some of these schemes will be phased out in the future, in the way that the Productivity and Innovation Credit (PIC) is being tapered down, for example.[+2 sentences] Some of the current schemes will be phased out. That may affect the willingness of the people to become entrepreneurs because there may be many schemes on the table now, but in 10 years, those schemes may be phased out. It is in that context that I raised land cost, funding and the overall culture. So, what would be the Government's strategy to address that fundamental structural impediment to entrepreneurship?
Mr S Iswaran1053 words
[+25 sentences]Deputy Speaker, I thank the Member for his range of questions. If I may take the last one first. If somebody becomes an entrepreneur because he wants Government schemes and support, then that is probably the wrong starting point, if I may respectfully suggest. I think the starting point for any entrepreneur is really in deciding that he or she has a strong value proposition, a passion to grow something and then, they go out there and make it happen. Indeed, we have many outstanding examples of entrepreneurs who have done exactly that. Along the way, yes, they benefit from certain Government support schemes. But I think we should not put the cart before the horse. The Government cannot mandate entrepreneurship. We cannot force entrepreneurship. It has to come from the individuals who have the motivation to make it happen. Our schemes can enable but they can never be a fool-proof support system for this. I think the other points that the Member has made − what are the results of the various schemes? We track them. If there is one thing that we do rigorously is that we track the take-up rates, the outcomes, the key performance indicators (KPIs) associated with any programme that we introduce. But I would say that the Member raised the point − how many take up the scheme, how many globally competitive companies were created, and so on. So, let me take a couple of those points. How many take up the scheme? We can initiate the schemes. We can create channels and make it easier for companies to find out about the schemes. We have got SME Centres. Mr Thomas Chua will tell Members that the Singapore Chinese Chamber of Commerce and Industry has got one of the most active SME Centres in Singapore, and we find a plethora of ways of communicating. But at the end of the day, the take-up rate rests with the individual companies. Minimally, you have to make the effort to find out what it is that is available, what are my needs, where is the match, and how do I get it. And you do not need to do it alone because we have the SME Centres. Even our economic agencies are prepared to work with them. As for the rate at which we get globally competitive companies, if I may draw Members' attention, in the Economic Review Committee report, there was a goal to have 1,000 companies that cross the $100-million turnover mark by the end of this decade. That was an important directional goal because it is to set a sense of the scale of ambition that we have, and it is something that we continue to monitor. I would say that on balance, we are on track to getting there.[+17 sentences] Whether we will actually hit 1,000 or not, I think it remains to be seen, because there are many factors beyond our control. But the general directional push is very clear and we have in fact seen that grow. But let me make one other point. Ultimately, whether we end up having a local enterprise that becomes a global champion, again, cannot rest just with the Government, because we have many instances where companies grow and when they reach a certain stage, they get a very tempting offer from either a fund or some larger company and they sell out. Do we then say that our effort has failed or do we say then that, well, this is the realities of the market and we have to live with it because there will be some of this development? In Israel, for example, they are known as a startup nation because they generate tremendous amount of knowledge which generate in many startup companies. But ask yourself the question. In Israel, is it a scale-up nation and how far do they go in scaling up? In fact, I think the Israelis themselves will tell you that this is one of their main focal points − how do we get our companies to scale up − because that creates the next level of depth in the economy and the capabilities that we seek. As for funding needs, my general point would be this. I have never been in a conversation where companies or enterprises tell me that funding is completely met because the need is always there, there are different kinds of needs. You have a spectrum of funding providers in the market, whether it is Government schemes and grants, obviously, and then Government-supported schemes, whether it is venture capital, angel funding and so on. And it goes right through to private equity and then larger scale and, of course, you can then tap public markets, and now we got a lot more crowd-funding platforms. So, actually, there are a lot of mechanisms available but there will always be mismatches or gaps because the needs and the market situation keep changing. And that is why, ultimately, what is required is not so much about Government intervening by providing the lending solution per se, but it is to keep track of the situation, understanding whether this is a regulatory impediment, or a market failure, or is this because we are not getting the relevant players around the table to understand the issues and then deal with it. A case in point is what we are doing with the infrastructure financing I elaborated on, because for the smaller businesses in the infrastructure space, this was a real issue. Big banks and other funds, when they typically do financing for infrastructural projects, they do project financing, but they need big ticket numbers, they need a billion dollar project and above because it does not justify the level of work. So, the easy way out when you are dealing with smaller companies, or the one way to mitigate the risk, is to say I need personal guarantees and corporate guarantees, which immediately shackles the company in terms of how far it can go. So, we have tried to come in with this scheme. This is after consultation with all the key players − the banks, the industry, companies and so on.[+1 sentence] And we will have to see whether it takes off, how successful it would be and whether there is a need to recalibrate.
Mr Deputy Speaker4 words
[+1 sentence]Mr Heng Chee How.
The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How)2013 words
[+14 sentences]Mr Deputy Speaker, thank you very much for allowing me to join the debate on this year's Budget. The Labour Movement, representing working people of all collars and ages, looks at this Budget with keen interest. We strongly believe that if we as a country and as tripartite partners set our sights high, put our shoulders to the wheel, persist through difficulties and setbacks with courage and not lose heart, we will get lead our people to a better future. That said, we must indeed expect significant difficulties in the economic and job transformation journey. Over the decades, the economy, job types and workforce structure of Singapore have all become more diverse. Consequently, the needs, hopes, fears and prospects of the working people in Singapore have become more segmented as well. The traditional blue-collar and white-collar workers are increasingly joined by highly skilled professionals on one hand, and workers of the gig economy on the other. The typical workforce comprise workers across widening age bands and multiple nationalities. The lines between these different groups have become more porous, sometimes due to choice and at other times, owing to circumstances such as restructuring. This renders social mobility more fluid in both directions. Both the corporate sector and Singaporeans at large tended to read and rely on the choices and signals by Government to guide their education and career decisions. This is fine when things are stable and predictable. In an environment that is more likely uncertain and fast-changing, how should companies and workers sensibly decide on their steps and paths? My fellow labour Members will elaborate on the various segments of the working population that they are championing. For me, my speech today will focus on the economic transformation aspects of the Budget and on the impact on mature workers.[+22 sentences] Mr Deputy Speaker, when the CFE was set up last year, some people took the view that it was for the Committee to produce magic bullets that would take away the stress of transformation and yet produce a quantum leap in business outcomes and living standards. Thus, when the CFE issued its report earlier this month, we hear comments that the strategies sounded somewhat generic, and that there were no clear magic bullets. They then pinned their hopes on the Budget. When the Budget was announced last week, we again hear people saying that they wished for more painkillers for the immediate strain and that the path toward transformation is still not set out clearly enough. I believe this reaction reflects a mismatch of expectations, mindset and capability. Last Friday, I attended the third annual Projects of the Year Awards presented by the Singapore Chapter of the Project Management Institute (SPMI), a body whose membership comprise project management professionals. The leadership of the SPMI shared with me developments in their profession. They told me that if one goes back in time, project managers are deemed good if they are able to execute to a given plan, within time and budget. For that, they would be deemed to be good. But that is no longer the case. Clients today look for much more from project managers. They expect such managers to not only execute well, within time and budget, but also be able to add value and create value up and downstream from their traditional work − in areas of coordination, integration and unleashing synergy. Those who can do so have developed capabilities and connections both broadly and deeply, which they then leverage to good effect. They are valuable to clients and are in strong demand. On the other hand, those who can still only execute conscientiously to a plan given to them will see their relative value decline, and the need for their services progressively supplanted by re-design and technology. This account mirrors that heard in many other forums, across different professions and industries. What does this tell us? To me, this means that life will no longer get better just by executing someone's plan conscientiously. That was value, but that was past value. The bar has already been raised. Going forward, we must focus on leadership that can skillfully and effectively work the white space between boxes marked "Funding", "Schemes", "Regulations", "New Technology" and the such, bring them together in order to develop the critical partnership capabilities and reflexes needed to produce innovative and valuable new platforms, products and services. If we understand this, then we will also understand that much needs to be done to move us from a traditional "execute to a given plan" mindset to a leadership mindset. In other words, it is akin to moving from being a chess piece to being a chess player, and a strong one. Therefore, even as I support and commend this year's Budget for adding another $2.4 billion in CFE-related funding over the coming four years on top of the $4.5 billion that was already set aside in last year's Budget for the Industry Transformation Programme, I want to emphasise the importance of implementing the ITMs and in building leadership and partnership reflexes and capability in the trade associations and chambers, and the tripartite partners. This is because ITMs, whatever their details, will begin to be outdated the moment they are defined. Therefore, we must not delude ourselves into believing that submitting or approving a ITM, or even in implementing fully an approved ITM, would suffice.[+1 sentence] Indeed, we must see ITMs as Dynamic ITMs, ever changing, never ending, always adjusting, because the underlying forces are such. In a sense, we have to complement once-in-seven or 10-year economic committees such as the Economic Review Committee or the CFE with a decentralised yet capably led, continuously adaptive, responsive, innovative partnership structure that is alive and that goes on all the time, with all the partners that I have mentioned drawing upon all the resources there are.[+7 sentences] The point I want to emphasise is, many Members have spoken about the different schemes, whether or not there is a plethora of them, whether or not any particular one is sufficient or not. These are the boxes. But I think it is really in how you draw all these boxes together, whether as an individual, as a firm, across clusters, in partnership. That is the one that will create that value. Thus, "Building Agility through Capabilities and Partnerships" as highlighted in the Budget Speech, especially through strengthening sectoral tripartism, would be critical. In this regard, the scope of the SkillsFuture Leadership Development Initiative should not only build skills for operating internationally, but also build "white space leadership and partnership capabilities", which I deem to be equally important. Mr Deputy Speaker, I move now to the topic of mature workers. Even though mature workers welcome the raising of the re-employment age ceiling from 65 to 67 that will happen from July this year, many are worried about their job security.[+3 sentences] They see that in industries where demand has dropped significantly, companies had begun to shed workers, both foreign and local. They therefore worry if they would be axed next and whether they would be unfairly targeted for termination or retrenchment on account of their age or because they are deemed to be more costly. In this regard, the Labour Movement and tripartite partners are monitoring the situation closely. The tripartite partners have long agreed that mature workers, including re-employed workers, are not to be targeted for discriminatory retrenchment or termination.[+1 sentence] Companies tackling excess manpower are to abide by the relevant Tripartite Guidelines, which emphasised that such action should be based on how workers demonstrate capability and value on the job, rather than on age, gender or other arbitrary non-work criteria. On the Government's part, the extension of the Special Employment Credit and the Additional Special Employment Credit, being wage subsidies to companies to lower the cost of employing mature workers, will help address cost differentials between older and younger workers in the same jobs, and in this period, particularly pertinent.[+2 sentences] As stated by the Finance Minister in his Budget speech, "To help firms with rising wages, more than $600 million will be paid out in March 2017 under the on-going Wage Credit Scheme, while more than $300 million will be paid out in FY2017 to benefit 370,000 workers under the Special Employment Credit. The Additional Special Employment Credit will also be extended till 31 December to provide wage offsets of up to 3% to help older workers stay employed. The extension will benefit about 120,000 workers and 55,000 employers, at a cost of about $160 million. Taken together with the Special Employment Credit, employers will receive support of up to 11% for the wages of their eligible older workers", This wage subsidy for mature workers in a slower economy helps boost their cost-competitiveness, and the Labour Movement is grateful to Government for that.[+18 sentences] Older workers who feel that they have been unfairly targeted for retrenchment or job termination can seek help from the unions, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) or the Ministry of Manpower (MOM). Every effort will be made by the tripartite partners to help displaced workers of all ages find new jobs, whether in the current line of work or, through conversion, to other lines of work. We must not under-estimate the ability and will of mature workers to adapt and grow. Many have shown by example their resilience, and have demonstrated reliability and openness to learning new skills. Those who adopted a flexible attitude helped themselves seize opportunities faster. Government has also introduced or enhanced initiatives that help displaced mature workers get back into work more quickly. These included improvements to the Adapt and Grow Programme and related schemes such as the Career Support Programme, the Professional Conversion Programme, the Work Trial Programme and the Attach and Train Programme. I draw attention especially to two elements in these programmes which are very important. The first is developing a keener sense of where the jobs are today and where they will be in the future. The second is the wage and training support within these programmes. These are critical ingredients especially when helping middle age workers transit and adapt to structural shifts in the economy. While displaced mature workers want to get back into work quickly, they also have many commitments to meet. In such a situation, many risk becoming structurally unemployed or underemployed, if they hold out for too long or if they do not get the offers. The help with adaption and job matching must seek to minimise such risks. On the Labour Movement's part, the National Trades Union Congress (NTUC) has set up a unit called the Future Jobs, Skills and Training (FJST) Unit to integrate and maximise our efforts, as well as to complement those of our tripartite partners. As an example, we believe that as the mature workforce will be a growing part of the local working population, it is important for ITMs to include plans to fully utilise and continual sharpen this resource − and to do so within the ITMs as part of strategy, rather than as an accommodation or afterthought. At the same time, companies must be reminded that should they lose experienced manpower because of lowered demand, they will find it harder to recruit such manpower quickly when the demand returns. They will then constrain their own prospects for growth. So, please do not under-estimate the value of an experienced worker. This is also a time and opportunity for the human resources (HR) profession to step up and help companies maximise the contribution of their human capital, beyond just making tactical moves. In this regard, I urge the HR profession to pro-actively and seriously support and adopt the recommendations of the HR Sectoral Tripartite Committee and initiatives under the MOM's Human Capital Programme.[+5 sentences] Mr Deputy Speaker, the future is full of danger and uncertainty. That same future is also full of opportunity, promise and prospects. The paths we choose and the actions we take, individually and jointly, will decide our chances of success. We must not drop the ball. I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)1646 words
[+4 sentences]Mr Deputy Speaker, Sir, allow me to start my speech in Mandarin. (In Mandarin): Deputy Speaker, during the earlier debate, Mr Dennis Tan could have given the impression that with the increase in water tariffs, the additional U-Save rebates could only help the minority of Singaporeans, while middle income Singaporeans, in particular, might not receive much help from the U-Save rebates. In reality, however, the U-Save rebates will indeed help to buffer the impact of higher water tariffs for most Singaporeans. How is this so? According to PUB's analysis, Singaporeans living in 1- to 2-room HDB flat will not see any increase in their water bill after factoring the U-Save rebates, while Singaporeans living in 4-room HDB flats will only see a small increase of $5 per month. For 75% of shop owners, they will only see an increase of $25 in their monthly water bill after tariffs go up. Companies can also tap into the Water Efficiency Fund to install water-saving devices to mitigate over the longer run price increases.[+39 sentences] I hope the above explanation can clarify our understanding about U-Save rebates. (In English): Mr Deputy Speaker, please allow me to continue in English. This year's Budget seeks to position Singapore to be "future-ready" to meet the challenges of a future filled with uncertainties and opportunities. Together with the Committee on the Future Economy report, it identifies how Singapore and Singaporeans can navigate the seismic economic and technological shifts. Being nimble and adaptable to change are the names of the new game. Everyone knows that this change is inevitable. But the breakneck pace of change is almost unforeseen for many. The Fourth Industrial Revolution is well under way. The race for artificial intelligence had actually started quite a few years ago. The speed of innovation brings the "future" much closer. Our workers and companies need to be future-ready. In fact, for some of them, they actually need to be "now-ready". How do we gear them up for this so that they can seize the opportunities of tomorrow today? Whether we succeed in this economic transformation or not, we cast our lot with our millennials and Generation Z. They are at the threshold of opportunities unseen in a century. Yet, the job search has also become more trying. And, in itself, that causes them worry. There are three major challenges confronting them. Firstly, it is less about what to study and what skills to master, but more of what would keep them relevant. In essence, what to invest their time in. Secondly, it is not so much about having no job but which job would allow them to build up their careers and life journey. In short, how do they go about navigating the shifting turbulence of the new job market? Thirdly, businesses are placing greater importance on work experience, on top of academic qualifications. The latter is what new graduates and first career Singaporeans would not have. I believe that there are three ways to tackle these challenges. I believe that helping younger Singaporeans and workers is no longer about a massively sophisticated blueprint. The speed of change certainly defeats the best intents of such blueprints. It should be a system where young workers help one another to navigate in this new economy. So, how would this work? Allow me to share the story of 23-year-old Yam Su Xian who was looking for a job and 38-year-old Zuhaina Ahmad who heads business support in her company. Su Xian was a Business Management major who was finding it difficult to land her first job. She sent out many job applications but could not find any positive responses. Zuhaina was a pioneer career guide in Young NTUC's Youth Career Network (YCN) programme. She volunteered to pay-it-forward to help others who might have struggled as she did in her earlier years. Through the YCN engagement sessions, Su Xian better understood the different jobs that would suit her skills and personality. Zuhaina then helped Su Xian to build and enhance her resume. They worked together to create a LinkedIn profile to boost her visibility to prospective employers. Every day, she suggested to Su Xian on how to expand her network to enhance her job opportunities. They worked together on boosting Su Xian's self-confidence. Su Xian eventually found a position as an accounts officer.[+4 sentences] She recounted, after getting a job, "I was alone by myself with friends on different paths. Some of them had already found jobs, some were holidaying and others were still studying. I was on my own until I found out about career mentoring with the Youth Career Network." YCN empowers youths to take up ownership in charting their own career journey. With no fees and not limited to any Institute of Higher Learning, the YCN is accessible to all.[+12 sentences] We can see from Su Xian's story that we saw neither blueprint nor career counsellors. The programme worked because Zuhaina wanted to pay-it-forward and Su Xian found help that was current, personal and approachable. We can and should invest in such mutual help platforms to unleash the collective strength and potential of Singaporeans. The system is almost future-proof because there will always be people like Zuhaina and Su Xian who are leaders in their own industries keen to help, and young people who need them. A networked system of mentors like Zuhaina could potentially serve more students and Singaporeans than physical career centres would ever do. If we can expand this programme, it would be more than building mentoring networks but also about the strengthening of community bonds amongst Singaporeans. In doing so, we can continue to leverage on the extensive network of the Labour Movement. Then, it can truly be the Singapore Career Network. Now, let me move on to the National Jobs Bank and the National Talent Bank. The National Jobs Bank has helped many Singaporeans to find work. It puts in one convenient location, the job vacancies available in Singapore. It also allows for the analysis of jobs and skills trends. Going forward, we would need a National Talent Bank where jobseekers and would-be jobseekers can access conveniently, to be headhunted for jobs.[+16 sentences] This system should also include networking features like those on LinkedIn and Facebook. The National Talent Bank also allows us to analyse the deficit between national skills, competencies and what is required in our economy. As we go global, international companies should now know where a good place is to reach out for Singaporean talent. The current job sites are specific industry-focused and tend to be used mostly by professionals. Hence, I encourage the Government to work with private sector companies, such as LinkedIn and Monster.com, for example, to develop such solutions on a national level. Next, I would like to turn our attention to the "gig economy" as the third leg of the proposals. The recent Graduate Employment Survey showed a growing emergence of a "gig economy". These part-time and freelance jobs will increasingly become more prevalent as both employer and employee can react to economic changes better. This "gig economy" can be an important feature in managing structural changes in the economy. It also helps in continuous learning and being entrepreneurial. However, it cannot develop without stronger workplace protection and retirement support. We need a robust network to protect freelancers and the employers hiring them, giving them a sustaining ecosystem to grow. With the three proposals above, I believe that we can better help our younger Singaporeans navigate in these times of rapid technological and economic changes. I would like to shift our attention now to empowering our women to get back to work. I applaud the Government for announcing the Attach and Train Programme. I think that it can be a real boost for back-to-work women. A recent small-scale online poll by NTUC U Family done on stay-at-home women who plan to get back to work revealed that out of 564 female respondents, 94% are between the age of 25 and 54 years old which is in the prime working age. Of those in this age group, a significant majority, 73%, are Diploma and Degree holders. More than 60% of them intend to work within the year, while others, 20% or more, wish to do so within the next one to two years.[+3 sentences] Most of them would like to start immediately if there is a trial work option. That is immense latent talent waiting to be tapped upon. NTUC recommends a Returnship Programme as a bridge to help women get back to work again. The programme targets women who are looking to re-join the workforce, and for employers to offer them a two to four months paid trial period.[+10 sentences] It provides a trial for both the employee and the employer to ascertain job fit. The goal is to place them in a permanent role in the same company or another company. The chances of a good match would be much higher if we have work flexibility built in the system as well. We should start with companies which have vacancies, or even a company whose workers are on temporary leave and need workers for the interim period, for example, employees on maternity leave. As the largest employer in Singapore, we hope that the Public Service Division can take the lead in actively looking at offering these back-to-work individuals career trial opportunities. We also hope that the Government Linked Companies can also answer the nation's call. Mr Deputy Speaker, Sir, the crux of our economic transformation depends on a populace equipped to navigate and seize the skills and opportunities of tomorrow. No one entity can claim to have the monopoly of knowledge in this complex world to drive this change on its own anymore. But, together, we can build good platforms to nurture higher probabilities of good outcomes. With this, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Henry Kwek.
Mr Kwek Hian Chuan Henry (Nee Soon)1970 words
[+15 sentences]Mr Deputy Speaker, I rise in support of the Budget. I have been making rounds in my constituency in the last couple of weeks and have been reading the local and regional news with regard to the water tariff. The concerns of our people and businesses are understandable, given the current economic challenge. And much has been said about this issue, both in and outside of the Chamber. Nevertheless, it is sometimes useful to take a view from outside Singapore. For example, how do our competitors see us? The South China Morning Post, widely seen as Hong Kong's flagship English newspaper and not always a fan of Singapore, recently carried this headline: "Can Hong Kong follow Singapore's lead in water tariffs?" In its sub headline, the report noted: "Among Asia's metropolises, Hong Kong is stuck with frozen tariff rates that are hurting water conservation efforts". The report said experts are calling for Hong Kong and other Asian cities to follow Singapore's lead. The South China Morning Post quoted experts from the United Nations and think tanks, who called for countries to invest more in water infrastructure, reduce water wastage by reflecting the real cost of water, while insulating the vulnerable from the impact ‒ all of which the Singapore Government is doing. The South China Morning Post's views are also shared by leading water experts, such as Prof Asit Biswas and Robert Brears. Indeed, the challenges of pricing water right to ensure access amidst climate change are not unique to Singapore. We must deal with them decisively while taking care of our vulnerable. And in this debate on this issue today, it is important that we separate facts from fiction and reality from perception. Therefore, I am heartened to hear our Government's recent clarification which directly addresses the hon Member Mr Dennis Tan's concern that the additional usage rebates will limit the impact on low-income and middle-income households. Families in 1- and 2-room HDB flats will, on average, see no net increases, and families living in a typical 4-room HDB flat will see a $5 extra on average.[+4 sentences] I am also concerned about the impact on the hawkers in my constituency, which affects the cost of living. So, I took a look at their water bills. I saw today a bill for an entire coffee shop with six stalls. On average, each stall is using around 50 cubic meters of water a month, which costs around $100. With the new water tariff, each stall will see an increase of around $30 a month. So, while there is an increase, it is unclear that it will lead to a significant increase in the cost of living. I am also relieved to hear that three in four businesses will see an increase of less than $25 a month, which also addresses Mr Dennis Tan's concern.[+10 sentences] Nevertheless, I call for the Government to continue monitoring the situation, both for individuals and businesses, to see whether further tweaks are necessary. Mr Deputy Speaker, now that the CFE and Budget have mapped out the broad directions ahead for our economy, I would like to focus my Budget speech on how to best execute our plans for the CFE, and about creating a gig economy for our senior workers. Recently, I had breakfast with a senior retired official who worked for Mr Goh Keng Swee. I asked him what did he learn working for Mr Goh Keng Swee. He thought for a while and quoted Mr Goh, "Don't tell me the why. I know the why. Tell me the how. Tell me how you are going to get this done." Indeed, many retired senior officials whom I spoke to shared the same view ‒ what separates Singapore from the rest is our focus on getting things done quietly, efficiently and quickly. One, a strong national coordination body. To implement our decade-long CFE strategy, we will be well served by a strong national coordinating body.[+15 sentences] This coordinating body, like the CFE Committee, should comprise not just our civil service officials, but also key union leaders, business leaders and educators. This coordinating body will serve as a strong centre to oversee our Ministries' efforts to translate broad strategies into detailed plans, regularly review the progress made, incorporate good ideas, seek out industry proposals along the way and communicate to all stakeholders annually on where we are, and where we must go. The current National Productivity Council could serve as a basis for this coordinating body. Why is this high level of coordination and communication necessary? The answer is simple. To fundamentally transform our economy, we need to go beyond the whole of Government approach. In fact, we need our Government to move as one, we need a whole of nation effort. Two, our ITMs must contain bold ideas. The premise of the ITMs is this: each industry requires bespoke solutions to achieve deep transformation. So, I hope that we must be fully prepared to remove policy sacred cows when necessary. If the new plans for the industries end up not differing from existing plans, and if many of our ITMs look too similar, then we should question whether we are fully stretching our imagination and aspirations. Some say there is no Big Bang in the CFE. But I feel that it is no longer sufficient to push for a single Big Bang industry. Our Government must, however, light 23 bright sparks with each of the 23 ITMs. And our industries must turn these bright sparks into a brighter future for all. My third point about the CFE is that we must start our transformation quickly. We should roll out our ITMs as quickly as we can, far earlier than the proposed deadline of end of this financial year.[+4 sentences] The ITMs are supposed to rally their respective industries. Many businesses, stuck in the trenches of disruption, are looking for direction amidst the storm. Not all of them found clarity for their sector, in the measures provided in this Budget. But it does not mean that help for them is lacking. In fact, I am heartened to hear that considerable resources are set aside for our industries − close to $7 billion for the whole CFE, including $4.5 billion for the Industry Transformation Programme.[+21 sentences] When we can translate this significant budgetary firepower, into concrete policies industry by industry, policies that our businesses and people can touch and feel, they will naturally gain the quiet confidence that the future is bright for all. Also, rolling out our ITMs quickly provide much needed clarity to the supporting CFE's efforts. For example, in this Chamber, we frequently talk about using our SkillsFuture funds efficiently. But it is not easy for our officials in SkillsFuture, or any other CPE supporting efforts, to make concrete plans until they know the precise direction that we want to take each industry to. So, therefore, a quick rollout of our ITMs is critical. In summary, to execute our plans, we need a strong centre to pull everybody together, we need bold plans to transform each and every of the 23 industries, and we must provide our industries with quick and clear directions. I would like to talk about a separate point − creating a gig economy for our seniors. When I spoke to our seniors about the CFE, they are not sure how they fit in the future economy. Today, we already have forward-looking policies for our senior workers, such as our Senior Employment Credit, and our Retirement and Re-employment Act. Nevertheless, there is room to do more. In fact, I think there is room for our Government to catalyse a gig economy for our seniors, by creating micro-jobs. Despite legislation, it is hard for us to fully remove ageism, especially towards seniors above 67. Many companies, especially in tough times, are not willing to take the risk of hiring, or even retaining senior workers. This issue would be more serious over time as we continue our restructuring and as our workforce continues to age. The gig economy can help us combat ageism. Compared to companies, consumers using the gig economy are far less willing to discriminate. What do I mean? A good example is Uber. Through technology, Uber empowers hearing-impaired drivers to work in the car using Uber app. Other examples include delivery services such as Honest Bee, Foodpanda and Deliveroo, show that our consumers are less interested in discriminating, on who shows up on the door, as long as that person can do that one-off "micro-job" well. So, how can the Government create a gig economy for our seniors? By doing three things: one, creating micro-jobs for our seniors starting with those in the social services; two, creating a national digital platform and app; and three, equipping our seniors to do these micro-jobs through SkillsFuture.[+16 sentences] Let me use the example of delivery of home-based healthcare. Today, we sometimes send two nurses to visit patients, many of whom are bedridden or have mobility challenges. Why can we not cut down to one nurse instead, and then hire a trained senior, living in a nearby block or street, to assist such as carrying the patient and assist in wound dressing. There are many seniors living in our midst who can qualify to do such micro-jobs. How do we page for these seniors? Simple. Through a gig economy app that the Government creates, perhaps by working with our start-ups. How do we prepare our seniors for these micro-jobs? Through SkillsFuture, of course. How do we ensure quality of service by these seniors? Through the apps that ask for feedback from the nurses, and may be even the patient. Imagine the vast possibilities. What if we certify some of our able grandmothers to provide infant care service for a few infants at their home, or retired teachers to provide after school care for a few students at home? What if we equip our seniors to provide caregiving or respite care to their neighbours? How many purpose built infant care, after school care centres, and respite care centres can we end up not building? When I talk to public officials or VWO leaders about this idea, they get it. But they also confide that they cannot do it alone. That is why we need the Government to spearhead a gig economy for our seniors, using social services as a start.[+12 sentences] We can even extend this to the private sector, for example in food service. There is already a company that hires retired prata-makers today, and deploy them to meet shift gaps throughout Singapore. So, we can also help our seniors to find micro-jobs in the food service industry in their own neighbourhoods. We can also even extend this to stay-at-home mothers and special-needs workers to find micro-jobs nearby. What about meeting the practical realities like CPF contributions, or verifying who is eligible for what micro-jobs? These can be easily done, by inserting lines of code, to wire micro-contributions to one's CPF account and to check out our seniors' SkillsFuture individual learning portfolio. In short, in this digital age, data is the new invisible hand. We should fully tap on data, combine it with our social policies, to orchestrate our economy and society of the future. In closing, creating a gig economy for our seniors benefits Singapore. It can erase ageism. It can put money directly in the hands of our seniors. It can cut down on unnecessary manpower including foreign manpower. And it can help reduce our social spending. Therefore, I call for the creation of a national digital initiative for our seniors involving our social services Ministries, VWOs and SkillsFuture. It will take a few years to get this done, so I hope we can start soon.[+1 sentence] With that, Mr Deputy Speaker, I stand in full support of the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Mr Lee Yi Shyan.
Mr Lee Yi Shyan (East Coast)1393 words
[+1 sentence]Mr Deputy Speaker, one theme that stands out in Budget 2017, is the emphasis to strengthen our external orientation. The new Budget introduces a $600 million International Partnership Fund. It also extends the existing Internationalisation Finance Scheme which has worked very well.[+1 sentence] These programmes dovetail closely with CFE's first strategy to "deepen and diversify our international connections". Under this strategy, the Committee suggests the setting up a Global Innovation Alliance, linking our institutes of higher learning to the leading innovation hubs in the world.[+8 sentences] It also recommends us sending more young Singaporeans to overseas internships and leadership development. Despite the fact that close to 10 million Singaporeans travel overseas every year, that these programmes are still introduced says something about our realisation that we cannot afford to slacken in inculcating in especially our young, the ability to understand and appreciate the world. The world is like a vast ocean, constantly waving currents and under-currents. Singapore can only steer forward safely if only we have up-to-date weather charts and topographical maps. Speaking of unpredictability of events, 2016 was nothing short of surprises and shocks. Uncertainties are still unfolding in ways which have profound implications for Singapore. Let us consider three trends. Firstly, protectionism is on the rise. Amongst the first executive orders President Trump signed was to withdraw from the Trans-Pacific Partnership.[+32 sentences] As Prime Minister Theresa May laid out her 12-point plan for Brexit, the European Union (EU) is now increasingly worried about the prospect of a "Frexit" as the French presidential elections draws near. Meanwhile, right-wing populist parties campaigning on anti-immigration and anti-globalisation are gaining ground in Europe. If EU, the world's largest single market breaks up, world trade will be in disarray. What ensues may be trade wars leading to ultimate shrinkages in trade volume causing job losses and destabilising economies. Given that two-third of our economy is externally driven, a trade-hampered world will spell great hardship for us. Secondly, populist politics are leading people away from real solutions. From the rising popularity of far-right political parties in Europe, one has to conclude that more and more voters are taking in their campaign promises which are premised not on reasons, research and facts but on impulses, emotions and anger. Their prescriptions to economic and social woes ignore the very complex nature of economy and trade, of global supply chain and relative competitive advantages. They promise a magic wand which solves all problems merely by building walls around one-self, for instance. David Rothkopf, the chief editor of The Foreign Policy, coined the term "the shallowness of the state" to describe politician's tactics to over-simplify issues to win votes. He reminded us that "experience, skills and know-how require time, work and study. Truth is hard, shallowness is easy". Thirdly, news-reporting and consumption tend to be local. That most people will be concerned with things happening in their backyard is perfectly understandable. In fact, survey has shown that those who follow local news closely also tend to be more civically engaged in and volunteer for the local community, which is a good thing for citizenry. But we also must be aware that there are a few orders of magnitude of difference when one says "local news" in continental-size countries such as the US and China, and that in our tiny Singapore. While people in these large countries may take comfort in being contended with local news, we in Singapore cannot afford to think and behave the same. Lest we unknowingly wear blinkers to see a very narrow world. A number of businessmen I met commented to me that many Singaporeans are surprisingly insular and inward-looking. I asked them for evidence. They told me two manifestations of this psyche. One is Singaporean's unwillingness to leave their comfort zones and take up foreign postings; two is that being very sheltered, Singaporeans become unsure and very risk adverse in poorly defined and uncertain environment. They believe that such lack of adaptability will hold Singaporeans back from many opportunities in the emerging world. When I travel, I like to tune into news stations and see what is being reported. When I tuned into China Central Television or Phoenix news, I often found their reports of world affairs very insightful and comprehensive, covering a wide range of geographies far beyond the Chinese borders. Over the years, I have also found CNN and other American news reporting to be more globally informed, often although accompanied by distinctive American view of the world. Singapore news and our public discourse must, by definition, be a keen observer of the world. This is because we do not have a continental size economy or geography to buffer us from any shocks. Mr Deputy Speaker, at the domestic front, the issue of 30% water tariff hike seemed to have hogged the headlines of the new media space for the past week. But I just realised that in this House, it is the topic that every Member has addressed. I think it is perfectly understandable how many people had found the jump of 30% abrupt and drastic. But if we consider the subject in context, that despite the very same dry season brought by El Nino in 2016 sweeping across Southeast Asia, Singapore unlike a number of Malaysian states such as Perlis, Pahang, Malacca, Johore and Sabah, did not have to impose water rationing because of the severe drought. The belated 30% hike, put in context, is a necessary and small insurance compared to the billions of dollars we need to set aside for future new water plants and pipeline infrastructure.[+6 sentences] We can go around the world and survey more water-deprived countries. Their problems are many times more severe. To put things in perspective, our public discourse needs to be supported by deep knowledge of subject matters in discussion. Thankfully, our schools are doing a great job in injecting realism in learning. Our teachers are taking learning beyond classrooms, into the community and overseas. We have more students at different levels participating in overseas exchange programmes than ever before. The CFE also outlined the Government's intention to provide more funding to support overseas internships and work attachments.[+6 sentences] We are headed in the right direction. I would also argue that we should do more, for the population at large. For instance, the Government could invest more in media and content production, to help our public broadcast be even more comprehensive and interpretational in their news-reporting and analysis. Complemented by our growing think-tank and research community, there is no reason why we cannot raise our average understanding of complex issues and the understanding of the world. I think the bottom line is, how do we watch the world "live" from Singapore. Mr Deputy Speaker, international competition is intense and relentless. Consider this, the Single's Day Sales on Alibaba amounted to S$25 billion sale in just one day. That is 70% of all retails sales in Singapore for one year.[+1 sentence] So, 70% in Singapore is one day on the Alibaba platform. Still in China, WeChat Pay has become the de-facto cashless payment means in China, regardless of transaction amount and IT infrastructure. By this, I mean, even hawkers at the wet market can take payment using WeChat Pay, without the cashless terminal. It makes us wonder why we are still struggling with different non-standardised payment terminals in Singapore after many years of trying to go cashless.[+13 sentences] Mr Deputy Speaker, let me conclude. Budget 2017 builds upon a plethora of support programmes previously introduced. These programmes include SkillsFuture that help the workforce in general, and a whole host of productivity-related programmes that help SMEs. And they were all summarised just now by Minister Iswaran. There is really no shortage of support programmes. What we need is strong motivation from individuals, from firms and organisations. To develop strong motivation, there must be deep awareness of the world and the understanding of competition. Singapore's challenge now is how not to be a victim of our own success. How can we leap from our comfort zone and overcome the false sense of security. It is not just physical connectivity that we need to build, but the psychological bridge to understand the world, to reach out to complex issues and to deal with them tenaciously. There is no silver bullet but hard work aplenty. Mr Deputy Speaker, there is great urgency. I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Sun Xueling.
Ms Sun Xueling (Pasir Ris-Punggol)1747 words
[+15 sentences]Budget 2017 attempted a fine balancing act. Trying to build for the future, for whom most discount the benefits of, and meeting short-term needs, for whom most place an emphasis on. But the future is not that far away and how we spend in the long term affects how we budget for the short term. Uncle Koh came to see me a few weeks ago and he was in a fix. Adventurous and enthusiastic in his 60s, he had tried being a Grab taxi driver. But he did not know how to use his phone to locate customers. So, three days into the job, stressed out by the ordeal of fiddling with his phone till no end, Uncle Koh gave up and decided to be a cook instead. He took a course in culinary skills, used up his SkillsFuture credit and brought his shiny, laminated certificate to see me. He could not find a job, he said, as he did not have any prior experience being a cook. So, please, could he have more SkillsFuture credits so he can try something else? This story encapsulates the challenges the future economy brings us as individuals, as businesses and as a government. For Uncle Koh, he could no longer cruise empty on the streets, burning up diesel, looking for customers. He had to learn how to use a taxi-hailing app. He had SkillsFuture credits, but he had not used them where he needed it most. For firms, they can no longer rely on old business models as new entrants come in, disintermediating them and being asset-light, did not have the sunk costs that traditional firms bear. SkillsFuture and the ITMs are two key pillars of our strategy to help individuals and firms meet the challenges in the new economy. And huge sums of money have been set aside for them − $1.5 billion in Budget 2015 to support SkillsFuture, not a small sum and more will be put in. And $4.5 billion for the ITMs in Budget 2016 and Budget 2017 announced further top-ups to this initiative to transform our industries.[+1 sentence] We have to make these investments work for us because every dollar spent on one item in the Budget, is another dollar not spent somewhere else. For SkillsFuture, Budget 2017 focuses on "on-the-job skills utilisation" to ensure a better match between training and jobs.[+16 sentences] Such an outcome-based approach where employers, trade associations and chambers, and unions are encouraged to develop training programmes for their workers because they know best the skills the marketplace values and thus the skills workers need to have, is the right move for SkillsFuture. With the integration of SkillsFuture Portal with Jobs Bank, the nexus between training and jobs will be even tighter. I would like to suggest that there be reviews of training providers under SkillsFuture to ensure that there is accountability on the part of training providers to provide relevant training, that is, which is linked to job outcomes. Further, that individuals are guided by industry practitioners in their choice of training so that they are likely to choose relevant training which provides tangible benefits and, therefore, motivate them to train more. Sometimes, less is more. A more targeted approach in the delivery of training is more likely to deliver tangible outcomes. For the ITMs, their effectiveness is tied to the KPIs set out for them. While it has often been said that we should not set static targets for the ITMs, given that they defer from industry to industry, and should be instead be "live" documents, having a vision on what the industry could look like and thinking through what the parameters for automation, innovation, labour and productivity can be, will give them something to work on, to try and possibly fail, to retry, and recalibrate. For how then will we − Government, firms and workers − know whether we are succeeding? It requires great trust, collaboration and vision for firms, competitors, unions and Government representatives to come together and work effectively together. I further suggest that disruptors, entrepreneurs from adjacent industries and also overseas markets be brought in, where possible, into the discussion on the ITMs to enrich the discussion and paint the possibilities or we might be entrenched in local models and local constraints. SkillsFuture and the ITMs are huge outlays to develop our capabilities. How they are implemented affects their ultimate efficacy and we need to be clear as to the outcomes we hope to achieve, and have parameters to track their implementation and course-correct to ensure success. For only then will they be effective investments commensurate to the amounts we have allocated them in consecutive Budgets. That said, SkillsFuture and the ITMs form only part of the overall Budget. An analysis of how else we are allocating our resources will give a sense of how prepared we are for the future. The Budget surplus of $5.18 billion for FY 2016, 50% larger than originally estimated puts us in a better position to react to external shocks and potentially fund future needs in the remainder of the Government's term.[+1 sentence] However, since FY2015, we have been running a primary deficit where our total expenditure exceeds our operating revenue even before Special Transfers are considered. The reasons provided for why total expenditure budgeted for in 2017 increased by 5.2% over 2016 when revenues are only increasing at 1.1% are that they are mainly due to higher expenditures on public housing, higher development expenditures for water-related treatment and health expenditure arising from growth in patient subsidies and improved training and retention of healthcare workers.[+1 sentence] To ensure prudent expenditure, can we look to bind expenditures or match them with revenues, so that any increases in expenditure are carefully considered in relation to how the funds will be provided. Further, while the net investment returns contribution has helped turn our Budget into an overall surplus, the scale of its contribution relative to other sources of revenue is large, at 20% of our total revenue. It is the largest source of funds for our Budget, larger than corporate tax contributions. In a recent article on Bloomberg, Norway's Central Bank Chief warned of how the risk of a 50% decline in 10 years of their sovereign wealth fund increases five times if government withdrawals from the fund increases from 3% to 4% of the fund.[+2 sentences] Given our reliance on NIRC to fund our Budget, what are the inherent risks we face? Should there be huge changes in global outlooks of capital markets and earnings of firms, how does that change our expected long-term rates of return and our ability to use NIRC to fund our Budget? In Budget 2017, we see attempts to diversify revenue sources − a carbon tax to reduce greenhouse gas emissions by large direct emitters such as power stations, the restructuring of diesel taxes and water price changes.[+22 sentences] But these are taxes mostly to right-size behaviour and are not in the longer term derived from new economic activity. The future economy has already been shown to bring new business models and new relationships between firms and workers. With the growing importance of the sharing economy and cross-border transactions over Internet platforms, more thought should be put into how we can update our tax policies to keep in line with new emerging business models and maintain a level playing field. Otherwise, the tax burden may fall unnecessarily on certain segments, or individuals and consumers over time. Lastly, as more individuals participate in the New Economy through freelance work arrangements, we will need to ensure that our retirement adequacy frameworks take care of our citizens. One leg of the equation is missing if companies who engage individuals systematically to work for them do not pay CPF. And regulations may need to be tweaked to bring them into the fold. Much has been said about how firms and workers need to be oriented to meet the challenges of the Future Economy. I would like to add that our Budget and its construction likewise needs to be future-ready and future-proof. The future may be uncertain but we need to make certain as much as we possibly can. We require daring, but we also require prudence. This requires leadership and it requires judgement. Mr Deputy Speaker, in Chinese, please. (In Mandarin): Much has been said about how businesses and workers can meet the challenges of the future economy. What I would like stress is that the future may be uncertain but we need to make Singapore's success as certain as we possibly can. Budget 2017 attempts to strike a balance between building for the future and meeting short-term needs. SkillsFuture and ITMs are the two key pillars to help businesses and individuals to meet the challenges of the new economy. Budget 2017 focused on "on the job skills utilisation" to ensure a better match between training and jobs. Outcome-based training is the right move for SkillsFuture. I suggest that there be regular reviews of the training programmes under SkillsFuture to ensure they indeed generate desired job outcome. For ITMs, although industries differ from each other, having a vision of what the industry could look like and thinking through what the parameters for innovation, labour and productivity can be, will guide firms on their next move. I hence suggest that entrepreneurs who are equipped with disruptive technologies and technology pioneers in the overseas market be brought into the discussion on ITMs to help our firms paint the future. With regard to Government revenue, NIRC has helped turn our budget into an overall surplus, contributing a 20% share of the operating revenue.[+3 sentences] Given our reliance on NIRC, if the outlook of the international market changes, are we still able to fund our Budget? Therefore, can we consider binding expenditures with revenues or performance? Be it SkillsFuture, ITM or Government projects, can we determine how much we should invest in based on anticipated and quantifiable outcome? As more individuals are participating in the shared economy or becoming a freelancer, if a company who systematically engage individuals to work for them do not pay CPF or taxes, one leg of the equation in our social safety network will be missing. Hence, I suggest that we include the new economic model into our CPF and tax regime.[+3 sentences] Facing an uncertain future, we need to make Singapore's success as certain as we possibly can. We need to be daring, but also prudent. This requires leadership and judgement.
Rearrangement of Business›Motions1 turns · 271w
· 3 highlighted
motion-904
The Deputy Leader (Mr Desmond Lee)271 words
[+2 sentences]Mdm Speaker, I beg to move, "That notwithstanding Standing Order No 26(1) and No 89(3), the Second Reading of the Patents (Amendment) Bill, Architects (Amendment) Bill and Early Childhood Development Centres Bill be taken before today's resumption of Debate on the FY 2017/2018 Budget Statement". Madam, Standing Order No 26(1) states that once an order is made for Bills to be taken after the conclusion of proceedings on the Estimates of Expenditure for Financial Year (FY) 2017/2018, as made to the House by the respective Ministers in charge of the aforementioned Bills after their First Reading on 6 February 2017, such an order cannot be moved earlier but only later. As the Debate on the FY 2017/2018 Budget Statement is a Business of Supply, and Standing Order 89(3) requires that Supply business must be the first order of the day on the allotted days, no businesses can precede the Debate on the Budget Statement. The agreement of the House is, therefore, sought to suspend both these Standing Orders to allow the aforementioned Bills to be read for the Second time before the resumption of Debate on the FY 2017/2018 Budget Statement.[+1 sentence] This is in view of the total number of Bills that need to be read in this House during this period of Sittings. Resolved, "That, notwithstanding Standing Order No 26(1) and No 89(3), the Second Reading of the Patents (Amendment) Bill, Architects (Amendment) Bill and Early Childhood Development Centres Bill be taken before the resumption of Debate on the FY 2017/2018 Budget Statement on 28 February 2017." −
Adjournment of Debate›Motions4 turns · 39w
· 0 highlighted
motion-908
The Minister for Finance (Mr Heng Swee Keat)29 words
[+2 sentences]Mr Deputy Speaker, I beg to move, "That the debate be now adjourned." (proc text)]
Mr Deputy Speaker5 words
[+1 sentence]Resumption of debate, what day?
Mr Heng Swee Keat2 words
[+1 sentence]Tomorrow, Sir.
Mr Deputy Speaker3 words
[+1 sentence]So be it.
Adjournment›Motions1 turns · 19w
· 0 highlighted
motion-909
Speaker not recorded19 words
[+2 sentences]. (proc text)] Adjourned accordingly at 7.48 pm.
Features for Merged SkillsFuture and Jobs Bank Portals›Oral Answers to Questions2 turns · 327w
· 8 highlighted
oral-answer-1646
Ms Sun Xueling83 words
asked the Minister for Education (Higher Education and Skills) (a) whether the merger of the SkillsFuture and Jobs Bank portals will incorporate a review function for training providers to ensure outcome-based training provisions; (b) whether the merged portal can include internship opportunities for young Singaporeans; (c) whether the merged portal can include personality assessments that gauge the fit of the user to jobs as opposed to just skills; and (d) whether jobs listed in the Jobs Bank are regularly updated to ensure relevance.
The Parliamentary Secretary to the Ministers for Education (Assoc Prof Dr Muhammad Faishal Ibrahim) (for the Minister for Education (Higher Education and Skills))244 words
[+1 sentence]Madam, the Individual Learning Portfolio (ILP) is designed to be a one-stop online portal which empowers individuals to make informed learning and career choices. There will be platforms for individuals to review and provide feedback on the training programmes available on ILP, and information on training outcomes will be published on the portal. As internship opportunities are managed by the respective Institutes of Higher Learning, ILP is currently not built with such a feature.[+1 sentence] Notwithstanding this, should the need arise to do so in the future, we can consider building it in subsequent phases of ILP. ILP will also have tools and resources that will enable individuals to assess their career interests, skills gaps and work values.[+1 sentence] Based on the individuals' profiling results from these tools, they can then explore possible jobs and training programmes to prepare themselves for those jobs. Besides discovering one's career interest and identifying skills gaps, individuals can also view and apply for jobs via the Jobs Bank, which will be integrated into ILP. Jobs listed in the Jobs Bank are regularly updated as each job posting is only valid for a maximum period of 30 days.[+1 sentence] Employers can renew expired job postings, assuming suitable candidates are not found. Job postings that have expired are automatically removed.[+1 sentence] This ensures that the list of available jobs in the Jobs Bank is up-to-date. ILP will be rolled out in stages, starting from 2017, and we will share more details in due course.
Feedback Received from Earn and Learn Programmes›Oral Answers to Questions11 turns · 593w
· 8 highlighted
oral-answer-1647
Ms Sun Xueling68 words
[+1 sentence]asked the Minister for Education (Higher Education and Skills) (a) whether he can provide an update on the feedback received on Earn and Learn Programmes (ELP) in 2016; (b) whether the Ministry has been able to place 400 polytechnic and ITE graduates across all ELPs in 2016; and (c) which are the most sought after ELPs and whether they match existing manpower projections of the Industry Transformation Maps.
The Parliamentary Secretary to the Ministers for Education (Assoc Prof Dr Muhammad Faishal Ibrahim) (for the Minister for Education (Higher Education and Skills))143 words
[+1 sentence]Madam, the SkillsFuture Earn and Learn Programme (ELP) was launched as a work-learn initiative to support fresh polytechnic and Institute of Technical Education (ITE) graduates in their transition to the workplace and into sectors which they have been trained for. In 2016, over 500 polytechnic and ITE graduates were placed with companies across various ELPs. This is more than the 400 placements targeted for 2016. We have received positive feedback from both employers and trainees who have participated in ELP. There are currently 40 ELPs across 23 sectors including those where the Industry Transformation Maps (ITMs) are being developed. The most popular ELPs are in sectors, such as hotel, information and communications technology and logistics, where ITMs are developed.[+1 sentence] The Ministry of Education will continue to work with the respective sector agencies to introduce more work-learn programmes to support training and lifelong learning.
Mdm Speaker3 words
[+1 sentence]Ms Sun Xueling.
Ms Sun Xueling (Pasir Ris-Punggol)26 words
[+2 sentences]I thank the Parliamentary Secretary. I would like to enquire what is the process to obtain feedback from the trainees about their experience in the programme.
Assoc Prof Dr Muhammad Faishal Ibrahim80 words
[+3 sentences]Mdm Speaker, I thank the Member for the supplementary question. The trainers, even the lecturers, have a close engagement with the students and participants and, at the end of it, they would also obtain feedback from the participants. We also work with the companies to see how we can get feedback and, at the same time, to better and improve the service delivery of the training institutes, as well as how we can enhance the learning experience of the participants.
Mdm Speaker3 words
[+1 sentence]Ms Sun Xueling.
Ms Sun Xueling53 words
[+1 sentence]I would like to enquire how the Ministry ensures that what the trainee goes for during the programme is an add-on to what he or she has learnt in school, that it is really Earn and Learn, in the sense that they are learning on top of what they have learnt in school.
Assoc Prof Dr Muhammad Faishal Ibrahim99 words
[+3 sentences]It is a developmental process whereby we make sure that what they learn is also linked to what they are doing at their workplace. It is not only about looking at what they have learnt, but also what they are going to do, what they are doing and, at the same time, we cannot run away from the fact that there are certain basic things that we need to remind them and to link these to what they had learnt before. It is an integral and integrated process whereby we want to manage the whole process of learning seamlessly.
Mdm Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)67 words
[+1 sentence]I thank the Parliamentary Secretary for his clarification. While ELP has been important to bringing new talent into the industries, but there has been union feedback that the entry pay for some of these industries is not attractive, thereby limiting the attractiveness of ELPs as a whole.[+1 sentence] Will the Ministry consider, in the upcoming ELPs, allowing greater parity and for pay to catch up with market conditions?
Assoc Prof Dr Muhammad Faishal Ibrahim48 words
[+2 sentences]I thank Mr Desmond Choo for the feedback. We will take it back. As Members know, ELP is a new initiative. We will learn along the way and are committed to improving the arrangements as well as to how we can make ELP more attractive to the participants.
Impact of Algae Blooms and Oil Spills on Aim to Increase Locally Farmed Fish in Local Consumption›Oral Answers to Questions5 turns · 904w
· 9 highlighted
oral-answer-1648
Mr Leon Perera78 words
asked the Minister for National Development (a) what impact did algae blooms and the recent oil spill have on AVA's target for locally farmed fish to comprise 15% of local fish consumption; (b) what measures are taken to help coastal fish farmers cope with the aftermath of these events; and (c) what measures are taken to help fish farmers change their production methods so that they are more efficient and less susceptible to algae blooms and oil spills.
The Senior Minister of State for National Development (Mr Desmond Lee) (for the Minister for National Development)309 words
[+1 sentence]Mdm Speaker, plankton blooms and the recent oil spill have impacted some local fish farmers. However, these events have not detracted from our push to achieve 15% local production. Local fish production increased from 4,205 tonnes in 2014 or 8% of local consumption, to 4,851 tonnes in 2016 or 10% of local consumption. Having said that, I would add that the Agri-Food and Veterinary Authority (AVA) is currently reviewing the longer-term targets for local food production and working with industry and various stakeholders to develop concepts towards transforming the local farming industry.[+1 sentence] The Government assisted the affected farms following these plankton bloom and oil spill events. After the plankton blooms in 2014 and 2015, AVA extended subsidies to help affected farms to restock their fish.[+1 sentence] During the oil spill, AVA deployed oil absorbent pads and canvas to protect our farms. AVA is now assisting affected farmers with their claims against the ship's insurers.[+1 sentence] AVA has put in place several measures to help our farmers manage longer-term environmental risks. First, AVA has developed a real-time online water quality monitoring system that our farmers can access through their mobile phones.[+3 sentences] This helps them monitor water quality information like plankton counts and dissolved oxygen. AVA also provides short message service alerts to farmers when adverse conditions are detected so that precautionary measures can be taken. Second, AVA continues to assist farmers in tailoring individual contingency plans. To date, almost 50 farms have worked with AVA to develop customised contingency plans to mitigate adverse conditions. Third, AVA has used the Co-Innovation Partnership Programme to co-fund the development and adoption of new farming technologies like closed containment aquaculture systems.[+2 sentences] These technologies reduce the vulnerability of fish stocks to environmental risks. Several farms have already adopted these systems and AVA continues to share these technologies with the rest of the industry through briefings and workshops.
Mdm Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera (Non-Constituency Member)138 words
[+8 sentences]I thank the Senior Minister of State for his very detailed reply. Just a few supplementary questions. Were there any affected farmers who did not avail themselves to the help that was given and, if so, is AVA aware of the reasons why, and is AVA looking into that? Secondly, in terms of achieving the target for production of fish locally, is AVA also looking into vertical farming or urban farming? Will that also contribute to the target? And are there some measures in place to have that complement the coastal fish farming and other types of fish farming? Thirdly, is AVA exploring the possibility of deploying insurance products to help in risk-pooling among the farmers? I am not sure if there is a possibility but has that been explored with the insurance sector and with the farms?
Mr Desmond Lee376 words
[+16 sentences]I thank the Member for his three supplementary questions. For the first, I do not have the details as to who did not avail themselves of help. AVA, in the aftermath of both events, went out to all the farms and reached out to all the affected farms. As far as the oil spill is concerned, they went to all the farms in the eastern area and offered absorbent pads and canvas to help them screen off their stock. I am not sure if we are in a position to know who needed help and did not ask for it, and why they did not request for assistance. But AVA proactively offered help. If the Member is aware of any farmer who did not seek assistance but requires it, please let us know. The second question was on vertical farming of fish. If the Member would be interested to know, there is a Tropical Marine Science Institute (TMSI) on St John's Island under the National University of Singapore and they work with AVA to explore various technologies and innovations that can help our fish farming industry progress and be more productive. I do not know specifically for a fact whether vertical fish farming is being contemplated. But AVA is exploring with TMSI and other relevant institutes and agencies to explore various options for fish farmers to enhance their productivity. On the third question of insurance, a couple of years back, I did visit some fish farms and they did raise the issue of insurance to protect their stock. I think we start from measures that the fish farmers can put in place to protect their stock and these measures need to be seen in light of what AVA offers, for example, closed containment of cultured systems and other measures to help them protect their stock, out at sea, for instance. Once they have put that in place, then, looking at the question of insurance, that is something that AVA is actively looking at. It is not a straightforward matter because you need to have an adequate risk pool and insurers need to be assured that the farmers take appropriate self-help measures to reduce the risks. But certainly, that is something that is being actively looked at.
Funds for Culling Animals›Oral Answers to Questions5 turns · 704w
· 9 highlighted
oral-answer-1649
Mr Louis Ng Kok Kwang78 words
asked the Minister for National Development (a) for each year in the past three years, how much does the Ministry spend on culling dogs, cats and monkeys respectively; (b) whether the Ministry expects an increase in culling expenditure in the next three years; (c) whether the Ministry has conducted scientific research on the effectiveness of culling on population control; and (d) whether the Ministry is conducting scientific research into measures other than culling to address the human-animal conflicts.
The Senior Minister of State for National Development (Mr Desmond Lee) (for the Minister for National Development)335 words
[+1 sentence]Madam, the Agri-Food and Veterinary Authority (AVA) takes a multi-pronged approach, involving various stakeholders, to manage the animal population and mitigate health and safety concerns. It first undertakes a professional assessment of potential threats that animals might pose to public health and safety. If there are no significant public health and safety concerns, AVA will work with the public to mitigate any potential nuisance issues. If there are significant health and safety concerns, then AVA will have to act. Where feasible, it will work with stakeholders, including the animal welfare groups and organisations like the Wildlife Reserves Singapore, to relocate or rehome these animals. Culling is used only as a last resort, a point which my colleague Minister of State Koh Poh Koon had made at the last Sitting. AVA does not track the expenditure it incurs on culling animals as this is only a very small part of AVA's overall work.[+1 sentence] AVA will continue to conduct relevant studies and research to inform its policies and facilitate a science-based approach to animal management. For example, AVA engaged a team of local and overseas academics in November 2015 to start a three-year stray dog study. This study will estimate the stray dog population in Singapore, look at the ecological and biological aspects of stray dogs, and determine the efficacy of various population management options like sterilisation.[+5 sentences] AVA has also been carrying out similar studies on birds, as well as conducting trials to test the effectiveness of various bird deterrent methods. Our animal welfare groups are also pitching in, for example, in conducting sterilisation on Pulau Ubin as well as Jurong Island. We also need the community to do their part in helping to reduce potential animal-human conflicts in our society. For example, if everyone practises responsible pet ownership and refrains from feeding strays, the number of stray animals will fall and present a much smaller problem. AVA has been and will continue to work with various animal welfare groups on public education for responsible pet ownership.
Mdm Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)120 words
[+7 sentences]Mdm Speaker, I thank the Senior Minister of State for the reply and I also thank him for starting the study of stray dogs in Singapore. I am looking forward to the results of that study. I have three points of clarification. One, can the Senior Minister of State clarify how much does AVA pay the contractors for each dog, cat or monkey caught? Second, the Senior Minister of State mentioned about the professional assessment. Can I check who does these assessments as well as how they are actually conducted? Thirdly, a point which is in the Parliamentary Question, can the Senior Minister of State clarify whether AVA expects an increase in expenditure for culling over the next three years?
Mr Desmond Lee168 words
[+9 sentences]Madam, for the first question, I do not have specific figures for each type of animal that the Member mentioned but I am aware that the total budget for animal management operations for 2016 was $800,000. The second question is about how AVA does the assessment. AVA officers will conduct the assessment. They will look at the nature of the complaint or feedback and verify the facts. Surveillance, whether by AVA officers or by the deployment of cameras, is also often used. Information on the population of animals, their activities, proximity to human habitation and interactions with humans factor into these assessments. Taken together, this information informs AVA's responses. As for the Member's third question about whether AVA expects expenditure to increase in the coming years, I do not think we are able to project. It depends on the risks and whether human-animal conflicts rise or fall, and whether public education helps mitigate that, along with the animal welfare groups' efforts in working with us to rehome animals.
Complaints of Excessive Charging by Doctors in Private Practice›Oral Answers to Questions11 turns · 1,110w
· 10 highlighted
oral-answer-1650
Er Dr Lee Bee Wah57 words
[+1 sentence]asked the Minister for Health (a) in the past five years, how many reports of excessive charging by doctors in private practice have been received by the Ministry; (b) whether there is a trend of doctors abusing their patients' medical insurance coverage by overcharging them; and (c) what measures can be taken to regulate such a practice.
The Minister of State for Health (Dr Lam Pin Min) (for the Minister for Health)227 words
[+12 sentences]Mdm Speaker, the Ministry of Health (MOH) receives feedback on a variety of issues, including on doctors' fees and charges. Occasionally, there are cases relating to alleged overcharging. Doctors are ethically responsible for charging fair and reasonable fees to their patients. The Singapore Medical Council (SMC) Ethical Code and Ethical Guidelines requires doctors to charge reasonably and ensure that their fees are transparent and made known to patients in advance. SMC can take disciplinary action against errant doctors who do not meet these requirements and has done so before. MOH is working with healthcare providers on ways to improve fee transparency. MOH has published "Total Hospital Bill" data for common conditions and "Total Operation Fees" for common surgical procedures for both public and private hospitals. MOH also requires all hospitals to provide patients with financial counselling upon admission. In the outpatient setting, MOH requires all general practitioners (GPs) and dental clinics under the Community Health Assist Scheme (CHAS) to issue itemised bills to CHAS patients from January this year. These measures ensure more fee transparency and enable patients to make more informed decisions. MOH is also studying the recommendations from the Health Insurance Task Force (HITF) relating to overcharging. Each of us has to play our part to keep our healthcare costs sustainable while ensuring that patients continue to have access to good quality and appropriate healthcare.
Mdm Speaker2 words
[+1 sentence]Ms Thanaletchimi.
Ms K Thanaletchimi (Nominated Member)94 words
[+5 sentences]Madam, I have two supplementary questions. One, on the role of community pharmacists. A lot of times, in the GP clinics, the highest cost burden for the patient is the prescription cost, medication cost. Is the Ministry considering expanding the role of community pharmacists where pharmacists are given the prescribing rights, as well as are able to provide cost-effective medication to the patients? The second question is: will the Minister consider having survey outcomes listed on the website for GPs who provide medication for general common ailments and how much they charge the patients?
Dr Lam Pin Min134 words
[+4 sentences]I would like to thank Ms Thanaletchimi for the two supplementary questions. On the role of community pharmacists, MOH does study the role of community pharmacists, focusing more on the areas of public education, such as educating patients on prevention of certain diseases as well as the proper use of certain medications. However, with regard to prescription rights, this is one area that MOH will have to seriously consider the pros and cons, because we do receive feedback from patients that when they see a doctor and collect their prescriptive medicine from the doctor, it adds to a lot of convenience, rather than to have them to travel to a pharmacy elsewhere to buy the medication. With regard to publishing the fees of GPs, this is an area that MOH is currently looking into.
Mdm Speaker5 words
[+1 sentence]Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon)102 words
[+5 sentences]Thank you, Mdm Speaker. I have two supplementary questions. I think the Minister of State did not answer my question on how many reports were received in the last five years for excessive charging by doctors. The second supplementary question is: besides overcharging them, I also receive feedback from residents that doctors issue non-standard drugs to the Pioneer Generation (PG) patients, which they have to pay out of their own pocket. I would like to ask whether the Ministry monitors the issuance of non-standard drugs, or any substitution can be done, so that it does not cause a strain on residents' pockets.
Dr Lam Pin Min275 words
[+1 sentence]I would like to thank Er Dr Lee for the two supplementary questions. On the first clarification on the data collected, I would like to inform the Member that due to the change in data collection system and the classification of bill-related feedback, we are unable to compare accurately the figures year-on-year over the past five years. However, for the data collected over the past two years, there was an average of about 160 cases of bill-related feedback from both the public as well as the private medical institutions. In 2016, 23 cases received through emails were specific to overcharging, of which 90% are private medical institution related.[+2 sentences] Ten percent are public healthcare institutions. With regard to the Member's second question on the appropriateness of prescribing non-standard drugs, I would just like to remind and also reiterate that doctors should and must prescribe appropriately and it should be in the interest and well-being of the patients and not for personal financial gains. For patients, especially PG patients who need to be on non-standard drugs and who cannot afford the cost of the medication, there is always the Medication Assistance Fund, which helps these eligible patients to pay for expensive drugs that are not in the standard list.[+1 sentence] I want to encourage these patients, if they do encounter any difficulty in their medication bills, to apply to the Medication Assistance Fund. I would also like to inform the Member that MOH has also set up an Agency for Care Effectiveness (ACE). This agency issues guidelines on the use of cost-effective drugs for treatment of common medical conditions, and these will be implemented in time to come.
Mdm Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)112 words
[+5 sentences]Madam, just two supplementary questions. The first is: on the expanded role of pharmacists. I think the suggestion is for the pharmacists to be alternatives to doctors to prescribe simple medicine. For example, in Europe, many pharmacists are confident prescribing medicine for, say, common cold, simple symptoms, as long as you tell them you have no drug allergies. The second is a suggestion to also consider perhaps expanding the role of nurse practitioners to deal with common complaints, because I suspect a very large part of the GPs' load is with very standard ailments, which an experienced nurse practitioner could also handle, and both of these would probably reduce cost for patients.
Dr Lam Pin Min99 words
[+1 sentence]I would like to thank the Member for the two supplementary questions. For the one on community pharmacists, yes, currently, pharmacists are already allowed to prescribe certain drugs. For example, simple drugs like those for the treatment of common cold and running nose, community pharmacists are allowed to prescribe such drugs. As to the suggestion of enhancing the role of nurse practitioners, we are already doing that. Many nurse practitioners in the polyclinics, as well as in the hospitals, do perform these expanded role, part of which actually superimposes with those of a doctor's, for management of simple conditions.
Advice on Lasting Power of Attorney at Nursing Homes and Step-down Care Institutions›Oral Answers to Questions3 turns · 369w
· 7 highlighted
oral-answer-1651
Ms K Thanaletchimi73 words
asked the Minister for Health in respect of the elderly in nursing homes and step-down care institutions (a) whether the Ministry can consider providing awareness, education and counselling services on the need for a Lasting Power of Attorney (LPA) to them; and (b) whether the Ministry and the Agency for Integrated Care can work with the legal fraternity and assist to extend greater accessibility to pro bono legal services to those requiring LPAs.
The Minister of State for Health (Dr Lam Pin Min) (for the Minister for Health)237 words
[+1 sentence]Mdm Speaker, the Ministry of Health and the Agency for Integrated Care (AIC) have been working with the Office of Public Guardian to reach out to aged care providers and the public to raise awareness on the Lasting Power of Attorney (LPA). We have reached out to staff in close to three-quarters of all nursing homes on Advance Care Planning which can include the planning for an LPA so that care decisions can be in line with an individual's wishes in the event of mental incapacity. AIC conducts regular talks and case discussions with aged care providers to raise awareness on legal issues, such as LPA. For example, in October 2016, AIC partnered All Saints Home and the Pro Bono Services Office of the Law Society of Singapore to organise a seminar to provide nursing home staff a basic understanding of legal concepts, such as LPA, Mental Capacity Act and the Maintenance of Parents Act. Close to 120 staff from more than half of local nursing home providers attended the event. Separately, AIC is also working with the Pro Bono Services Office lawyers and aged care providers to offer legal clinics. These legal clinics will provide pro bono services and consultation on legal issues, including LPA, for nursing home staff as well as residents and their family members.[+1 sentence] We will continue to work on increasing the awareness of LPA and making LPA more accessible to the elderly.
Mdm Speaker59 words
[+3 sentences]Order, end of Question Time. Introduction of Bills. Senior Minister of State Indranee Rajah. [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.]
Update on Ratification of EU-Singapore Free Trade Agreement EUSFTA›Written Answers to Questions2 turns · 385w
· 0 highlighted
written-answer-3454
Mr Louis Ng Kok Kwang62 words
[+1 sentence]asked the Minister for Trade and Industry (Trade) in light of the opinion issued by the Advocate General of the Court of Justice of the EU that the EU does not have exclusive competence to conclude the EU-Singapore Free Trade Agreement (EUSFTA), whether he can provide an update on how the relevant parties are working towards a swift ratification of the EUSFTA.
Mr Lim Hng Kiang323 words
[+10 sentences]On 4 March 2015, the European Commission (Commission) sent the negotiated text of the European Union-Singapore Free Trade Agreement (EUSFTA) to the European Court of Justice (ECJ) for a legal opinion to establish the Commission's and EU member states' areas of competence in the EUSFTA. The opinion would clarify which of the EUSFTA provisions fall within (a) the EU's exclusive competence; or are (b) shared competence between the EU and member states; or are (c) within the member states' exclusive competence. Should the entire EUSFTA agreement be found to be under the EU's exclusive competence, it would only have to be approved by the Council of the EU and the European Parliament. The agreement would enter into force thereafter on a mutually agreed date. The Advocate General's preliminary opinion released on 21 December 2016 opined that the EUSFTA should be deemed a "mixed agreement" with areas of shared competence between the EU and member states. If the ECJ takes the same view, it would mean that the agreement has to be approved by the Council of the EU, the European Parliament as well as the 38 national and regional parliaments of all member states. However, the provisions in the agreement deemed to be under the EU's exclusive competence would be provisionally applied and take effect once the Council of the EU and the European Parliament have approved. In comparison, provisions that are under shared competence or member states' exclusive competence would have to go through domestic ratification processes in all member states before they can take effect. The ECJ's final opinion, which is deliberated by a full court of 28 Judges, is typically released three to five months after the Advocate General's preliminary opinion. Singapore is actively working with the EU and member states to ensure that the EUSFTA can proceed with ratification as soon as the ECJ delivers its final opinion so that businesses can reap its benefits as soon as possible.
Plans to Deepen Singaporeans' ICT Capabilities›Written Answers to Questions2 turns · 465w
· 0 highlighted
written-answer-3455
Mr Desmond Choo53 words
[+1 sentence]asked the Minister for Communications and Information (a) what is the Government's plan to deepen our younger Singaporeans' ICT capabilities so that they are equipped to seize opportunities of tomorrow; and (b) how can the Ministry ensure that ICT and digital training classes such as coding classes are accessible to less privileged Singaporeans.
Assoc Prof Dr Yaacob Ibrahim412 words
[+16 sentences]Digital technologies are transforming the way we live, work and play. Increasing digitalisation poses fresh challenges to traditional industries and business models, but also offer exciting opportunities for the bold and enterprising. As the Committee on the Future Economy noted, Singapore must harness the opportunities in the digital economy, by transforming our businesses and people to be digital ready. The Ministry of Communications and Information (MCI) has many programmes to help our people do this. For infocomm technologies (ICT) professionals, we launched the TechSkills Accelerator (TeSA) last year to train and upskill professionals into ICT job roles. We have made good progress, with over 8,000 professionals trained as at end-2016. In fact, the Company-Led Training programme, which encourages ICT companies to provide On-the-Job (OJT) training to individuals beyond what they intend to hire has seen 100% of trainees successfully placed into jobs after their training period. In addition, for non-ICT professionals who have aspirations to pursue an ICT career, they can consider our Tech Immersion and Placement Programme, which uses short immersive courses to train professionals with essential ICT skills so as to facilitate their placement into ICT jobs. We will continue to step up efforts to train more professionals, and ensure that Singaporeans, including young professionals, are able to seize opportunities in the digital economy. In a world where digitalisation is more pervasive, we recognise the value in going beyond training ICT professionals, to imbuing every Singaporean with a good understanding of ICT so that we all thrive in the digital economy. To interest and prepare school-going Singaporeans in ICT skills, the Infocomm Media Development Agency (IMDA) and the Government Technology Agency have programmes, such as Code@SG and Hour of Code, to inspire students and develop their coding and computational thinking skills. Starting this year, IMDA will be extending Code@SG's Code for Fun enrichment programme to all primary and secondary school students. In addition, IMDA also runs the Industry Preparation for Pre-Graduates programme, to equip students with relevant skillsets for a career in ICT, through work attachments, courses and overseas internships. MCI fully agrees that we must bring every Singaporean, especially the less privileged, along with us on our digital journey. The above programmes are accessible to all Singaporeans regardless of age and socio-economic status. In addition, IMDA today also runs digital inclusion programmes, such as the NEU PC Plus and Home Access Programme, to give low-income households, the elderly and persons with special needs access to computers and broadband connectivity.
Groups Most Vulnerable to Online Drug Peddling and Recidivism Rate of Drug Abusers Aged 20 to 29›Written Answers to Questions2 turns · 522w
· 0 highlighted
written-answer-3456
Mr Desmond Choo59 words
[+1 sentence]asked the Minister for Home Affairs (a) which are the groups most vulnerable to online peddling of drugs; (b) what is the rate of recidivism for drug abusers between the ages of 20 to 29 over the last three years; and (c) how is the Ministry working to reduce drug abuse in the age group of 20 to 29.
Mr K Shanmugam463 words
[+25 sentences]Law enforcement agencies worldwide face the emerging challenge of tackling online drugs sale. Traffickers and drug abusers can trade drugs anonymously on online black market websites. This makes it difficult for law enforcement agencies to detect and apprehend the offenders. We also face this challenge in Singapore. The Central Narcotics Bureau (CNB) works closely with partners, such as the Immigration and Checkpoints Authority (ICA) and courier companies, to detect and take action against online drug trade. In 2016, CNB arrested around 200 persons for buying drugs and drug-related paraphernalia online. The majority of these persons were between the ages of 20 and 39 years old. These individuals are vulnerable to the online sale of drugs as they are tech-savvy and are familiar with online transactions. While the total number of drug abusers arrested fell in 2016, there was an increase in the number of new drug abusers arrested. Close to two-thirds of all new abusers arrested were under the age of 30. This is an area of concern. The two-year recidivism rate for drug abusers between the ages of 20 and 29 has been around 34% to 36% in the last three years: Preventive drug education (PDE) is our first line of defence in the fight against drug abuse. This is especially true for younger persons, including those between 20 to 29 years old. CNB reaches out to them through multiple channels. CNB partners key influencers in the community to spread the anti-drug message. For example, National Service (NS) Commanders have regular interaction with their NSmen and are well placed to detect signs of drug-related problems. CNB launched the NS Commander Toolkit in June 2016 to equip them with information on drug abuse as well as how to identify and steer potential abusers away from drugs. CNB is also building a community of advocates who will spread the anti-drug message among their peers. Some of our initiatives to advance advocacy for a drug-free Singapore include the forming of the United Against Drugs Coalition and the Anti-Drug Abuse Advocacy (A3) Network. Through these programmes, we aim to mobilise the community to support our zero tolerance approach to drugs. CNB is also enhancing its online presence. CNB uses social media to reach out to this group of abusers to share information about the dangers of drugs, including how drug abuse can harm the abuser’s family and loved ones. In addition to CNB's engagement and PDE efforts, we need rigorous enforcement to keep drugs away from our young. CNB maintains a tough stance against drugs and will not let up on its efforts to arrest drug traffickers who sell to our young. CNB will continue to address the trends of youth drug abuse and online drug peddling through a comprehensive approach of enforcement, education and engagement.
Recidivism Rates of Drug Rehabilitation and Long Term Imprisonment Cohorts Released from 2012 to 2014›Written Answers to Questions2 turns · 207w
· 0 highlighted
written-answer-3457
Mr Louis Ng Kok Kwang43 words
[+1 sentence]asked the Minister for Home Affairs for each year from 2012 to 2014 what are the recidivism rates for the release cohorts from (i) the Drug Rehabilitation Centres (ii) the Long Term Imprisonment 1 regime and (iii) Long Term Imprisonment 2 regime, respectively.
Mr K Shanmugam164 words
[+7 sentences]The two-year recidivism rates for persons released from the Drug Rehabilitation Centre (DRC), Long-Term Imprisonment 1 (LT1) and Long-Term Imprisonment 2 (LT2) from 2012 to 2014 are as follows. The recidivism rates in recent years for drug inmates have fallen significantly from 60% to 70% in the 1990s. In the past few years, several new programmes were introduced to better support the rehabilitation of DRC and LT inmates. Singapore Prison Service (SPS) introduced the Enhanced Supervision Scheme (ESS) in 2012 to provide more intensive support for high-risk Long-Term Imprisonment inmates. They undergo a psychology-based programme during incarceration as well as mandatory casework, individual counselling and community supervision after their release. The Prisons Act was also amended in 2014 to introduce the Mandatory Aftercare Scheme, which provides structured supervision to high-risk offenders as they transition back into the community. In 2014, SPS launched the enhanced Drug Rehabilitation Regime which placed DRC inmates on tailored programmes based on their re-offending risks and severity of drug use.
Revocation of Lasting Power of Attorneys›Written Answers to Questions4 turns · 1,260w
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Asst Prof Mahdev Mohan62 words
[+1 sentence]asked the Minister for Social and Family Development to date, how many Lasting Power of Attorneys (LPAs) or similar instruments have been revoked due to fraud or undue pressure being used to induce the donor to enter into them and due to the donee behaving in a way that contravenes his authority or in a manner not in the donor's best interests.
Asst Prof Mahdev Mohan67 words
[+1 sentence]asked the Minister for Social and Family Development since the last amendments to the Mental Capacity Act came into effect in 2016 (a) how many orders of suspension have been made where there is a risk of dissipation of the donor's property; and (b) how many errant donees, deputies or prescribed certificate issuers have been dealt with by the courts or the Office of the Public Guardian.
Asst Prof Mahdev Mohan80 words
[+1 sentence]asked the Minister for Social and Family Development (a) what are the safeguards to ensure that a certificate issuer verifies that the donor understands the purpose of the Lasting Power of Attorney or a similar instrument and the scope of the authority conferred under it; (b) whether the Ministry will add further safeguards against abuse by donees or deputies; and (c) whether pro bono legal advice will be afforded to donors in the absence of a professional donee or deputy.
Mr Tan Chuan-Jin1051 words
[+44 sentences]Since its inception, the Office of the Public Guardian (OPG) has processed around 1,000 Lasting Power of Attorney (LPA) revocations as at end January 2017. This represents approximately 4% of the LPAs accepted as at end January 2017. The overwhelming majority (98%) of all revocations are due to death of the donor or done, or because the donor decided to make a new LPA. Section 17(3) of the Mental Capacity Act (MCA) allows for the Court to make a determination on an LPA if the Court is satisfied that fraud or undue pressure was used to induce the donor into making an LPA. To date, the Court has not revoked any LPAs under this clause. To better protect those without capacity, the Ministry introduced a new section (section 36A) of the MCA in March 2016. Now the Public Guardian can go to Court and apply for a suspension order to preserve the donor's assets where there is clear evidence that a donee or deputy has acted in a way which compromises the interests of the donor and there is no one else to protect him. Once the Court makes the suspension order, OPG will annotate on the original LPA that the LPA is suspended. This information is uploaded on its website so that third parties can check and not proceed with any transactions. The appointed donees and deputies would no longer be able to make decisions and act on behalf of the donor for the time period as stipulated in the Court order. Since the amendments came into effect, the Public Guardian has acted in two cases. She has applied to Court in one case to suspend a donee’s powers and revoke the LPA. She has also filed an application to revoke the powers of a deputy. As both cases are still pending in Court, we are unable to provide more details of the cases. An LPA certificate issuer is required to sign on the LPA certificate to state that he had seen the donor and is of the opinion that the donor understands the purpose of the LPA and the scope of the authority conferred under it. He has to satisfy himself that no fraud or undue pressure was used to induce the donor to make the LPA and there is nothing else that would prevent the LPA from being created. Due to the crucial safeguarding role played by an LPA certificate issuer, the OPG has engaged the Law Society, the Singapore Medical Association and the Singapore Psychiatric Association so that their members understand the roles and responsibilities of a certificate issuer. For doctors who are not specialists in psychiatry, they are also required to undergo an online course administered by the Singapore Medical Association before they can be accredited by the Public Guardian. OPG takes a serious view of breaches made by certificate issuers and will not hesitate to bring them to Court or report them to their professional bodies if they breach their professional duties. To date, OPG has reported one case of professional misconduct of two lawyers to the Law Society, for their investigation. The original LPA application signed by a first lawyer was rejected because of her relationship to the donee. She then asked a second lawyer to sign off on the LPA as the certificate issuer, which he did without meeting the donor. After the OPG report, the Law Society started disciplinary proceedings against the lawyers involved in this one case. The matter was determined to be serious enough to be referred to the Court of Three Judges. The Court found that both lawyers had acted improperly and suspended the first lawyer from practice for 2.5 years. The second lawyer was suspended for one year. These lawyers can no longer practice law during the periods of suspension. The MCA has also a "whistle-blower" clause to protect the identity of a whistle-blower in a report of ill-treatment of a person who lacks mental capacity. Thus, anyone who knows, suspects or believes that a person who lacks capacity is not properly looked after and/or needs care or protection can report this to the OPG. The same whistle-blowing measure applies for deputies who have been appointed by the Court. In addition, deputies have to submit an annual report containing information on major decisions made by the deputy in the past year, for the Public Guardian's review. If there are areas of concern highlighted through a report, the Public Guardian will take the appropriate action to safeguard the person’s well-being. These few cases form a very small proportion of the thousands of LPAs made, accounting for only about 0.003% of all LPAs submitted. The vast majority of all certificate issuers act diligently and honestly in carrying out their professional duties. We also need to balance against having excessive safeguards measures which makes the LPA less accessible to many Singaporeans. This is why we encourage donors to choose their donee wisely, and to inform their families and loved ones of their decision. My Ministry also understands that there are costs involved in the making of an LPA. In order to encourage more Singaporeans to make an LPA, the application fee waiver for Singaporeans putting in place a basic LPA has been extended till 31 August 2018. While there is still a professional fee involved to engage a certificate issuer to act as a witness to the donor's statement in the LPA and issue the required LPA Certificate, there is also a social service agency, Lifepoint, which offers help to senior citizens. They organise LPA sessions and work with lawyers to help the elderly get their forms certified at a lower cost. The OPG website also identifies a list of accredited medical practitioners who are the most active and may offer applicants a more competitive rate for most of the cases they see. Families in financial difficulty can also seek legal assistance from the Legal Aid Bureau under the Ministry of Law to file the deputyship application. Applicants will have to go through a Means Test and Merits Test to qualify for legal aid. When choosing to make an LPA, it is important that the donor appoints someone he trusts, and whom he knows can make the best decisions on his behalf in future if he should become vulnerable one day.
Enhancing Capabilities to Care for Children with Autism›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 595w
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Mr Desmond Choo57 words
[+1 sentence]asked the Minister for Social and Family Development (a) how is the Ministry enhancing the capabilities of caregivers and parents to care for children with autism; (b) how are preschool teachers provided with the requisite training to teach children with mild autism; and (c) how can the community play a role in helping autistic children to learn.
Mr Tan Chuan-Jin538 words
[+23 sentences]Children with Autism Spectrum Disorder may have needs that range from mild to severe. For those with moderate to severe needs, they are referred to the Early Intervention Programme for Infants and Children (EIPIC). EIPIC provides learning and therapy intervention for zero to six-year-olds at risk of moderate to severe disabilities, including autism. EIPIC services are currently available at 19 Voluntary Welfare Organisations centres located across Singapore. EIPIC centres train and involve parents and caregivers in the intervention for their child. This equips parents and caregivers to better care for their children with special needs, and the child also benefits when the intervention continues at home. In addition, children in EIPIC may also attend preschool for education, inclusion and childcare. In such cases, the EIPIC centres will work with the child's preschool teacher on strategies and tips on how best to engage the child in the classroom and in activities. The Ministry of Social and Family Development, with the Early Childhood Development Agency, has worked with training institutes and educational providers such as Ngee Ann Polytechnic in rolling out specialised training such as the Specialist Diploma in Early Childhood Learning Support and the Advanced Diploma in Early Childhood Intervention (Special Needs) to equip EIPIC teachers, Learning Support Educators (LSEds) and classroom teachers in preschools with the necessary skills to support children with a range of developmental needs. LSEds provide targeted short-term intervention for children with mild developmental needs and guide preschool teachers in integrating these children in the classroom setting. The community has a crucial role to play in supporting children with special needs. Children with special needs should be accommodated in community activities and play settings, so that they can learn and grow together with typically developing children. The inclusive playgrounds in our community are a good example where accommodations enable interaction between children with special needs and their typically developing peers. Such inclusions pave the way for the community to become more open and supportive towards children with special needs and their caregivers. Corporate and individual contributions, coupled with a grant from the Care & Share Movement, were used to fund the five inclusive playgrounds built by NCSS. These playgrounds were the fruits of a very successful 3P (public, private and people) collaboration. We hope that there will be many more such partnerships and collaborations in building inclusive facilities, or creating inclusive settings. In the education system, the Ministry of Education (MOE) seeks to enhance integration between students in mainstream and Special Education (SPED) schools by facilitating meaningful and purposeful interactions between these two groups of students. Under the MOE's satellite partnership model, some SPED schools practise "social integration" with their mainstream partners. Others like Pathlight School allow their students to join their mainstream peers in class. The satellite partnerships enable students in SPED schools to remain integrated with the larger community. We will like to encourage corporates and community agencies and groups to actively create opportunities for better integration and inclusion of children with special needs, through the infrastructure or programmes they put in place, or the activities they organise. Our society can do more to enable these children, like any other child, to realise their true potential as they become integral members of society.
Multi-lingual Guide on Appointing Lasting Power of Attorney›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 498w
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Ms K Thanaletchimi74 words
[+1 sentence]asked the Minister for Social and Family Development (a) whether a simple guide in various languages has been produced to assist Singaporeans who are in need of a Lasting Power of Attorney (LPA) to sign up for it; (b) whether a comparative study has been done on the extensiveness of Singaporeans seeking LPAs compared to other developed nations; and (c) what measures are there to safeguard the public from errant lawyers who facilitate LPAs.
Mr Tan Chuan-Jin424 words
[+18 sentences]Since the Mental Capacity Act (MCA) came into effect on 1 March 2010, the Office of the Public Guardian (OPG) under my Ministry has made available various resources to guide interested individuals in making their LPAs. These include a guidebook on the LPA, guidebook for donees and a Step by Step Guide to completing the basic LPA form, which is supplemented by a video guide. Most of these resources are available in all four official languages. I encourage interested applicants to review these resources from the OPG website when preparing their LPA applications. As at 31 January 2017, 35,926 LPA applications have been received by the OPG, accounting for about 1% of the total Singaporeans and Permanent Residents population aged 21 and above. As Singapore's MCA is modelled after England and Wales, we looked at the United Kingdom for a quick comparison. In England and Wales, about 4% of their eligible population have made an enduring power of attorney or LPA. Similarly, about 3% of Scotland's population have done so. While these figures are higher than in Singapore, it should be noted that these jurisdictions started much earlier than us, some even as early as 1986. My Ministry recognises that we still have some way to go in getting more Singaporeans to plan ahead and make an LPA. Hence, I would like to reiterate that the application fee waiver for Singapore Citizens making an LPA Form 1 has been extended till 31 August 2018. We hope that more will take advantage of the fee waiver to pre-plan for ourselves and give our families peace of mind in future. We will also continue to increase awareness on the LPA. LPA certificate issuers, who are professionals from the medical and legal sector, perform an important safeguarding role in the whole process. The professional is required to see the donor and has to, in his professional opinion, ensure that the donor understands the purpose and content of the LPA, and that he is not forced to make one under pressure or duress. The certificate issuer does so by signing off on the LPA Form. OPG also takes a serious view of breaches made by certificate issuers and will not hesitate to bring them to Court or report them to their professional bodies if they do not conduct their duties in a proper manner. If anyone has knowledge that a certificate issuer had not carried out his duties properly, he may inform the OPG or alert the respective professional bodies so that the matter can be looked into.
Deciding between Pedestrian Overhead Bridges and Pedestrian Crossing›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 100w
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Ms Sun Xueling39 words
[+1 sentence]asked the Minister for Transport what are the planning parameters to decide on where and when to build pedestrian overhead bridges and what are the cost-benefit considerations to decide between building a pedestrian crossing versus a pedestrian overhead bridge.
Mr Khaw Boon Wan61 words
[+3 sentences]Our preference is to build at-grade crossings, rather than pedestrian overhead bridges, as they are barrier-free and more convenient for the elderly, families with strollers and persons with disabilities. However, there are instances where at-grade crossings are dangerous, for example, across major roads with fast-moving traffic, or may cause serious traffic congestion. In such cases, we will provide pedestrian overhead bridges.
Bus Regularity Following Implementation of Bus Service Reliability Framework›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 202w
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Mr Liang Eng Hwa64 words
[+1 sentence]asked the Minister for Transport (a) whether bus regularity has improved following the implementation of the Bus Service Reliability Framework (BSRF); (b) how much incentives have been paid and how much penalties have been received; (c) what are the feedback received and whether commuters' travel experience have improved; and (d) whether there is a need to fine-tune the framework three years into its implementation.
Mr Khaw Boon Wan138 words
[+8 sentences]The Bus Service Reliability Framework (BSRF) was introduced as a trial for 22 bus services in February 2014 and expanded to another 23 services in December 2015. We observed less bus bunching for these services. In the assessment period from December 2015 to August 2016, bus service regularity had improved for all 45 services. There was a 20% reduction in average additional wait times. A total of $3.4 million was paid out in incentives over this period and no penalties. Based on the experience of the trial, we have tightened the baseline standard and decided to incorporate the BSRF within the bus contracting model. For 108 services for which we implemented BSRF from September 2016, we have observed a 15% reduction in average additional wait times. Any incentive or penalty will be paid out after a year's performance.
Crimes Committed by Persons who Act on Behalf of Companies›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 226w
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Mr Murali Pillai45 words
[+1 sentence]asked the Minister for Home Affairs whether the Ministry will consider introducing an offence for commercial organisations that fail to prevent the commission of economic crimes such as bribery, fraud and money laundering by persons who act on their behalf such as employees and contractors.
Mr K Shanmugam181 words
[+9 sentences]Singapore takes a tough stance on economic crimes, such as bribery, fraud and money laundering. Our rates of economic crimes have been low. We are consistently ranked among the least corrupt countries. Commercial organisations, such as companies, are also liable under the law if they commit these economic crimes, or abet the commission of these offences by their employees, contractors, or any business partners. There have been cases in the past where companies were charged for such offences. The current legislative and regulatory levers we have to take action against errant companies are adequate. At this point, there is no need for a further specific provision to penalise a company for failing to prevent a crime from taking place, where the company did not commit and did not abet committing the crime. To ensure that companies adopt good corporate governance practices, the Companies Act imposes various obligations on company directors who provide stewardship of companies. In addition, the Code of Corporate Governance sets out corporate governance best practices for listed companies to comply with or explain any deviation from these practices.
Handling of Arson Attacks in MRT Trains›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 653w
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Mr Desmond Choo54 words
[+1 sentence]asked the Minister for Home Affairs (a) how are the Home Team and public transport operators prepared to handle arson attacks in the MRT trains; (b) how can the public be involved to support Home Team's efforts; and (c) how can Singapore's readiness to respond to attacks in our public transport system be enhanced.
Mr K Shanmugam599 words
[+26 sentences]Our Home Team Departments and the Public Transport Operators (PTOs) are prepared to deal with emergencies in Mass Rapid Transit (MRT) trains, including fires. In the event of a fire, the automatic fire detection system in the train will be triggered to alert the station staff and the Singapore Civil Defence Force (SCDF). There are established procedures to evacuate commuters to safety and to deal with different situations, regardless of whether the fire occurs when the train is at the station or on the tracks. Upon arrival, the SCDF will put out the fire, rescue and provide medical assistance to the injured, while the Police will maintain law and order. The Home Team Departments and the PTOs conduct regular exercises to validate and familiarise ground officers with such emergency response protocols. The cause of the fire may be deliberate. In the evening of 10 February 2017, a 60 year-old man tried to hurl a lit Molotov cocktail into a packed MTR train in Hong Kong. The incident resulted in injuries to commuters and disruption to the MTR's services. Arson attacks such as these, whether the act of a criminal or a terrorist, call for a heightened level of vigilance and preparedness. The Police formed the Public Transport Security Command (TransCom) in 2009 to conduct security patrols of our public transport system, including our MRT trains and stations. TransCom officers are trained to look out for suspicious persons and approach them for further checks. They are also the first line of response to any security incidents in the public transport system. The community plays an important role in our efforts to fight terrorism on a sustained basis. SGSecure was launched to sensitise, train and mobilise Singaporeans to play their part to prevent and deal with a terrorist attack. The Home Team has developed advisories and applications to equip and prepare our community in the event of an attack. These include: (a) The "Run, Hide, Tell" advisory which guides the public on how to respond when an attack occurs. (b) The new SMS71999 platform to allow the public to SMS the Police if they see something suspicious. (c) The Police@SG app's i-Witness function which enables users to point, shoot and send information on major incidents and crime to support Police's investigation. (d) The "Improvised First Aid Skills" advisory which teaches the public how to use everyday items to help administer first aid to injured persons in the event of an attack. (e) The SG Secure E-learning package which allows the public to carry out e-learning at their own pace and pick up useful survival skills to stay vigilant, cohesive and resilient. Since the launch of the SGSecure movement, the Ministry of Home Affairs has been working closely with the Land Transport Authority and the PTOs to equip frontline staff with knowledge and skills to respond to a terror attack. The PTOs currently train some of their staff in first aid, including cardiopulmonary resuscitation and the use of the automated external defibrillator. The PTOs also support SGSecure's public awareness efforts by putting up relevant safety advisories, such as Run-Hide-Tell and Improvised First Aid Skills in MRT stations. Video messages that remind commuters to be vigilant are also broadcasted at the station platforms and in the trains. The Home Team will continue to work with the PTOs to build on the current training and outreach initiatives, including conducting exercises that enhance their preparedness in the event of a terror attack. One such example was Exercise Heartbeat which involved one of the PTOs conducted in September 2016 at Bishan Bus Interchange and Junction 8.
Medical Chits from Doctors not in Company-assigned Panel›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 259w
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Ms K Thanaletchimi78 words
[+1 sentence]asked the Minister for Manpower (a) whether all companies recognise medical chits from Singapore-registered doctors when an employee seeks medical care from clinics outside the companies' panel of doctors; (b) in the last three years, how many cases have been reported where an employer has deducted the salary of an employee when the medical chit is from a registered doctor who is not from the company's panel of doctors; and (c) how does the Ministry handle such cases.
Mr Lim Swee Say181 words
[+9 sentences]Under the law, employers are to provide paid sick leave when an employee covered by the Employment Act is issued a medical certificate (MC) by a Government or company-approved doctor, and to bear the costs of the medical consultation. Notwithstanding this, many employers go beyond the statutory requirements by granting paid sick leave for MCs issued by any registered doctor. In the last three years, no cases of salary deductions related to unrecognised MCs have been filed in the Labour Court. There is no statutory or contractual breach in such cases. However, the Ministry of Manpower (MOM) has received a yearly average of about 15 queries of this nature. This number has not increased. Employers should ensure that their panel of approved doctors are accessible to their employees. Under extenuating circumstances, such as a medical emergency, employers are urged to exercise flexibility to provide paid sick leave when the employee seeks medical attention from a doctor who has not been approved by the company. Employees who require assistance can approach MOM, or the Tripartite Alliance for Dispute Management from April 2017.
Tree Inspections and Liability for Damages Related to Falling Trees›Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 169w
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Mr Zainal Sapari39 words
[+1 sentence]asked the Minister for National Development (a) whether the regular inspections of trees are done by NParks staff or outsourced to a landscape company; and (b) whether the public liability insurance by NParks covers damages due to natural causes.
Mr Lawrence Wong130 words
[+8 sentences]Trees under the National Parks Board's (NParks') purview are regularly inspected by NParks’ Certified Arborists. Inspections are not outsourced to landscape companies. Beyond regular inspections, NParks prunes trees to make them more resistant to storms. NParks also substitutes storm-vulnerable species like the Albizia with hardier trees. This comprehensive tree management programme has been effective in reducing the number of tree incidents by more than three-fold since 2001. Having said that, trees can fall despite our best efforts. When accidents happen due to natural causes, NParks’ public liability insurance only covers claims where NParks is shown to be negligent. If NParks has exercised its duty of care in keeping to its tree management regime, the insurance will not pay out as NParks would not be culpable for circumstances beyond its control.
[+21 sentences]Mdm Speaker, like many of my colleagues in this House, I sought and received feedback and comments from residents and many others about the Budget. There are concerns about rising costs of living and great discomfort with the uncertain times ahead and the changes that Singaporeans are expecting to go through. I think it is clear to Singaporeans that it is not business as usual. People are more aware of the deep shifts in the world with the advances in technology and the disruptions to traditional businesses and jobs. The shopkeepers in my estate know that business is dwindling partly because people now buy online. Most of them are old and their children are generally not interested in taking over the business. They are not sure whether to continue to invest in the business, especially as they are uncertain as to how long more they can sustain the lease. Some shopkeepers are concerned about future income. A resident I met recently sought help to re-enter a course he signed up for to upgrade himself. He failed to meet the grades required of the school and was terminated a few months into the course. He knows he has to work hard to keep up, but picking up a new skill and studying while still working are challenging. I also know of a young couple with seven young children. The husband is the sole-breadwinner. He is keen to find a better paying job and his wife is also keen to work to supplement the family's income. However, they are saddled with bills and debts and have no alternative options for childcare. They are, therefore, struggling to survive and have difficulties making the time to upskill so that they can participate actively in the future economy. These are some real day-to-day concerns and struggles faced by our fellow Singaporeans. I do not intend to paint a gloomy picture. In the cases I mentioned, some guidance and support are being given to the individuals and families. I also know of a lot of people who have overcome difficulties and I believe that people do need to take personal responsibility to improve their circumstances. But the point I would like to make is that we will always have to keep in mind the day-to-day issues people face and ensure that the translation of our policies can alleviate these concerns. Budget 2017 sets out a broad roadmap for the way forward as a nation. It has been described by some as a Budget for the Uncertain Future. In his speech, the Minister for Finance, Mr Heng Swee Keat, said that Budget 2017 outlines how we can thrive in an uncertain and rapidly changing world. It is a call for all of us to pull together − the Government, firms, unions, community organisations and individuals ‒ with everyone doing his part.[+19 sentences] He added that our bonds will help us develop greater resilience in the face of unexpected shifts and improve our ability to adapt. There are gems within the Budget with regard to the plans to re-energise the economy. I have faith that the efforts in industry transformation, internationalisation, improving capabilities of businesses and workers will go a long way in building a stronger economy. However, the Budget is not just about the economy and fiscal needs but should also be a roadmap on society's values and support network. I am happy to note that the Budget had also covered plans on building a caring and inclusive society. I feel that it is important that we give a little more attention to this aspect and consider the development of our social policies in light of the changing trends in the world. In this regard, there are three main areas I wish to address. One, how do we help the vulnerable and disadvantaged in our community survive in the competitive economy? Two, how do we rally people to care about one another and the environment while they face their own challenges? Three, how can we harness existing resources within the community, in particular, amongst the young, to work together to build Singapore's future? My first point relates to those who may be vulnerable or disadvantaged in our community. It is important for us to ensure that they do not get left behind in our race to develop our economy. This may sound cliche, but it is real. Who will be disadvantaged? I am referring to the elderly who have to struggle with the technological and digital developments; the children from low-income families whose parents may not have the time and money to send them to enrichment classes; persons with disabilities which may inhibit them from participating actively in the competitive job market; caregivers of the elderly who have to stay home to care for their loved ones. There is a whole spectrum of people with varying needs. The Government needs to ensure that it does not lose sight of them in crafting policies and programmes. The reality though is that it is unrealistic to expect the Government to extend help to every single individual. A more feasible way is to encourage the growth of a community network of support, with organised voluntary welfare organisations (VWOs) as well as organic groups. These groups or people can help fill in the gaps by looking out for those who need support and provide the help when needed. I, therefore, support the plans in strengthening community bonds by enhancing the funding and development of capabilities to VWOs, charities and self-help groups.[+9 sentences] It is important to extend the support and funding to organic groups as well. Last year, there was mention of Our Singapore Fund. I would like to hear about the usage of this fund and whether there are plans to develop it further. This leads me to my second point, about rallying people to help one another. It is very easy for people to forget about others when they are caught up with their own issues and difficulties. Most times though, people can support one another and there are always avenues to pay it forward. There should be efforts to create and promote a culture of giving back to the community through education and conversations with people in the community. I laud efforts like SGCares and hope it gains stronger momentum amongst Singaporeans. On the ground, we can continue to develop platforms for people to give a little time and support to others. For example, at Bukit Batok East, we have Project Giveaway Gateway initiated by the Youth Executive Committee.[+1 sentence] It is basically a platform for residents to make Requests and Offers and the Community Club will assist to match the needs and offers of support. At the end of last year, the team organised a Back-to-School edition and many residents came forward to purchase vouchers for school shoes which are then donated to children from needy families.[+6 sentences] People should also be encouraged to continue taking care of the environment. In keeping with the theme of a Budget for the future, I am happy to see the initiatives which pave the way towards a greener Singapore. I trust there will be further efforts introduced to continue encouraging environmental consciousness. At this juncture, I declare that I am a board member of the Singapore Environmental Council. I am of the view that any future efforts need to be realistic and sustainable. The programmes need to connect with the people on the ground. Two issues that have been raised in the past few years can be revived or rolled out in a more sustainable manner: (a) dealing with food wastage and (b) the over-use of plastic bags.[+15 sentences] I would like to hear more about the Government's plans in these areas and any future efforts to sustain environmental awareness in Singapore. My third point relates to harnessing our existing resources in the community. In the past one and a half years as a Member of Parliament, I have been approached by several young people, some of them living in my estate and who are looking to do projects to help the community. This is heartening and such enthusiasm should be nurtured and encouraged. I note there are many existing programmes for youths and platforms for them to express their views and obtain grants to carry out community projects. At the local level, more can be done. Grassroots organisations, VWOs and charities can work together with youths within the neighbourhood to create solutions that can benefit the local community. Mdm Speaker, allow me to say a few words in Malay. (In Malay): Over the past year, I had the chance to chat with and engage many people, including students, grassroots leaders, professionals, volunteers and housewives from the Malay-Muslim community. Initially, I was worried because I observed a lack of concern or sense of urgency about the ever-changing economic situation and the need to upskill to tackle the new economy. However, recently, I have seen a change in the mindsets and attitudes of our community. Many of them frequently asked about opportunities to upgrade themselves and many have taken the step to acquire new skills. This awareness should be increased and guidelines to understand and use the available resources should be made clear. In this regard, I feel that the Malay-Muslim bodies can play an important role in providing the assistance and platform for our community to prepare themselves in acquiring the knowledge and skills to face the new economy. There are, indeed, efforts being done. For instance, the establishment of the Future Ready Unit at Majlis Pendidikan Anak-Anak Islam (MENDAKI) and the SkillsFuture Service Touchpoint at the Association of Muslim Professionals (AMP).[+3 sentences] These efforts must be continued and expanded. My view is that every Malay-Muslim body needs to be aware of our nation's development and direction at the national level. Programme planning and framework structuring must be in line with the direction that our country is heading to, so that we can help our community progress and be able to compete together with the other communities in this large family that we call Singapore. Another issue that I think is important for us to think about is the social changes sweeping across the world today. There are events happening in other countries that may have an impact on the lives of Singaporeans, for instance, and in particular, the spread of Islamophobia.[+9 sentences] Singapore is unlike other countries because our society is different. As a society, we treasure the harmony among the different races and religions. Nonetheless, we cannot take this sense of comfort for granted. Constant effort is required to foster inter-racial relations. We must always maintain a good relationship with our neighbours and colleagues so that we can rely on the strong bond that we built when we are faced with challenges. (In English): I note that Minister Heng had said that we will take a learning and adaptive approach, try new methods, continue with them when they work well, cut losses when they do not and draw on feedback and experience to adjust and refine our plans. I believe this would also refer to our social policies as well. This is a practical approach and it is important in ensuring that we keep pace with the uncertain and changing world. I stand in support of this Bill.
Mdm Speaker3 words
[+1 sentence]Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh)2374 words
[+11 sentences]Mdm Speaker, I rise to thank the Minister for Finance for delivering a good Budget that can spur long-term growth in our economy during this challenging time. I am grateful to be given the opportunity to serve on the Committee on the Future Economy (CFE), whose recommendations are broadly reflected in this year's Budget. This era is marked by rapid changes in technology, which is exciting because this presents many new possibilities for productivity. Indeed, this bright spot is, unfortunately, slightly clouded by the growing push from globalisation. It was the emblem of the United States (US) Presidential Elections. We may see more of it when other European countries go to the polls later this year. Concerns were raised of their impact on an already dull economic forecast. For Singapore, the policies of the Trump Administration may contribute to a slowdown in foreign direct investments from the US. Thus, it is good that we look at other areas for growth. CFE has rightly shifted its focus from just productivity to healthy sustainable growth by looking at new opportunities. CFE identified seven strategies to achieve growth. Charting our route ahead will enable us to steer our ship clear of the reefs. It is imperative that we develop and implement the Industry Transformation Maps (ITM) for important industries in Singapore. I am pleased to note that 23 industries, and about 80% of the economy, are set to benefit from these maps.[+21 sentences] I would now like to discuss three areas where we can add to these maps, particularly from a social point of view. First, inclusive and sustainable growth. Equality is key to promoting inclusive and sustainable growth. The political lessons from the US and United Kingdom elections point to a failure to reconcile the vast differences between the voters. Globally, policymakers will be hampered by widening chasms, how to meet the needs and aspirations of the middle class and the rise of populism. It is vital that we recognise and prioritise the need to reduce gaps in living standards. In order to sustain public confidence in the various Government schemes, like the SkillsFuture Credit, that promote upscaling skills and continuing education, as well as various technological advancements, we must assure everyday Singaporeans that the Government is working to support the aspirations of all Singaporeans to have higher living standards and no erosion in social mobility. The World Economic Forum commends Singapore for faring well in many areas. But we ranked low in gender equality in the workforce. We are still struggling to improve female participation in the labour force and narrowing the gender pay gap. Measures were introduced to encourage men to play a more active role in fatherhood, through paternity leave, for example. However, parenthood does not stop at the baby stage. More needs to be done in this area. Tax reliefs for working mothers are well and good but, ultimately, the root problem must be solved − in my view − by creating a family-friendly working environment, without compromising overall productivity and growth. We should lift some of the load off the mother's shoulders, so that she does not feel the need to resign or compromise her work to care for the child. Other forms of assistance to alleviate childcare costs and measures to encourage enhanced flexible work arrangements in the corporate and public sectors for all mothers, including working single mothers with children, will go a long way to alleviate childcare concerns as they struggle to also bring food to the table. My next point in this area is with regard to the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). Even as we talk about help for small and medium enterprises (SMEs) over the past one day − SkillsFuture training, job matching and others − I believe one basic bedrock and core business of Government that we need to enhance further is TAFEP. As it is, most of us in Singapore or Singaporeans are employed, and not business owners. I am an active advocate for a stronger TAFEP. I believe it has greater potential to further eliminate workplace discrimination. In order to do this, TAFEP must be equipped with more teeth.[+1 sentence] Due to the changing social and global labour trends, we have a few groups of people vulnerable to workplace discrimination. They include expectant mothers, older workers aged 45 and above, blue-collar low-income workers and Singaporeans working for foreign companies. I raised this last year and I reiterate my call to Government again to please give TAFEP more investigative and authoritative powers to keep errant employers in check, especially so in this current global labour market, and also one where the gig economy is taking form where we have a rising freelance and contract workforce of experienced specialised talents supporting businesses.[+1 sentence] We need to ensure that these contract or part-time staff are treated fairly and are not exploited by employers. Eventually, this rising number of contract staff should enjoy mandatory employment benefits, such as annual and medical leave and other medical benefits, if possible. We also need to introduce wider laws to make discriminatory hiring and workplace practices illegal and punishable by law.[+7 sentences] Also, as we raise the retirement age for the older workers, we must also look into how in this age of digital transformation, they can be retrained to stay relevant to the workforce. We are a country that thrives on meritocracy, and this must be reflected in our labour market and labour laws, which is one of our most crucial propellers for growth for Singapore. The next point I want to talk about is on helping employees − still within inclusive growth. Minister Iswaran has elaborated at length yesterday that SMEs are our central focus in transforming our economy. Minister Iswaran's speech yesterday has reassured SMEs, in my view. Indeed, some of the short-term relief and targeted help for some sectors were made in this Budget. However, broad social transfers to businesses are taking a backseat this year, as we all know, but I hope more can be introduced. Over a decade ago, one of the measures included helping businesses to cope with various structural shifts and changes to key policies. This includes the SME Rebate Scheme, a two-year assistance to help registered SMEs to adjust to rising business costs due to − at that point in time − an increase in employer CPF contribution rate.[+8 sentences] I hope that, in the future, some of these one-off measures can be rolled out to help SMEs. In the past year, social transfer to SMEs has also been generous. Some SMEs are still struggling to make sense of the schemes though, and some do not have the prerequisites to qualify for the schemes. For example, a lack of SME cash-flow visibility forces some of the banks and financial institutions to place greater emphasis on collateral requirements when assessing SME credit risk, but very often, SMEs are not able to provide such collateral, leading to their loan applications being rejected. I applaud the new International Partnership Fund to help SMEs scale up and internationalise, which is good. But the concern is that it would tend to invest in more established or initial public offering-ready firms. It may not benefit smaller, less-established SMEs which are capable of going into the region as well. I hope the relevant authorities can work closely with SMEs to help them realise their full potential. One direct area of help would be to defer the construction levy hike, and in the scheme of the working capital, to raise the SME loan minimum to $500,000 for Government co-funding, as I feel that the $300,000 amount is quite small for working capital these days.[+2 sentences] The next point is about the tax system. It has been a while since we last reviewed our tax system. In fact, one of the CFE's recommendations is to review and reshape our tax system to keep in step with the changing times.[+7 sentences] Tax incentives should perhaps be given to the sectors that are favourable for our growth. One question I have in relation to the tax review is the concern whether we are taxing the current generation disproportionately, relative to the savings set aside for future generations. The tax review mentioned in this Budget is timely as our funding for social spending is expected to continue to rise. In that sense, I hope the tax review will incorporate all options on the table. Also, the review should broadly not just include more taxes but also Reserves accumulation and formulation of the net investment income. For example, how much flow or revenue is going into Reserves each year and whether it is falling sharply? For example, the possibility of considering a proportion of land sales and recurrent revenue from extension of leases of leasehold land into operating revenue rather than into Reserves, a situation we are seeing now. I also hope there will be a similar Manpower Transformation Map II for our Singaporean workers to get guidance and help. I note that CFE has identified six favourable sectors that promote high growth − the digital cluster, advanced manufacturing, hub services, logistics, urban solutions and infrastructure and healthcare.[+14 sentences] Will more jobs be generated in these sectors, especially for the younger generation? How about the older employees who are not technology- or computer-savvy, but wish to do a mid-career switch? How will they be helped? The second area is professionals, managers, executives and technicians (PMET) stress. Moving on to the next topic, there have been a number of high-profile cases these couple of years whereby large companies have had to retrench some of their staff. Undoubtedly, there must have been more in smaller companies that flew under the radar. These are certainly tough times for businesses, but even more so for the retrenched employees. Our tax filing season is just around the corner, and this brings to mind that those who have just lost a reasonably well-paying job due to retrenchment may find it tough paying for the income tax and other forms of taxes. I would like to suggest tax relief of, say, 20% to 30%, for those who are in such a situation. Alternatively, allow the period for tax payments to be spread out over a longer period of time and allow for income tax payments to be deferred for unique circumstances. My final area of focus is on overcoming global protectionist tides and having diversity in policies. With the more advanced western countries coping with problems of their own and turning inwards, I am, hence, pleased to note that the economic focus is shifting back to our immediate neighbourhood − countries like Indonesia and Malaysia. Now that the cards have been shuffled, we need to examine our approach and explore enhancing our various language policy options to make us the true global trader that we are in Singapore. If we look at the protectionist rhetoric coming out of Washington, then the Indonesian economy is likely to be the least affected in the region, as they are not heavily dependent on the US. As such, I would urge the Government to bring back some element of the Malay connection in the primary and secondary school education system.[+7 sentences] The Malay connection as in the context of reinforcing the relationship with our neighbours, through language and cultural ties, by learning the Malay language. Compared to the older generation, the younger generation are also becoming less adept at the Malay language and understanding the culture as an extra option. As for India, if we tap on the Comprehensive Economic Cooperation Agreement, we could do well to also expose our students to learning Tamil and Hindi as a third language. Madam, in Malay please. (In Malay): For Singapore to remain adaptable and competitive, diversity in education and proficiency in three languages may be necessary. And starting the learning process from a young age is one of the keys to proficiency. I hope the Government will encourage the availability of more language options in schools. Sharing a common language or lingo will go a long way in managing bilateral economic and people-to-people relations. I would also like to suggest that the current work pass schemes for foreigners be reviewed, with a goal of facilitating the entry of more startups to relocate or to anchor their businesses in Singapore. With a growing number of technology startups, and with the US currently making it more difficult for foreigners to enter their country for work purposes, it is an opportune time to attract talent and investments, particularly in the technology sector. It would have a positive impact on our employment rates and upgrading efforts. I am also encouraged to see the launch of the Global Innovation Alliance to help Singaporeans gain overseas experience, build networks and collaborate with others abroad. The Innovators Academy would allow our tertiary students to build networks and capabilities overseas. I hope that within the next five years, we can also include students from our polytechnics and even our Institutes of Technical Education in this scheme.[+6 sentences] Society is at the stage where we increasingly recognise and encourage many different pathways to success and many students who select these institutions have high aspirations and career paths that they would like to pursue. Some are even more confident and clear about their future compared to their GCE "A" level counterparts from the same cohort, for instance. Those who have studied abroad would appreciate that through our interactions overseas, we would benefit from cultural diversity and this would help to open our minds as a community. We are all aware that if we want to broaden and deepen our perspectives on a particular topic, there is value in reading books by different authors on the same subject, and the same thing also applies in terms of policy. (In English): Madam, we are expecting difficult, unpredictable times ahead. If we do not make changes now, many workers may find a bee in their bonnet, worrying about having a job tomorrow. By diversifying our economy, policies, supporting homegrown businesses and keeping the people's morale up, I believe that we will become more adaptable and resilient than ever.[+1 sentence] We have a bright future and this Budget puts us in good stead.
Mdm Speaker4 words
[+1 sentence]Mr Png Eng Huat.
Mr Png Eng Huat (Hougang)1800 words
[+9 sentences]Madam, the geopolitical uncertainty and shifts in policy impacting the international economy, balance of power around the region and free trade may not have fully sunk in yet for the man in the street. But in time to come, it will become a worrying concern in the minds of all Singaporeans, young and old. What the future holds for our jobs, careers and cost of living upon retirement are questions that will creep up eventually. Budget 2017 is a reflection of the uncertain times we are living in today. Although this Budget attempts to address some of the concerns and outlines measures for our economy and society to weather the uncertainties, there is just no certainty in dealing with uncertainties. Some measures may work and some may not. Some measures are judgement calls, calculated at best, clutching at straws at worst, all in the hope that some of them will bear fruits for the economy. Some of the previous Budget measures have gone on to become permanent features of the fiscal policy. Some were given a makeover, hoping that the result will work better this time. But at the heart of all these measures, we must remain focused on what we want to achieve at the end. This year's Budget introduces the SMEs Go Digital programme. The main push is to get SMEs on to the digital bandwagon to improve productivity. The target sectors are retail, food services, wholesale trades, logistics, cleaning and security.[+40 sentences] What does the Government hope to see at the end of this initiative? We have seen this initiative introduced in the past under different packaging. What did the Government learn from the results of the past initiative? Why are the targeted SMEs not embracing the digital revolution, despite the many opportunities to do so in the past? Does the Government want every SME to go digital? And is it even necessary to do so? One of the measures introduced in 2010, the Productivity and Innovation Credit (PIC) scheme, has impacted the food services sector positively. The tablet computer has replaced the hardcopy menu in many restaurants. Customers no longer need to wait to be served to place their orders. The use of technology in this instance is motivated and meaningful. In 2006, then Second Minister for Information, Communication and the Arts, Dr Vivian Balakrishnan, highlighted an example of a local businessman who had embraced infocomm to improve his business. He shared that the dessert stall owner has invested in the touchscreen system to allow customers to place their dining in or take-out orders at the Peoples' Park Complex Food Centre. He cited that the use of technology had brought the owner new business and improved productivity in tracking the stock of the dessert sold and the amount of ingredients left. I visited the dessert shop at the old food centre to see for myself why the shop was worthy of a mention by the Minister at the Opening of 10th InfoComm Commerce Conference in 2006. The dessert shop was manned by two persons: a lady at the counter and a gentleman to prepare the dessert right behind her. Both of them could easily take orders from customers, as the shop was very small. For those who have been to Peoples' Park Complex, you will know what I mean. I proceeded to order via the touchscreen and waited. The lady looked at me in anticipation. I looked back at her and tried to hint with my eyes that I have just ordered my dessert at the touchscreen system. There was a queue forming and she snapped suddenly and said, "Ai see mi", which means "What do you want?" So, the touchscreen system was not broken but it was not much of a use. A decade on, and the use of the touchscreen technology in hawker centres has not caught on. It was more of a novelty than an enterprising productivity tool, as highlighted by the Minister. Madam, there is a lesson to be learnt in what the lady at the dessert shop asked me that day, "What do I want?" What does the Government want from the targeted sectors under the SMEs Go Digital Programme? Technology can cut both ways. It can be a productivity tool or a glorified novelty. This Government should not waste public fund on the latter. The fact of the matter is, for some sectors, going digital may not be the sole solution to improving productivity. Beyond automation and going digital, the cleaning sector, for example, needs a redesign in the way refuse and waste are being collected. The design of old HDB estates needs a serious relook because it takes too long to clear the many bin chutes for just one block of flats. Going digital alone is not going to help the cleaning sector. It also needs the whole-of-Government (WoG) approach to educate or incentivise the public to generate less waste, because no amount of productivity improvements is going to help if we keep on generating waste at the current rate. It is important to embrace the digital economy, but going digital alone is not going to resolve the productivity issue. The digital economy needs "brick and mortar" support. It may need the Government to relook into all the compliance processes and to remove them if necessary. Getting SMEs to go digital is only one part of the equation. It needs a collective effort for the digital economy to function and flourish. Next, most of the measures introduced under the objective to sustain a quality environment for the future will impact Singaporeans and the aggregate of their impact will add to the cost of living. The carbon tax, although scheduled to start in 2019, will hit households with an increase in electricity prices when the time comes. The volume-based diesel tax will impact the earnings of commercial vehicles when the rebate runs out in three years' time.[+12 sentences] Madam, it is logical to harmonise the tax structure for all motor fuels, including diesel, to be based on how much it is used. Since the Government has taken the approach to incentivise users to reduce consumption and manufacturers to develop more energy-efficient vehicles, the special tax on diesel cars and taxis should be scrapped completely upon the implementation of the volume-based diesel tax. Likewise, now that the tax structure for all motor fuels is harmonised, the road tax for vehicles should also be scrapped in favour of the more equitable volume-based usage tax, which was already in place for the longest time. Road usage is tied to the consumption of fuel. The more road you travel, the more fuel you burn and the more tax you will pay, be it petrol duty or diesel tax. So, why are motorists being slapped with a road tax that is based on the engine capacity of the vehicles? What has engine capacity got to do with road usage? The current road tax regime is beyond a misnomer to begin with. Let us compare two cars of the same engine capacity. If one owner uses his vehicle seven days a week while the other utilises his vehicle three times a week, why are both drivers paying the same road tax when one is obviously contributing more to road congestion and pollution? What is the relevance and purpose of keeping an engine capacity-based road tax which has no relation to road usage, on top of the volume-based fuel duty which, in my opinion, is the actual and fairer road tax? Last, the quantum of the water price hike is perhaps the most puzzling measure in the Budget. Can the authority share how much losses it has made supplying water to Singaporeans since 2000 to warrant such a hefty increase?[+1 sentence] Minister Masagos has stated in his reply to my Parliamentary Question that the current national average water consumption has dropped about 11% as compared to 10 years ago. The number of households that consume more water than the national average today remains stable in the past decade at 40%.[+4 sentences] If we look at the per capita usage, water consumption in Singapore is about 5% to 70% lower than that of London, Melbourne, Tokyo, Hong Kong and New York. What do all these numbers say? They basically say Singaporeans understand the scarcity of water and we have been doing our part to conserve this precious element all this while. The Minister also acknowledged that and he cautioned Singaporeans not to be complacent and to save more water wherever possible. Singaporeans have done that before and I am quietly confident Singaporeans will do just that going forward. It was reported in the news that the cost of developing and operating Singapore's water supply system has more than doubled from $500 million in 2000 to $1.3 billion in 2015.[+1 sentence] The Public Utilities Board (PUB) said this cost included water treatment, reservoir operation, NEWater production, desalination, used water collection and treatment, and the maintenance of water pipelines. So, in short, it is the entire cost of supplying water to the masses. It was also reported that homes account for 45% of water use daily.[+9 sentences] Using simple ratio, the share of the cost of supplying water to households should be 45% of $1.3 billion or $585 million. This will roughly translate to an average cost of about $40 per month to supply water to each household in 2015. This is well below the average monthly water bill paid by households of 4-room flats and above and, I am sure, for most private housing as well, before the proposed price hike. As highlighted by the Government, water prices have remained unchanged since 2000. What that means is that the margin of supplying water to households could be even higher in 2000 than what I have estimated for 2015. Using the same assumption, it costs about $21 per month to supply water to each household in 2000, since water consumption per household was fairly stable the past decade and water prices have not changed since 2000 and, based on available data, the Government could not have lost money supplying water to households for the past 15 years. Madam, this Government needs to be more transparent with the justification for the 30% hike in water prices. Resident households are already facing price pressure in carpark charges, transportation to food. From the proposed carbon tax, volume-based diesel tax and the 30% hike in water prices, the knock-on effect will be felt by Singaporeans eventually one way or another. No time is a good time to increase prices but if this Government is bent on raising the price of an essential commodity by 30%, it is certainly the right time to open the books to Singaporeans to justify the increase.[+1 sentence] Madam, I do not support the 30% price hike.
Mdm Speaker4 words
[+1 sentence]Mr Seah Kian Peng.
Mr Seah Kian Peng (Marine Parade)1931 words
[+3 sentences]Mdm Speaker, thank you for allowing me to speak on the Budget, which takes into account very large issues for Singapore going forward − water, environment, climate change adaptation. I would like to speak on water first, making two points. First, why I think the revised water tariffs are a fairer mechanism than our current pricing system and should, therefore, be supported; and, second, why I think water pricing is a limited instrument in reflecting the true value of water, especially in the high uncertain future which lies ahead. After 17 years, the PUB has finally recommended an increase in water price. In the past 10 years alone, the price of electricity has increased by 22%. The price of water has, in fact, fallen by 25% in real terms since 2000. In the meantime, the cost of supplying water has more than doubled.[+19 sentences] The last time we raised the water price, it was against the background of an intense price negotiation with Malaysia over the price of water. At the time, it was truly an existential issue. But I would argue it has been so since our Independence and will be so as long as Singapore remains a small island of no more than 700-plus square kilometres with not enough land for the graves of our ancestors, the training of our armed forces, and, yes, the large catchment areas needed to store water. In 1963, we were dependent on Malaysia for three-quarters of our water supply. In that year, in his Fullerton Rally speech before the General Elections, then-Prime Minister Lee Kuan Yew spoke of water. He had to because it was a hot issue during the elections, which were held in the middle of a drought. His opponents at the time accused him of not doing enough to provide for water and promised to solve the problem by quickly expanding pipelines to run more water from Johor − disregarding the fact that it takes years to build pipes and that thirst kills in those days. Of course, the fact that we live in the tropics also means that rains are likely to come before the pipes were completed. During the speech, Mr Lee also spoke about engineering works, reservoirs and the need to ensure a long-term supply of water by negotiating water agreements. It was only after the agreements had been signed, he said, that works on expanding the pipelines began. Water was, and remains, a long-term engineering and infrastructural public good but its impact can be felt in the very short term and is, in fact, a highly political good. In the time since the announcement of the water price, detractors have lost no time in politicising the issue. I will address the two myths that have come up in the past two weeks, show how they are false and state my support for raising the water price, with the corresponding help extended to various households through the U-Save and Goods and Services Tax (GST) vouchers. First, there have been accusations that the Government is making money off water. Some of us may have received messages that PUB is making $166 million of profits a year. Nothing can be further from the truth. In 2012, the then-Environment Minister Dr Vivian Balakrishnan had said that the Government pays $1.3 billion a year to run the system but collects only about $1 billion in water tariffs − marginal charges − and water borne and sanitary fees − these are fixed charges. In simple terms, we could say that water is thus subsidised by at least 30%. At least 30% because prices charged do not reflect the capital costs of the water and the wastewater system. PUB has said that it will be spending $4 billion from 2017 to 2021 on water infrastructure.[+25 sentences] The second objection is tied to the first − that raising the water price will hit the poor heavily while the rich will still be able to use as much water as they want. First, raising the price of water to reflect its true cost, I believe, is a fairer system than subsidising it willy-nilly. But we can and should raise tariffs without burdening the poor. In this case, the Government has proposed increasing prices in such a way that ensures burdens fall lightest on the poorest. One- and 2-room HDB flat owners will, in fact, see no increase in their bills at all. Last, I want to address the limits of water pricing. As policymakers, we use price for many things − we use it as an incentive, as a tax, as a signal on how much we value things. But water pricing is quite difficult. A household of five in Singapore pays $30 a month for water − 0.04% of the median income. Each month, for many of us, our handphone bill costs more than our water bill. Using price alone to motivate people to save water, I believe, is not going to work. Water consumption per capita has stayed roughly the same since the last price increase. It was 165 litres in 2003 and it has gone down a little bit to 151 litres today. It may be that the increase in price may reduce water consumption but I believe we would need something else to bring home the value of water. I started my speech by referring to the 1963 speech by Mr Lee Kuan Yew. The year after, in 1964, Singapore held a water rationing exercise. It was to be our last such exercise. Since then, we have had no water rationing, not because we have not had severe droughts but because our systems are now far more resilient. But research at the Institute of Water Policy at the National University of Singapore (NUS) has shown that such "resilience" should be interpreted with care. In 2014, Singapore experienced a two-month drought. It was more severe, in fact, than 1964. In fact, that month of February was the driest month since 1869, with near-zero rainfall. In neighbouring Malaysia, water rationing was implemented in Johor, Selangor, Negri Sembilan, Kuala Lumpur and Putrajaya. In nearby Thailand, 20 provinces were declared drought disaster areas. In Singapore, there was no rationing and, in fact, water consumption increased by 5%. The researchers found that this has crucial implications for the city's water security.[+3 sentences] Extreme weather events, including heavy rainfall and exceptionally dry periods, are projected to occur more frequently for the Southeast Asia region as a whole. Droughts will become more likely. Historical data has shown that Malaysia and Singapore, as a region, has experienced severe droughts in 19 of the past 150 years. The probability of any year being part of such an event is 13%.[+6 sentences] We need, therefore, not just to prepare for everyday scenarios, but to ensure that our people are psychologically strong. Resilience, therefore, not just in systems but in our people. Singaporeans born after 1964 have never experienced water rationing. I think there are a few Members of Parliament who have not gone through that experience. They do not know the experience of having to go without water or bear the weight of 130 litres of water that we would need if we take a long shower of 15 minutes. Mdm Speaker, these things are not learnt by increasing water bills from $30 a month to $35 or even $40. They are learnt by personal experience and emotions. I, therefore, ask the Government, the Minister, to consider introducing periodic water rationing.[+6 sentences] It is not a new suggestion but one that has a special salience in the light of this year's Budget. I suggest we do this, not during droughts, but during "peace time" as it were, following the footsteps of countries, such as Australia, where they are called "water restrictions". This is an inoculation against the environmental realities that are to come. This brings me to my second point. In 2016, Singapore joined more than 120 countries to ratify the Paris Agreement. It was a formal commitment to combat global warming and reduce climate change. Singapore pledged to cut emission intensity by 36%, that is, below 2005 levels, by 2030 and to stabilise emissions with the aim of peaking around 2030.[+4 sentences] In this Budget, the carbon tax can be seen as part of a larger movement towards addressing the effects of climate change and other environmental challenges. Being densely populated and urbanised, Singapore is highly vulnerable to abrupt changes in the environment. The carbon tax brings Singapore in line with other countries as well as our regulatory environment for businesses. But I urge the Finance Minister to think also of the impact of mass human behaviour in this and bring into play the Sustainable Singapore Blueprint two years ago. The Blueprint takes a long-term approach to greening Singapore by committing $1.5 billion over the next five years, in support of the several programmes under the Blueprint.[+22 sentences] These include embedding towns and homes with smart technology and eco-friendly features, reducing reliance on cars by building up the public transport system and encouraging cycling, encouraging sustainable business practices and achieving zero-waste by encouraging recycling and reducing consumption. Many countries have had to balance a trade-off between development and environmental sustainability. In China, decades of rapid growth have been accompanied by severe air pollution. Singapore appears to have achieved both economic development and environmental sustainability at the same time. But as our Prime Minister noted during its launch, a large part of the Blueprint's success will depend on the collective action among individuals to adopt green practices in their daily lives, as well as build up new norms of sustainability within their communities. The environment is a common pool enjoyed by everyone. It can only be protected through the efforts of everyone. Environmental sustainability is truly a collective effort that begins with the individual but has important implications for our collective future as a community. There is no going round it. We must take the first steps in order to ensure a cleaner, greener and more comfortable living environment for ourselves. Water can be priced, but clean air cannot. Clean gardens cannot. Trees cannot. Wild roosters cannot. We cannot expect our children to grow up respecting nature and being willing to pay for clean air, clean water, to live together with trees and wild animals and insects if we do not, in our policy decisions, underline the importance of these voiceless stakeholders in the use of our public spaces and financial resources. The Finance Minister has said that he will set aside funds for "diverse social spaces where people can come together, create shared experiences and forge stronger bonds." In that, money must go towards large projects, such as Jurong Lake Gardens. But I suggest that we also think of small spaces, of giving support to community green clubs, of allowing social groups and civil societies to flourish within their own homes, towns and districts, and to educate residents on the need to make room for trees, birds and wildlife within our urban environment. In the age of the Anthropocene, where human activity can be seen as the dominant influence on climate and the environment, we need to grow even greener, to keep our waters even bluer. The alternative is to be breathing in more polluted air, greenery around us turning to brown dirt, and sweating in the heat of global warming. We should be ready to pay the price for our industrial actions, whether it be in the form of increased water tariffs or by changing the way we live and behave. Madam, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Randolph Tan.
Assoc Prof Randolph Tan (Nominated Member)2578 words
[+23 sentences]Mdm Speaker, thank you for allowing me to join in this Debate. Madam, I strongly support the current Budget proposals. They address ongoing challenges in the economic restructuring process and, despite the changes the last year has brought, reiterate the vision of a secure future that Minister Heng has set out from last year's Budget. The circumstances we face are undoubtedly unique, but there are important lessons from the experience of other countries that we only ignore at our peril. We could just as easily become trapped in our own lost decade, exhausting our limited resources on a dispersed agenda without heed to strengthening our economic foundations. Our priority, therefore, should be to provide a footing for future generations that is even more secure than the one we now have. Madam, to me, this Budget is about seeing beyond the uncertainty, taking leadership responsibility on issues that matter, and possessing the courage of our conviction to complete the restructuring task at hand. This Budget takes a strong lead in shaping the environmental agenda. We have enjoyed our entitlements of clean air and clean water for as long as we remember. But the unwelcome reality brought about by changes in our world is that not only are both in short supply, the two are growing sources of contention in an increasingly fractious world. Singapore has developed a lead in clean water technology and we can do the same with green technologies in general. A fundamental element in managing the competing access to clean water and air is to correctly price their availability. The long-term consequences of mispricing water and pollution are severe and incompatible with the direction we intend to take for our future economy, as well as for our society. We should not leave future generations unprepared to confront a problem that is developing now. The issue is not how much clean water we still have or where the current threats to our environmental air quality lie. The issue is much broader and has to do with our collective responsibility for the environment and societal development. Hence, I would like to urge the Minister to consider price corrections in other areas in urgent need of attention as well. Areas, such as electronic waste generation, should be incorporated into a comprehensive strategy for responsible environmental advocacy. By ensuring that pricing is imposed on both water and pollution, Singapore is not just taking a responsible leadership role in pushing forward the agenda for dealing with climate change, we will also be putting in place incentives for nurturing the development of technologies whose global economic potential is rapidly expanding. These lie in the path of our future economy. Madam, there are some areas, however, where I feel that further clarification on how the long-term vision could be achieved would be useful. The first of these is our manpower policy. We should strengthen the connection between our manpower policy and our skills framework. Foreign workforce growth has been slowing since 2011.[+5 sentences] Although the recent weakening in demand has been partly due to economic conditions, there is little doubt that the primary mechanism bringing about this shift is the system of levies and dependency ratio ceilings (DRCs). Our policy on foreign manpower should not just be about restrictions. It should be about promoting long-term economic competitiveness for the benefit of our overall workforce. In order to realise this objective, we must be open to the type of skills we lack and incorporate foreign manpower contributions into a comprehensive strategy for filling our skills gaps. The indications are that we have made promising improvements in this direction. In the third quarter of 2016, the number of Work Permit holders in manufacturing and construction declined, contributing to a rare quarterly contraction in total employment in Singapore. As a result, preliminary statistics from the Ministry of Manpower (MOM) show foreign employment, excluding foreign domestic workers, shrinking over the course of 2016 as a whole, the first time this has occurred since the global financial crisis for the whole year.[+1 sentence] At the same time, labour productivity measures depict improving performance. Full year 2016 figures show real value-added per worker hitting 1%, after having remained stubbornly negative in the preceding two years. And the quarterly statistics show the improvement was sustained throughout, with fourth quarter real value-added per worker hitting 2.4%.[+14 sentences] What is reassuring is that these changes occurred gradually, despite the fluid environment and turbulent global backdrop. The work is far from done and the productivity challenge is an ongoing one. The delicate balance of maintaining robust domestic employment, ensuring global standards of openness to deep and diverse skills, and injecting momentum into the productivity drive is a challenge that all countries face. Given the limitations of our domestic labour market, the magnitude of the challenge we face in Singapore is far greater. That is why robust yet flexible policy instruments are so important. There is no doubt that our foreign manpower management policy has encountered enormous challenges. This should not detract from the tremendous success it represents as well. Compared to many other countries, we have taken a lead in this area and we should recognise its effectiveness. Going forward, we should reorientate our policy to move away from restricting inflows and focus on growing skills sets that our domestic workforce alone will be too slow to achieve on its own. This idea is not new. The "triple weak" system promulgated by the Minister for Manpower for monitoring companies' with poor hiring practices already contains essentially the same key ingredients, which is that companies should be assessed on a multi-dimensional metric, rather than a single-dimensional measure. The predecessor to CFE, the Economic Strategies Committee, originally proposed the system of levies and DRCs. CFE has developed the principle further. In its report, it recognises the need for foreign talent with specialised skillsets and calls to develop a more differentiated foreign workforce policy. To achieve this differentiation, instead of using the number of workers as the basic unit of measure, we should measure skills instead, and determine levies based on the extent of the skills gap that an employer encounters within the existing domestic workforce, as well as the changes in the gap over time.[+6 sentences] The measurement of skillsets and skills levels should be carried out in coordination with the skills framework constructs being developed by SkillsFuture Singapore. The resulting system should be validated by the needs of the ITMs, merged with the current levels of foreign workforce passes, and used to assess the extent to which gaps at the company as well as sectoral level can or cannot be filled by the existing local workforce supply. Such a system can also be used to track whether the gaps are effectively closed over time through training, and how fast this is occurring. The system of foreign manpower levies and DRCs forms a clear set of rules for managing foreign manpower participation. In recent years, including the current Budget proposal, the system has been used to moderate the impact of manpower cost pressures when economic conditions are poor. As a counter-cyclical tool, the system of levies and DRCs can be adjusted by sector. On this basis, levy rises in the marine and process sectors have been frozen, while those in construction have been allowed to proceed as earlier announced.[+10 sentences] And compared to alternatives, such as the Central Provident Fund (CPF) cuts that were used in the past, this approach is much more amenable to finetuning. My second concern is about the challenges of scale that we, in Singapore, almost uniquely in world, face. Whether we are prepared for the reality of competing against countries much larger than us, this is something that we will have to deal with as a result of the proposals set out in this Budget. This Budget makes a significant push for internationalisation. This will increase the companies and local talent being given greater exposure to global competition and will serve us well in the long run. While programmes, such as the Global Innovation Alliance (GIA), can help Singaporeans gain a foothold in overseas markets, as well as a better appreciation of our global competition, there are adjustments that individuals have to make. Hence, the transformative impact of the GIA will take some years to become visible. The issue of scale has always been something of a challenge for Singapore's economy. We have pushed near to saturation point in many of our efforts, but the competition can harness vastly larger numbers without batting an eyelid. This fact is visible in every aspect in which we compete internationally, from trade figures to our workforce composition, to even our robot density. In 1984, China's share of manufacturing exports in the world's total, 1.1%, equalled ours. In 2015, as the world's leading exporter, China's share had grown 16 times, to almost twice that of its nearest rival, Germany.[+14 sentences] Our share, of course, has also grown, more than doubling to 2.3%. Between 1984 and 2015, the share of the US in world manufacturing exports fell by a third. These developments have redefined the global economic balance. They have also brought about the tremendous groundswell of reaction that ranges from the Brexit vote outcome to the repudiation of the Trans-Pacific Partnership. In 2015, world manufacturing exports shrank more than 8% in nominal terms. Singapore's trade performance suffered as a result. The options we have in reacting to these changes are determined not just by our preference, but also by the choices made by the countries we compete against. China is also the world leader in high-technology manufacturing exports. However, Singapore's share of global high-technology exports is about a quarter of China's, which makes this sector more important to us than general manufacturing. Across all regions of the world and in many countries, the proportion of manufacturing classified as high technological activity is on the rise. A comparison across countries reveals a visible correlation between this rise and the increasing use of robotics. As the Minister for Finance Mr Heng had already pointed out last year, China is the world's largest buyer of robots. And other countries are keeping pace, including Singapore. According to a recent update from the International Federation of Robotics, between 2010 and 2015, the operational stock of industrial robots in Asia rose 70%. The same report placed Singapore within the top ranks of countries in the world, in terms of robotics density, just behind South Korea, and nearly five times ahead of the average global density.[+11 sentences] Robotics and artificial intelligence (AI) are just two of the things that are often mentioned in the same breath as Uber and Grab when discussing technological changes and disruption. These two groups are obviously very different. However, what concerns those who cite them as examples in the same breath is not necessarily their economic or technological novelty but the loss of control workers feel in facing the rise of these innovations. This fear of loss of control is the most important reason why ordinary workers today identify with the notion of being caught up in an industrial revolution beyond their control, no different from the original one. Research supported by the International Federation of Robotics argues that while there have been job losses, their magnitudes are small, compared to the increase in employment over the same period. Regardless of whether one believes in net gain or loss of jobs due to the introduction of new technologies, such as robotics, there is little doubt that existing jobs will have to give way to new ones and the workforce must, therefore, be prepared to adjust to this reality. Although we cannot be certain about the precise rate and impact of the change on all jobs, the pattern of change and the nature of jobs of the future are becoming increasingly evident. Job creation is increasingly concentrated in domains requiring high intensity of knowledge and skills. In research and development (R&D), for instance, across countries and with very few exceptions, the number of personnel has seen strong upward trends. This is true both in absolute terms and as a ratio of the population. Singapore, of course, as usual, faces the limitation of size that our competitors do not. Between 1996 and 2012, the number of persons employed in R&D in Singapore rose 265%, way ahead of the 50% gain in the US, 160% gain in China, and even 216% gain in South Korea. But as a result of our population limitations, our R&D personnel numbers are already among the highest in the world on a ratio basis. China's ratio is only one sixth of ours, despite boasting the largest number of R&D personnel globally today. This means that in Singapore, we have a far smaller pool of workers from which to draw, and if we continue to grow the numbers in order to keep up with global competition, domestic sectors in need of skilled manpower will be squeezed further. The only solution is for our workforce to push beyond the existing frontiers of skills acquisition that other countries take for granted.[+21 sentences] To remain competitive despite our limitations, our workforce must be prepared for a continuing process of advancement and workplace transformation. Madam, Budget 2017's push to develop Singaporean workers into regional and global leaders will take us out of our comfort zones. Singaporean workers, many of whom juggle their regular jobs with important roles, such as family caregivers, will have to add regular overseas postings to the list. This is what we have to do as an innovation in order to overcome the limits of scale. Given our size, we are already at the boundaries of what we can reasonably achieve if we go by norms. Both in R&D personnel and in robot density, we are already at the limits. Countries whose sizes are multiples of ours have a lot more scope for expansion in absolute terms and will reap further economies of scale. Internationalisation will, therefore, expand the potential space within which our companies and workers operate, but not completely overcome the fundamental disadvantage of scale that Singapore has always faced. It is not just workers who will be challenged. SMEs will also feel the discomfort in operating outside of their comfort zones. The question I am trying to ask is: are the internationalisation initiatives a realistic option for local companies which do not have the basic capacity to scale up beyond their setup in Singapore? Madam, my last concern is about the timeline for restructuring. The timeline this time around will, I believe, turn out to be the greatest challenge. Many of the past restructuring efforts had tangible endpoints, such as the challenge of a recession, that it could take reference from. This particular restructuring is a long drawn-out process and it is going to be challenging to focus minds on the intangible aspects of the strategy. Although the restructuring is aimed at addressing the challenges caused by disruption, as the timeline for restructuring lengthens, it will heighten uncertainty among companies and workers. For some, the distinction between restructuring and disruption could begin to blur. The completion of this restructuring will not be readily marked by new buildings or highways. Instead, it is a process of transformation. Success will probably mean not just an endpoint but an ongoing process of change. Hence, in closing, I would like to thank Finance Minister Heng for staying the course in this restructuring journey as well as for providing a personal model of resilience through adversity.
Mdm Speaker3 words
[+1 sentence]Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Tanjong Pagar)1260 words
[+6 sentences]Mdm Speaker, technological advancement has changed the work environment that we are in quicker than before and it will continue to be so in the future. While it improves the way work is done and alleviates the issue of manpower shortage, it will have implications on our workers and they could become tomorrow's unemployed. The challenge is whether we can help tomorrow's unemployed today. How technology impacts our work can be broken down into three broad categories: "Known-Known", "Known-Unknown" and "Unknown-Unknown". The first refers to a situation where we know the technology and know its impact. One such example is the self-checkout kiosks found in supermarkets today. Just within NTUC FairPrice, almost half of its 130 outlets have self-checkout counters.[+22 sentences] Other supermarkets, such as Cold Storage and Sheng Siong, have also implemented such "do-it-yourself" services. The job of the traditional cashier is slowly replaced by new technology. The next category is where we know the technology, but we are not sure when and how it will impact our current work. As we speak, trials of autonomous vehicles, like cars, buses and even trucks, are ongoing at different parts of Singapore. While we know that such driverless technology exists and is developing at a rapid pace, what we are uncertain of is when it can be adopted and how extensive will the adoption be. This will certainly change the modus operandi within the transport industry and have a direct downstream impact on our workers who depend on driving as a livelihood. Another example is additive manufacturing, commonly known as 3D printing. With the rapid development of 3D printing technology in recent years, many applications have been developed in the food, medical, fast-moving consumer goods and other industries. With 3D printing, if our child outgrows his or her shoes, we can simply print out a brand new pair in a larger size! The potential disruption that 3D printing may have on our industries is significant. How and which industries would be affected by 3D printing? Your guess is as good as mine. The last category refers to an unknown technology that may change our work in the future. Here, we could take reference and learn from the past "Unknown-Unknown", such as Uber and Grab. Today, Uber and Grab are providing new transport options to commuters but have disrupted the traditional taxi business. Did we expect Uber and Grab, which are mobile applications, to enter, disrupt and even revolutionise the transport industry? The three situations above illustrate the challenges we face in the current economic landscape. Be it "Known-Known", "Known-Unknown" or even "Unknown-Unknown", there is an urgent need for both our workers and companies to brace themselves for the next wave of disruption, as business cycles get shorter and changes happen more rapidly. First, our workers need to remain competitive amidst the changes. We need to embrace the concept of lifelong learning, continuously train and upskill ourselves and start preparing for future jobs even before the current one becomes obsolete. To do so, companies, unions and Government agencies need to get together to identify future jobs, determine skills gaps and establish structured training programmes for workers. Industry partners can collaborate and develop sectoral level training to collectively raise standards across the industry. The Singapore Bus Academy is a good example of a collaborative tripartite effort by the Land Transport Authority (LTA), the then Singapore Workforce Development Agency, NTUC's Employment and Employability Institute (e2I), the National Transport Workers' Union and the public bus operators. Today, the Academy standardises basic training programmes for bus captains across the industry.[+2 sentences] But the Academy has the potential to provide continuous training for all bus captains, keep them updated with industry and technological changes, help existing drivers multiskill and be better prepared for tomorrow's driverless world. We should explore setting up centralised training centres to promote training through the respective Sectoral Tripartite Committees even beyond the transport industry, like the lift, aviation and precision engineering sectors. The Professional Conversion Programme (PCP) is another useful training platform for mid-career switchers looking to move into emerging and future jobs.[+9 sentences] Fifty-two-year-old Wayne Lin is one such example. He left the infocomm technology (IT) sector amid the global recession in 2009 and enrolled himself into a PCP to join the early childhood education sector. Although the transition was tough as he sought to overcome job challenges in a female-dominated industry, Wayne persevered through his traineeship, took up a diploma and subsequently completed his Masters in Early Childhood. Wayne did well and is now the acting principal of My First Skool preschool centre in Sengkang. Hopefully, with the newly announced Attach and Train programme, we can look forward to hear more of such stories of success. Employers, too, must change their mindset. If employers proclaim that their employees are the company's most valuable assets, they should step up training investments to upskill their workers and not view manpower as simply a cost. While some companies are afraid that workers might leave after acquiring new skills, other companies have established training centres, set aside dedicated training hours and sponsored training courses to support their employees in their upgrading efforts. For example, the Oversea-Chinese Banking Corporation (OCBC) is one such company that is pro-training. OCBC topped up their employees' SkillsFuture credit and provided employees time off to attend shortlisted training courses.[+1 sentence] By grooming a competitive workforce can our companies remain competitive, productive and prepared for the next wave of change. To boost productivity, centralisation and pooling of resources are avenues that companies can explore to raise their productivity levels. Centralisation of resources, in the form of kitchen facilities, warehousing or even training, can help reduce wastage and duplication of resources and help companies gain economies of scale.[+1 sentence] Due to their small scale of business, SMEs sometimes find it onerous to go through the process of applying for productivity grants. For SMEs with similar products or services within or across industries, pooling of resources to apply for such grants could help them achieve productivity gains and cost savings. Multinational corporations (MNCs) or larger SMEs could help to champion sectoral productivity initiatives which other smaller-sized companies in the same sector can leverage upon.[+1 sentence] With the labour market expected to tighten further, businesses need to be supported in their efforts to raise productivity while adopting less labour-intensive practices. The Sectoral Tripartite Committees can play an important role in identifying jobs to be redesigned and developing the necessary training roadmaps for each industry.[+9 sentences] In a fast-changing world, we can no longer depend on "one-size-fits-all" solutions. Industry-based roadmaps are very much needed to provide clarity to both our workers and companies on the new jobs and the direction in which the specific industry is moving towards. Mdm Speaker, we cannot ignore nor escape disruptions, but we can learn to ride the waves of disruptions together. In Japan, 58-year-old Mr Kenji Takemura harnessed a wearable robot technology to help him lift 40-kilogramme boxes with ease. Like Mr Takemura, we need to learn to work with technology, collectively leverage new technologies, upskill ourselves and be forward thinking. The success of the CFE report lies in its implementation and I am confident that with our strong tripartite partnership, we can overcome current and future challenges just as how we have done so in the past decades. Through tripartism at the national and sectoral levels, we must help our workers upskill ahead of time as our economy and our industries transform. We need to help tomorrow's unemployed today and ensure that no one would be left behind. With that, Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Dr Tan Wu Meng.
Dr Tan Wu Meng (Jurong)2247 words
[+12 sentences]Mdm Speaker, I stand in support of this Budget. Madam, I am often inspired and moved by my residents and their stories. One of our young couples in Clementi had a baby girl at home. A beautiful baby with a proud mommy and daddy. But when it was time for the HDB's Home Improvement Programme − upgrading within the home − the parents were worried about noise and dust during the construction. The next-door neighbours opened their home, offered their own home as a place to babysit the baby girl. Today, the renovations are done. Baby is happy and the neighbours have grown closer together. I am also moved, during times of sadness, when I meet with my residents at funeral wakes at the void deck, whether it is a breadwinner who passed away and the family is wondering what to do in economic challenge or whether it is an old parent who has passed on after a long illness. But I also see neighbours coming together in this moment looking out for one and another, supporting one another in this time of need. Madam, each of these stories tells us a very deep truth: that there can be a special strength in a community and society, a strength that comes from a sense of fellowship, of being together, of being near to one another in life's journey. But I also hear stories from residents about how society is changing and how newer HDB estates seem to make it harder to meet neighbours and new friends. Today, I will speak on how we build a stronger society and a stronger economy through stronger social cohesion and updating our social compact to keep pace with the future of jobs.[+4 sentences] Madam, we must never take our social cohesion for granted. Our multiracial society is very special, very precious. It also helps us, as a country, connect economically to the West and to many parts of Asia. But in many societies around the world, social cohesion is being eroded. Social media has made society more atomised: in some countries, people living in their own little world and not learning to see through the eyes of fellow citizens; watching only one side of a social media feed; becoming more vulnerable to "fake news" that sharpens prejudices while blunting human understanding; echo chambers, not just in politics, but in values and social mores, too.[+10 sentences] Smaller family sizes are shaping societies. A child growing up in a one-child family has a different experience and may not learn the same social skills to get on with others until preschool or school begins. So, if we lose our cohesion, Mdm Speaker, we are finished. Because we will not be able to organise to meet challenges, we will not be able to move as one, we will be less than the sum of our parts. Without social cohesion, we are less than a dot. Even as we transform for the future economy and watch our bottom line, our fiscal sustainability, we need to keep on paying attention to social cohesion in all our policies across the whole-of-Government. Mdm Speaker, let me speak a little on public housing. It is an important issue because design changes in public housing can be revenue-neutral, but they shape an entire generation of society and our heartlands. We have the Ethnic Integration Policy today. But in the modern era of globalisation and wealth inequality, our Ministries should also look at closer integration of Singaporeans from different economic backgrounds within the same block. For example, what if new HDB blocks were designed to have a certain proportion of units designated for rental within the same block?[+17 sentences] The design, proportion and distribution can be studied by the agencies, so that the effect is salubrious rather than divisive. It is something that I believe the Ministries should look into. Or void decks, Mdm Speaker. Some of my residents feel sad that newer estates are devoid of void decks. Or the void deck is shaped such that people do not meet one another as naturally as before. I suggest, Mdm Speaker, that HDB should revive the older-style void decks or at least think of ways to channel people together, so that people meet naturally, grow to know one another, build friendships. Likewise, the shape of our HDB blocks matters, too. Some of my residents said that our blocks today are not shaped the way they used to be. In some precincts, including award-winning precincts, the common corridors branch off. Little alcoves, little corners. It means fewer lines of sight for neighbours to meet one another, look at one another, start that conversation in the morning on the way to the lift; fewer chances for people to get to know one another spontaneously, day by day. This is something our agencies should look at, Mdm Speaker. Urban design shapes who we live with; who we know; who we meet. How we build our homes, how we build our heartlands affect our social cohesion. Our estates are our home today, but they shape our society tomorrow. Madam, I also want to speak about work, how work is changing and how that is affecting our social compact as well. We have seen many legal innovations in recent years. Temporary jobs becoming permanent temporary jobs where workers keep on rolling over new temporary contracts in what we call "perma-temps".[+12 sentences] Micro-jobs as well. Today, people can do independent work for multiple hirers, using online marketplaces to match supply and demand. It is sometimes called "the gig economy". Many of us have spoken about this. I have raised it in this House and elsewhere. There are opportunities in this brave new world. The gig economy can unlock skills and experience not yet tapped from the labour market. This is important, given our ageing population, demographic constraints and smaller families. Madam, many of our older workers have a lifetime of wisdom and experience. I remember a retired nurse I met on my home visit in Clementi. She is 65 years old, or rather 65 years young, full of energy, still wants to make use of her skills. But because her husband is sick, she needs to spend extra time looking after him, which makes it harder for her to work a full shift or even a partial shift. The gig economy can help our seniors and young families who have caregiver commitments.[+8 sentences] Singaporeans with caregiving duties can also work more flexible hours − a retired nurse can keep active, does not have to work a full shift, maybe helping at a clinic near her home or as a private nurse to fellow residents in the neighbourhood, changing a catheter, changing a wound dressing. Micro-jobs, but they add up to skills that can be tapped. Additional income, helping people who receive the service, helping the person who is earning. It also helps SMEs which may not be able to afford a full-time department, whether it is a legal department, graphic design department, copywriting department. It helps people, it helps SMEs. But, Madam, there are also big challenges when the nature of work changes. For decades, the relationship has been very much between the employer and the employee at the workplace. For a long time, this has been a focus for legislation, sick leave benefits, healthcare coverage or CPF. All these things have been coming together through that relationship between employer and employee and at the workplace.[+1 sentence] But today, we see that being disrupted. It is possible for an employer to redefine the job at the stroke of a pen.[+5 sentences] A delivery driver may be doing the same work as before. But instead of being a payroll employee, he is now called to be doing a contract for service. But Madam, this shifts responsibility and risk to the worker. Who pays the CPF contribution? Who covers the insurance? Who is responsible if an accident happens on the job while on duty? And these developments could have very profound implications for Singapore, because so many of our social and labour policies today are tied to that nexus − the employer-employee relationship or the workplace.[+1 sentence] For example, the employer CPF contribution. If the CPF system is undermined by the gig economy, there are knock-on effects as well.[+15 sentences] Home ownership, healthcare because of MediSave, retirement adequacy. And all these, if they come to a head, will affect our fiscal policies as well. Madam, we see employers shifting these labour practices because an employer may see economic advantage: privatising the benefits of having a worker but socialising the responsibilities of looking after the worker. Some have said that the market alone is enough. But Madam, I believe the market is not enough to impose discipline. Even in the tightest of labour markets, there can be segmentation. Some workers having a more difficult time than others. Some workers needing a job more urgently. And it is the vulnerable workers who are not able to find a job in the regular labour market who will have the least bargaining power in the gig economy. Madam, this is happening to Singaporeans today. At my Meet-the-People Session, I met a resident in his 50s. He works as a delivery driver. He used to be on an employment contract. But recently, his employer called him in and said, "We are changing you to a new contract". So, he asked what is this new contract about? His employer said, "You are no longer going to be a payroll employee, you are now going to be a contractor, a solo contractor providing contract for service". He was not given much of a choice − sign the new contract or be terminated.[+26 sentences] Same work, different contract; less benefits, more vulnerable. So, this is a real issue affecting our workers, especially vulnerable workers. And as more jobs become part of the gig economy, I worry more Singaporeans will be affected. Madam, it is a serious issue, in my opinion. And I believe we need to address this sooner rather than later, before the labour market norms reach a tipping point as more companies join the gig and there is a race to the bottom. Otherwise, we risk having a cohort of gig workers who have been disadvantaged by this market failure. Our policies must keep up, so that our workers are not left behind. But Mdm Speaker, there is hope. Singapore is small enough, nimble enough and organised enough that we can reinvent our policies for a new century. We can build a better understanding of the job market to improve opportunities for all our workers. Imagine if our Ministries apply big data analytics to the job market, pulling data from multiple databases, getting data on how training leads to jobs. Who finds work fastest? Which course helps to find work fastest and best? How many people are using the skills they were trained for? Was the training provider selling hope or helping our workers to gain skills and opportunities? This can also help us understand how underemployment arises and how to prevent it. Our Ministries can also pull big data to have better sensing of market trends. Are people from some backgrounds having more difficulty than others? Are there areas which need to be looked into through deep dives, drilling down to understand where and how best to intervene? Better data, Mdm Speaker, also opens the door to new policy responses. I would like to suggest, Madam, that we testbed new ways to assess the CPF contribution responsibilities for an employer. This could be done on a testbed basis in sandboxed sectors of the gig economy where you can clearly define the nature of the firm and how the workers are being contracted. We could have a formula that looks at the total wages from the gig employer or the number of hours spent on gig jobs. We could find new ways to measure a unit of labour. The same online platforms that create an Uber, Deliveroo, Foodpanda, all these can provide new ways to measure and ensure that workers have the same protection and benefits they did in the traditional economy. Together, the Ministries could develop an operating system to specify employers' responsibilities. For example, a minimum CPF contribution might be pegged per hour, task or unit of labour.[+6 sentences] Or even risk pooling among the gig employers so that the worker has insurance coverage for health benefits or sick leave, rather than falling between the cracks. Mdm Speaker, every national economy exists within the fabric of that nation's society. Singapore is the same. A strong society is a prerequisite for sustainable economic development. It gives us the resolve and courage needed to overcome uncertainty, instead of waiting and seeing, and stepping forward, moving ahead, making a difference, moving faster than the competition. A strong society also gives us the social consensus for fiscal redistribution, for broad centrist policies, for a fair and equitable society. It binds us as one in times of challenge and creative destruction, so that we can pull together and renew and be stronger after that. So, Madam, even as we create the future economy, we must also ready our social policies for the future, strengthening our social cohesion with a whole-of-Government ethos, strengthening our social compact to stay ahead of disruptive innovation and strengthening our labour markets so that every worker can find their full potential throughout life.[+1 sentence] Mdm Speaker, may we always continue growing, growing stronger and growing stronger together.
Mdm Speaker3 words
[+1 sentence]Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)2053 words
[+24 sentences]Mdm Speaker, the global landscape is changing dynamically. As a small country, Singapore cannot afford to ignore the progression and challenges around us. The external environment will not slow down or stop in its tracks for us while we try to keep pace or reinvent ourselves. I see three key trends that are here to stay and will continue to shape the world. To some extent, Singapore, as a country, we may have little influence on these global trends, but we must take actions to remain relevant. We must recognise the presence of these trends, be willing to change, adapt and always prepared to ride the wave. First, the global political situations have altered significantly over the past two years. More of these changes are likely to follow. There is potential shift of economies towards protectionism and mercantilism. All these will create new challenges to global free trade and globalisation. Second, disruptive technologies. Disruptive technologies have always been present. The key difference between today's disruptive technologies is the frequency and nature in which the disruption presents itself. Intensive emergence of the new technologies renders less predictability in our future markets, but it is also able to bring about new economies and business opportunities for us. With digitalisation, the impact and reach of any new technology will be much larger as the market can react more responsively. New technologies that constantly emerge begin to dominate the market spaces within a short span of months, not years, unlike in the past. Thus, time is of the essence in the process of us restructuring any industry as the clock speed of economic changes has accelerated. Third, structural changes within industries and how our companies operate. A key topic to adaptation and change is: can we be competitive? Competitiveness has been and remains critical to all businesses. In current times, it becomes even more prevalent. Only those with the ability to differentiate and create value out of the basic solutions that address needs and generate demand will survive. I believe a key question on many minds is: can Singapore transform and continue to create future economic opportunities and employment? I feel that we need to be realistic and not expect there is a silver bullet that can provide this possibility. In this Budget, it does address some short-term needs where assistance is provided to those in need and who may be temporarily unemployed and for our vulnerable groups. But more importantly, we must seek to have longer-term directions; where we must get our fundamentals right on diverse education pathways for our future generations, readiness of our workforce, adaptability to new variation in economic models and sustainable approach to our social safety net.[+9 sentences] Moving forward, I see the role of our Government shifting to one that facilitates and enables, instead of prescribing an end solution to everything. This does not mean our Government should stop forward-thinking, planning or putting elements in place for the future. Instead, with increasing dynamism of our economy, we need all the stakeholders as active contributors, be involved and play a part in shaping the requirements that we need to make things work for Singapore. While it is widely discussed and we know that changes have to take place, but I believe we must focus on three areas to make a difference in the future. Let me explain the three areas. First, innovate for growth. To me, innovation is a culture. It has to be reflected through our education system, the social environment and our workplace. It is not an object or a target that we create for a specified period of time. We have been investing in the past decade in R&D, creating more platforms to innovate. We have seen an increase in the number of innovative ideas, as evident by the 1,469 patents that were filed by Singaporean residents in 2015. That is a 12.7% year-on-year increase on the patents that are registered. But the corresponding number of ideas and patents from earlier batches that have borne tangible achievements, as in business returns, pales in comparison.[+53 sentences] I think the reason is that we still lack innovation and value creation deeply entrenched as a culture in Singapore. If we review where this stems from, I think it begins from our education. I definitely agree that it is important to have an adequate foundation and understanding of fundamentals in all that we learn. But often, rigorous practice to manage examinations is not indicators that we have learnt. Usually, the most effective results are seen in our ability to actively learn and apply the knowledge that is learnt to real-life situations and challenges. Also, to create value out of limitations. Being adaptive, thinking out-of-the-box, accepting different ideas and challenges are all part of a process to innovate. We need to allow our younger generation to do so. There is no short cut to this. The challenge is: do we have the appetite to experiment and will the society accept different pathways in our education? Our education and societal norms will eventually shape the workers in our workforce. The ability to continue learning and take risks reflect the will of our individuals. Without the culture, can we see the jewel in the rocks? Take, for example, we often claim that technologies have replaced and made humans redundant or made businesses sunset industries. Looking deeper, does the issue lie with a person's inability to transform with time or the emergence of improvements in the world? In the most traditional industries, like the automotive industry, it has not disappeared and continues to bring about growth opportunities. With technology evolvement, the processes involved and the product variety that is available certainly has changed our views of possibilities in traditional forms of manufacturing. Producing different car components can now be done using additive or what we call 3D manufacturing, and less of moulding, welding and casting as in the past. The industry does not go away, but the technology involved has advanced. Likewise, if we cannot foresee, innovate and integrate new pathways in our economy, it is unlikely for growth to be sustained or even for new jobs to be created. The second area, develop T-skills in lifelong learning. As the industries and economy undergo restructuring, workers who have skills mismatch due to inexperience or lack of training opportunities must now try to pick up new skills. It is not easy to learn new skills, especially when one is used to some level of comfort or in the way of how we do things. SkillsFuture is a good starting point for people to embrace the need to learn, but that cannot be the only reason why we are learning. Everyone must recognise the need to continuously learn as they study and work. This is the only way to remain relevant throughout our changing environment. Realistically, it is impossible for everyone to learn and shift to every new industry as a new industry emerges. I do not think that is what we are trying to achieve with SkillsFuture. In my opinion, every individual worker has core capabilities and basic skills. Through our lifetime, it is critical for us to develop two sets of skills: (a) to deepen our core capabilities that further enable our expertise or develop fortes; (b) to develop broad-based skills that are transferable regardless of industry. Only with these T-skills will we be able to add on incrementally at each stage of our career and capture the new opportunities. On the part of the Government, I would ask that moving forward, more focus be put on internships, encourage our public sector and our private companies to develop a learning culture, have more on-the-job training and for schemes to support the companies to enable job rotations. It is heartening to see this Budget enhancing the Adapt and Grow initiative and providing more accessibility for training. These resources would eventually be valuable to facilitate their staff to broaden and deepen their skills. The third area, partnerships in employability. The term "iron rice bowl", does it still exist? The fact of the matter is that there is no job guarantee in today's world. Real jobs are what we make the best of it when it is available. The Minister for Finance has called for more partnerships in the workplace and I fully support that. This is absolutely necessary for the long haul, where especially the impact it has on the generation of our older workers. With time, our older workers will face different sets of challenges. Before the Baby Boomers become seniors, something has to be done now. The challenges that the older workers face are: (a) preconceived mindset of our employers; (b) learning new skills over a short timeframe and adapting to the changing business landscape; and (c) accepting the new concept of productivity where less is more and being different is to value-add. To effect any change, I feel that it has to take place at all levels, employers, employees and the Government, and in partnerships. Employers must be open and ready to accept helping our older workers through training, refitting their job and scope, and value each worker for their abilities. Employees have to keep learning and upskilling through their career and not only when the need arises. They must be participative and not hope to be valued due to seniority. I hope the Government can streamline their processes and review some existing exceptions with certain flexibility and enable new rules to adapt to the new economy. Mdm Speaker, I will do the next section in Mandarin. (In Mandarin): Apart from our culture and economy, I am encouraged that this Budget continues to look at strengthening our social safety net, in particular, persons with disabilities (PWDs). Mental health awareness is an area that we cannot neglect in urban cities. Dementia is one category of such mental health issues and the most common being Alzheimer's disease. As dementia has no cure, this has long-term implications on the caregivers and our society as well. In Singapore, the prevalence of dementia is about 10% amongst seniors aged 60 and above. The number of seniors with dementia is set to rise, especially with a rapidly ageing population. Countries like Japan and Taiwan have shown that dementia-friendly communities where PWDs living in their homes have resulted in lower cost to healthcare. Therefore, it is imperative to raise awareness and put in place initiatives that support persons with dementia to age in place. I support this initiative and would like to ask the Ministry about the outcome of the first pilot trial of community-based dementia care efforts in Yishun. What are the lessons learnt from this trial and how long will it take to train resources to cope with the existing situation of 10% dementia patients?[+3 sentences] (In English): Mdm Speaker, it is inevitable that Singapore will continue to face different challenges amidst the dynamic global landscape. The willingness to change, adapt and be always prepared has to take place across generations. We must get our younger and the future generations ready to think and act for themselves. In the short term, we have to address the needs to assist our existing workforce to make sure that they remain employable. But on the long run, we have to consider: do we take bolder measures to evolve a new culture or do we continue to move ahead to reinvent through incremental changes?[+1 sentence] On this note, Mdm Speaker, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Minister Masagos Zulkifli.
The Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M)1861 words
[+15 sentences]Mdm Speaker, thank you for giving me the chance to speak. I would like to respond to the points raised by Members, particularly on the issue of the water price revision. In Singapore, water is unlike any other ordinary commodity. We subsidise housing, healthcare, education, but not water consumption. Water is a strategic issue. It is a national security. We must price water fully. Even as we give targeted assistance to households, such as U-Save vouchers, to help them pay for their utilities bills, we must price water correctly. The consumer must feel the price of water. Consumers must realise how valuable water is to us in Singapore, every time he or she turns on the tap, right from the first drop. Let me take us back to the time when the Government last revised the price of water, which was in 1997. We had not revised water prices for some time then. Elements in Malaysia were threatening to block our water supply from Johor. We were embarking on desalination to secure our water supply. We needed to register with Singaporeans the strategic importance of water and the importance of saving every drop possible. The Government, therefore, decided to revise the water price substantially, to reflect water's true scarcity value.[+17 sentences] If we needed any additional water, where would it come from? How much would that additional litre cost? That is what we call LRMC. That is the cost which consumers must see. At that time and even today, the Johor supply was fixed. Local reservoirs had been almost fully developed, maybe except for Marina Reservoir. NEWater was not even invented in 1997. It came way later in 2002. Apart from conventional methods of collecting water or rainwater, the only proven technology then was to produce water through desalination. But desalination then was very expensive, $3 to $3.50, through what we call multi-stage flash (MSF) distillation. This number did not even include the cost of pipelines. There was no way for the Government then to move the water price to the true cost of the next litre, the price of desalination. So, it moved instead in steps, over the period of 1997 to 2000, to today's water price. Since then, water technology has progressed steadily. The Public Utilities Board (PUB) itself invested in R&D. This resulted in NEWater, which was much cheaper than desalination. Desalination technology has improved from MSF to membranes. As a result, we have been able to keep our costs down, the cost of water, and hold water prices unchanged for 17 years.[+7 sentences] But costs have gone up gradually over the years. At some point, a price revision became essential. Let me give a few examples of how costs have risen in the recent review. Firstly, LRMC is a mix of NEWater and desalination costs. In the blend with NEWater and desalination, we have depended more on desalination for the next litre as water demand increases. There is also a limit to recycling used water in our NEWater plants. Therefore, to increase our water supply further, we must build more desalination plants. Indeed, we are building three desalination plants within the next three years.[+3 sentences] Secondly, as we increase the proportion of water reclaimed for NEWater, effluent becomes more concentrated and, indeed, more difficult and more costly to process. Thirdly, Singapore is becoming more urbanised, so it is costing us more to build new and replacement pipes to deliver water. Here are some figures from our recent expenditures which can give an indication of how it will be in the future. Looking at the first year of desalination, for instance, while the first-year price for our first plant, SingSpring Desalination Plant, was $0.78 per cubic metre, the first-year price of our latest plant at Marina East was $1.08 per cubic metre, some 40% increase.[+2 sentences] For conveyance costs, we now tunnel below the road to lay pipelines. This minimises inconvenience to road users and the public, but it costs two-and-a-half times as much as conventional pipe laying techniques. As our pipelines age, PUB will have to more than double the rate of renewal of old pipelines from the current 20 kilometres per year to 50 kilometres per year to minimise pipe leaks and disruptions.[+23 sentences] All these point to the need to update LRMC which the 30% price increase has reflected. We are unable to provide details of its computation because of commercial sensitivities. We still need to build more desalination plants and NEWater plants; and as more desalination, NEWater and water reclamation plants are yet to be built or expanded, revealing the specifics of LRMC could prejudice future bids. But rest assured that LRMC reflects the best the market can offer. Mr Pritam Singh asked whether technology is taken into account in the computation of LRMC. My answer is a definite yes. It has always been and is also the case for this review. Technologically, we have squeezed everything we can from the current water processing technology. It will take several more years to achieve the next breakthrough and bring it to a deployable scale. I also thank Members for reminding the House that we have had a serious problem in the depletion of the Linggiu Reservoir in recent years. It is not clear whether the current situation is due to climate change, but we cannot discount the possibility of the dry weather to persist. And in the future, when climate change effects become more pronounced, it would be more severe. As Members are also aware, Johor is also drawing water from the Johor River, and Singapore is discussing this with Malaysia to ensure that Johor's actions do not compromise our ability to draw the 250 million gallons per day that Singapore is entitled to from the Johor River under the 1962 Water Agreement. What is clear is that Linggiu is operating today at a level way below what we are comfortable with and it will take years to build up to a reliable capacity again. Taking all these together, there is, therefore, urgency to have our policies, including right pricing, in place so that we can moderate demand by both businesses and households while also building the infrastructure we need to have a secure water supply. It is the job of my Ministry and PUB to plan and build the infrastructure, which we will do. But it is only through right pricing that we can have everyone valuing water as a strategic resource and consciously conserving it. With the 30% increase that we have announced, the price will be close to, though slightly lower than, the price of the next drop, or LRMC, today. This is the best way to emphasise the scarcity value of water. Members have expressed concerns over the magnitude of 30%. Clearly, this 30% increase has generated a lot of discussion on water. I hope it also raises awareness of its scarcity, its strategic value where water is concerned. But in reality, what does 30% translate to? For businesses, 75% will see an increase of less than $25 per month in their water bills.[+3 sentences] This is less than a dollar a day. Indeed, I am heartened that some businesses have taken this increase in context and have explicitly said that they would not increase prices. For households, the Government has provided additional U-Save rebates. One- and 2-room HDB households will not experience any increase in their bills. For other HDB flat types, monthly water bills will go up by $2 to $11 per month. Overall, water will still be affordable because it will remain at about 1% of household income.[+22 sentences] So, that is what 30% price revision translates to, $1 a day for 75% of our businesses, and still within 1% of household income for water expenses. Mdm Speaker, in Malay. (In Malay): It is clear that people were taken aback by the 30% water price hike. This has caused a lot of discussion on the price of water and, at the same time, the importance of water in the context of its scarcity in Singapore. The issue of water is highly crucial. It is a very strategic issue. Therefore, this discussion about the increase in the price of water is good because it raises people's awareness about the price and value of water to us. But eventually, what is the real impact of the 30% increase? Do we need to scare people about the impact of the 30% increase? For businesses, 75% of them will be seeing an increase of less than $25 a month, which is less than $1 a day. I am happy that many businesses have come forward to assure the people that they would not raise their sale prices just because of this water price hike. I had coffee at Al-Azhar just now. I called up Al-Azhar's owner, "Have the prices of beverages gone up? Will the price of beverages go up?" He said, "It won't increase." So, if there are coffee shops that increase the price of beverages, have your drink at Al-Azhar. For households living in 1- to 2-room flats, they would not be experiencing an increase, on average. The rest would experience an increase of between $2 to $11 per month. But this is still within 1% of their monthly household income. So, we should see this 30% increase in the right context, which is to raise the awareness of the importance of water to Singaporeans, to our country. But we should also see the context in terms of the increase and its impact towards our daily expenditure. (In English): Despite our investments in desalination and NEWater plants, the truth is this: we are still a water-stressed nation. Singapore was ranked first among countries with the greatest risk of water stress in 2040, according to the World Resources Institute.[+12 sentences] It is not a description of what we do. It is a description of who we are. We hope that through right pricing, everyone will cultivate the habit of water saving as part of our deoxyribonucleic acid (DNA), Singapore's DNA, whether we are a household or business. Just this morning, I attended a water rationing exercise at Woodgrove Secondary School. Many schools are participating this year to raise awareness of the value of water and the importance of water conservation among our young ones. Even during the prolonged dry spell in 2014, we did not face serious shortages because we had NEWater and desalination plants. There was no water rationing. But water conservation was something earlier generations of Singaporeans had imbibed. Singaporeans back then knew that every now and then, elements in Malaysia were threatening to turn off the taps. So, they bore with water rationing, supported water saving campaigns and even paid the cost of cleaning up rivers and their catchment areas. Indeed, it is because of our obsessive focus on water and the collective determination of the earlier generations and, of course, our PUB officers, that we were able to manage our vulnerabilities. If we take this same approach, we will secure our water future for ourselves and our children, and that, I think Members will agree, is well worth doing.
Mdm Speaker8 words
[+1 sentence]Mr Pritam Singh, do you have a clarification?
Mr Pritam Singh (Aljunied)341 words
[+4 sentences]Yes, Mdm Speaker. I have a few clarifications for the Minister. I thank him for the detailed speech that he gave. Firstly, I would like to ask the Minister how does PUB assess when to increase the price of water because, according to the PUB's Annual Report, the net income of PUB − after Government grants and contributions to the Consolidated Fund and tax − was actually higher between the years 2013 and 2015, compared to between 2010 and 2012. Between 2013 and 2015, it was about $550 million and between 2010 and 2012, it was $339 million.[+2 sentences] Notwithstanding the improvements that are required for the transmission networks and so forth, some clarity on that would be appreciated. The second question pertains to a point that the Minister made in his speech, which was about the choice of building more desalination plants. How does PUB make that determination whether it should construct more NEWater plants, as opposed to desalination plants, because NEWater is obviously cheaper.[+4 sentences] Some understanding on that will be helpful as well. And to that end, two follow-up clarifications: is PUB considering a proposal which has been discussed in public before, which is to deepen local reservoirs to increase our own local catchment and the possibility of directly supplying NEWater which, I understand, some years ago was raised in this House and the then-Minister clarified that only one country − I believe it was Namibia − which transmits such water directly? The reason is it would save costs by just having NEWater supplied directly, as opposed to going through another processing exercise through the reservoirs. A few more quick clarifications, and I beg your indulgence. With regard to the Linggiu Reservoir, assuming that it does fail, can we anticipate a rise in water conservation tax?[+1 sentence] With regard to my suggestion about a differentiated tax regime to encourage savings among Singaporeans, in addition to water rationing that the Minister mentioned, would the Government reconsider how it prices water so as to encourage people to achieve real savings by conserving water?
Mr Masagos Zulkifli B M M440 words
[+3 sentences]I thank the Member for asking these questions. On the issue of the books in PUB, I think it is very complicated for me to attempt to simplify what the numbers really mean. Our books are in accruals and our budget is in cash, and we have to reconcile them. What we will do is I will ask the Minister for Finance to look at the whole-of-Government approach in funding our water infrastructure.[+4 sentences] I think that makes more sense. Because there are some parts which are Government-funded and some parts which are PUB-funded, and it does not add up, if we look at each book separately. On the desalination plant, why do we choose NEWater versus desalination? Desalination, as I have mentioned just now, is more costly than NEWater. But as you reclaim more of this used water to be processed, the concentration, as I have mentioned to you, becomes even more difficult to process and, therefore, more costly. There is a tipping point between when it is better to have a desalination plant, which is easier to convey the sea water to, and a NEWater plant where we have to convey the used water to.[+15 sentences] So, all these cost considerations give us a way to basically evaluate the best cost-effective model and also to spread our risks across technologies. There was a question on whether we can deepen our reservoirs. In fact, that was the first question I asked when I joined the Ministry. It is very intuitive. Why can we not just deepen our reservoirs? Unfortunately, the answer is not as simple as the question. We have done studies and, currently, the studies show that there is a particular yield from the reservoir if you leave it as it is, and there is a risk this yield can be reduced if you start disturbing the bottom of the reservoir. So, we do not want to do something adversely affecting our yield of the reservoir by doing something which looks intuitive. I have asked our experts to study this further. They are still in the midst of studying this, but, right now, the prospect is not fantastic, unfortunately. The fourth question which the Member asked is about whether we can directly send NEWater to our homes. Theoretically, we can, but we do not have to right now. Certainly, when we need to, we will have to put the right processes to ensure this can be done, because we must ensure that it is safe for our house to drink from end to end. There was also a question on Linggiu Reservoir. May I clarify, is it "if Linggiu fails"?
Mdm Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh29 words
[+2 sentences]Yes, Minister. If the Linggiu Reservoir fails and we cannot draw from the reservoir, would the water conservation tax go up because it is associated with not over-consuming water?
Mr Masagos Zulkifli B M M345 words
The price of water, as it stands today, that we have proposed to increase, is LRMC, which is the price of producing the next drop of water.[+16 sentences] And, therefore, for whatever reason, the next drop of water that we need to draw will be coming from desalination as well as NEWater. So, it is already priced in. The problem is not the price. The problem is what will we do, what can we do, to prevent that from happening. Because it is not just an issue of supply; it is a very complicated issue should that situation ever occur to us. Finally, on savings and water rationing, whether we can give a rebate to people who save water, it is a bit counter-intuitive because, in the first place, we want to make sure people pay for the cost of producing the water, which is LRMC. And to give back that cost means we are subsidising the use of water. Any way we change the structure of water that we have today either involves cost or will be counter-intuitive to trying to promote conservation of water. I think what we have today is achieving its objectives, and I am glad that everywhere I go, water is one of the things that Singaporeans are very aware of. In fact, during the 93.8Live discussion on water, there was a caller who was very upset because one of his colleagues was using water in the shower after work. It was given for free for, I do not know, half an hour, or for a very long time. And he got very upset because you do not do this at home, why you do this over here? Because it is free? This is the right DNA for Singaporeans − even though it is free, we cannot bear to see water wasted. And I think that is how we should move forward. Continue to price it properly to reflect the scarcity value of water and, with that, hopefully, we achieve a DNA of always wanting to conserve the use of water.
Mdm Speaker8 words
[+2 sentences]Mr Png Eng Huat. Please keep it short.
Mr Png Eng Huat29 words
[+4 sentences]Thank you, Madam. Just a quick question to the Minister. The Minister said that water was never subsidised. Is it a Day 1 policy or only starting in 2000?
Mr Masagos Zulkifli B M M141 words
If I recall correctly, it was in 1997 when we decided to price water correctly. At that time, it was not only not priced correctly, the structure of the tariff was also very difficult to encourage conservation, conserving of water, to charge water according to its value. It was only in 1997 when we looked at really what we need to do to get that next drop of water, given the situation we were facing with our neighbours, given the expiry of the water agreement by 2060, that we consciously decided that we have to start thinking around how to make sure people understand the value of water. So, from 1997 onwards, we revised the water tariff and structure to reflect the cost of producing that water, LRMC, and, therefore, to make sure users know the price of what they use.
Mdm Speaker4 words
[+1 sentence]Assoc Prof Fatimah Lateef.
Assoc Prof Fatimah Lateef (Marine Parade)1658 words
[+3 sentences]Madam, many in this House would recall the tagline: "You push the button, we do the rest". And also the song, "Do you remember? − Times of Your life". It was for "Kodak". By 1976, Kodak held more than 90% of film sales and 85% of camera sales in the US alone.[+2 sentences] They were the leaders globally. But when Steve Sassoon invented the digital camera and showed it to Kodak, he was told to keep quiet about it as it would kill the company's crucial film industry, Kodak's golden egg. By 2012, we recall how Kodak filed for Chapter 11 Bankruptcy.[+40 sentences] It is likely if you ask your grandchildren and members of Generation Y and beyond, they may never have heard of Kodak. Fuji, on the other hand, realised the world was going digital. With a long-term vision and survival instincts, it invested in digital technology; diversified into new areas; started an in-house expertise development programme; participated in joint ventures, such as Fuji-Xerox; explored and actively innovated in new areas, such as nanotechnology, placing chemicals onto films, which was even later carried into the cosmetic industry till today, and medical imaging technology and equipment. There is really no magic wand but effort, hard work and strategy, with a touch of flexibility and adaptability that is needed. Discovery is really seeing what everybody else has seen and thinking what everybody else has not. As one of the smallest nations on the globe, that is how we need to be − changing, transforming, and change has to really be our only constant and it keeps us up there. This mindset must be our value and our gift from one generation to the next generation, just as this quote is from Warren Buffet. He said: "Someone sitting in the shade of a tree today is because someone planted a tree (with a vision) a long time ago." Budget 2017 must leave us thinking about this, about our survival together, about Singapore's survival. If one reviews our Budget the last few years, you will notice it is a continuum of change and development, through new schemes, enabling us to adapt to the new world order that is upon us all. It comes from a combination of two elements: firstly, good and in-depth sensing of the changes and the external environment which have impact on our economy, politics and foreign policies, besides other factors. And, secondly, our internal "conversations that matter", heart-to-heart, Singaporean conversations and feedback, which were weighted and considered to effect policies and schemes. It is not just about wait and see. It is really what I would call the five "Ps" − to predict, to have projection, to plan, and then, of course, to progress together. And, finally, it is practical − the fifth "P". It works and it is not viewed through rose-tinted glasses. It must also make us realise the hard facts and our challenges, and water is one of them, as we have just heard from the Minister, with only people as our resource. In the words of Prime Minister Lee Hsien Loong, I quote: "To survive, we need to be exceptional". Our biggest threat is really our mindset and complacency. Together, as one Singapore, putting our heads and hearts together, we have the ability to create choice by deepening and altering our interpretation of the world today, as it moves along so quickly. We have to keep shining, shimmering and glowing as the Little Red Dot. Madam, we also need to strike a balance, an equilibrium. Thomas Friedman, in his book, Lexus and The Olive Tree, talks of two countervailing factors in globalisation. The "Lexus" stands for modernisation and "The Olive Tree" represents our need for identity and belonging. Whilst we stay open to trade, talent, ideas and inculcate deep intrinsic and global capabilities, our racial, religious values and cultural identity are just as important. We must learn to balance the two, just as the book states that Lexus has, indeed, provided a means to growing stronger and bigger olive trees. The future of our Singapore identity depends on the right mix that we choose together. In Malay, Madam. (In Malay): I would like to share the following scenarios. Uncle A is 70 years old. When I visited his home, I met him and we had a chat. Since retirement, he is usually at home by himself during the day, waiting for his eldest child to return around 8.00 pm. When asked whether he does any other activities, Uncle A told me that one of his friends will drop by each evening around 7.00 pm and have a chat with him. After speaking to him for a while, I moved on to his neighbour's home. His neighbour informed me that every evening, Uncle A will stand outside his corridor and speak to himself. We assisted Uncle A with the help of the Silver Ribbon team that collaborated with me in the Geylang Serai area. Together, we diagnosed and brought Uncle A for counselling and treatment and he is better now. There is also a family of four who lived in an HDB flat, and when I visited them, the wife and mother of that family, who is in her 40s, sorrowfully and tearfully told me about her breast cancer, the pressures that she faces and many other things that are weighing her down. We spoke for a long while and I did referral for her in terms of counselling, assistance and other activities, and her depression improved. The issue of mental health is becoming more noticeable and prominent. Balancing physical and mental as well as social health is very crucial in creating an individual who wants to function and mingle optimally in society. Budget 2017 has presented ways to further strengthen the circle of treatment, counselling and the network for mental health, especially at the community level. $160 million will be channeled towards the mental health fund and new programmes and initiatives, including the dementia-friendly communities programme. With this increase in funding, all 10 organisations, which are part of my mental health Taskforce in Geylang Serai, are pleased with its announcement.[+3 sentences] They have commenced new initiatives and ideas that they will feature. Mental illness in a multi-ethnic and plural country like Singapore is more diverse and there are different interpretations as to why someone is afflicted with mental illness. It should be handled sensitively and tactfully to avoid hurting the feelings of the community. In fact, in Geylang Serai, we always have open dialogues on mental health and sharing is done by people of all races. We also implement cross-over referrals, which means that anyone who receives treatment and assistance from the Silver Support team, will also be directed to receive traditional Chinese medicine (TCM) treatment at Sian Chay Medical Association to learn how to use herbs, how to relax their minds and also about acupuncture.[+1 sentence] So far, this has proven to be very popular and effective. (In English): In October last year, when Geylang Serai partnered Silver Ribbon to organise the Asia Pacific Mental Wellness Conference with the theme of advocacy, it was attended by many international participants and speakers. And during that meeting, I launched the Global Mental Health Alliance as well.[+12 sentences] With our Budget announcement recently, I would like to share with the House some of the comments from the global mental health fraternity and leaders. Filipa Palha from Portugal, the World Federation of Mental Health Regional Vice President for Europe said, "In Portugal, we had similar promises from the government, but it never came through." Another person, Hugo Cohen from Argentina, World Federation of Mental Health Regional Vice President for Latin America, said, "Bravo! Good example for our own governments." Ellen R Mercer, from the US, President for Government Affairs said, "Fabulous news…an example for other countries." Robert van Voren, World Federation of Mental Health, Vice President for Constituency Development in the Netherlands, said, "Congrats, great news indeed. Wish we could have this back home." And similar comments came from people from South Africa, Taiwan, Pakistan and the Mediterranean countries. Madam, even as we are a tiny red dot, we can, indeed, set the example for others. Back in Malay. (In Malay): The Malay/Muslim community and organisations have organised many dialogue sessions and I find that they have benefited greatly from the schemes under our previous Budgets. They are more confident, reassured and understand our Government's strategies better. Many methods, programmes and schemes were implemented to help the community improve themselves, their abilities and the status of their families. This Budget also allocates $6 million more for self-help groups like MENDAKI and this is also good news for our community.[+2 sentences] If we look around, many countries are unable to come up with this kind of Budget, especially in the midst of a dreary and gloomy economic situation. We are thankful for this vision as well as for the firm, vigilant and prudent approach in the national expenditure, where all activities, projects and enhancements are progressing as announced earlier. In fact, the Government has brought forward building and construction projects that were supposed to be done in 2019, to this year and the following year, in order to help our construction industry.[+7 sentences] Change and transformation will always happen. Similarly, our mindset must also change, renew and adapt in order to move with the times. If previously, we were told about this saying "Acquire knowledge everywhere we go", now we can acquire knowledge from laptops, smartphones and SkillsFuture easily from our own homes. (In English): To end, Madam, in the Budget, let us look beyond "just asking what is in it for me". It is really beyond that. It is beyond just handouts, although there still are. It is really about us together as a nation, Singaporeans and Singapore, moving together. It is about our future, survival and sustainability.[+1 sentence] Madam, I support Budget 2017.
Mdm Speaker2 words
[+1 sentence]Ms Thanaletchimi.
Ms K Thanaletchimi (Nominated Member)941 words
[+1 sentence]Mdm Speaker, I welcome this year's forward-looking Budget. It contains several initiatives to support and assist the growth of our economy by strengthening the industry sectors under the ITMs for 23 industry sectors through the tripartite alliance and partnership.[+8 sentences] The aim is to identify jobs of the future and preparing and equipping our workforce in deepening their skills, improving productivity with technology and automation, embracing innovation for better business opportunities and business sustainability, and providing market opportunities for internationalisation of businesses, especially for SMEs. This is understandable as SMEs employ two-thirds of the workforce today. However, with targeted budget allocation and the introduction of both existing and new schemes, how do we ensure that these SMEs create better jobs for our Singaporeans? How many of such jobs are future-ready? To what extent will they succeed in improving productivity and, if so, where is the check and balance that SMEs will share the gains with the workers that thereafter translates into sustainable wage increases or profit sharing? Some SMEs or companies are barely keeping themselves afloat with the funding support provided by the Government. Should these SMEs continue to suffer and prolong its losses, their workers will be adversely affected. With this in mind, the Government can perhaps work with the Labour Movement to explore ways to assist these potentially affected workers leverage programmes, such as the Adapt and Grow programme, and transit into new employment before the company winds down. These workers can plan and start to upskill and reskill to enhance their employability. I also welcome the SkillsFuture Leadership Development Initiative to develop 800 potential Singaporeans for exposure to international jobs that are well-paying. As we welcome this, to avoid the situation of talent shortage, the Government could work with companies on job redesigning and rebranding of industries and jobs to attract more locals and Singaporeans working abroad to come back and work at home. It was also announced that all Ministries would have a 2% cut and that the Health, Home Affairs and Defence Ministries will have a 2% cut in phases.[+4 sentences] Which part of the expenditure will the 2% cut come from? As manpower is often the big ticket expenditure of any organisation, will this cut affect the workers' jobs and salaries? Is it the right time to cut the budget for all Ministries, especially for Health, while we are confronted with challenges of an ageing society; and for Home Affairs and Defence with the increasing threat of terrorism globally? Will there be a fee increase passed down to Singaporeans consequently? I wish to now touch on cost of living. It is notable that for both the diesel cost increase and 30% increase in water conservation tax, the Government has put in place mitigating measures for low-income families.[+18 sentences] It is, indeed, heartening to see several schemes made available to families to cope with the cost of living. However, Singaporeans, especially the middle-class families, will feel the brunt of these increases. Therefore, short-term help for such families would be welcomed, especially when companies are expected to be prudent with wage increases and bonuses. In fact, more should be done to help these middle-income families. Some Singaporeans questioned the sudden huge increase in water price. I think the Minister has explained earlier. Should there be a gradual increase over a period instead? Can there be a systematic way or formula for increasing water price so that it is less painful for Singaporeans? Moreover, the increase would mean some sellers or outlets may take advantage of the circumstances by increasing food and drink prices, amongst many others. I would strongly urge the Consumers Association of Singapore to help keep tab on this and act swiftly to normalise such behaviour. As for social enterprises of the Labour Movement, I believe that they will, as always, act to moderate the price increases to safeguard consumers from being exploited by those who often cite a compounded cost increase in the supply chain as an excuse. One other industry that would see such impact is the healthcare sector. Will such increase result in an increase in the cost of healthcare services to Singaporeans? Because in healthcare, we use a lot of water for every step of the procedure. I hope the respective Ministries will not pass on the cost increases to its consumers. Also, with the increase in water price, will employers use this as a reason to reduce wage increases as well as bonus payouts? With regard to U-Save rebates, perhaps the Government can consider having different subsidies for multi-generation flats and executive flats, instead of grouping them together and providing them with the same amount of assistance. This is because people living in multi-generation flats get the least U-Save rebates amongst other flat types when many are living as three-generation family units with elderly parents or grandparents and may require more assistance and support from the Government. Enhancement of the CPF Housing Grant for resale flats encourages young families to buy resale flats.[+2 sentences] Are there enhancements extended to existing CPF Housing Grant for couples buying Build-To-Order flats? Lastly, I applaud the Government's Budget inclusion for the expansion of infant care centres. Such support will enable younger women to stay in the labour market after childbirth and, for those who had stopped working, a reason to return to work. This is where the employers, those working alongside with them and the entire nation can show better understanding and support to these groups of women who often face challenges raising children.[+1 sentence] Madam, notwithstanding the above, I support the Budget that is promising and exciting, to build a formidable economy and create good jobs for Singaporeans.
Mdm Speaker4 words
[+1 sentence]Mr Ang Hin Kee.
Mr Ang Hin Kee (Ang Mo Kio)1445 words
[+4 sentences]Mdm Speaker, this year's Budget is set to prepare us for the future and build an innovative and connected economy. To this end, there is support for both businesses and workers. I will touch on SMEs and their workers, as well as freelance workers and how Budget 2017 will impact them. Organised by the unit for SMEs at NTUC, I met with SME owners from different sectors at forums and learning journeys. Some shared with me their challenges how to migrate into the digital space and needing a one-stop solution, among other concerns. Thus, it is timely that there will be the SMEs Go Digital Programme and Technology Hub which can help SMEs tap on digital solutions, build capabilities and boost productivity. Connecting the Technology Hub to the existing network of SME Centres, including USME at NTUC, will also help more businesses to receive advisory, access grant and get step-by-step aid on technology adoption and solutions.[+3 sentences] Trade associations and chambers have also been identified as multipliers to lead industry-level initiatives and can support SMEs scale up and be more competitive. For example, recently, the Early Childhood and Education sector announced a centralised meal catering project. Meals for childcare centres are now prepared in a central kitchen and delivered to participating centres. The centres benefit from time and cost savings, properly prepared nutritious meals and, I am quite sure, healthy and less sugar and no fried food, and the jobs of cooks can also be redesigned. This Lean Enterprise Development Scheme project is one good example of how industry can take the lead.[+16 sentences] In this particular instance, the Association of Early Childhood and Training Services worked in collaboration with the NTUC's e2I, Early Childhood Development Agency (ECDA) and Workforce Singapore. Some SMEs may be members of informal groups. Can we also allow these groups to be eligible to receive the support if they have an innovative idea that can move and transform their sector? In 2015, for example, the Earn and Learn Scheme was rolled out to attract more graduates to join SMEs. The coverage of industries was fairly small with limited places. I hope more sectors can be included and more vacancies generated for SMEs to attract more fresh graduates. Recently, I received feedback about the Earn and Learn Scheme for the logistics sector and the results for the polytechnic students have been more than encouraging. So, with more millennials entering the workforce, some SME employers also express the need to be better prepared to guide and communicate with them. These young workers' perception of work and aspirations vary very differently from their older colleagues. I hope SkillsFuture Singapore can provide training support to help line managers to do a better job at helping the workers assimilate into the workplace. Equally important is to help existing staff learn to effectively communicate and work alongside these young workers. We heard from many SMEs that they want to do more for training and have asked for some more support. They hope to see more being done for targeted in-house training programmes with bite-size modules. This will cater to their shortage of time and sometimes inability to release their staff for training at a particular centre. Many SMEs which were early adopters of different Government schemes have benefited. The next challenge is to reach out to and extend assistance to many other SMEs to help them transform their businesses, innovate and scale up so that their staff at their workplace can also benefit. I will now move on to speak about how we can better support a new and emerging group of working people. There are over 180,000 freelancers and the self-employed and, this figure, by many accounts, is expected to climb.[+10 sentences] Very often, individuals opt for freelance work to pursue their own passion and interests, or simply that is how some of the industries today operate. With the rise of the gig economy, it is timely that we address challenges faced by those who choose freelance work, either on a full-time, part-time or project basis. This is especially relevant with some of them making it as a career choice. Some graduates I met even consider starting it as their first career, instead of going on the traditional employee/employer model. We have also heard of how traditional sectors, such as transport and services, are also impacted with the convenience of online apps and the sharing economy. The way services are delivered is now transformed, with the likes of private hire services, cleaning, grocery shopping or food delivery services gaining traction. For some of these workers, they may hold the title of freelancer or self-employed in name. However, they have little control and/or bargaining power over their work. Some even have to put on uniforms of the buyers that they serve while on duty and carry the brand on their bikes or bicycles for the services that they render. Very often than not, the payment structure and work arrangement are heavily controlled by the service buyers. Unlike that of a freelancer who can decide to pick up projects or do it anytime, this particular group find that they are strictly controlled by the service buyers. However, the onus lies entirely on the workers to ensure that they receive timely payment, manage their own medical and insurance, and contribute to their own CPF savings.[+1 sentence] Unlike employed workers, freelancers do not earn a fixed salary and are also, therefore, not entitled to various statutory protections, such as annual leave, medical leave and so on. Common challenges faced by freelancers include payment, late or sometimes none at all; the need to have intellectual property protection; income instability and running the risk of not saving enough for medical and retirement needs.[+3 sentences] Mdm Speaker, freelancers are working people who also deserve to enjoy protection. As we gear up for the future economy, our employment practices and laws need to be robust, inclusive and cover all groups of working people and to ensure that no one is left behind. We can perhaps take a leaf from how the taxi industry has evolved. Taxi drivers who are self-employed are not covered under any Employment Act, although recently we have just announced that there is a group of them who can opt to take on the employee model with the new taxi operator HDT.[+4 sentences] Together with LTA, the taxi operator works with the National Taxi Association to start up a mediation centre back in 2014. This allows the self-employed, such as taxi drivers, to come together to have disputes and issues resolved through mediation rather than through civil suits and other platforms. This is a good move by this taxi operator with the other stakeholders. The union also work with the taxi operators to facilitate training, offer hardship grant and funds to aid taxi drivers in need. Moreover, taxi operators also co-contribute to their hirers' MediSave contribution on this drive-and-save scheme.[+4 sentences] This level of support, while not very extensive and comprehensive, still shows a stark contrast to what other freelancers in the market enjoy. We hope other sectors can at least take the first step and follow suit. In fact, various Government agencies work closely with freelancers in their respective industry development plans. We hope that the Government can also take the lead and work with the freelancers and the various buyers in that community to ensure that measures can be rolled out to better protect and give support to the freelancers. Recently, the Manpower Minister shared that his Ministry has started to gather information on the changing freelancing landscape in Singapore. The purpose is to better understand the profiles of these freelancers, to find out if freelancing is their primary or secondary source of income, as well as the various sectors and occupations they are in.[+6 sentences] This information will be very helpful because, today, many people are drawing anecdotes and examples they hear and, therefore, we need to rely on official sets of information to guide us. We hope that the data will help us to monitor the workforce trends, study the needs and issues faced by freelancers, and thereafter effectively put in place appropriate measures to safeguard the interests of freelancers. Madam, Budget 2017 is a budget for the future, and brings Singapore and our businesses and workers towards the next phase of growth. I hope we can continue to render targeted support for SMEs and their workers as well as freelancers to help them operate and thrive in the future economy. I am very confident that our SMEs, our SMEs' workers and freelancers can do their part to stay resilient, adaptable and be bold to experiment with new ideas. Madam, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Mr Ong Teng Koon.
Mr Ong Teng Koon (Marsiling-Yew Tee)950 words
[+24 sentences]Mdm Speaker, I support the prudent Budget put forward by the Finance Minister. Today, I would like to focus on issues that have not been directly addressed in this Budget but which are, nonetheless, top of mind for many Singaporean workers. From my interactions with residents and their industry, I hear a rising concern about their livelihood. At the policy level, I am confident that the Government is doing what it can to protect the welfare of our workers for the long term. However, from my discussions, the man on the street has a different perception. The question is how do we communicate the meticulous efforts in this regard by the Government to the public? How do we assure the worker that his welfare is front and centre of the Government's priority? There is a perception on the ground that the Government is not as worried as it should be, that there is a disconnect between the fear that workers are feeling and the optimistic, forward-looking messages that they are hearing. In my view, the Government needs to calibrate the message so that it is empathetic and realistic, that people can relate to, and to also serve as a rallying cry so that people can take the steps to prepare themselves for this future. It is not difficult to understand why people are worried about their livelihoods. Globally, 2016 was a year filled with surprises and, very often, not pleasant ones. This has created a cloud of uncertainty over global economic growth. There has been a marked rise in protectionist and anti-trade rhetoric, and this discussion has alarmed Singaporeans who are acutely aware that their prosperity is intricately linked to global trade and economic growth. Global uncertainty is not the only thing on their minds. Other local trends are also causing concerns. For years, we have been trying to raise productivity in Singapore companies. This is the critical step towards building resilience and robust businesses to try to allow businesses to thrive in tough times. However, for many workers, this can sound ominous. They think that they will be replaced by robots or do double duty as their teams are "downsized". Looking ahead, technology will threaten other jobs further up the value chain, and at a much faster pace than anticipated. Autonomous vehicles will displace drivers, and that we know. But increasingly, trading algorithms have started to displace trading professionals, many armed with Masters and PhDs. And in the future, artificial intelligence might replace human lawyers, doctors, accountants and even civil servants. No one is immune. According to one research, 50% of the jobs could be lost to automation within 30 years.[+7 sentences] Of course, history shows us that as old jobs disappear, new ones will rise to take their place. But this is cold comfort for each individual worker who worries about his job being replaced by robots. There is a parallel to the rise of protectionism here. Free trade benefits the economy as a whole, but specific workers lose their jobs, as they see their wages being depressed. To them, "the greater good" is mere words, whereas their own pain is immediate and tangible. Given these concerns, it is not surprising that many are turning to what we now term as the gig economy, doing freelance or part-time work to supplement their income. There are even full-time part-timers who do a portfolio of different jobs. Already, in the US, 33% of workers are freelancers, and are expected to rise to 40% in 2020.[+8 sentences] Singapore is not there yet, but we are certainly moving in the same direction. There are some local part-time job portals like Freeboh or MyWorkSG that are gaining a lot of traction, as even more workers report their willingness to partake in the gig economy. While the gig economy increases our resilience of the workforce as a whole by matching workers with new opportunities, there are some concerns. And we hear Deputy Prime Minister Tharman saying that he is not yet a fan of the gig economy. For me, there are two concerns. The first is that these freelancers may not develop and grow their skills and end up doing the same role forever. There is nothing to incentivise them or there is nobody looking out for the freelancers in terms of their career progression. The other concern that I have is that the gig economy essentially transfers the risk from company to individuals. Freelancers do not enjoy statutory benefits like the full-time work people do, such as annual leave, maternity benefits, In-camp Training reimbursements or paid medical leave.[+1 sentence] They also lack group medical insurance that most full-timers enjoy. Although MediShield Life provides hospitalisation coverage, freelancers still lack accident, life and especially outpatient benefits that many companies currently provide.[+7 sentences] The trend towards part-time and freelance work is gaining momentum. The gig economy will allow workers to work in a variety of roles and pick up new skills. This supplements or bolsters training or retraining like what we are trying to do in the SkillsFuture. But instead of the classroom, the gig economy will let them try and learn in real life. Let me begin to draw my remarks to a close. The role of the Government here is to ensure that worker welfare is sufficiently protected in this brave new world. As The Straits Times recently argued, we need a future-ready social safety net for the future economy. Berkeley Prof Laura Tyson has described such a system as portable, attached to the individual worker instead of the employer, universal and prorated.[+2 sentences] Heading in this direction will hopefully also dispel some of the cognitive dissonance that we currently perceive on the ground. Madam, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Mr Ang Wei Neng.
Mr Ang Wei Neng (Jurong)1202 words
[+1 sentence]Mdm Speaker, I would like to declare my interest as I am also a staff of ComfortDelgro, a holding company with subsidiaries in Singapore that employ more than 12,000 staff in Singapore, as I talk about how to help retrenched workers better. Last year, 4,738 workers were retrenched, 100% more compared to the year 2015.[+20 sentences] Many of the retrenched Singaporeans are PMETs. As the economy slows down and as we restructure our economy, more Singaporeans will be out of a job and be retrenched in the coming years before we can finally see light at the end of the tunnel. This is a concern. It is alarming and it is worrying. I understand that MOM, the Workforce Developoment Agency (WDA) and e2i are of the view that they have tried their best to retrain and redeploy displaced workers. But the perception on the ground, however, paints a different picture. When companies move out of Singapore, it can be very challenging to retrain displaced workers. When factories close down and production line managers lose their jobs, it can be very difficult for them to switch from supervising processes to supervising people. Some workers are still falling through the cracks and, despite their best efforts, they cannot find jobs. This happened to one of my volunteers, Ross. She had a high-flying career as a Systems Applications and Products (SAP) specialist, working with Apple in Singapore and the US for about 10 years and she also worked for IBM as a managing consultant. Her work was valued by big clients like British Petroleum, American International Group and even in the US State Department. She returned home to Singapore in 2011 at the age of 48. She believed that there were many jobs in Singapore available for her. However, she only managed to find a part-time contract job as a project lead security consultant with Jemena. It was owned by Singapore Power. Her contract, unfortunately, ended in 2014 as Jemena was sold off. Since then, she has been jobless. But this is not due to a lack of effort. She has spent the last three years applying for jobs without success. When she approached WDA and e2i for help, she was told by both organisations that they organise job fairs but do not offer job search or job matching for individuals like her.[+14 sentences] In the few job interviews that she was granted, she felt that she was discriminated against due to her age and race. In an effort to keep up with change, Ross diligently used her SkillsFuture credits to attend classes and upgrade her IT skills. She is now 54 and is still holding on to the hope to find a full-time job. I have come across many similar, heart-wrenching stories on the ground. We need to do more to help these people. Mdm Speaker, I would like to recommend that the Government consider setting up a cross-Ministry working committee comprising representatives from agencies like MOM, the Ministry of Trade and Industry (MTI) and the Head of Civil Service, which represents various Government agencies and their departments, as they are collectively the largest employer in Singapore. This committee should catch those falling through the cracks. With a holistic overview of job demand and supply, we would be able to better address the anguish, disappointment and needs of the displaced workers, so as to give them hope, help and a new lease of working life. Madam, in Mandarin, please. (In Mandarin): In my English speech earlier, I said that Singapore is restructuring its economy and many companies are facing the issue of survival. Amidst the economic slowdown, the number of workers who were retrenched last year had doubled, compared to 2015. However, there are still many growth sectors, such as healthcare, social services and transport. Every year, these sectors need to hire a few thousand staff. Let me cite public transport as an example. As the demand for public bus services increases, the gross monthly pay of bus captains has improved dramatically from $2,000 per month in 2011 to more than $3,000 per month now.[+7 sentences] This is even higher than the $2,500 starting monthly pay of polytechnic graduates and $2,700 starting pay of private universities' graduates. The $3,000 gross monthly pay of a new bus captain is comparable to graduates from local public funded universities with a median starting pay of $3,400. While a new bus captain's gross monthly pay is $3,000, the chief bus captain's gross monthly pay can be as high as $6,000. This is a perfect example of "every trade has its master". Hence, I urge those who are retrenched to seriously consider taking up jobs in the services sectors. (In English): Next, I would like to move on to the sports scene, Mdm Speaker. Before I proceed, I would like to declare my interest as the President of the Volleyball Association of Singapore. As a president of a National Sports Association (NSA), I welcome the news that $50 million will be set aside to match sports donations dollar-for-dollar.[+2 sentences] Every year, in the past, many NSAs have to raise hundreds of thousands to promote our respective sports. Currently, all of us have to compete for the limited funds from Sports Singapore for the dollar-for-dollar matching grant which is capped at $40,000 per NSA on a first-come-first-serve basis. Last year, the fund dried up as early as September, barely six months from the start of the financial year in April.[+9 sentences] So, I hope that with the new allocation of $50 million, more NSAs can benefit from the matching grant. However, having a higher quantum for the matching grant is not sufficient. We need Sports Singapore to work with various agencies to make available more training venues for national players and amateur players alike as interest in sports grows. Take volleyball, for instance. The Volleyball Association has groomed our indoor women's team to win a Southeast Asia (SEA) Games bronze medal in 2015 after a 32-year break. And last year, our combined school boys' team won a bronze medal during the Association of Southeast Asian (ASEAN) Schools' Competition for the first time in Singapore's history. And our beach volleyball Men's and Women's youth teams were invited to participate in the World Beach Volleyball Competition in Switzerland last year, again the first time in our history. During the Singapore National Games in 2014, prior to the SEA Games, the most number of teams that participated in a team-based competition was for volleyball. This shows the growing popularity of volleyball in Singapore. Despite these efforts and our plea to Sports Singapore, many amateur volleyball players cannot find courts to train and to play. I hope that Sports Singapore can work with schools to make available more indoor volleyball courts during weekday nights and weekends. In addition, I hope that Sports Singapore can work with the National Parks Board to designate more segments of the beaches at East Coast, Pasir Ris and so on for beach volleyball. These possible collaborations with Sports Singapore and other Government agencies will go a long way towards making Singapore a sporting nation, promoting healthy living, teamwork and better resilience among Singaporeans.[+1 sentence] With this, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Mr Zainal Sapari.
Mr Zainal Sapari (Pasir Ris-Punggol)1455 words
[+1 sentence]Mdm Speaker, I thank the House for the opportunity to speak on the Budget. In the Budget, $2.4 billion will be spent over the next four years to implement the CFE strategies, in addition to the S$4.5 billion allocated last year for the ITM programmes.[+22 sentences] Without a doubt, a lot of effort has been put in to help workers in this transition for them to be future-ready, future-proof and future-forward. Mdm Speaker, yet, I am still worried our low-wage workers may not be able to reap the full benefits of our relentless drive to be future-ready. This may hamper our efforts to narrow the income gap between workers in the bottom 20th percentile and those of the median percentile. When I talk to low-wage workers, all of them would like to have better pay, better jobs, better working conditions and hope for better job security. Over the years, the Labour Movement, together with our tripartite partners, advocated and pushed for Progressive Wage Model (PWM), Best Sourcing Initiative (BSI), Inclusive Growth Programme (IGP), Workfare and National Wages Council recommendations to ensure sustainable wage growth for our low-income earners and these are some efforts that have given a hand in helping our workers to future-proof themselves through better training opportunities. However, these efforts are compromised by issues, such as cheap sourcing, wage resetting and high turnover rates. Unless we attempt to tackle these issues as well, we would take one step forward and two steps back. The low-wage workers will find themselves at the mercy of things beyond their control. Mdm Speaker, my other Labour Members of Parliament have put forward various proposals to help different segments of workers to be future-proof and future-ready based on the Labour Movement's 4P framework: Placement, Progression, Productivity and Protection. In my speech, I will be covering my proposals surrounding protection for our workers. As we continue to provide opportunities to train our workers for the future, it is also important that we provide protection for their livelihoods. Firstly, I would like to urge the Government to encourage better and fairer procurement practices which could set the benchmark for the private sector to follow as well. While many contracts are typically independent of Government influence, the Government itself may want to take the higher moral ground to ensure that all of its contracts are reasonable and fair, based on the principles of proportionality and best sourcing. The outsourced sectors have long been plagued by low productivity and stagnating wages as a result of irresponsible outsourcing by businesses. Cheap sourcing and the imposition of high liquidated damages which do not commensurate with the non-delivery of specific service have resulted in the industry being caught in a vicious cycle. Here, service providers find it challenging to embark on productivity efforts, given that their operating margins are very low. Service buyers are on the receiving end of cheap yet less than ideal service outcomes, and workers' wages are depressed as service providers find ways to cope with the increased cost by compromising on workers' welfare. In one of my blogs, I have shared about contracts with one-sided clauses. Such contracts will impact the workers as the service providers find ways to cut corners, such as not giving workers their 13th month bonus, paying low basic salaries and, in the process, minimising any overtime payments as well. Some of them also deny workers their medical benefits outside the scope of the Employment Act. Moreover, it could also be challenging for service providers to embark on productivity efforts, given that their operating margins are very low. Our Government procurement guidelines generally ensure strong financial governance. They are open and transparent to encourage competitive bids to ensure value for money, but it can be improved upon to ensure outsourced workers' welfare are not compromised by the competitive bids. I am heartened to share that the Ministry of Finance (MOF) has been very proactive to engage the Labour Movement to improve procurement practices on the ground to promote authentic best sourcing and ensuring fairer contract clauses based on the principle of proportionality to create an environment that will benefit all parties, including workers who can enjoy better terms and conditions.[+9 sentences] With the Government taking the lead, other companies, including Temasek-linked companies, would be encouraged to follow their example and this trend will better the lives of our low-wage workers. Mdm Speaker, the second area that I would like to touch on is ensuring PWM continues to be relevant as we transform the various industries and helping low-wage workers future-proof themselves. I am involved in the sectoral ITM committees for the cleaning, landscape and security sectors. A common challenge identified is the difficulty to attract local workers to join these industries. In my engagement with the industry players, one of the things we can do is to improve the wages in these sectors. NTUC, with the strong support from the Government and the industry stakeholders, made significant progress in this aspect through PWM. I would like to thank the Government and our tripartite partners for their unwavering support to see through the implementation of PWM in the cleaning, security and green sectors. PWM is a good start to give some protection to the workers to ensure their salaries are commensurate with the workers' training, productivity and responsibilities. However, moving forward, if PWM is to make a real positive change in the livelihoods of our low-wage workers, we need to be bolder. Last year, the tripartite committee for cleaners recommended annual increases and bonuses to be part of the mandatory wage model.[+4 sentences] It was an unprecedented move that required a lot of determination from all the stakeholders involved to see it through. I hope the tripartite committees in the security and landscape industries would demonstrate the same tenacity to ensure the same for the security and landscape industries. I also hope the Government will continue giving its strong support for the future recommendations to improve PWM. Mdm Speaker, the third area of protection that low-wage workers need is when they are injured in the course of their work. In 1978, the Special Relief Fund (SRF) was set up by the Singapore Labour Foundation in response to the 1978 Spyros accident. I would also like to propose that the Government consider reviewing the criteria of the existing SRF to provide immediate relief to affected workers suffering from serious workplace injuries pending the outcome from Workmen's Compensation.[+4 sentences] Mdm Speaker, please allow me to speak in Malay. (In Malay): In the future, it is possible that many jobs will disappear due to disruptive technologies. For instance, the presence of driverless cars will definitely affect the livelihood of many drivers. Self-help kiosks to make payments at supermarkets and to perform check-ins at the airports will mean that fewer customer service officers will be needed. There are many more examples about the impact of technologies that will create disruptions to the point that there will be no difference between PMETs and rank-and-file workers. But I reckon that low-wage workers will be affected more and experience a greater impact from these disruptive technologies. And the best chance for low-wage workers to adapt to these disruptive technologies is by obtaining new skills. Unfortunately, some employers are hesitant to send their workers for training, due to concerns that their attrition rate will be high if the worker completes the training and decides to join another company. While employers are given incentives to send their workers for training, some incentives should also be given to the workers after they complete their training so that they will remain in their jobs. This is something that is necessary and should be studied if the Workfare Income Supplement (WIS) scheme is being reviewed in the future, so as to encourage workers to stay on with their employers who have sent them for training.[+6 sentences] (In English): Mdm Speaker, we have made steps towards brightening the future for the Singaporean workforce. However, we cannot afford to rest on our laurels because we have to think beyond tomorrow and ensure all workers have their fair share from gains of our economic growth. I want our outsourced and vulnerable workers in their silver years to look back and not remember their helplessness but remember how they have contributed in their own special way to the development of the nation and the efforts we have, collectively, put in to better their welfare. I want them to remember that as they have helped Singapore, Singapore has thought about them, too. I hope they will no longer be called vulnerable workers but regarded as workers who have played a role as we chart our growth forward. With that, Mdm Speaker, I support the Budget.
Mdm Speaker4 words
[+1 sentence]Mr Kok Heng Leun.
Mr Kok Heng Leun (Nominated Member)2757 words
[+2 sentences]Mdm Speaker, I would like to first thank the Minister for Finance and the various Ministries for preparing this Budget for 2017. I recall my experience last year, the first time I stood before the House to speak and about the Budget. That time, I had noted that culture was not mentioned much in the speech, but this year, I am thankful and happy that the arts and culture are mentioned, although in only one small paragraph. But it is good news about a boost for the Cultural Matching Fund.[+20 sentences] So, for the next few minutes, before maybe we go for our break, I would make arts and culture my subject: upheavals, displacements and the art of resilience. We are all acutely aware that we live in a complex world today. We have been forewarned that the times ahead will be difficult. There will be displacements to our seemingly orderly lives. Last month, I attended a seminar organised by the Salzburg Global Seminar. This organisation was set up 70 years ago after World War II, gathering thinkers, practitioners and policymakers to consider world issues, articulate problems and propose broad strategies to deal with these problems. For the 2017 iteration that I went to, 40 fellows from various part of the world participated in the seminar, which was held in a beautiful palace, the Schloss Leopoldskron. I cannot speak German, but this palace is famous because it is the location site for one of the beloved musical films, "The Sound of Music". During the seminar, while overlooking the idyllic lake, we shared and listened to stories and experiences that were at times harrowing, heart-breaking and deeply disturbing. One fellow from Uganda shared that her brother was abducted by rebels, and how her family had to keep silent, despite knowing that he would become a child soldier. Another participant shared about the unbearable lightness of existence − the result of her experience of war and bloodshed. Our American friends said they feared waking up to another executive order that would bring the US closer to isolation. Yet, within the same country, we heard about another crisis, this time from a Native American, through songs and rituals, demonstrated the solidarity of her relatives in their bid to halt the construction of the Dakota Access Pipeline at Standing Rock Indian Reservation. There were also stories about other urgent global issues, from climate change to social and income inequality. So many issues, so many crises and so many stories of upheavals, which resulted in a huge sense of loss and displacement. As I listened to all these sharing, I realised that back in sunny Singapore, although we are cushioned from the immediacy of these crises, we cannot deny that they will undoubtedly impact us. For many Singaporeans, myself included, the Rohingya crisis seems far away when, in actual fact, it is really close − refugees in Johor needing help and support. A community that is hurt and injured is a world that is not at peace. Let us also not be complacent and imagine that such upheavals are too far away or will never happen to us. For now, while we may not experience such gut-wrenching upheavals, we have our own issues of displacement. Migrant workers who have come to Singapore to make a living despite their personal sense of dislocation; single parents and their children who do not enjoy the same benefits of other traditional family units and who struggle to make ends meet; workers who feel that their jobs are at risk because technological advancements and artificial intelligence might make their roles obsolete and losing their sense of place at home, in the society and with themselves.[+7 sentences] Displacements come with change. In physics, displacement maps out the relative change of the position of an object, moving from one point to another. But it does not reflect the total distance travelled and the time taken to reach there, which is just like real life. For some, it is a straight line, quick and fast. But for others, it is a path with a lot of derailments, ups and downs, and some of them may not even reach there. Naturally, we want the change that we experience to be good, that it brings us forward and upwards, in a straight line − in other words, positive displacement. But most of the time, negative displacement within our society is real and undeniable. With the widening income gap, the lower- to middle-income groups constantly feel the squeeze as they try to keep up with change.[+6 sentences] At the same time, their lack of resources has resulted in derailment. When they are reminded to catch up or be left behind, it sounds as if the problem is that of a personal failing in their lack of trying, rather than a systemic one. Change favours the privileged. Privilege comes in all different forms. All of us here are privileged because we have the power to effect change. Or so I would like to believe. You can be privileged in terms of wealth or education, or even as a race. It is thus the responsibility of those who are privileged to speak up for those who are not − those who do not earn as much, those who are not as educated, those who are sidelined by our system.[+7 sentences] In a society that celebrates achievement and progress, no one wants to be seen as a failure. Failure results in alienation. People who feel alienated, who feel helpless, become angry. We see the outcomes of such unhappiness on social media, often resulting in an echo chamber effect, reinforcing collective discontentment. The frustration that stems from material, emotional and psychological insecurity creates a further polarisation of society. We begin to fear the other. This pervasive sense of threat is dangerous. It not only prevents us from being empathetic and compassionate, but encourages selfishness, which can even make violence and brutality justifiable in extreme situations. This Government is aware of these concerns and addresses them through pro-business policies and enhancing the safety net.[+9 sentences] In the immediate term, pro-business policies retain and create jobs, but it might not ensure a trickle-down effect on the economy to individuals. Standards of living may still stagnate. But the Government's extended social safety net will help. But with no substantial increase in income, the reliance on social support may be protracted. Self-esteem is directly related to self-reliance. Rather than hoping the safety net is wide enough to catch them, people would generally prefer to lead a self-sustainable, dignified life, earning a respectable wage that ensures their independence. The late British sociologist, Peter Townsend, once said, "It may be worth reflecting, if indeed a little sadly, that possibly the ultimate test of the quality of a free, democratic and prosperous society is to be found in the standards of freedom, democracy and prosperity enjoyed by its weakest members." I and many others believe this to be true. And in difficult times, we must be even more attentive to those amongst us who fall through the cracks. As such, I wish to hear more from the Minister on how the real wages of the middle income and lower income can be raised.[+1 sentence] And this brings me to the next point. While CFE focused on economic strategies, it is essential that a study on the cultural impact of these economic strategies be made.[+3 sentences] Every economic structural change affects individuals, family, society, politics, infrastructure, economy, environment, the tangible and intangible heritage, and the arts, in other words, the culture of our society and the city state as a whole. We must take a proactive approach to anticipate the impact of these structural changes, rather than react to them when they arise. To give an example: technological advancement has progressed so rapidly beyond our imaginations that we, as humans, are trying to grasp hold of the changes and manage them well without falling behind. Another example will be the impact of the expansionary immigration policy of the 1990s to early 2000s, which could be mitigated if we had done a cultural impact study earlier.[+4 sentences] Studies of cultural impact of economic strategies will, therefore, put us in good stead to manage changes and their effects on society. I would like now to unpack a term I have heard numerous times in the House since our Debate began, "deep skills". But what is "deep skills" without deep thinking? What is crucial here is a culture of creative and critical thinking. Such a culture cannot be manifested overnight through new state funding schemes. There is no better time than now to scrutinise our current education system, incorporate opportunities for creative and critical thinking within it, develop our next generation and generations to come.[+24 sentences] The Government can create scaffolds and support structures for innovation, but the root source of innovation lies in the people. We often talk about software or heartware, as opposed to hardware. Software is not just about skills, but it is about human interactions. How lacking are we these days in the art of conversations? We have reduced our exchanges to monosyllables: "Can", "Want", "K". I am not talking about language. I am talking about connecting. How do employers and employees connect? How do strangers converse? How do we settle a public disagreement in a multiracial and multi-religious society? How do we manage the increasing moral panic? How do we not see ourselves as helpless individuals, alienated or a powerless observer to surrounding injustice? How do we see ourselves as active change agents for our society and the world? This leads me to my next point on resilience. To manage change and displacement, we, as a society, must become stronger. We must develop the art of resilience. In trying times, resilience in individuals is key in helping us to repulse fear, resist and reject the injustice and oppressive status quo. Resilience embraces difficult yet transformative change. It takes courage and conviction; it encourages objective and critical thinking. At the same time, it enables empathy, compassion and a greater sense of hope. I have attended a number of forums last year and there was always this call for artists to respond to these trying times. In the Salzburg Global Seminar, policymakers, thinkers, non-government organisations (NGOs) and representatives from C40 Cities and so on, made the call for arts to be the active change agent and in building resilience. In Weimar, a conference on sharing and exchange, political scientists, economists, philosophers stressed the importance of collaboration and intercultural exchanges. In Malta, NGOs, chief executive officers of Arts Councils around the world made the call for resilience and more arts to heal, repair and imagine. As an arts practitioner, I can attest to the fact that the arts can develop resilience because it opens up our critical thinking processes, be it as a spectator or audience, participant or creator.[+11 sentences] To give an example: Mr Ong, an audience member of my community forum theatre play, once shared, and I quote, "I used to be a very impatient person. But after watching your forum theatre play, when I get into a disagreement with my spouse, I will remember you, Heng Leun. I remember you conducting a forum theatre play and, when a crisis happens, you will say, "Stop! Take a moment to think, to reflect." So, now, if I am going to quarrel with my staff, I stop. I think and I reflect. It makes me less impatient and, of course, with that, there are fewer arguments and more discussions." For creators, the arts is a means for articulating difficulties otherwise left unvoiced and seething beneath the surface. Take, for instance, my friend from Uganda, Beatrice Lamwaka, who wrote stories that helped her heal from her pain and trauma of living through arduous times. I urge you to read her award-winning work "Butterfly Dream", which can be found on the Internet. At home, we have witnessed the lyrical poetry of our migrant workers in Singapore, who have given us an unflinching glimpse into their lives here. Take Bikas Nath from Bangladesh, a poet and shipyard worker who won first prize at the 2016 Migrant Workers Poetry Competition.[+9 sentences] He shared that when he is lonely, I quote, "the pen and paper are my friends. So, when I have the time, I try to write down my feelings." And now, I quote from his award-winning poem, "Why Migrant?": "I long to run back to the warm embrace of my homeland Among loved ones Laugh over a steaming cup of homemade tea to the sound of the impatient strumming of a guitar somewhere Wearing my blue uniform I want to lose myself Back into my childhood Like a stubborn child on a rainy monsoon day Hiding under the safety of taro leaves in the swamp." The arts offer a world of imagination and, in that, the seed of hope. In art making, an individual encounters the power of art to heal, repair and bring hope in difficult times. Aside from individual resilience, we need to build on community resilience. By that, I mean a community that comes together to listen to differences, mediate and recognise that each differing point of view deserves respect and understanding. This resilient community will never neglect the individual voice within the sea of voices. Again, the arts compel us to be engaged through active listening and collaboration, which are essential building blocks that inform creation. Active listening allows us to develop empathy and to experience views beyond our comfort zone and echo chambers. I, therefore, urge the House that we continue to listen and give with respect.[+7 sentences] More communication, more openness. Less group think, less judgement. Beyond our own communities, we must also build on inter-community resilience, so that we do not become insular and self-serving. We live in an interconnected world and we, therefore, need to look out for others because their circumstances will have an effect on us. To develop inter-community resilience, we must create platforms for active engagement among communities that allow for good, honest and deep dialogues. The arts are one such platform that not only entertains but also educates. It presents scenarios within safe spaces for the public, making us aware of narratives that are often concealed in our midst, and inspiring us to be the change we want to see in society. Similarly, in building inter-community resilience, we need to build such safe spaces where rules of engagement are adhered to, to ensure that our dialogues remain respectful yet robust, critical yet compassionate, passionate yet measured and non-violent. It cannot be stressed enough that leadership plays an important role in motivating and inspiring citizens to take greater responsibility for our shared growth, instead of just focusing on individual success stories.[+2 sentences] This means being politically motivated to gain a better distribution of wealth and success. It cannot be achieved merely through business-oriented measures or short-term handouts. Rather, in developing long-term strategies to reduce the income gap, our leaders can reignite self-belief, meaningfulness and dignity in the people.[+4 sentences] Likewise, an enlightened leadership must respect the differences that exist within our society, not tolerating, not co-existing, but embracing and celebrating diversity and plurality of views, lifestyles and people. In an era where there is increased polarisation sparked off by religion, politics and class, our leaders have ever more important roles as beacons of reason and mediation. To be resilient is to never allow communities to splinter into us versus them ideologies but, rather, to make people see that there is a "u" in "us". We are in this together. As our nation moves forward with the proposals by CFE, let us remember to become positive forces of change, to find new ways of seeing and listening, and to always be resilient and compassionate to those who fall through the cracks of the system.[+5 sentences] If we are to become a community of hope in these difficult times, we cannot merely focus on straightforward success stories but must engage with those who feel most sidelined and marginalised, so that we can become more robust and resilient together, and never alone. In Pig Earth, part of the trilogy written by the late John Berger, about peasants trying to survive under capitalism, there is a scene of an old peasant training a mouth organ in his mountain while he was trying to save an old cow. And John Berger wrote, "All music is about survival, addressed to survivors." Hence, by extension, all arts are about surviving, addressed to survivors. And with that, I support the Budget.
Mdm Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan (West Coast)2051 words
[+6 sentences]Mdm Speaker, this Budget comes at a time when a myriad of challenges is confronting Singapore. Globally, there are uncertainties, consolidation and key developments. These are fueled by oil prices, the US' political and economic agenda, the future direction of the European Union, the Brexit journey and Asia's growth strategy, in particular, China. The developments in each will have effects, whether direct or collateral, on economic conditions across the globe and Singapore. Locally, Budget 2017 and beyond will have to achieve a balance to address the short-term and long-term needs and challenges of the economy and our working populace. For a start, I am glad the overall Budget has a slight surplus to cater to any uncertainties and exigencies in this financial year and which may impact Singapore and for which we need to respond to. From a manpower perspective, there are several challenges for us, I dare say not exhaustive, with the first being rising structural forces and unemployment. We saw a record 19,000 layoffs in 2016 since the last peak in 2009. What has been a worrying trend is that the layoffs affect especially professionals, managers and executives (PMEs) and the slower rate of re-entry into the workforce for this category of workers, especially those who are older.[+8 sentences] This is largely due to what I have previously mooted or identified as the three mismatches of skills, expectations and jobs. There is also the phenomenon of, what I call, the "slow-burn" or "churn" in several sectors, fortunately not across the board yet, of our local economy, such as in the oil and gas, offshore and marine, foreign financial institutions and retail because of global uncertainties, restrategisation, consolidation, recalibration and the advent of digitisation, robotisation, mechanisation and the Internet of Things. By the same token, we face the longer-term challenge and need of sustaining inclusive quality growth, bearing in mind we have an ageing workforce, relatively flat productivity in the past five years and a much slower employment growth in the years ahead. Having heard the Budget and its initiatives fleshed out, I am glad that the Government has considered and adopted several of the key recommendations by the Labour Movement. However, all said and done, I submit that the execution and implementation or, what I call, the "follow-through" of each of the initiatives and programmes are most crucial. In response to Budget 2017's plans and programmes, I have five suggestions and recommendations in the area of future jobs, future skills and future training, with a particular focus on the plight of PMEs, as they are most vulnerable and sandwiched during these times of uncertainty and structural challenges. First, I am glad we are rolling out ITMs for 23 industry clusters and sectors. In the course of working out the blueprint, each sector and industry has painted an optimistic future of the new jobs and the jobs growth in each sector. Infocomm technology (ICT) and healthcare sectors have highlighted there will be 30,000 jobs each. We also need 3,000 precision engineers, 1,000 rail engineers and 22,000 data scientists and robot coordinators in the manufacturing sector by 2024. There is also a need for 4,000 early childhood educators.[+24 sentences] All these sectoral manpower plans paint an extremely optimistic picture of the jobs market. I am not sure if there is duplication in the numbers as there may be overlaps, such as between ICT and the financial sector, when we talk of data science, analytics or cybersecurity. To the person unemployed or retrenched, all these figures mean little to him or her if he or she cannot find a job in any of these sectors. It is, therefore, imperative to paint a realistic picture of the jobs market by identifying and sharing where the jobs really are, which companies are hiring and when they are doing so. Also, what skills and experience are required of these job openings and what training must we embark on to prepare ourselves for these future jobs? It is, therefore, vital for the tripartite partners to work together with the Institutes of Higher Learning (IHLs), industry partners and stakeholders as well as research and consultancy companies to better sense, synthesise and provide a clear signal so as to not just place the current unemployed into current jobs but the future unemployed into future jobs. To this end, the Labour Movement has started looking into future jobs, skills and training and getting help and support from our extensive Labour Movement network, tripartite partners and various stakeholders and partners. Second, even as we drive internationalisation and encourage Singapore companies and Singaporeans to venture abroad and be regional and global, it is important that we provide sufficient support and assistance to those who have spent time on overseas stints to assimilate and find jobs back in Singapore when they return. My biggest worry is how these Singaporeans who have gone abroad are able to adjust and adapt when they return back to Singapore in the future. I say this because I have met PMEs at our NTUC's U PME Centre, including classmates of mine, who have returned to Singapore after spending some eight to 16 years abroad. Many have returned due to family commitments, such as because of elderly parents or children's education, or to really come back home. One such example is a PME in his 50s who has been working for a European MNC in the oil and gas sector for 20 years in the area of project management. He was retrenched and was out of job for a year before finally landing a job as a project manager now based in Saudi Arabia. I know some who have been back for more than a year and still have not found any job despite lowering their salary expectations. Some have resorted to doing freelance work or short-term contract positions. This is an area we need to pay particular attention to, and I hope the enhancements to Adapt and Grow and the many SkillsFuture initiatives to be announced will address this problem. Third, all the talk on digitisation, the digital divide and disruption is good but what does it mean to the layman or worker? What does he need to do to stay ready, relevant and resilient? I, therefore, suggest we come up with a digital disruption awareness or development programme for all workers, all Singaporeans, very much similar to the Basic Education for Skills Training (BEST) and Worker Improvement through Secondary Education (WISE) programmes we had in the 1980s and 1990s where we had to bring all Singaporeans and workers ahead in terms of literacy and numeracy. The future jobs in demand and future skills in demand components can be built into this programme to ensure all Singaporeans stay able, adaptable and agile. This programme can be spearheaded by the Labour Movement's e2i and NTUC Learning Hub and supported via Government funding. Fourth, the SkillsFuture Credit utilisation has been promising and off to a good start. I have met workers who have shared how they have benefited immensely from picking up new skills via tapping on their SkillsFuture credits. With the rapidly volatile business environment and job obsolescence, workers globally are now concerned that their skills are losing relevance or what I call the "Fear of Skills Erosion". To address this, I suggest for the Government to provide SkillsFuture Credit top-ups of $500 in intervals every three to five years so as to encourage Singaporeans to take personal responsibility in their continuing education and training, embrace a spirit of lifelong learning and stay ready, relevant and resilient.[+3 sentences] The credits can go a long way for not just skills acquisition but should also include engaging professional career coach services. Lastly, the Budget has announced proposed enhancements to Adapt and Grow funding, including the "Attach and Learn" programme which I welcome and look forward to hearing more during the MOM Committee of Supply. However, I hope as we execute the various fundings, we must bear in mind the need to be flexible, responsive in terms of speed to market and also cater to all segments of the workforce, from low-wage workers to PMEs. With about 70% of those laid off last year being PMETs, I submit that we need to pay particular attention to this group and, especially those who are long-term unemployed and mature PMEs.[+4 sentences] I am glad that PCP now supports redeployment of PMEs within the company. However, one particular observation I have with PCP is that when PMEs move into a new sector or totally new job, he or she enters at the entry point of that new sector or job. I find this sometimes unsatisfactory, considering many mature PMEs have accumulated one to as many as three decades of work experience and that their other innate skills are not taken cognisance of. At our U PME Centre, we observed many PMEs would prefer to stay within their industries where possible or, at the most, move across into any industry by utilising their sets of skills and experience. There is strong inertia from many PMEs to explore new industries due to the high opportunity cost. It is with this in mind that I hope the Government can look into helping PMEs transit into second careers more seamlessly by exploring the adjacency of jobs and the adjacency of skills so that these PMEs can move into, move across or move up into new roles which capitalise on their acquired skills and knowledge so that they can even enter mid-career and be given credits for their experience.[+5 sentences] The public sector has successfully done this for certain job types and I suggest we replicate this to other sectors and companies. Mdm Speaker, in Chinese. (In Mandarin): With regard to measures introduced in Budget 2017, the key lies in implementation. I have five suggestions. First, our foremost task is to identify where opportunities are, which companies are hiring and what skills, experiences and training are required by these jobs. By doing this, we can better help our workers prepare for these future jobs. Hence, the tripartite partners must work closely together with higher learning institutions, industry partners and stakeholders, as well as research and consultancy firms to collect needed information and not just place the current unemployed into current jobs, but the future unemployed into future jobs.[+3 sentences] Second, even as we drive internationalisation and encourage companies and workers to venture overseas and gain overseas experience, it is equally important that we provide sufficient support and assistance to those who come back to Singapore to assimilate back into our workforce and find jobs as soon as possible. Third, I suggest that we come up with a digital technology development programme to help Singaporeans to improve their skills in the area of digital technology. This programme will be similar to the BEST and WISE training courses offered in the 1980s and 1990s. Fourth, I also suggest that the Government top up $500 into the SkillsFuture credit every three to five years to encourage Singaporeans to take personal responsibility for their own career development, embrace the spirit of lifelong learning and stay relevant.[+1 sentence] In addition, the usage of the credit should also be expanded to include engaging professional career coaching services. Fifth, while we introduce and execute the various programmes, we must consider how to look after all segments of the workforce, including low-income workers and PMEs. I hope the Government can explore how to help PMEs into adjacent jobs and adjacent skills, so that they can transit into a second career seamlessly. (In English): Mdm Speaker, the challenge for Singapore in 2017 and beyond is how we are able to navigate the occasional gusty winds and flooding downpours. Although we have weathered a variety of economic calamities in the past decade alone, it does not mean we will automatically survive. The challenge that confronts us this decade will be somewhat different and diverse. The "killer app" is how we can, as one country and one people, stay not just ready, relevant and resilient but have the necessary ability, agility and adaptability to navigate and ride on the ebb and flow.[+3 sentences] We have always been on a treadmill. The only difference is the speed at which the treadmill is now moving, compared to previous years. With that, I support the Budget.
Mdm Speaker46 words
[+5 sentences]Order. I propose to take the break now. I suspend the Sitting and will take the Chair again at 4.45 pm. Sitting accordingly suspended at 4.22 pm until 4.45 pm. Sitting resumed at 4.45 pm.
The Minister, Prime Minister's Office (Mr Chan Chun Sing)1872 words
[+17 sentences]Mdm Speaker, since Minister Heng Swee Keat announced the Budget, we have heard many feedback from the public and also Members of this House. While a few have expressed concerns with our Budget status, most were concerned with our individual status. Common questions and comments heard were these: how much do I get? How much more do I have to pay? Why the price increase for carbon, diesel or water? For businesses, their reactions have also been largely similar: how much would I get? How much more must I pay? Will there be more immediate pain relief? Even amongst some civil servants, they were surprised, "Wow, you mean my Ministry's budget is going to be rebased, which means a cut of 2%?" But what are the core issues for this Budget? While we can all appreciate the concerns with our individual positions, this Budget must surely be more than these. Our Budget is also, if not more importantly, about our collective future and that of our country, beyond what it means to us individually. And the core questions that we have to come back to and focus on in this Budget are as follows: how do we earn a living for ourselves and our country? And how do we take care of one another? These are the two core issues that we must return to: how do we earn a living for ourselves and for our country, and how do we take care of one another? Many have asked and commented: if the Budget can be a bit more generous; if our Government can spend a bit more. I can understand these wishes. But let us take a look at our Budget position carefully. This year, we have a Budget of about $70 billion. Out of that $70 billion, $14 billion comes from our Net Investment Income (NII), which means that for every five dollars we spend, one dollar comes from the savings, or the income from our savings, to be more precise.[+3 sentences] We are, if you like, living on the income of our savings: $1 out of every $5 that we are spending in this Budget comes from the income from our Reserves. But I do not know if Members have also noticed something that is even more significant. I have been observing this for the last few years. The top four revenue streams of our Budget are NII, corporate tax, GST and income tax. This year, the number one income stream, out of these four, is NII.[+15 sentences] This was not the position a few years ago. NII has become the revenue stream that gives us the most to do for our Budget. And if we think a bit deeper, these top four buckets of revenue stream ‒ NII, corporate tax, GST and income tax ‒ out of these four, how many of them are really under our control? NII depends on the status of the world economy. Corporate tax and income tax will be similarly cyclical, according to the world economy. Even GST, to a lesser extent, will be cyclical. So, the question that we should all pause and think for a while is this: is this a sustainable position, going forward, for our country? The top four revenue streams of our Budget, of which three are not entirely within our control, even if we do not take into account the competition that we have to face from other cities like Hongkong in how we set our corporate and income tax rates. I always joke with some friends that our corporate tax rate and income tax rate are not set independently by the Minister for Finance. The Minister for Finance has to watch like a hawk what our competitors are doing. So, this is the context that we are in ‒ $1 in every $5 that we spend today comes from our NII ‒ the four biggest buckets of our revenue stream, three of which are not entirely within our control. That is the backdrop for this Budget. Some have commented that we are running a surplus. I think Minister Heng has explained. Is this a real surplus? Even after accounting for NII, we have less than $2 billion budgeted for.[+6 sentences] The question is this: will we realise this $2 billion surplus? And I hope Mr Leon Perera is right. I will be very happy if we are right and you are right. But what if we are wrong? What if the economy turns soft and we do not realise the full amount that we have budgeted for NII but, instead, we need more money to help fellow Singaporeans if the economy turns further south? How much can we afford and how much more do we have? One programme, like Workfare Income Supplement, costs us $600 million to $700 million.[+15 sentences] So, if the revenue comes down and the needs go up, I am not so confident that that $1.9 billion surplus that we have budgeted for will necessarily come true. But like I said, I hope we are right, I hope you are right. But what if we are wrong? There are some comments by some Members in the House to say that this Budget is a political Budget, that we spend less so that we can time the political cycle. Guess what? Our system is designed such that every term of Government has to earn its keep. At the start of every term of Government, People's Action Party or otherwise, the Government must earn its keep. We precisely design the system such that no Government will come in and promise to spend before it has earned its keep. This is unlike other countries. This is the reason why we have been able to get $1 out of every $5 to support our Budget. If our forefathers had done otherwise ‒ to spend first before the term of Government even earned its keep ‒ we can forget about that $1 out of every $5 that we are depending on for our Budget now. So, we would rather err on the side of caution, and this is the reason why our forefathers had put in place this system, and this is the reason why this generation will also continue to uphold this system. Then, there are suggestions that we are ignoring the pains, the short-term pains of the economy. Is that so? If this is so, why did Minister Heng Swee Keat announce targeted measures to help specific sectors like the offshore and marine sector, like the $700 million that we push into the construction sector? If this is so, why do we spend all the money that we spend for that increase in the U-Save rebates to make sure that even though prices may increase on average, we will take care of the lower income first?[+2 sentences] If we adopt such a cynical attitude to budgeting, will we have done this? Just as one of my friends' feedback last night, if, indeed, this is a cynical Government, then we should not be giving anything at all. No, this is not a cynical Government and it will be wrong for us to impute our own perverse motive on the Government. It is targeted to help precisely because we feel the pain for our people.[+13 sentences] Managing an economy is not like turning the thermostat in the air-conditioned room, that when you want it to go up, you just turn it down; when you want it to go down, you just turn it up. If this Government is not concerned with the short term, and if the economy goes down south, who can guarantee that in two years' time, when we want to turn it up, that it will go up? We do not have to look too far. The competition across the world is intense. Some countries lose their footing, get into a downward spiral ‒ a death spiral, if you like ‒ and never recovered. Our job is to keep ourselves on a steady path, making sure that we address the short-term pains whilst establishing the conditions for our long-term success. It is never either/or; it is always both. Because if you have managed an economy before, you will know that no one can take a cynical attitude towards whether you can time it to go up or down. No one. Next, I would like you all to focus on what this Budget has in terms of what is new. But I would like to remind all of us that it is not just what is new that is important. It is also what is ongoing. Every policy has a long tail. Every time we make a commitment to spend on a policy, it has a long tail, which means that there are future commitments that we need to adhere to, to keep our words to our people. Every time we have a long tail, it eats into what, in budgetary terms, we call the "white space" for the future, which means that the more we commit upfront with a long tail, the less degree of flexibility we have going forward to meet contingencies and to seize opportunities.[+8 sentences] Some of the tails do not just wind down. Some of the tails, paradoxically, creep up. So, it is not a small feat for a government, any government of any particular point in time, to make a commitment. While Minister Heng Swee Keat has announced various things that have changed, we must all bear in mind that many things are still ongoing: Workfare, U-Save rebates, the commitment that we have done for SkillsFuture, and so forth. So, it is not just the new things that are important. It is also what has been going on and will continue to go on that define this Budget. And I hope we see that in proper context. Let me come to how we earn a living. In NTUC, we have three priorities for this year − jobs, jobs and jobs.[+12 sentences] Jobs for those people who are displaced today, and jobs for those people who might be displaced tomorrow. But let us be frank with ourselves. Grants and subsidies alone will not create jobs, especially sustainable jobs. Grants and subsidies, as Minister Iswaran said yesterday, enable and help, but the crux must come from our businesses, our access to markets and our innovation. How good our businesses are depend on the following: how innovative we are; how bold we dare to venture beyond Singapore; how good our workers are to keep pace with the demand for the new skills; how good our regulatory environment is to groom and enable new businesses. When we look at our Budget, this is what we see. MTI, MOM, the Ministry of Education (MOE) and many other agencies are all focused precisely on all these four basic fundamental issues to support our businesses: enable innovation, enable internationalisation, enable SkillsFuture and enable a more progressive regulatory environment for startup businesses. So, the businesses are not alone in this. The workers must come on board. Government agencies must come on board. And this is where it leads me to CFE. Mdm Speaker, I would like to ask for your permission to show a simple slide.
Mdm Speaker9 words
[+1 sentence]Yes, please.
Mr Chan Chun Sing2844 words
[+11 sentences]That is a trimaran sailboat. I found this to be a simple way to remember the seven CFE strategies or, as Minister Heng Swee Keat called them, the seven mutually reinforcing strategies. The two sails are our engines to propel the boat forward. One of them is SkillsFuture − how good our workers can be. But SkillsFuture cannot be alone, we need the equivalent on the business side − the EnterpriseFuture as the other sail. These are our two enabling strategies. NTUC, as the apex organisation, will mobilise our workers, work with IHLs, MOM, MOE to make sure that we train up a new generation of workers ready for tomorrow. And I hope that the Singapore Business Federation and the other trade associations will similarly perform the role for businesses, so that not only will we have a SkillsFuture programme, we will couple that with an EnterpriseFuture programme. The three skiffs that make up the trimaran are essentially our three core strategies to make ourselves a more balanced, a more diversified economy. The first, how to use our advantage in urban planning and city development as a marketable strategy to sell skillsets and relevant expertise to the rest of the world? How do we use internationalisation to broaden our markets to transcend our geography and finite resource limitations? How do we use digital to again transcend our geography, create new resources and create new competitive advantages for ourselves? But the thing that ties these all together is simply this − our ability to implement our ITMs well, because they cover 80% of our sectors.[+19 sentences] And we know that implementation is key. Estonia also has a digital strategy. The challenge is not who comes up with a better plan. The challenge is who can execute the plan well, who can execute the plan faster, and who can adapt when conditions change. Last, but not least, tripartism. Partnership. We work together. We solve the problems together. We will get there better than anyone else. How fast we sail, how good we are able to ride the waves depends on our teamwork, depends on how well we can read the waves of change over and beyond how well the boat is designed, or how well the plan is. What about the jobs for tomorrow? NTUC will not come to this Budget and ask MOM for more money per se. MOM, MOE and MOF have been very supportive. Over and beyond money, what the Labour Movement wants to work with our IHLs and our businesses on are as follows. One, we want to strengthen the job placement system for everyone. We want to challenge ourselves, that among NTUC, WSG, the Economic Development Board and all other Government agencies, including our partners in the Singapore National Employers Federation, to form that national database at the backend. It does not matter which career centre you go to, we will integrate the backend. We are even prepared to work with private agencies like LinkedIn to ensure that we do our placement well and do it faster. But placement is only for today's job, putting today's employed into today's job. Most importantly, we have to prepare to help tomorrow's unemployed into tomorrow's job, and that we have to do well to overcome the potential structural unemployment. This is the reason why NTUC is raising $200 million, on top of what we have in our NTUC Education and Training Fund, to work with our IHLs on national modules, stackable modules, and just-in-time modules.[+10 sentences] This will require a national effort. We need to do much better and we can do much better. I have always never been entirely satisfied with our speed-to-market for generating new modules that are relevant to industry needs. But this is not a finger-pointing exercise. This is a call for the Labour Movement to work closely with the Government agencies and the businesses to come together. If we are not satisfied with the speed-to-market, we work on it, improve and fix it because, at the end of the day, it affects the livelihoods of our workers not just today, but tomorrow. So, we are not going to talk about theories. We want to get things done. Many of the Labour Members have spoken about protection. There are new forms of employment − freelancers, contract workers. We need new mental models to help these workers protect their legal rights, financial rights, help them to plan for their retirement and so forth. This is why MOM is initiating a workgroup with the businesses, with the Labour Movement to study the implications of such long-term structural changes to our employment market, and we have to get this right.[+4 sentences] The Labour Movement will fully support the MOM initiative to review our system to make sure that all working people, regardless of workers, freelancers or contractors can have peace of mind for today and tomorrow. Finally, jobs for tomorrow will require us to work very hard on productivity. I visit one to two companies every week. There is no magic bullet to raise productivity just by macro-policy measures. Macro-policy measures enable, but what is most important is that each and every business has to re-examine its business processes together with the workers, and together with management to raise the productivity.[+3 sentences] It is a hard slog. It is not easy. But we are committed to doing so. This is where the 23 ITMs come in.[+1 sentence] They are the amalgamation of the efforts of the Government, businesses and the Labour Movement. If we get this right, we move the needle for 80% of the market.[+11 sentences] If we do not get this right, there will be no productivity gains and no sustainable wage increases for our workers. So, we have to work hard on this, and the Labour Movement will do it with our partners in MOM and the Government agencies and our business partners. Next, let me touch on the kind of society that we aspire to be. I think it is all very good and I am very proud that all Members in this House always mention these two words when it comes to the kind of society we want to be: inclusive and mobile. We want to be inclusive to take care of one another, regardless of our starting position in life. We want to give everybody a fair chance. We want social mobility and that is what defines Singapore, that regardless of ancestry, connections, race, language and religion, we can all succeed, so long as we put in the effort and we have the necessary talent. Everyone has a fair chance. But every time when we talk about the difficult issue of tax increase or, for the matter, even taxes, we hear a lot of calls from many Members asking: can you give a bit more to some sectors of society? On one hand, I am very proud that the Members of this House are representing residents in your community and speaking up for them. But on the other hand, we must also all have a care, because remember what we talk about in the Budget. Going forward, for every dollar that we give more to someone, it actually means a dollar less to someone else.[+4 sentences] If we are all politicians, we will all speak up for those who need more. But if we are political leaders, then we have to face the issues squarely, that in every society, how do we distribute the finite resources that we have? How do we make that statement that we, as a society, will lean forward to help those who need a bit more help − the weak, the vulnerable and the poor? That we do not need to be apologetic. That we will lean forward for the weaker segment of our population. And because we say we lean forward to the weaker segment of our population, the poorer segment of our population, it means that some of us who are more privileged will have to foot a bigger bill.[+14 sentences] Is that the right thing to do? I think so, but it takes courage. It takes political leadership to tell our people that we all aspire to a higher goal, beyond "what is in it for me?" Or we can compare this to other countries. There is no shortage of examples near and far. When prices go up, or when prices need to go up, everybody pretends that we will subsidise everybody equally. But is it true? Is it fair? We do not have to look too far. Take fuel subsidies as an example. Where has that gotten some of these countries? The rich got more subsidies than the poor. Is that the kind of society that we want? No? We say that we let the prices float up to the market price. Whatever we collect, we concentrate and focus the help on those who need it most.[+37 sentences] But I can understand there will always be a quarrel as to who needs it more. But at least, let us get the principle right, and let us carry the ground. There will always be somebody who is more in need than us. And we can do our part for them. But it is not just about workers, it is not just about businesses. The Government must do our part as well. And this is where the Ministries come in. The Ministries must also lead the way, tighten our belts, make sure that we get the bang for our buck, that we are stewards of the resources given to us, that it is the job of the Government and every civil servant to make sure that every dollar spent on anything achieves the goals that we set and it helps us to bring about a fairer society. Take it positively, I would encourage all the civil servants. The best ideas do not always come with resource abundance. In my short little time of 20-over years in the Government, some of the best ideas paradoxically came during times of constraints. It is how we apply our minds to it. Having more resources must not lead us to a crutch mentality whereby we throw resources to solve a problem. We have to challenge ourselves constantly to do better. In NTUC, we have a famous phrase. We say, "Avoid a sedimentation model", and I must attribute this to my comrade Mr Heng Chee How. Avoid a sedimentation model. What is a sedimentation model? First thing comes in, it gets the first bite of the Budget. When you do it once, it is an event. When you do it twice, it is a series. When you do it three times, it is a tradition, and thou shall not violate thy tradition. But is that the correct way to do things? We have to look at it afresh every year. What are the most important things that need to be done? How do we get it done, even if it needs to be done and done better? We have to ask ourselves, as a Government, how do we challenge ourselves to not ossify? That every time when a problem happens, we do not have a knee-jerk reaction to clamour for more rules. Because every rule that we add has a cost − to business, enforcement and so forth. We need to take the approach that everything that we do, we are inevitably managing risk. There is no way to have anything with zero risk. Everything has a risk-benefit analysis. And if we adopt a mindset like that, we will critically challenge ourselves where we can make not more or less rules, as Lawrence would say, but make smarter rules. Smarter rules that lead to better outcomes but not necessarily increasing the enforcement cost. That is a challenge for our Civil Service. So, I have touched on businesses, individuals and the Government. Let me round up by touching on this sensitive topic called "water". I feel compelled to talk about this because I have heard much over the last two days and the last one week. I can understand the angst of our people with the water price increase.[+9 sentences] I can understand and appreciate the angst that we all feel if it would feed through and, if so, how would it feed through to the cost of living. I have heard many scare-mongering stories. I have heard many rumours. I have heard truths, half-truths and so forth. It will be too much for me or the Government to expect everyone to defend the price increase. It will be too much for us to expect that we will speak up for the price increase. And I do not expect that. But I think we have to get certain basic things right and do what is honourable, regardless of which side of the House we are on. We have to start from this basic premise. As Members of this House, do we agree that water is existential to our country's survival?[+17 sentences] Let us settle that first. Do we agree that water is existential to our country's survival? If the answer is yes, then we can go on to the next one. The second question: do we agree that we should price water properly? If we agree on these two questions, we can go on to the mechanics of how to price it properly, what should we consider and so forth. But water is existential. It has been so in 1965. It has been so yesterday, it is so today, and it will be so tomorrow. For the entire generation who have worn the uniform, you know what this means, including all Members in this House. Mr Pritam Singh used to serve with me in the same unit, a classified unit. We know the deal. That has not changed, and that will not change. Yes, our tremendous efforts over the years have improved our situation. But we are nowhere near where we want to be. We spare no efforts to manage the risk all these years. When I was in primary school and I first looked at the map of Singapore, I was taught to remember the three reservoirs in Singapore: MacRitchie, Seletar, Peirce. I wonder how many Members in the House today will know how many reservoirs we have today, and how many more of us will be able to name all the reservoirs in Singapore today, without Googling. The answer is we have 17 reservoirs today.[+5 sentences] We used to have three. We have 17 reservoirs today. How many desalination plants do we have today? How many NEWater plants do we have today? How many more desalination plants and how many more NEWater plants we must build in order for water to never be a weapon pointing at our head? Two-thirds of the entire land area in Singapore today are water catchment areas.[+7 sentences] I dare say no other country has planned it such. No other cities have planned it such. Two-thirds of our entire land area are water catchment areas. It is not about the reservoirs. Every reservoir needs a catchment area. We have dammed up every river in Singapore. There is no river that flows into the sea anymore. NEWater plants, as Members have heard from Minister Masagos, did not exist before 2000.[+7 sentences] Desalination plants are coming on-stream. The prices for desalination is coming down, but guess what? Our dependence on the higher cost water − NEWater and desalination − is going up. So, yes, technology has helped us and we will be in an even worse position if not for technological progress. But our demand has gone up the other side. If in the 1990s our forefathers did not invest in the Linggui Dam, I do not even know where we will be today. Today, to expand our water supply, we only have two sources more. We cannot possibly increase the water catchment area in Singapore by much. And just as a point of illustration, Linggui Reservoir, the catchment area of Linggui Reservoir, is twice the size of Singapore − twice.[+7 sentences] Going forward, we only have two ways to go. One, to depend more on technology, be it desalination, NEWater or any other new technology. Two, to work with the Johor authorities, the Malaysian authorities, to see whether we can have a win-win solution, because the water needs in Johor are also increasing. Some Members might have read that they are extracting water upstream from Linggui Reservoir. That affects our yield, but we want to and are committed to working with the Malaysian government and the Johor government, the Johor authorities, to see how we can develop the water system for both the benefit of Malaysia and Singapore. We spent a lot of money, that Minister Masagos did not say, to make sure that we do not waste any drop of water. Some countries lose up to 5% to 10% of their water supply through leaky pipes. If we lose 5% of our water through leaky pipes, we need to build one more NEWater plant.
Mdm Speaker24 words
[+1 sentence]Minister, if I can just interrupt for a while to ask the Leader to move a Motion to let you speak beyond 40 minutes.
[+4 sentences]This Debate over the last two days has also shown the following, and I agree with the Members of the House: we need to do much more. We need to do much more to socialise our people to the challenges that we are facing on the water front. The fact that we have such an intense discussion reflects that we have left this issue off our national psyche for too long. But there is never an easy way. Thirty percent over 17 years is about 1.6% a year.[+9 sentences] We can do this every year, we can do this every five years, we can do this every 10 years, but regardless which way we choose, we have to make sure that we never forget that water is existential. Let me round up with a story. In 2012, one year after I entered politics, I returned to the Singapore Armed Forces and talked to some officers. I asked them this question: what was the most significant thing that happened in 2011? The answers came fast and furious. The most obvious choice was the People's Action Party's performance in the 2011 General Elections. Then, some added, the Presidential Election of 2011. And some clever ones said, it was the Mass Rapid Transit (MRT) breakdown, and there were even some who said that it was the ponding in Orchard Road. I was disappointed and I let these officers who were with me know that I was disappointed. The most significant thing that happened in 2011, without it making to the headlines of The Straits Times, was the fact that on 31 August 2011, we concluded the first Water Agreement with Malaysia without it making to the headlines.[+4 sentences] I checked. It was on the front page of The Straits Times, but it was not the headline. It was a non-event. That took us 50 years to achieve. Last year, I visited the Public Utilities Board (PUB) union and I spoke to the management and the workers. I similarly challenged them, that in 45 years' time, 2061, I hope that it will also be a non-event when our second Water Agreement with Malaysia expires.[+5 sentences] This is my hope, this is my challenge, and this is our work. It is never easy to talk about price increases. It is never easy. But what is a responsible government? A responsible government is one that not only takes care of the short-term needs of our people but also the future. A responsible government is one that prices the essentials properly, and not distort the market, leading to more subsidies that will burden our future generations.[+4 sentences] A responsible government is not one that will raise the price and not take especially greater care of the poor. A responsible government is not one that pretends that we will make difficult decisions but no one will have to bear the greater part of the responsibility to help those with less. Finally, a responsible government is one which knows what is not sustainable and will put a stop to it now. This is not a wait-and-see Budget. If this is a wait-and-see Budget, we would not have to put in place the mechanisms for carbon pricing, we would not have to talk about diesel tax, we would not have to talk about water tax.[+5 sentences] If this is a political Budget, we do not have to talk about any of these topics. So, I submit to the House that this is a government that has the heart of its people at its core. We know the pressures in the short term. We are doing what we can in a targeted manner. But more importantly, we know the long-term challenges facing our country and we will do what is right, what is necessary, to leave behind a better state for our future generations to build on.
Mdm Speaker5 words
[+1 sentence]Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon)1981 words
[+5 sentences]Mdm Speaker. Once again, Finance Minister Heng has delivered a Budget that is squarely aimed at the future. I commend him for his far-sighted approach and the courage to take measures that might be unpopular. In this speech, I will first speak about innovation in the Government and industry and then touch on the impact on families. First, let me speak about the Government. Minister Heng boldly introduced a permanent 2% cut on the budget caps for all Ministries and agencies.[+38 sentences] Can the Minister clarify what will be the implication of this? How will the Government ensure this makes it more effective? Will this affect the budget for hiring and retaining civil servants and, thus, the quality of the Civil Service? I think the Civil Service in Singapore is generally corruption-free and competent and much better than many other countries. But there is room for improvement in some areas. Some civil servants focus more on the rules of their own agency, instead of looking at what outcome will benefit Singaporeans. Let me give Members an example. I recently visited a newly completed Build-To-Order (BTO) development, Khatib Court, which is beside Khatib MRT. It is a beautiful development, but it has one very strange feature. It has a covered linkway that is hanging and not completed. To me, it is not completed. It comes from Khatib Court, and here is the MRT station, and there is a gap of 10 metres. So, I asked the Housing and Development Board (HDB) what happened. Are you training my residents to be 10-metre sprinters, especially during rainy days? Then, they shared with me that it is because they faced a lot of challenges and the requirements from the Land Transport Authority which they said they cannot meet. Therefore, they aborted that portion. I called a meeting, both sat together, and I told both parties, "Regardless of what happens, I must have this covered linkway." Everyone forgot about the hassle-free first-mile and last-mile connectivity. I can give you another example, another one of my new BTO developments, Palm Breeze. As usual, I asked HDB to construct a covered linkway from the nearest block to the nearest bus stop. HDB agreed and the consultants submitted the plans. And what happens? Part of the covered linkway sits on top of a drain. So, PUB said, "No. No structure is supposed to be on top of my drain. Shift your footpath out into the grass verge." And you know grass verge belongs to who, right? The National Parks Board (NParks). NParks said, "Nothing is supposedly to sit on my grass verge." So, I do not know what innovation solutions that PUB and NParks can think of. Today, Palm Breeze residents have collected their keys, are shifting in, and the plans are still not approved. Maybe I should seek our Coordinating Minister's help. These are only small projects and we meet so many obstacles. In bigger policy decisions, I am sure there are even bigger roadblocks. Can our civil servants not be more result-oriented and objective-driven instead of just guarding their own turf? I note that some of the funds cut from agencies will be diverted to cross-agency projects. I hope this will improve cross-agency cooperation and reduce such problems, instead of creating yet another layer of bureaucracy. I also hope some of the funds will be used to examine innovation in the Government and in shoring up our ability to give innovative solutions. There are many ways the Government can be more innovative, and I will suggest some below, especially with regard to the construction industry and the environment. For the construction industry, I am pleased that the Government will bring forward $700 million in infrastructure projects, including construction of community centres and facilities for sports and the arts. At the back of my mind, I was thinking, hopefully, this would include a new swimming complex in Yishun which I have been asking for. But ultimately, for the construction industry, $700 million is not really enough to make an impact.[+3 sentences] Can the Government increase this number? The construction industry has been facing lots of pressures from the economic slowdown and Government requirements. I have heard that some smaller companies could not pay their staff on time. In 2017, their foreign workers' levy will go up again and they will be affected by the diesel tax, too. Can the Government consider deferring their levy increase till better times, like for the marine and process sectors?[+16 sentences] More generally, while there are many efforts to assist small and medium enterprises (SMEs), I hope our Government can support the construction sector more to adopt more efficient work methods, so that they can raise their productivity. I spoke about innovation in the Government. Is there anyone in the Government to focus on such efforts, instead of only implementing rules? Let me give Members an example, building information modelling, which we have been talking about for many years in the construction industry. And what happens today? Architects do the beam modelling just enough for submission. Later on, contractors come aboard, they do their own beam model again because they cannot use what the architects have produced. Next, I would like to speak on sports. As the past President of the Singapore Table Tennis Association and Adviser for Singapore Swimming Association (SSA), I have witnessed how challenging it can be, from administration to the pressure of ensuring that our athletes perform at the highest level. But I have to ask this very pertinent question. Are our national sports associations (NSAs) given enough support for the retention of staff? The work which is done by the secretariat can be challenging and, what is worse, there is a lot of administrative processes which need to be completed before funding is released − all for good reasons. However, are our NSAs' secretariat staff being remunerated well enough at least up to market rate? How will any, if at all, funding cuts affect the secretariat staff? Also, are our NSAs getting enough support from the Singapore Sports Institute on sports science, nutritionists, biomechanics and so on? These are as important as funding itself. For example, the Singapore Sports Institute's (SSI's) biomechanic who is assigned to SSA does not look after just the needs of SSA but also has other NSA responsibilities.[+19 sentences] Likewise, for the physiotherapists. But this sports science support system must be almost around the clock, 24/7, including weekends, because the swimmers are trained and also taking part in competitions during weekends. Joseph Schooling's gold medal at the Rio Olympics has only further proven how sports is an important component for nation-building. We should try to find more ways to support our athletes and NSAs. Let me now turn to the environment. This Budget introduced some bold moves to change habits, like the water price increase, carbon tax and diesel tax. But there are more ways we can be more sustainable. One, I urge the Government to invest more in infrastructure for green energy, such as the use of natural gas. Two, we need to do more to promote reduction of consumption, that is use less, reduce waste and more recycling, that is, reduce, reuse, recycle. We need to push the awareness of what will contaminate recyclables, so that nearly half of the recyclables collected do not have to be thrown away. Every time I pass by the blue bin, I will peep into the blue bin. Almost every one of them is contaminated. I do not think our blue bins in our housing estates work. Besides the recycling bins, how can we make it easier for everyone to recycle? More recycling bins in public next to trash cans, perhaps? Reward people for recycling? I urge the Ministry of the Environment and Water Resources to think deeper about this. Three, in Singapore, electric cars are still expensive, around three times as expensive as regular cars. What can we do to provide incentives to car buyers? For example, in the US, the federal government provides tax credits of up to US$7,500 for each electric vehicle purchased.[+3 sentences] Some states also allow electric vehicles and vehicles carrying two or more people to use special lanes, to beat the jam. All these encourage consumption and production of electric vehicles. Four, ensure that foreign cars coming into Singapore are subject to the same emission standards as local cars, if they want to drive on our roads. Five, the water price increase will have an impact on production costs, that is, 2% to 4% increase in production of semi-conductors, for example, I was told.[+3 sentences] Our companies are competing in the global markets. In Malaysia, China and Taiwan, for example, the price of water is negligible. So, we would lose our competitiveness. Many of our companies are already doing water recycling and I hope the Government can work with the industry to see how we can do more water recycling to retain our competitiveness. I was told that, currently, about 40% of the water is recycled in the semi-conductor sector.[+22 sentences] Can we increase it to 70%, like in Germany and Taiwan? Will there be any tax rebates or grants for the cost of adopting water recycling? Speaking of water, let me briefly speak in Malay. (In Malay): Earlier, Minister Masagos explained why the price of water was raised. I will not speak about it again. But can the Minister provide an explanation, recently, in spite of the rainy season, if the reservoir in Johor can only reach one-third of its capacity, can we get a supply of water without any disruption when the dry season comes? Or will there be a water crisis? What steps will PUB take to help residents save water and reduce their bills? Finally, I hope the Government can monitor cases where operators transfer their cost to their consumers. These could be delivery operators in connection with the diesel tax, or food stall operators in connection with the water price hike. The increase in their sale prices should not exceed the increase in cost. (In English): Please allow me to summarise my speech in Mandarin. (In Mandarin): There are many bold measures in Budget 2017 which focus on Singapore's future. However, I hope that the Government can see how these measures will impact families and companies. I would like to ask the Minister to explain whether our water supply is in danger. It is rainy season recently but the reservoir in Johor is only one-third full. Will we have enough water during the dry season? Will there be a crisis? How do we help our families to save water and reduce water cost? The Government should also keep a close watch on businesses to make sure that they will not pass on the increase to consumers or even take the opportunity to raise prices. For the manufacturing industry, the water price increase, carbon tax and diesel tax will all lead to cost pressures. To keep our manufacturing industry competitive, how can the Government incentivise them to save and recycle water? For the construction industry, although the Government has brought forward Government projects worth $700 million, with so many companies in the construction industry, the $700 million is not enough to be shared by them.[+3 sentences] Can the Government bring forward more projects and help the construction industry to adopt more efficient work processes? Lastly, will the reduction in the budget for various Government agencies affect the services provided to Singaporeans? It is undeniable that a small number of civil servants insist on sticking to their agency's rules, making simple things complicated. I hope that the Government can make use of the money saved to improve cross-agency collaboration and cultivate creative thinking amongst civil servants.
Mdm Speaker4 words
[+1 sentence]Mr Chong Kee Hiong.
Mr Chong Kee Hiong (Bishan-Toa Payoh)1401 words
[+1 sentence]Mdm Speaker, this is a prudent Budget. It is reassuring to know that we are recording a Budget surplus of $5.2 billion, larger than the estimated surplus of $3.5 billion for financial year 2016, so that the Government will have the ability and, I am sure, the willingness, too, to step in with more assistance should the conditions turn further south in this volatile and uncertain environment.[+6 sentences] The Government has been rolling out incentives to support innovation and get businesses to increase productivity to counter cost increases. However, as innovation and the adoption of new technologies to increase productivity take time, the progress has been slow. One main reason could be that businesses, while raising productivity, have to continue to provide jobs for our citizens. In the domestically oriented sectors which hire more workers than export-oriented sectors, productivity growth is understandably marginal. The capital required for automation and productivity projects can be substantial, and Government grants and subsidies only offset a portion of these costs. While still coping with rising costs, in particular, labour costs, the impending increase in utilities cost due to the increase in water prices and the proposed carbon tax would be additional financial burdens. With the proposed 2% downward adjustment to the budget caps of all Ministries and Organs of State, we can foresee a decrease in Government projects available for public tender.[+13 sentences] The profit margins on these projects will be lower and companies that cannot reinvent themselves or keep up with productivity may find it difficult to stay afloat. Under such circumstances, would Singapore continue to be an attractive place for international companies to do business in? How will the Government continue to support SMEs to overcome these multiple challenges? Any increase in cost of utilities, such as water, gas and electricity, has significant impacts on the economy. It may be that water accounts for a small share of overall business costs and consumer expenses. Nonetheless, consider the knock-on and multiplier effects. A small SME may not be a large consumer of water. That would not stop their suppliers from raising the cost of supplies as a result of the water price increase. Neither would it prevent the management corporation of the SMEs' office building from raising their maintenance fees. The staff of the SMEs may need higher salaries to pay more to their respective Town Councils, children's service providers, and grocers. Eventually, the SMEs would have little choice but to pass on these added costs to end consumers. We do not question the need to increase water prices. There are very good bases to justify the increase. The timing of the increase is of concern.[+18 sentences] It is usual for price increases to coincide with the revenue recovery cycle of the economy. Businesses are experiencing slow to negative revenue growth. With the drive to push productivity in a tight labour market, every added burden to business costs could hurt the viability of the business. For individuals, Government credits and rebates lessen the direct impact of the water price increase to the households. The indirect knock-on effects mentioned earlier are of bigger concern. We expect hawkers to up their food prices. What we are unsure of is the quantum of the increase. While coffee merchants had said that the higher water costs would not affect the coffee prices, the hawkers themselves may be faced with more expensive supplies and higher cleaning fees, and they, in turn, have to pass on these costs to the consumers. The Government would have conducted an extensive study into the impact of the water price increase on all the economic and social sectors. Would the Government consider releasing the details to the public so as to prepare them for all the likely consequences and scenarios? The Government should also further reassure the public that they have mechanisms in place to prevent profiteering by businesses on the back of this increase. Mr Deputy Speaker, Sir, in Mandarin. (In Mandarin): The increase in water price can be complemented by a push to change consumer habits in water usage. In this regard and to further assist the families, could the Government consider giving incentives or introducing a lower tier tariff for households that consume less water either on a household or on a per capita basis? Since water consumption depends on family size and not flat type, it might be more effective for rebates to be given based on the number of persons residing in the household. A larger household would need more support from the Government than a smaller household staying in a similar flat type. (In English): Let me now touch on boosting demand for our economy. I applaud the strategies to bring forward or increase infrastructure projects. Bringing forward $700 million worth of infrastructure projects will certainly help the construction sector.[+1 sentence] These projects will also create demand for services and products downstream − contractors, engineers, designers, information technology providers and so forth. The Government can do more to boost local demand by including a "Buy Singapore" requirement. "Buy Singapore" should apply to both goods and services.[+6 sentences] From locally produced fish and vegetables when catering for meals at events to engaging the services of a Singaporean infocomm technology company, as long as the specifications are met and fees are reasonable, we should support Singapore suppliers and vendors. I am sure that some level of support is already occurring in our Government departments but a higher level of awareness and a stronger official mandate will go a long way to boost demand. Such a campaign will also send a signal to the market and individual consumers: if we do not support our own, who will? Supporting our local companies and encouraging them to keep improving is the only way to help them grow big enough to spread their wings beyond our shores to increase their revenue sources which shall help mitigate the ever-increasing costs. We should also ask ourselves if there are local industries that may potentially have an advantage in serving the domestic market that can be encouraged, supported or better funded to help them to grow. This is an important question which merits further and urgent study. In addition, the Government can award companies which meet prerequisite standards within their industries with an official "Proudly Made in Singapore" product stamp or "Proudly Singapore" service logo.[+1 sentence] This will incentivise our local companies to strive for higher quality. Hopefully, in time, the "Made in Singapore" label will be as trusted and respected as "Made in Japan" or "Made in Germany" labels. "Buy Singapore" also ties in with another important national objective − environmental sustainability. Minister Heng has highlighted the importance of sustainability in his speech and introduced measures targeted towards more sustainable business practices and consumer behaviour with the increase in water pricing, introduction of carbon tax and promoting the use of cleaner vehicles.[+2 sentences] These measures will no doubt increase Singaporeans' awareness of the importance of environmental sustainability. In fact, many customers now actively look for products that are not detrimental to the environment, with a lower carbon footprint. Buying products that are made or manufactured closer to home would be one way of reducing one's carbon footprint.[+5 sentences] For example, we can have more locally farmed produce, fashion or household items using materials that are preferably locally sourced. Not all companies will eventually grow into large multinational industries but they can play a part in fulfilling our collective environmental agenda. I am happy to note that our young are being inculcated with the right values towards our environment. Teachers of preschoolers use the "Preschool 3R Awareness Kit"; older children have the "Youth for the Environment Day" platform to showcase environmental activities. As a father, I noticed that even composition and essay topics from primary school up to junior college use environmental issues as a recurring theme. We, as adults, must set good examples and take the lead in our family lives and in our professions to protect our environment for our present and future generations. I urge the Government to continue to provide more support to community-based projects that are environmentally beneficial.[+2 sentences] As the Government and people work together to ensure environmentally sustainable practices, we will lay the foundation for an even more beautiful and liveable home for our future generations. With this, I conclude my support for the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Ms Chia Yong Yong.
Ms Chia Yong Yong (Nominated Member)2110 words
[+10 sentences]Mr Deputy Speaker, the Budget is variously viewed. In some quarters, it is viewed as underwhelming. And there are some of us who question the timeliness of the imposition of tariffs. There are, of course, others who support the Budget and the Debate will just go on and on, even after the Committee of Supply (COS). But to me, this is a Budget of hope because it is a Budget that tells us that despite the challenges and difficulties that have caused many a good man to stay awake and to worry, that this is an opportunity for us to move ahead for many years to come. With that, it also brings a caution that it requires us to understand what these challenges are, what the difficulties are, what they will morph into and what new ones will appear on the horizon, and how we may convert them into our strengths. That alone is already daunting. But this is not surprising. We live in daunting times. So, we cannot live like we used to live. We cannot think like we used to think. I submit that the Budget would not achieve its objectives if we implemented and relied on the Budget measures without a mindset change.[+26 sentences] Without discarding all that we have learnt and built in our individual and collective memories and achievements, we must, nonetheless, recognise that our success yesterday and today could be our failure tomorrow. In other words, we must be prepared to say that something that has worked before may need to be changed before it is too late. There is a saying, "If it ain't broke, don't fix it". In times like this, I think we do not have the luxury of waiting for some things to break. But of course, unfortunately, something has already broken and this is something that bothers and troubles me a lot. We hear a lot about the disconnect between the Government and the people. And I have spoken with businesses, friends and associates and they complain about difficult times and I asked them, "Why not try and seek the Government grants?" They say, "It is no use. It is too difficult. They do not understand." And I wonder why. Why do we have a disconnect? We have heard it so many times. Is there anyone doing anything about it? Because if there is truly a disconnect, then whatever we are going to implement in our Budget is not really going to achieve what we want to achieve, because we are not going to be "one". We are not going to have that unity of vision and the unity of mind and the singleness of heart to move forward. I hear so much and I am concerned. I understand that there are structural shifts that have caused unemployment and redundancies. But I wonder, as some people have asked me, whether some redundancies could have been caused because the Government overlooked certain trends and certain sectors. Was it because there were emerging sectors or fledging sectors that we did not, despite industries' feedback, nurture and grow? I do not know, I do not have the answers. But I hope it is something that we can look into to address this disconnect that we now perceive on the ground. I am concerned because if we do not address the "disconnect", if we do not come across to our people as being willing to re-examine where we may have fallen short, that is very difficult to inspire confidence during difficult times. And now, I come back to the main point of this message which I am sharing today. I beg your pardon. On mindset changes. A mindset change is what we need, because if we do not change our mindsets, the Budget will just be a bag of schemes and measures. But if we change our mindsets, it can be turned into a powerful game changer for Singapore.[+13 sentences] So, what do I mean by mindsets? I have nothing to share, nothing to define the mindset with. All I know is that there is a fear that, over the years, the universal values of compassion, empathy, of the ethos of hard work, of caring for one another, of the duty to country, community, family, self, and the respect for one another may have eroded. We may need the change in mindset in each individual citizen for us to come back to where we should be. To know that we owe a duty to ourselves and to our country for the Budget to work. But we also need a change in the mindset of the Public Service and of the corporates. I say this with some consideration, not that I do not believe in the quality of the Public Service, but rather that I think, someone has to say some hard things. I am very heartened that the Budget continues to talk about developing capabilities and employability of Singaporean workers. And I say the Government, employers and Singaporean workers must believe in that. You say, "Is it not odd?" The Government is the one that says we must develop the capabilities. And why do I say the Government must believe in that? It is because of that "disconnect" that I talked about earlier. Whilst we hear in this House Ministerial speeches and Members' speeches about what we believe in, about the seriousness of the global situation and our dependence on other external factors, I fear that the seriousness of the message may not have filtered through to every level of the Public Service.[+3 sentences] I do not know. Perhaps, my comments are not fair. But I think that if people believe in what the Government wants, then the way they design their schemes will be very different. If they believe in the schemes achieving what the schemes are meant to achieve, then the way they implement the schemes will be very different. It will not be just a question, I hope, of checking checklists, ticking the boxes or keeping an eye on key performance indicators (KPIs).[+9 sentences] But it will be with that knowledge and that consciousness that every decision we make in matching and in granting a grant to an organisation, we are making a difference to our country and to our companies. And I want to talk about developing the capabilities and employability of Singaporean workers because I believe in it. And quite frequently, when I talked about the Singaporean Core, well-meaning people would remind me, "Be careful, you could be misunderstood as xenophobic or protectionist". Let it be clear − I am neither. Companies will come and go. But the Singaporean Core will remain connected to Singapore and we need to develop the Singaporean Core. Schemes and measures are critical. How do we develop a Singaporean Core? Just through schemes and measures, if the employers are not committed? And how can employers be committed if they are not so persuaded by the persons who grant them the grants and make the schemes and measures available to them? I hope that all businesses, local or MNCs, will commit to developing the Singaporean Core. I want to say we welcome partners, but not raiders.[+21 sentences] I want to say that we must not be embarrassed to tell investors that we would like them to invest in Singaporean workers. This is because we also need to build our own industry movers and shakers. We should not be happy with big companies setting up facilities here only to build foot soldiers for us. We want them here because we want to develop our own people, and we must not forget that. As I said, I am not a protectionist, but I want to remind ourselves that companies will only stay in Singapore if there are benefits to them. We must ensure that when they leave Singapore, we continue to have the human capital that made them successful, and that the human capital will be our Singaporean Core. I want to touch on another subject that is also very close to my heart. At the last Budget, I spent half of my speech on that and, that is, on innovation. I understand that since then, there have been some changes. I have filed some cuts, so I hope to hear more. But I still hope that when our agencies are restructured, when our agencies reformulate the policies, we would be doing so in the context of what is good for our country. I hope that we would lift ourselves beyond our historical baggage within each agency and reach out to our community partners. I hope that when we negotiate licences and ownership and partnership agreements with industries and companies, we will be thinking about what is right and what is fair, and what will incentivise creativity and innovation. And we will not try to win a greater share of the rights just for the sake of that. I hope that when we deal with people who are partnering the Government agencies, we will think about our country and not our KPIs. In the area of employment, where again we need mindset changes, we have worked very, very hard to reach to private employers. We have also worked very hard to reach to the public sector. And we are encouraged that the Government continues to affirm its commitment to assist persons with disabilities to be trained for and find employment. There are many of us who have called on the Public Service, being the largest employer sector, to take the lead and to employ persons with disabilities. We do not ask for a compromise of the principle of meritocracy. We do not ask for an accommodation of our inability. We ask only for accommodation of our disability. We were, therefore, encouraged when the Public Service Division (PSD) announced in 2016 its plans to recruit persons with disabilities.[+3 sentences] I met with Mr Peter Ong, Head of Civil Service, and his team. I was touched by Mr Ong's personal interest and commitment, as well as that of a couple of Permanent Secretaries whom I have interacted with over time, their commitment for the Civil Service to employ persons with disabilities. I do recognise, of course, that the final employment decisions rightly are left to the respective agencies. Nonetheless, my observations are that unless the human resource teams of PSD and the respective agencies share the same values and commitment as the Head of the Civil Service, we will not be able to progress.[+2 sentences] I will await the replies to my COS cuts, but I think from my understanding, ground-up, this is another area where a mindset change is required. We need to be afraid not to change, we need not be afraid to change. When the Government sets the example, it stands on stronger moral grounds to urge the private sector to employ able persons with disabled bodies.[+13 sentences] I speak at the risk of offending my good and dear friends in the Public Service, of offending those in the Public Service who have earned my respect. But I speak as a Singaporean, proud of our Public Service, and proud that our Public Service can be better. And I share this both with a heavy heart and with hope, that as we look at how people are reacting to the policies that we have, we will think about how we can improve. In the same vein, I also would like to urge my fellow Singaporeans to take responsibility for our lives and our future. I think it is time for us to stop moaning that there is not enough assistance. I think there is time now for us to take our own future into our hands, take what the Government has given to us, but shape it with our own hands. The Government can only do so much. The Public Service is made up of imperfect human beings like ourselves. And if we want them to be bold, to experiment, grow and lead, then we have to allow them to fail. And when they fail, we must be ready to support them. What I want to say is that this is a Budget that gives us hope, but only if we decide that we want to move forward on our own two feet, with the Government supporting us. If we want to build a future for ourselves and our children, and we want to build a future for our Singaporeans and hold our heads high, then we must learn to stand on our own two feet, and we must learn to stand for one another. Mr Deputy Speaker, I support the Budget Statement.
Mr Deputy Speaker4 words
[+1 sentence]Dr Lim Wee Kiak.
Dr Lim Wee Kiak (Sembawang)2468 words
[+7 sentences]Mr Deputy Speaker, I concur with our hon Member Ms Chia Yong Yong and what she just mentioned about paradigm shift and mindset change. And the mindset change should not just be about the Civil Service. It should extend to all private sectors and all Singaporeans. If all Singaporeans have the mindset to do the best they can for themselves, the country, their families, I think Singapore will continue to be a shining red dot for many more centuries to come. Mr Deputy Speaker, let me just thank the Finance Minister for putting up this Budget at a time when there are so many unforeseen circumstances amidst this changing political landscape globally. Many Singaporeans had waited with much anticipation for this year's Budget because some feared that there would be austerity measures, while others were hopeful for goodies that can be given for this Budget. I stared long and hard at this Budget after the Finance Minister delivered this Budget last week. In fact, this is one Budget that I categorise as a caring Budget − a three "care" Budget - it cares for the future, it cares for the people and it cares for the environment.[+9 sentences] I am happy to note that this Budget has a very strong focus on business, especially on all the recommendations by CFE. It is about jobs, long-term viability and the growth of the economy. Of course, there is also much social support to help the needy to tide over, as they are the most vulnerable group during these difficult times. But this is not the first time that this Government has been doing it. This Government has been doing it all along. Last of all, I am very happy to note that this Budget has much more for the environment this time round, compared to the last two years. These are important issues because environmental issues concern sustainability and our living standards in the long run. However, we should look at how, as we improve our environment, not to impose too much of a burden on our people. I would like to focus on three things in this particular Budget. First is the inflationary impact of the water as well as the diesel tax.[+19 sentences] Second is the future carbon tax which the Finance Minister mentioned. Third is about globalisation of our students as well as our workers. First, the inflationary impact of the water and diesel tax. Last week, as I was driving, I was listening to some of the talk shows talking about this water tax increase. Of course, there was a lot of public unhappiness about this water increase. Quite surprisingly, we heard one academic from one of the IHLs mentioning that the increase should be much more, that it should be more than 30%, that it should be 100%, to deliver a shock effect so that people will start to save water. I hope that is not the intent of the Government to deliver a shock effect. In fact, I think the Members of both sides of the House have helped to deliver this shock to everybody. And the Government is scrambling now trying to relieve this shock from everybody, to say that the impact is not that bad in the first place. I would like to ask the Government whether before they considered this 30% hike in the water price over the next two years, particularly for the man-on-the-street, did they do an impact study as to what is the real impact on the economy. For domestic households, what percentage of their monthly utility bills does water consumption constitute on average? And thanks to public education efforts, in fact, many domestic households, on the whole, are quite streetwise with their water usage. In fact, the water usage trend has been trending downwards in terms of water usage per capita. However, based on feedback from my residents, many are still concerned that water consumption cost will make up a significant portion of their monthly expenditure with this increase. So, I hope the Government would dismiss that notion. Water, like fuel, is something which has a very strong knock-on impact on the community as a whole. We need water to drink, prepare food, cook and wash, sanitation, and it applies to all, including eateries and school canteen operators, not to mention hotels. We need water to maintain a certain standard of cleanliness in public areas, homes, hospitals and buildings, and in keeping our public transport vehicles clean. We need water for factory production processes and a whole gamut of various industrial activities that we see in our industrial parks. I dread to think about how this will impact the cost of living. This year, we started off by having to cope with the rise in electricity tariffs by an average of 5.7% or 1.07 cents per kilowatt hour for the period of January-March, compared to the previous quarter, as announced by power provider SP Services on 30 December 2016.[+1 sentence] This was due to the higher cost of natural gas for electricity generation, which increased by 10.6% compared to the previous quarter. The big question is, so, why does there seem to be such an urgency to raise the water price after 17 years?[+5 sentences] Why was the water price not raised in between? Why wait until 17 years later, especially now when Town Councils have already revised their service and conservancy charges on households? In fact, the rise in water price could have also pulled the rug from under the Town Council, as they would be facing higher operating cost now arising from the revision of the price of water. The inflationary effect may well negate the various rebates and other schemes that were spelt out in the Budget. I know it is a tough call for the Finance Minister but I hope at least there will be some explanation given to address the public concerns. The commonly heard complaint from residents is that the rebates are sort of one-off on a year-to-year basis, but the effects of the increase are long term and would stay long after the rebates have expired. But many had ignored the fact that the Minister had also announced a permanent increase in Goods and Services Tax (GST) Voucher and U-Save on top of the one-off GST Voucher special payment.[+3 sentences] May I ask if the price revision could have been considered to phase out in a longer period, such as increasing at 10% per year over the next three years? Or why not adopt an even more progressive water tariff to tax those with higher water consumption? Major cities in many countries, such as the US, France, Australia and China, have adopted the use of multiple-tiered water pricing, alternatively known as progressive water tariffs, or increasing the block tariffs. According to a research study by Stanford University's Water in the West Programme, tiered water pricing is a critical tool in incentivising water conservation.[+6 sentences] Under such a pricing system, the first block with the lowest pricing usually corresponds with the amount of water that a typical household requires for basic needs, such as bathing, domestic cleaning and cooking. Each subsequent tier then commands a higher charge on excessive water usage that applies to luxuries like maintaining large gardens or swimming pools. China is a country with a multiple-tiered water pricing system. Like us, their price of water is state controlled. Water prices are low by international standards, but there is a problem for them, because their water per capita availability is low. By raising water prices, the authorities feared would intensify the income inequality, as water consumption represents a higher share of income for low-income households. The local governments experimented with multiple-tiered pricing systems for urban households and industrial users, charging higher prices for higher water consumption. And these reforms have found to achieve their desired outcomes and, as such, from 2015, all localities started to adopt the new water pricing system for China.[+4 sentences] However, the concern with a tiered water pricing system may not be of much help to low-income households with many, many family members. Certainly, no system is perfect. So, I hope the Government is continuously exploring ways to keep the cost of water affordable for low-income families, while discouraging excessive use of water. Next is the diesel tax. This is another inflationary impact on the people and on businesses as a whole. There are about 185,000 Singapore-registered diesel vehicles on the roads.[+8 sentences] They account for about 20% of the vehicle population in 2015. Most are trucks, vans and commercial vehicles, rather than passenger cars. What can we expect? Another round of price increases by transport operators, including school bus transport for school children? Many businesses use their vehicles to transport workers and equipment to and from worksites. Not just that, but many of the diesel vehicles are used for transporting and delivering goods, from wholesalers to retailers, from retailers to consumers, especially for online purchases as well. These are diesel vans that are used for various purposes, as handymen also use them for delivery for plumbing services, carpentry and electrical services, even delivery of liquified petroleum gas to homes and eateries. I am worried that we may see an uptick in their fees when they are called upon now to do minor repairs for our households. The knock-on effect would thus be across the board. I know the Budget is giving help to businesses to adjust by providing commercial diesel vehicles with a 100% road tax rebate for one year, and a partial road tax rebate for another two years.[+3 sentences] There is an additional cash rebate for operators for diesel buses ferrying school children. We should reduce the road tax for diesel vehicles further to be on par with petrol vehicles. What will the Government be doing to ensure that all these rebates will be filtered down to the consumers? Taken together, may I ask the Finance Minister what is the predicted inflationary effect of both the water price increase as well as the diesel duty implementation on the Singapore economy in the near and medium term?[+17 sentences] Next, carbon tax. I am deeply concerned about the impending carbon tax that has just been announced for 2019 which the Finance Minister mentioned. Although the proposed tax will generally apply upstream on power stations and other large direct emitters, it will have a knock-on effect on all electric users, both domestic and commercial. We signed the Paris Agreement on climate change at the United Nations last April and affirmed our support and commitment to the Agreement. Singapore ranks 123rd in emissions intensity out of 142 countries worldwide, but promised that the country will "continue to do more", to quote the Ministry of Foreign Affairs' statement. The introduction of a carbon tax in 2019 is a good move to stay in step with international standards on environmental conservation. We pledged to reduce emission intensity by 36% from 2005 levels by 2030 and stabilise emissions with the aim of peaking around 2030. It is still in the early days, but I would like to know what is the Government's take on how challenging it will be to meet this goal. I note that to encourage car buyers to switch to cleaner and environmentally-friendly models, the current Carbon Emissions-based Vehicle Scheme (CEVS) will be replaced. There will be a new Vehicular Emissions Scheme. The new scheme considers four other pollutants, on top of carbon dioxide, so as to account more holistically for the health and environmental impact of vehicular emissions. The Budget states that the new Vehicular Emissions Scheme will run for two years, starting from 1 January next year and will be reviewed before it expires. In the interim, CEVS will be extended till 31 December this year. How bad are we performing or how good are we performing, in terms of the area of carbon emissions? How much more carbon have we emitted over the past two decades? Taking into account that we are a very small country with very limited potential to tap on renewable energy, what can we do to reduce our carbon emission? Is the Government considering the introduction of a Climate Bill in tackling this carbon tax? I feel that we should spend more resources to explore the use of solar energy. There is a lot of scope and potential for us now to tap on solar energy as the cost of solar panels has dropped over the years. Another positive outcome of implementing the carbon tax would be that it serves as a motivation for companies and businesses to innovate with cleaner, greener energy sources. I hope the Government can use the revenue collected under this carbon tax to help businesses with this endeavour and also promote green innovation.[+5 sentences] I think solar technology is something that we should tap on a larger scale. May I ask what is the Government doing to encourage and incentivise commercial, domestic and the public sector to harness the potential source of renewable energy so as to lower our carbon footprint? We should also look at how to help homeowners to use solar energy. And Town Councils should look at this as a source of energy for the future. My last point is learning from overseas globalisation. In a globalised society, it is important to be exposed to foreign countries, whether it is culture, education system, the job market and so forth. I note that the Budget presents a slew of measures under the Global Innovation Alliance to help businesses and employees to operate overseas.[+5 sentences] One such measure is helping students in Singapore universities getting work experience in foreign startups. I would like to propose to the Government to help local universities to establish tie-ups with universities in Europe. This is a region with huge cultural diversity. They are also accomplished in many important sectors, including technology, finance, medicine, the arts and so on. We should explore student exchange programmes with Grandes Écoles in France, and also many other design and engineering institutions in Germany and Scandinavian universities which are also known for their innovation. In the INSEAD Global Innovation Index 2016, Switzerland was ranked first, Sweden was ranked second, the UK third, with the US fourth, Finland fifth and Singapore sixth.[+5 sentences] Currently, many university courses offer exchange programmes, but these programmes are often short term, with a focus on academics. I hope partnerships can be developed with the aim of helping students establish a longer-term residence and also obtaining residency in terms of internship programmes and job opportunities in their host country. Mr Deputy Speaker, the Budget reveals the Government's foresight and meticulous planning for the future. With these measures to guide us, I am confident that we can look forward to a brighter, cleaner, greener and more sustainable future. I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Dr Teo Ho Pin.
Dr Teo Ho Pin (Bukit Panjang)1120 words
[+4 sentences]Mr Deputy Speaker, I rise in support of the Budget. First, building capabilities. I support the key thrusts of the Budget, namely: first, to build capabilities among our businesses and people; second, to seek new opportunities in the changing and uncertain global market; and third, to build a caring and resilient community in Singapore. As proposed by the Finance Minister, there is a dire need for Singaporeans and our businesses to embrace digital technology so that we can seize opportunities to pursue a better quality of life in the future. The proposed SMEs Go Digital Programme will definitely help our SMEs to enhance their digital capabilities and improve business operations, providing better customer services in turn.[+16 sentences] However, the key challenge faced by SMEs lies in training staff to go digital or recruiting and retaining staff who already possess the skills to do so. Due to the different learning abilities of workers, there is a need to adopt more standardised and industry-wide digital solutions. This will help to reduce the learning curve and ensure that the workers' new-found skills are applicable in various companies. To further support a digital economy, we must also equip consumers to be digital savvy. Many Singaporeans, especially the elderly, are still facing difficulties using e-services and smartphone applications. Thus, I would propose that we provide free e-services and smartphone applications training at every Community Club (CC) to build digital capabilities in our community. Second, construction ITM. Sir, I fully support the focus to transform our industries through close partnerships with trade associations and chambers. The construction industry is complex and comprises many stakeholders and trade associations. At present, there is a general lack of initiatives from the ground up, as well as the necessary leadership to bring the industry into the future. Over the last 30 years, limited progress has been made to enhance professionalism, productivity and quality in the construction industry. To date, construction productivity is low, while its quality has struggled to meet clients' expectations. The industry's professional practices currently leave plenty of room for improvement as well. Sir, the Construction Industry Joint Committee (CIJC) is a ground-up initiative formed by eight professional bodies and trade associations of the construction industry in 1997. Its main role is to provide feedback to the Government and be a think-tank to discuss strategies for industry development. Sir, I have recently accepted to be the advisor of CIJC and have urged CIJC to take a more proactive role to spearhead the development of the construction industry. With that said, I also hope that the Government can co-chair with CIJC to jointly develop the construction ITM. I am pleased to note that the Budget has provided a $150-million Public Sector Productivity Fund to allow Government agencies to procure innovative and productive construction solutions.[+9 sentences] Based on the findings of the Auditor-General's Office, there are often lapses in the procurement and project management of Government projects. This is mainly attributed to a lack of expertise in inexperienced staff with regard to procurement and project management in the public sector. I would like to propose that the Government set up a Public Sector Construction Division similar to the former Public Works Department. As we move towards building a vibrant and connected city, we must ensure that the public sector has a core group of project managers and facilities managers to procure, implement and manage public sector projects. The public sector can take the lead to develop a professionalism and quality assurance framework that incorporates industry best practices to upgrade the construction industry. Third, building a quality environment. Sir, I support the bringing forward of $700 million worth of public sector infrastructure projects, especially in the upgrading of community clubs and sports facilities. In line with the Government's push for environmental sustainability and the Public Sector Taking the Lead in Environmental Sustainability (PSTLES) programme, the North West Community Development Council launched its Eco CC@North West programme in October 2016, which focuses on two key areas of improvement for CCs, namely, first, the green "hardware", and second, the green "software". Green "hardware" refers to infrastructural works to enhance the environmental performance of CCs, which include aspects of energy and water efficiencies, while green "software" refers to the promotion of green consciousness and adoption of green practices among the users of CCs, such as using sustainable and environmentally-friendly products, reducing the use of energy and water, maintaining a healthy indoor environment, practising effective waste management and general education on the topic at large. Bukit Panjang CC was the first CC in Singapore to attain the Building and Construction Authority's Green Mark Gold Plus award under the Non-residential Existing Building Category after its installation of solar panels and retrofitting of its existing building.[+1 sentence] A CC Green Committee was also set up to promote green living among residents. The Bukit Panjang CC incurred an expenditure of about $400,000 to install energy-efficient air-conditioning systems, light emitting diode (LED) lightings, water saving sanitary appliances, as well as a green wall to reduce heat transfer.[+6 sentences] Sir, as community touchpoints, CCs can play a pivotal role in rallying residents to adopt a green lifestyle. However, one barrier which currently prevents CCs from going green is the lack of funding to introduce green technologies and features into the CCs. Thus, I would like to urge the Minister for Finance to consider providing a one-off Green CC grant to expedite the greening of all CCs in Singapore. Sir, while I support the introduction of a carbon tax, which is based on the "polluter pays" principle, I am concerned that such a measure will further increase business costs which will ultimately be passed on to consumers. As an alternative to further encourage the adoption of green technologies that will reduce greenhouse gas emissions, I would urge the Minister for Finance to also consider providing incentives or grants to companies or organisations which support such go-green initiatives. Sir, since 2011, the 15 People's Action Party Town Councils have implemented the LED bulk tender programme to replace the less energy-efficient 2D, panel light, tubular (T)8 and T5 lightings to LED lightings. To date, we have installed 1.18 million LED lights at the common corridors, staircase landings and void decks of HDB blocks, and are presently installing another 730,000 LED lights to replace lightings at the outdoor open areas.[+3 sentences] The LED lighting programme will result in about 40% energy saving and, thus, a reduction of greenhouse gas emissions. Sir, in addition, HDB has been working with the Town Councils to install solar panels in our HDB blocks, thus adopting clean technologies. I would once again urge the Minister for Finance to consider giving grants or incentives to further expedite the reduction of greenhouse gas emissions in Singapore.
Mr Deputy Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin (Potong Pasir)896 words
[+14 sentences]Sir, I concur with Minister Heng when he said in his Budget Statement that we are in a time of change. There is geopolitical turbulence in the international order. New technologies are disrupting the economies of many countries, including Singapore. Protectionist sentiments in advanced economies threaten the sanctity of Singapore's central economic strategy, that is, free trade. The Government and our policymakers are very much aware of these macro, seismic global changes and are working tirelessly to ensure that Singapore continues to succeed and progress as a country. However, it is extremely important that we do not lose sight of the perspective of the individual Singaporean; the issues and difficulties that each Singaporean and their families face in their day-to-day lives. Sir, how does a policy translate on the ground? Will an overall strategy aimed at the collective good result in unintended consequences for individuals? In fact, this is often the greatest complaint amongst Singaporeans, that the Government is too concerned with the big picture and often neglects the perspective of the individual. Is this true? It is in this context that I rise to address two issues within the Budget Statement. As I am the Government Parliamentary Committee Chair for Transport, I will look at issues that relate to transport specifically. They are (a) the Tiered Additional Registration Fees (ARF) for motorcycles; and (b) the restructuring of the diesel tax. Sir, at first glance, the new Additional Registration Fee (ARF) regime for motorcycles appears to be an additional tax imposed by the Government on higher end, more expensive motorcycles. Motorcycles with an Open Market Value (OMV) in excess of $10,000 are liable to pay additional ARF on a 100% basis for every dollar above $10,000. This is in addition to the $3,250 that is now payable on the first $10,000. This represents a significant increase in price for higher end motorcycles.[+14 sentences] There have already been media reports that estimate that this will put prices of higher end motorcycles close to that of small cars. Motorcycle enthusiasts say that they have been unfairly "targeted" by the revised ARF regime. Some argue that super cars, such as Ferraris, Lamborghinis or Porsches, should have been at the receiving end of such an increased ARF regime, instead of higher end motorcycles. The gist of their argument is clear. Motorcyclists who purchase higher end motorcycles come from all walks of life with varying financial means. Owners of super cars, however, belong to the top 0.1% of income earners in Singapore. As such, why not increase the ARF regime on consumers who can better afford to pay? On its face, this is not an unreasonable perspective to take. But a closer look at the Budget Statement suggests that the position is misunderstood. Minister Heng alluded to two reasons in his Budget Statement for the revised ARF regime for motorcycles. First, that there is a small but rising number of motorcyclists buying expensive motorcycles, and second, after the change in the ARF regime, more than half of motorcycle buyers will continue to pay the current ARF rate of 15%. The inference is clear. The rising number of motorcyclists buying expensive motorcycles is pushing up the overall costs of all motorcycles. The rising trend of Certificate of Entitlement (COE) prices for motorcycles bear this out. COE prices have risen from $889 in January 2010 to $6,412 in February 2017, a multiple of more than six times in seven years.[+9 sentences] Owners of smaller motorcycles, who often use their motorcycles as a low-cost mode of transport for work or essential travel, are being made to pay higher COEs because of the increased demand for expensive motorcycles. The revised ARF, therefore, serves this further purpose ‒ to reduce the demand for expensive motorcycles and, consequently, to lower motorcycle COE prices and lower cost for purchasers of smaller motorcycles. Sir, the restructuring of the diesel tax is another controversial item for transport in this year's Budget Statement. Reducing reliance on diesel fuel to reduce pollution is an admirable objective. However, this policy has drawn considerable concern from some quarters. The loudest voice amongst them belongs to the class who consumes automotive diesel to make a living. Taxi drivers make up a significant group in this class. Taxi drivers consume a larger quantity of diesel fuel than all other diesel-run automotive because they travel around continuously to pick up customers. A volume-based tax, therefore, implies that their overheads are likely to increase significantly. The Government has offset this with a permanent reduction of the Special Tax for taxis.[+6 sentences] If taxi companies pass this cost saving to taxi drivers, it will go some way to allay their concerns of an increase in overhead costs. However, if one is to stop and examine the pressures faced by a modern-day taxi driver in Singapore, one can perhaps appreciate their frustrations better. The entry of private hire cars in the point-to-point transport industry and the possible emergence of the automated self-driving cars in the not-too-distant future may give many taxi drivers in Singapore sleepless nights. These new technologies have disrupted the transport industry considerably and it is important that the Government should manage the concerns of stakeholders affected by the disruption in order to assist in any transition that is necessary. I shall address this further at the Committee of Supply Debate. Mr Deputy Speaker, Sir, with that, I support the Budget.
[+22 sentences]Mr Deputy Speaker, this year's Budget theme "Moving Forward Together" is an important one. The world is filled with disruptions and the pace of change has quickened so much that nobody can be sure of what works and what does not in the future. We cannot control what happens around us, yet we also cannot passively wait for things to happen before deciding on what to do. What we can do right now is to ensure that we develop the agility to adapt and the willingness to learn. Therefore, I wholeheartedly agree that we need to focus our energy and precious resources on transforming the industries to create new opportunities and on building the capacity and capabilities of our people, so that we are ready to make full use of the opportunities available. All of these are long-term investments for the future, to make sure that we have the right skills and knowledge for a changing and competitive world. We must get comfortable with change. Moving forward, we will. The key challenge for Singapore is to respond and change together. The Government is sincere in wanting to move all Singaporeans forward, but it cannot achieve it alone, no matter how strong it is. To move forward together, we need greater support from the Government but also a concerted effort across the different sectors of our society and a willingness in each individual to give our best shot. We live in a highly competitive world. The fittest amongst us will survive and get ahead, but the more vulnerable amongst us will need help if we are to complete this journey together. Our Government − the body that aggregates and redistributes resources − therefore, has an important role to play. To be fair, our Government has done a lot. But as opposed to giving out even more handouts, let us also look at other ways of giving the help to the more vulnerable ones amongst us and giving them the extra push. There are a few groups of Singaporeans who could do more with the Government's support, but I would like to highlight just two today. First, families of unstable income or retrenched workers. Economic growth is expected to slow down and there are uncertainties ahead. Already, retrenchments are going up. Unstable income workers, especially those in odd jobs or contracted without work guaranteed, will see their income fluctuating even more. Given these circumstances, I worry about how their affected families would be able to cope with the rising cost of living. The near-term measures announced in this Budget, together with existing schemes, are helpful in relieving some of the living cost pressures. But I hope the Government will do more by proactively identifying families showing signs of distress, such as escalating arrears in rent, utilities and service and conservancy charges.[+13 sentences] Identifying distressed families early will allow the appropriate interventions to be made in a timely manner before the situation gets out of hand, when it would be even more challenging to resolve. Over the years, I have seen families coming to seek help only after their arrears have compounded for many, many months. By then, the interest would have compounded, late payment penalties would have been slapped on and, perhaps, some families would have even taken personal loans which would just only add on to the liabilities that the family faces. Some of these families did not know that help was available, some simply panicked and went into denial when they saw their escalating arrears. And some were struggling to juggle multiple jobs and did not even have time to seek help. Hence, proactively seeking them out and offering timely interventions will help Singaporeans to focus on their jobs or studies, both of which are essential in ensuring their families' long-term independence and success. Second, our elderly Singaporeans today and tomorrow. We face a rapidly ageing society in the midst of a rapidly changing environment. Even as we transform and apply resources to transforming our economy and workforce, let us not forget to take steps to help elderly Singaporeans live well into their old age. That means continuing to advance innovations in the eldercare sector so that our seniors today and tomorrow can enjoy a good retirement. With our seniors taken care of, we can then better focus on the big picture and take comfort in the knowledge that no one gets left behind. We know that Singaporeans are living longer, but a longer life does not necessarily mean more years of healthy good life. This means one will have to spend more on healthcare as one ages. Already, on average, an elderly's out-of-pocket expenditure in healthcare is 7.9%, much higher than a younger person's which ranges between 4.4% and 5.5%, after taking into account Government subsidies and MediSave deductions.[+2 sentences] This is based on a household expenditure survey in 2012/2013. The healthcare financial burden on an elderly is, therefore, heavier. The Government's healthcare spending per capita has also been rising from an average of $488 in 2003 to $1,962 in 2016. The old-age support ratio, however, is steadily falling from 9:1 in 2000 to an expected 2:1 in 2030.[+7 sentences] Not forgetting, infrastructural spending will also have to increase as we accommodate an ageing population. These translate into a greater cost burden on working Singaporeans in the future. We cannot be building new nursing homes or hiring new people to do the caring on an indefinite basis. It is unsustainable and neither is it the best solution. But the demand for institutional care for the elderly, including the elderly who can actually be independent with a little bit more support in the community, keeps rising, partly because of shrinking family sizes and partly because of changing family values. Therefore, we need to change our thinking about eldercare, and there are several points that I would like to raise in this respect. First, on manpower. The Ministry of Health has estimated that it would need an addition of about 30,000 more healthcare workers by 2020 and, of this 30,000, about one-third is estimated to be dedicated towards the aged care sector. Currently, in 2015, about 75% of the healthcare workforce are Singaporeans.[+5 sentences] But looking ahead, as we need more healthcare workers with this projected increase of 30,000, I wonder if we can continue to maintain this 75% from now till 2020 and beyond. With more Singaporeans leaving than entering the labour market, will we have enough to meet the rising demand for eldercare? How many and for how long more can we top up with foreign manpower? Could we find ways to recruit more volunteers and organise ourselves in the community better so that the community can step in to supplement manpower demand and fulfil needs? Second, on digital eldercare. With land scarcity and manpower shortage, the eldercare model needs to shift away from institutions and reserve the residential institutions for the elderly who need highly intensive care.[+8 sentences] We should consider leveraging more on technology. As it is, we know that there are technology solutions, such as sensors, assistive devices and telemedicine. Leverage technology to enable independent living at home, even for those who have moderate disabilities and little or no family support. There are already pilots being done with the deployment of the Elderly Monitoring System, for example. But this is just one aspect of an elderly's daily living. Could we look into a more concerted, holistic concept of using digital technology to enable independent living for the elderly? Some solutions are still being developed. Could we then accelerate the lab-to-market process? Could the Government take a point position and lead a nationwide implementation of smart homes for seniors?[+4 sentences] Could we facilitate the integration of these solutions, so that the elderly can enjoy the services at home in an easy and seamless manner? In addition to enabling a more independent living for the elderly at home and ageing in place, we should also consider providing and encouraging the provision of digital platforms to link freelance healthcare professionals and caregivers or those with spare capacity, to facilitate on-demand provision of home care or other related elder care services. With the emerging gig economy, such platforms are the next new norm. But some of these platforms are privately run and the elderly who wish to utilise them may be deterred for fear that the subsidies that they may be eligible for cannot be applied via these platforms. Therefore, could the Government look into enabling this? So, instead of investing money on building new institutions, could we redirect some of this investment to enable more elderly to live independently in their own homes, so that they can continue to go about their daily lives, continue to be part of the neighbourhood that they are so familiar with and truly age in place?[+32 sentences] Mr Deputy Speaker, if I may continue in Mandarin. (In Mandarin): Deputy Speaker, we live in a world which is changing rapidly. It is not possible to predict what tomorrow will be like. Singapore is a small red dot. Of course, we cannot change the world based on our efforts alone. We can only go with the flow. However, we are not completely helpless. We can help equip companies and our people with the means and capability to keep up with the change. This year's Budget, which will help companies continue their transformation and the people to upskill, is one that takes care of our long-term interests. However, as the Government is working very hard to build our economy for tomorrow, I hope that the Government will not forget to continue assisting Singaporeans who need help, so that they can also keep up with the economy and continue on this journey together. Let me now talk about our care of the elderly. As our society ages rapidly, our needs on this front will increase dramatically. Medical costs and infrastructure expenditure will inevitably rise. Rather than regarding these as costs that cannot be recouped, why do we not look at how we can help the elderly live more meaningfully? For example, the Government can quicken the pace of building smart homes for the elderly and promote technologies that the elderly will find friendly to use. This will allow the elderly, even those who are not very mobile or in good health or live alone, to continue to live independently and age in place. The Government should also expand programmes similar to that of the Pioneer Generation Ambassadors, to encourage more elderly to be volunteers as well. As they become active in voluntary work, they will also keep their mind and body healthy. The elderly will not only live well but will also help ease the manpower shortages in the community. This will help ease our own worries and allow us to concentrate on working hard for our future. As the saying goes, having an elderly person at home is like having a treasure in the house. This also holds true for the community. (In English): The Government clearly can do much to address the challenges we face and the needs we have. However, relying on the Government alone is not enough. Manpower shortage cuts across various sectors. Even with new workforce entrants, there will always be a stiff competition for manpower. There is demand for people in industries that drive Singapore's economic development and there is also demand for people in sectors that provide care for people. With the manpower shortage, what gives? The community has so far demonstrated how we can organise ourselves and achieve many things without over relying on the Government or, basically, paid workers. If manpower shortage is likely to be permanent and there are still needs to be addressed, perhaps we should look more to the community as a new resource pool − gig volunteers, perhaps? We have residents who have diverse sets of skills and knowledge and they may also have the capacity outside of work and family time to help. Can we leverage on them more? How can we rally them together and better organise ourselves to address unfulfilled needs? For example, can young retirees who drive help to ferry the older and frailer seniors to their medical appointments? Can housewives with spare capacity help to fetch children, whose families are for some reason unavailable, to and from school? Can well-performing students help to run enrichment and reading programmes for children of low-income or dysfunctional families on a weekly basis?[+5 sentences] Can physically fit residents form Citizens on Patrol to ensure the security, peace and quiet of the neighbourhood? Can neighbours step forth and be ready to respond to calls for help through the Elderly Monitoring System? These are not difficult things to do but impactful if done. Of course, these propositions are impositions on Singaporeans who may prefer spending more time on activities they enjoy. But if everyone could just set aside a little of their time for the community, we will have a wealthy bank of volunteer man-hours and, in turn, achieve much more than what we see in the community today. Perhaps, on top of the grants to charities and schemes to encourage donations, we need to identify areas of unfulfilled needs, clearly articulate the roles that volunteers can assume, and devise a better way of recognising individual efforts in the community so that Singaporeans will find no reason to say no.[+6 sentences] There is much that we can do at the Government level and across the different sectors of our society. But ultimately, it is also the individual willingness of Singaporeans to do something, to give our best shot, that will keep the momentum going and make the difference. Our economy, security and defence, all of these need each and every one of us to work together in order to succeed. And, most importantly, if we truly desire a caring and inclusive society, then let us show it through our actions. Let us give Singapore our best shot. Sir, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)2017 words
[+10 sentences]Mr Deputy Speaker, this Budget follows closely after the report by the Committee on the Future Economy (CFE). In the course of our five decades since Independence, we had to reinvent ourselves many times, with the Government playing a proactive role in enabling the process. The CFE Report marks the plan for the next phase of our development. The focus of CFE is rightly on economic growth, as this is the only way to meet the expectations of our future generations for better jobs and opportunities in an increasingly competitive and volatile global landscape. CFE includes a broad range of plans to ensure Singapore remains linked to the global economy, our people develop the deep skills needed to stay relevant and our enterprises develop the means to compete. There are roadmaps tailored for the different industries, too. All these are welcome, and I look forward to the upcoming initiatives and changes to execute against the plans by CFE. Equally important though is to ensure that our growth is equitable and sustainable and, on this, I would like to deal with a few matters. The first is a sustainable fiscal base. In this Budget, we already see some of the strains that will face us in the coming years. Our spending on a wide range of areas is expected to rise, including, in particular, on health and social spending, as our population ages. At the same time, our working population is likely to fall, creating a double whammy as our income tax base grows narrower and our spending needs rise. There are also limits to how much we can raise taxes, as we need to remain attractive as a business destination for the best companies and global corporations can simply choose to do business elsewhere if Singapore becomes unattractive, relative to other destinations.[+9 sentences] We, therefore, have to be very prudent in our spending. Many sectors, for example, SMEs were also expecting more support from the Government. While I fully support the Government helping businesses to tide over difficult times, I am concerned about subsidies becoming entrenched. In many other countries, subsidies to different sectors of the economy become entrenched, allowing them to continue operating inefficiently and preventing the redeployment of resources to sectors where they are more likely to produce more value. In fact, I think the only principal justification for a subsidy to any segment is if greater welfare arises from that subsidy. Thus, if giving a business a small subsidy to tide over a difficult cyclical setback prevents substantial numbers of jobs being lost, then it is probably defensible. In short, there should be what are called positive externalities arising from Government support to businesses and not just private profit for the business itself. Let me now touch on three very specific measures that relate to this. The first is support for seniors. In this context, one of the schemes that I support in principle is the Special Employment Credit scheme which encourages the employment of older workers.[+15 sentences] With the rising quality of healthcare, many of our workers are able to work even though they are older and, often, it is with some sadness that older employees tell me they have been "retired" by their companies. The unspoken reason for this is often higher costs associated with hiring older workers, particularly in relation to matters, such as workplace insurance, as well as the availability of younger and cheaper workers. Yet, there are numerous benefits with allowing older workers to continue working for as long as they wish. For the individuals, it allows them to remain economically active and independent, and there many studies showing that there are mental and physical health benefits for seniors who remain active in the workplace. From the country's perspective, this would ameliorate the strain on our fiscal base as economically active seniors will remain more able to take care of themselves. Indeed, I would go even further on this front and suggest that both the Government and the unions look into the specific concerns employers have to employing older workers so as to eliminate structural factors contributing to age discrimination as much as possible in the workplace. Ultimately, it is my hope that older workers will be more able to stop work at a time of their choosing, rather than being forced into retirement that may be against their will. The second aspect of the Budget that I am heartened by is the manner in which it deals with environmental concerns. In fact, this Budget specifically takes into account environmental consequences. One of the fundamental causes of environmental pollution and damage is that businesses, in their determination to maximise profits, do not adequately take into account the damage caused to the environment by their business practices. The costs of environmental damage and pollution are often felt by the entire community, while the profit is enjoyed by the businesses themselves. This is a classic example of what economists call a "negative externality" where society pays the price that is higher than the benefit the company receives. A carbon tax is one way to ensure that businesses pay a price for polluting as well. This will, hopefully, incentivise businesses to innovate or invest in green technologies to reduce their carbon footprint. I am also heartened that the revenues raised from these taxes will be used to support the growth of green businesses, as this is one way of reducing the private costs for socially useful innovation, and if these technologies are effective, they could also be something else Singapore could export to other parts of the world. One matter that has received a lot of attention is the rise in water prices. This has been extensively discussed in many forums as the headline rise of 30% was seen as high by many Singaporeans.[+1 sentence] Following clarifications, I think most households have realised that the net impact on them will be manageable. For example, I think people mostly understand now that for most people living in 1-room and 2-room flats, the average water bill will actually be lower by around $1 a month. For those living in 3-room flats, it may rise by around $2 a month; for those living in 4-room flats, around $5 and, for those living in 5-room flats, around $8.[+17 sentences] So, although this is an increase, most people I have spoken to believe that this is manageable. Everyone also agrees that water is a precious resource for Singapore and people should be encouraged to conserve as much water as possible. While nobody likes to pay more for water, I think everyone agrees in principle that water must be priced at a level that is sustainable for Singapore in the long term. One suggestion I have in this regard is whether we can relook at water pricing to make it more flexible, so that, like energy prices, it, too, may go up or down depending on the costs of production. This may mean that we have small gradual increases every year, rather than a one-off lump sum increase after 17 years. In fact, anecdotally, a few people I have spoken to were actually surprised that their water bill had not increased in 17 years. As many people received their water and power bills together, they had assumed that both prices were going up when, in fact, it was only the power component that was changing and the water component had remained the same in their bills for the last 17 years. So, what I would suggest is, in order to prevent sticker shock or surprise every 17 or 20 years, as the case may be, that we find a way to make the water price more flexible as well so that people can adjust their consumption patterns along with the rising cost, and our usage of water will remain sustainable. One last area I wish to touch on is added support for parenthood. I should declare my interest here as I recently joined the Club of Parents with my first child, and I have to say that it is a wonderful joy to be a parent. But the reality is that many young people hesitate in taking the step both towards marriage and towards becoming parents, and the demographic time bomb I mentioned is a very real one, and the best way to diffuse it or at least reduce some of the pressures on it is to encourage more people to take on the challenge of becoming parents. The other benefit, of course, apart from the personal joy of becoming a parent is that society as a whole benefits because, ultimately, the children are the ones who will take Singapore forward over the next 30 or 50 years, and they will be the ones to support the older generations, to support us when we are no longer able to work. And there are tremendous benefits to society for encouraging parenthood. Of course, with parenthood, the economic issues are a bit reversed because the cost of parenting is largely borne by the individuals themselves, whereas the benefits are not only to the individuals but also to society as a whole. This is why I have always believed there are strong justifications for socialising the cost of parenthood more. There are many measures in place already assisting parents to defray the cost somewhat. But there is always more that can be done, in particular, childcare is one of the areas where there is a great deal of demand. And if you go before childcare, there is infant care. So, in this Budget, we have a doubling of places for infant care over the next four years, which is a measure I welcome.[+10 sentences] This will help to take more of the strain off working families and working parents and grandparents. But as we go forward, my suspicion is that there will be a correlation between the more we socialise the cost of parenthood and the more willing people become to take this plunge. I think costs are often a consideration for people considering marriage and parenthood and, sometimes, there is misinformation about the costs as well. But in countries like France, which is one of the few developed countries where they do not have a major issue with the population, we find the cost of parenthood being heavily socialised. So, I think this is one area we can look more at in future Budgets as well. Broadly speaking, Mr Deputy Speaker, I think this Budget will put Singapore on the right foundation for sustainable growth in the coming years. What I am most heartened is that the focus is not only on growth but on sustainability and the measures taken to ameliorate both the demographic and environmental challenges we face in the coming decades. I will now speak in Tamil. (In Tamil): Mr Deputy Speaker, I had previously raised my concerns about the relatively lower participation in preschool by Indian families. In particular, there appears to be a correlation in lack of preschool education and difficulties in primary school, where some of our students lag in areas, such as Science and Mathematics. In this year's Budget, I am grateful for the Government's initiative to increase infant care places to over 8,000 by 2020. This will be particularly important for working mothers and single-parent families.[+2 sentences] I would strongly encourage all Indian families to enrol their children in preschool and take advantage of the subsidies available. They should allow professionals to come in and assist. At the other side of the educational range, there are also more grants for post-secondary education, particularly for those going to the Institute of Technical Education, polytechnic or university. I strongly encourage all our youths to strive for post-secondary education and to take advantage of the opportunities made available. In an ever-changing world, education and relevant skills-based training will be important for us and our children to keep up with the new opportunities available. The Government will provide assistance and opportunities and we should, at the same time, not be afraid to learn and do so continuously.
Mr Deputy Speaker4 words
[+1 sentence]Miss Cheng Li Hui.
Miss Cheng Li Hui (Tampines)1016 words
[+14 sentences]Mr Deputy Speaker, Sir, I welcome and support the Budget. Our nation is at a critical transition point. We must seize the opportunities brought about by the disruptive technologies erupting all around us or risk being irrelevant. We must help our local companies, including our SMEs, survive and grow. The plans outlined in the Budget will go some way, but companies must also help themselves. Our schools, companies and people have to be ready for change. Lifelong learning and training will be an integral part of our lives. Over the last two days, my colleagues have touched on these topics, so I will not go there. But I want to talk about something that is equally important from the medium to long term, something which bothers me and my residents and, that is, the issue of healthcare. Our healthcare services in the public and private sectors are lauded around the world as progressive, high quality yet cost-effective. Our unique MediSave, MediShield and MediFund (3M) system and Pioneer Generation (PG) Package have served us well. Many more have benefited as the enhanced MediShield Life now covers everyone, regardless of age and health status. During house visits, my residents would chat about many things and one recurring topic is their worries about becoming a burden to their loved ones, especially when it comes to medical bills. Allow me to share some stories. Last year, Mr Tok's mother was hospitalised for two separate brain tumour surgeries at Tan Tock Seng Hospital. She was hospitalised for 58 days and her medical bill was about $102,000. She stayed in a B2 ward and, after Government subsidies, MediShield Life and MediSave deductions, his family's cash outlay was zero.[+7 sentences] He is very grateful to the Government and the system. He and his siblings are all below 30 years old and starting out in their careers. It would have been difficult for them if they had to pay the full bill. His mother is now well and resting back at home. Our 3M and PG Package have done well in helping families reduce their anxiety over medical bills. So, why are my residents so concerned about healthcare costs? Are our medical fees truly unaffordable? According to a study, global medical inflation in 2015 was 10% but, in Singapore, it was 15%.[+20 sentences] I believe there are several reasons why healthcare costs are escalating. One is the moral hazard of health insurance. My concern is whether more comprehensive insurance coverage might lead to over-consumption of healthcare. Are patients tempted to use more resources than they otherwise would have, because they think someone else is paying the bill? MediShield Life, which currently covers all Singaporeans, has a deductible and co-insurance portion. In recent years, more Singaporeans are enhancing their coverage with Integrated Shield Plans (IPs) for additional private insurance. Riders are available to cover both the deductible and co-insurance portion. Here comes a potential problem: are Singaporeans with better IP coverage more likely to spend substantially more and consume more healthcare than those who merely have basic MediShield coverage? Let me give Members two examples. A resident in his 40s recently hurt his knee while playing soccer. He was sent for a magnetic resonance imaging scan at a reputable private hospital. The scan revealed a Grade 1 sprain of the anterior cruciate ligament. He was given two options by the doctor. One was to undergo physiotherapy. Two, he could go for a relatively quick minor keyhole surgery with a night's stay in an A-class ward. He went for the second option − surgery. The bill came up to $24,000. He paid nothing because he had an IP rider. Another spoke of his father's cataract day surgery for one eye. He showed me the bill. The Ministry of Health (MOH) website shows that the 75th percentile bill size in private hospital for this surgery is between $4,000 and $9,000.[+9 sentences] His bill was $27,000. I verified with two other eye specialists and they commented that, from the bill, it looks like a standard cataract surgery. I am afraid some people might wonder if doctors are charging more because the insurance companies are footing the bill and not the patients. With IP riders and patients paying next to zero dollars, the patients are less likely to scrutinise their bills as thoroughly and this is not helpful. I do not doubt that doctors are specialists in their field and do offer the best medical advice. My point here is not to question their competence. It is also not a bad thing if wider and more comprehensive health insurance means patients could have more treatment options. What worries me is that additional treatment options are sometimes made available to the patients not because they are essential but because the patients are now able to afford them, thanks to their insurance coverage. If this happens on a large scale, will this over-burden our healthcare system and infrastructure and increase costs? Over-consumption and increased medical cost will definitely lead to an increase in insurance premiums.[+9 sentences] Another concern will be, will this result in a widening of disparity between private and public hospital bills? If so, this disparity might cause more people to shift to public hospitals, leading to overcrowding and longer waits. May I, therefore, suggest that the Government look into the following: one, have more checks in place to control healthcare cost inflation. I understand there is no straightforward and easy solution. Perhaps MOH and the Singapore Medical Council can study and regulate doctors' fees and hospital charges. Two, educate patients on healthcare options so that they can be more discerning in their choices. Three, improve hospital productivity. During last year's Budget Debate, I spoke about coordinated care. We should streamline some of this care from hospitals to primary care for more efficiency and effectiveness. Our family doctors can play a greater role in the long-term care of the patient. Deputy Speaker, Sir, I hope we spare no efforts in ensuring that our healthcare system remains truly affordable for Singaporeans, especially when our people are ageing rapidly.[+1 sentence] With that, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)1995 words
[+7 sentences]Sir, I am grateful we have a Budget which is long-term and one which is not only about the economy but also our environment, our families, about building an inclusive society and about strengthening community bonds. I have 27 specific recommendations for the Government and have filed 27 cuts, speaking about protecting the environment, curbing smoking and helping smokers quit, strengthening responsible financing, helping divorcees, single parents and their children, tackling animal cruelty and wildlife crime, improving our rehabilitation process for inmates, strengthening our humanitarian aid, helping domestic workers, helping neglected children, helping stay-at-home mothers, tackling oil spills, enhancing ElderShield, helping couples with difficulties conceiving, enhancing our ElderShield and helping our Institutions of a Public Character (IPCs) which internationalise. But the key in our Budget, our policies and all the recommendations we will be making in this House will be in the implementation. Execution is crucial. A crucial player in the implementation is our Public Service. This year, I will focus my speech on how we can strengthen our Public Service. As fellow Member Er Dr Lee Bee Wah has mentioned, there is no doubt that we have an efficient and corrupt-free Public Service. My concern is that in the pursuit of efficiency, we have compromised a key value − compassion. In our pursuit to automate most things, we now have a system without a heart.[+12 sentences] Our aim seems to be to process each case as fast as possible and to follow the book as strictly as possible. Do not deviate, do not rock the boat and do not question. Unfortunately, many people fall through the cracks when the system is so rigid, when we view things in black and white and where compassion is not exercised regularly enough. There are the famous four words "case-by-case basis" but, in reality and based on my experience on the ground, we have to fight with all our might to get that "case-by-case basis". Not long ago, one of my residents died in very unfortunate circumstances. Her husband was remanded and she left behind two very young children. Her sister was thrown into the deep water, while grieving the loss of her only sister and, still single, she suddenly becoming a mother of two. She needed help, she needed some compassion. I spoke to HDB on her behalf urging them not to chase her for the mortgage, give her some time to grieve, compose herself for a very difficult next chapter of her life and, in any case, both owners of the flat are no longer there. HDB agreed, but later still sent a letter demanding payment. She came to see me in tears, worried that HDB will repossess the flat. I asked HDB why did they do that. The answer was that they did not know the letter was sent as it was computer-generated.[+18 sentences] Not long after, she received a letter from the Inland Revenue Authority of Singapore demanding tax payment for her late sister. I appreciate that, on paper, we are right to demand payment. But, on compassionate grounds, should we do so, as our fellow Singaporean is trying hard to get back on her feet? Can we not afford to show some compassion? And this is just one out of the many cases I have encountered. Sir, we have spoken a lot about how we need to adapt to a changing environment, be creative and innovate. These are the exact things our Public Service needs to do as well. We need them to think out of the box. We have now developed a mindset where a solution, which has been used for years, becomes the right solution. We think that if we change, it means we have been wrong all these years and we do not like to be wrong. I spoke about chickens in Parliament last week, and now I will speak about monkeys. Our response to monkey issues is as "knee jerk" as it can get. We receive a complaint, a trap is laid, a monkey is caught and killed, and we put a tick on the box that something has been done. And in a lot of the cases, that is "case closed". I was there when an Agri-Food and Veterinary Authority of Singapore (AVA) contractor was poaching monkeys from a protected area away from where he was supposed to be trapping monkeys. He was eventually fined. But when a trapper returns to AVA with a monkey, how can we possibly verify that he trapped the correct monkey or even a monkey from the correct location? Does the trapping even help? Professors at our local universities and non-government organisations (NGOs) have all voiced our concerns and, based on science, have concluded that the culling of monkeys actually makes the situation worse.[+7 sentences] I asked an officer on the ground why do we do this when science says it does not work. The reply is that "This is what we have always done. I do not think it works too, but my director told me to do it". There are other ways of managing this issue, we can choose to think out of the box, innovate and choose to address the root of the problem, rather than the symptoms of the problem. Perhaps the easiest way to come up with new ideas is to listen to suggestions from others, engage the wider community, create partnerships. I have been to too many dialogue sessions where we talk so much rather than listen attentively, we defend our policies rather than listen to ideas on how we can make our policies better. We still do sessions where we explain a decision rather than get feedback to make a decision. The cross-island line saga is perhaps the best example of how we should have engaged the wider community and how we should have done sessions to get feedback to make a decision, rather than make a decision and then call for a dialogue.[+9 sentences] Is this process more tedious? The answer, without a doubt, is yes. But will people feel more engaged, more empowered? The answer, without a doubt, is also yes. Sir, it is not my intention to paint the Public Service in a bad light, but I have worked with many outstanding public servants in the last 16 years of my life as a civil society activist and the last year and a half as a Member of Parliament (MP). These are a rare breed who devote their lives towards serving Singapore, but I see issues that we need to resolve urgently so that we can continue to have an efficient, committed, yet compassionate Public Service. Moving forward, I have some suggestions to make. For a start, we need to cut some slack for our ground officers, our frontline staff members who will be the first to detect people who have fallen through the cracks, who can alert us. Many I have spoken to feel that when they bring such cases to their superiors, they are scolded for not following the books. We need to develop a culture where they are not penalised for being different and where they are giving some flexibility when processing cases. I suggest that all Bills that we debate in this House are put on the feedback unit Reaching Everyone for Active Citizenry @ Home (REACH) for extensive public consultation before the First Reading.[+3 sentences] I suggest that Members of this House are also provided with a report on the suggestions made by members of the public. We should list all suggestions provided, whether we agree with them or not. This is not new. An excellent example is the report done by the Early Childhood Development Agency published on 20 November 2015 with regard to the Public Consultation on Proposed Early Childhood Development Centres Regulatory Framework, the Bill that we debated just a few days ago.[+2 sentences] I suggest that senior public servants attend Parliament and listen to the debates so that they have a better understanding of the concerns we are raising. Like football, nothing beats watching a "live" performance than reading a report. I suggested this last year and I will suggest it again. We should release a draft Budget Statement so the public has a chance to make suggestions before we finalise the Budget.[+9 sentences] I listened to Senior Minister of State Indranee on the radio last week, and there were so many good suggestions on how we can improve the Budget. But, of course, they were made after the Budget has been cast in stone. It is a wasted opportunity not to be able to implement some of the really good suggestions to improve Budget 2017. It is a wasted opportunity to just have a one-way conversation. I suggest public servants who draft policies actually go down to the ground and experience different jobs related to their policies. In the past year, I have experienced what it is like to be a healthcare worker, a driver, a Town Council cleaner, a coffee shop cleaner, a Police Officer, a kindergarten teacher, a cardboard collector, a customer relations officer, a full-time father and, in December, a humanitarian worker. As I had shared on Facebook, it has been an enriching journey, to say the least. And through these experiences, I have learnt a lot, seen the struggles they face and witnessed first-hand the sacrifices they have made. And through these experiences, I have seen how we can make the lives of our workers better and where we need to make changes. I urge public servants to also embark on this journey and see how their policies affect the people on the ground. I suggest we set up more committees like the Animal Welfare Legislation Review Committee and the Active Mobility Advisory Panel.[+5 sentences] Committees made up of people who are on the ground and who perhaps might even have more experience on the issues than our public servants. These are committees which give the public servants a chance to listen and work with the community, to come up with new policies and even legislation. And as pointed out by Prof Tommy Koh last week, I quote, "When we appoint people to boards, we can also appoint challengers who are subversive and who have alternative points of view. That's the kind of cultural change we want to see. It makes Singapore stronger, not weaker". My last suggestion is for public servants to work more closely with civil society activists.[+20 sentences] Engage them, do not be afraid of them, these are people who speak up because they care. These are people who put the welfare of others before theirs and we should embrace this spirit rather than fear it, we should support rather than penalise them. We should work together rather than go our separate journeys when the end destination might be the same. This fear of engaging them is very apparent when I speak to public servants. But I urge them to start the dialogue. There is nothing to fear. I have been and continue to be a civil society activist. I do understand that I look too fierce sometimes. So, as the Prime Minister requested when he introduced me at the last General Elections, I am smiling a lot more now. In fact, I smile so much that it hurts, it really hurts. Madam, I trust that the Public Service will continue to evolve, improve and always serve in the best interests of Singapore and Singaporeans. In the words of Martin Luther King Jr: "Everybody can be great. Because anybody can serve. You don't have to have a college degree to serve. You don't have to make your subject and your verb agree to serve.... You don't have to know the second theory of thermodynamics in physics to serve. You only need a heart full of grace. A soul generated by love." Sir, I hope that every public servant has a heart full of grace and a soul generated by love. Sir, I support this Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Kuik Shiao-Yin.
Ms Kuik Shiao-Yin (Nominated Member)3669 words
[+39 sentences]Finance Minister, it is very good to see you back. I was encouraged by the kind support shown to you by many Singaporeans, especially across political divides. Unity is one of the most precious assets any country can boast of. And I will always be grateful for every year that we still possess that in Singapore. It is one of the richest parts of the inheritance we have received from our previous generations and I pray we will never squander it. Budget 2017 declares that our future lies in Moving Forward Together. But what does that really mean? Deputy Speaker, Sir, Finance Minister, America's motto is "e pluribus unum" − "out of many, we are one". It is inscribed on every coin they have in circulation. It sat in the pockets of all their citizens as a daily reminder that unity was the very currency of their system. And yet, this is the very same country which just recently voted to take a massive hatchet to a system they felt was no longer trustworthy. For a large swathe of the American people, the system was not even about Republicans versus Democrats anymore. Many voters had lost all belief in the story the leaders of both sides had told them about Moving Forward Together. Forty percent of voters were so disheartened that they simply stayed at home. And many who did show up at the polls placed all their bets instead on an outsider who pitched an audacious story of "Let's just Move Only Some of Us Forward Together". A flood of articles has been written since then trying to understand why people would seemingly vote against their interests. And one common thread that was unearthed was this. To those feeling left behind, the story of prioritising Some over All was always the real story of the system anyway. They had simply decided to play the game that they believed had been played on them. The true currency of any country is not in bills and coins. It is in trust. It has always been in trust. The value of every country rises and falls according to the legacy of trust it still possesses and the level of trust it still inspires on the individual, institutional and international levels. In a hyper networked world, trust is the most important currency. This is not a new observation. Many smart chief executive officers (CEOs) working in the new economy can tell you that. Many well-educated policymakers can tell you that. But all that foreknowledge has apparently done little to arrest the huge crisis of trust that the world is now in. The Edelman Trust Barometer has been tracking trust in four key institutions − business, government, NGOs and media – since 2012. And year on year, Edelman has seen public trust in these institutions decline across all 28 countries surveyed. The global rise of angry populism and pushback against elites that we see today are a result of unchecked erosion of trust from the past, coupled with present-day fears about the pace of change. Last year, Edelman reported the largest-ever drop in trust across all four institutions. Trust in media is at all-time lows in 17 countries. Trust in government dropped in 14 markets and is now the least trusted institution in half of the 28 countries surveyed. The credibility of CEOs dropped globally to an all-time low in every country studied. People are now more likely to trust search engines over human editors, individuals over institutions, reformers more than preservers of the status quo. Globally, 53% of respondents believe the current overall system has failed them and is unfair, offering them little hope for the future. Only 15% believe it is working, the rest are just uncertain. So, how did we do on the Trust Barometer? Apparently, Singapore is the fifth most high-trust nation, outranked only by India, China, Indonesia and the United Arab Emirates. Compared to the global average of more than 50%, only 30% of respondents in Singapore believed the system was failing while 43% said they were uncertain. To be a country where public trust in all four institutions is still above 50% is now a thing of great value in an uncertain world.[+4 sentences] Our high-trust climate is a rare thing which presents us opportunities we can leverage on. Deputy Speaker, it is not just deep reserves of financial capital from our past that we must invest in, protect and multiply; it is our deep reserves of social and emotional capital as well. Every country that hopes to ride out this global trust crisis must not only actively shore up trust in its system, it needs to also take a hard, honest look at where trust is being broken in its system and take noticeable, decisive steps to build it up again. One of the insights in the report that struck me was the distinction between the responses from the informed public and responses from the mass population. The global gap between the level of trust felt by the informed public and that felt by the mass population has widened significantly, with the biggest disparities in the US, UK and France.[+4 sentences] So, if Edelman's findings are to be believed, we should not be surprised if the French elections see its own version of a Brexit or Trump shock result. You might be surprised to also hear that actually, in America, the level of trust the informed public had in their system was almost as high as the level of trust our informed public had in our system. But it was the mass population respondents of America that ranked their system as deeply, deeply untrustworthy. That explains the genuine shock felt by Washington and the wealthier coastal cities at the election results. In Singapore, the difference is still not so stark. Our mass population respondents still trusted Singapore enough to place it in the top five. But 2017 was also the first time when our mass population respondents slid from being in the category of Trusters to the category of Neutrals.[+2 sentences] It is a small dip but still worth paying attention to. These respondents worried most about losing their jobs to immigrants and losing business opportunities to foreign competitors. Overwhelmingly, 70% of them believed the pace of change in business and industry was too fast.[+6 sentences] I do see the year-on-year efforts by the Government to mitigate the costs of that pace of change. The Silver Support Scheme, Workfare − these are all good, progressive moves towards strengthening our social safety nets. But what I also see is that those schemes still have much further to go to help Singaporeans who are feeling left behind. The Goods and Services Tax, U-Save Vouchers, conservancy rebates, education subsidies, weekly food donations − these are all good things, and these are all greatly, greatly appreciated things. But for some of our struggling families, all these good and helpful gestures still feel like drops in a constantly leaking bucket. I am speaking especially for our working poor. The bottom 10% sandwich class who hold full-time jobs, who are making a real effort to support their family but still cannot seem to break their poverty cycle.[+29 sentences] The ones who feel left out and left behind by our yearly calls to "upskill", "internationalise" and "innovate". Not because they do not care. Not because they are lazy. But because they are just busy trying not to drown under wave after wave of new demands, new costs and new changes to their world. To those who are drowning, even the calmest, most reasonable technocratic explanation about why a rise in water and motorcycle prices is justifiable will feel like salt on a wound. Because when you are drowning, all you want is for somebody to just stop talking, dive in and grab you before you sink. You do not care about the facts of the policies. Debates over what makes sense or does not make sense are all Greek to you. What is most real and relevant to you is simply how those facts are making you feel: I do not have enough. I will never have enough. I am not enough. And you do not care. When you are in that claustrophobic space of anxiety and scarcity, you do not have enough mental bandwidth to deal with anything more than each day's demands. And having the breathing space to consider alternative choices or plan for the future, that is a luxury the working poor do not have. That is why compassionate communication of available solutions rather than a "don't know, go talk to your MP" approach by frontline officers matters so much. That is why finding a way to provide universal support for childcare, eldercare, faster access to affordable housing, caregiver respite across all classes of people matters so much. Because all of these interventions go a long way to create bandwidth, a space for the drowning to feel like they can breathe again. We are missing a big point if we say, "Well, people must deal with the facts as they are. Not where they feel they should be." But honestly, nobody understands their life just according to facts. It is an intellectual's fantasy to believe we are perfectly rational, fact-driven beings. Most people make their choices according to their feelings about the facts. If we care about making sure people hear us out on the hard facts about our country's situation, we must start all our communications with connecting with people where they are: which is how they feel, even if that feeling is disagreeable or irrational to us. If not, let us just accept that your words may never impact anyone outside your echo chamber. We cannot effectively uplift our working poor if we do not connect our solutions more effectively to the deep narratives and emotional realities that they live in. We love the idea of being a Smart City that uses Big Data to solve our wicked problems. But I sincerely hope we will also fall in love with the idea of being a Wise City that looks at Deep Data as well, to make sure the policies we come up with are not just technical solutions but empathetic, human solutions that resonate with the communities they were meant to serve. I am not an economist. I do not know enough numbers to put up an elegant fight to justify a request for $X increase in Workfare and $Y increase in Silver Support. There are far more convincing experts in this House and beyond who can make that case. But I will, nevertheless, go on a limb to state my assessment that if we do not want our system to slide into the levels of toxic distrust we see elsewhere, we must move away from safe, small, incremental steps and take larger paradigm-shifting changes on a systems level to help the least in our land. And we should take those steps sooner rather than later.[+16 sentences] Because right now, we still have time. All I want us to just consider is this: knowing what they know now, seeing what they see now, what would Washington's elites have done different for their poorest states if they could time-travel just four years, two years or even just one year back? If Downing Street could time-travel, what would they have done different for their most depressed regions to prevent Brexit? Some decisions that looked too high-risk, too ridiculous back then, I am sure, suddenly look well worth investing in now because they finally see the high-stake consequences at last. But they cannot go back. They can never go back. Their time for intervention has passed them by. But ours has not. What can we do? What will we do? What must we do to stave off a future shock scenario of our own? The Budget Speech declared, "We can aim for quality growth of 2% to 3%…if we work hard to help everyone who wishes to work find a place in the labour force". It also said, "On the social front, Budget 2017 supports families who wish to buy a home, experience the joys of parenthood and help their children towards post-secondary education." So, what can we do for our working poor, especially those in single parent or sandwich class families, so that they may feel included in those statements as well? Consider just one kind of life story, a composite based on real stories familiar to our local social workers: a woman gets divorced, she gains custody of her three kids but no promise of maintenance. She applies for a rental flat. The frontline officer tells her that $1,600 monthly salary disqualifies her under the $1,500 income cap. She is advised to beat the system by stopping work, applying for a rental flat and starting work again.[+2 sentences] But she does not quit her job because she loves her work, she needs her work. Giving up her salary even for a month is not an option. Her sympathetic MP advocates for her but after 20 letters back and forth, back and forth, and hours of Meet-the-People (MPS) sessions, no one is any wiser, not even her MP, about why an exception cannot be made for her case.[+38 sentences] She cannot afford the downpayment for a flat. None of her relatives or friends has room to spare her little family. She rents on the open market but rents are high and leases are short. She moves four times in five years. Her savings drain down. When her boss offers her a higher paying job opportunity, she has to turn it down because she cannot work far away from her child's preschool. She knows she can never pick up her child on time. Not by bus, which is all she can afford. Plus they need her to work nights when she has zero childcare options. And then the health issues crop up. First, her kids. Then, her parents. And then that damn electrical fuse box has to blow up, forcing her to choose between paying for the lights to come back on or buying better food for her kids. And some nights, at the end of some very, very, very bad days, she considers just giving it up. Because why try so hard? Taking up a lower paying job to at least get a rental flat of her own where her kids can study in peace, suddenly feels like the smartest and safest decision in the world. Are you tired even just listening to that story? Because she sure the heck is tired living it. And you have to appreciate that for many of the poor, they believe that they will never not feel tired. All she wants is to move her life forward again, together, with everyone else she sees around her, but there are all these structural hurdles that keep coming up her way. What is the Singapore of her experience? What is the Singapore we want her to experience? What is the Singapore story we hope she will pass down to her children? Does this user experience of the Singapore system matter to us enough to form a strategic team and warrant a complete overhaul of her customer journey? Is her trust, and her children's trust, equally worthy of winning as the trust of a university graduate or a corporate high-flyer? If she still stays resilient all the way through, and if she still maintains her high trust in our system despite every trouble she has endured, is that not more of a testament of strength on her part, rather than ours? And should she lose trust in our system, whose job will it be to help her find it again? I do not believe the answer is the Government alone. That is the easiest answer. The hardest answer is that it is all of us. It always has been, and it always will be. They say you become an adult the first time you realise that nothing is truly free and everything worthy comes at a price. Everything good costs someone something. We just seldom want to be the one footing the bill. In every request for a right, there is always a correlated offer of responsibility. It is easier to say moving words about the equal rights we want every Singaporean to have, than to say the challenging words about the equal responsibilities those rights do require every Singaporean to take on. But if we who request for those rights are not prepared to take on some measure of the correlated responsibilities demanded of us − through taxes, donations or volunteering − then our request feels that much less honest and much less powerful. So, just as much as I wish for the state to stay open to radical solutions, I also see we the people have to stay equally open to the radical responsibilities that those solutions may place on us. If there is a need to pay higher taxes someday, as the Minister hinted, in order to build a better system that moves everyone forward together, I think many Singaporeans will be prepared to bite that bullet because we are a far more generous people than we give ourselves credit for.[+1 sentence] But that is the catch. Trust has to be very high for that to happen. I believe there are many taxpayers and voters on the ground who will still need to be more honestly engaged and deeply convinced that this system's story is genuinely about moving everyone forward together and not just moving some of us forward together.[+17 sentences] We need more open and honest conversations on that front. Let me close with a story. American author Ursula Le Guin wrote a provocative little parable called "The Ones Who Walk Away from Omelas". In that story, an unnamed narrator guides us through the fantastical city of Omelas, taking us on a dizzying tour of the city's amazing technology and wonderful people. But the journey takes a dark turn when we are led down into a basement tucked beneath this beautiful city. Imprisoned in that basement is a weak and wretched child. And the narrator tells us to accept that, in some mysterious way, should this child ever be set free, the whole city's success will be utterly compromised. We are asked to accept that all the freedoms the many enjoy above is wholly and inarguably dependent on the oppression of the one beneath. And the most disturbing part about Omelas' secret is that it is not a secret. We are told that every citizen there who comes of age has been ushered into this very room to see the truth for themselves. Though all get upset, most eventually accept that life is just about terrible trade-offs. And so, the status quo continues. The tale ends on a mixed note, talking about a small handful of citizens who choose to walk silently away from the city, towards an unknown destination that the narrator warns may not even exist. The story is disturbing because everyone who reads it knows instinctively how true to life that story is for every city in the world. Every city has a child in the basement and a nagging feeling that they all share in the complicity of keeping that child there. I have always wondered whether the narrator of the story was meant to be an unreliable narrator, pushing out a narrative that deserves to be challenged. When I think about the parallels to Singapore, I see narratives that need to be constantly questioned, rather than casually accepted as sacrosanct. Is it really true that once we give mandatory off-days to our foreign domestic workers, we will see the instant collapse of our work-life balance? Is it for real that if we free our children from the tyranny of early streaming and high-stakes exams, we will see our future workforce become that much less rigorous? Is it for certain that if we uplift our poorest through more generous welfare, we will see the decimation of Singapore's culture of hard work?[+3 sentences] Perhaps. Or perhaps not. We do not know without engaging in honest conversation with everyone, especially the ones who respectfully but deeply disagree with us. There are Singaporeans out there who ask hard questions. There are Singaporeans out there who even live out their hard answers to those hard questions, and some of them are still here, still open, still pushing the boundaries, but some of them have already reached their breaking points where they have decided they are done with this city.[+8 sentences] They are done with trusting, done with trying and done with the heartbreak of putting up with those who passively accept the unfairness. They may still be here in body but, in spirit, they are already walking away from their Omelas. I do not know how and, certainly, I know I sound naive, but I will always hope that we can be that country where more of us are able to say to the ones who walk away: "Stay. Help me see what you see. And permit me to share what I see as well". Because in a world threatening to grow apart, our small city needs more ones who walk towards than ones who walk away, more than ever. The ones who dare to go where few want to go − towards one another, towards the conflicts, towards the problems, towards the solutions and, most profoundly, towards the children in the basement who still long to be free. Our city needs us. It has always needed every one of us, perhaps more than we will ever know.[+1 sentence] Finance Minister, I do support the Budget. But allow me also the space to hope that each new Budget you bring will be one that finds new ways to bring ever more help and ever more hope to the drowning ones and the ones in the basement that need it most, because this is their city, too.
Mr Deputy Speaker28 words
[+1 sentence]Thank you for the passionate speech for the underprivileged. I am sure many Members have the same experience which you have just shared with us.[+1 sentence] Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)1459 words
[+1 sentence]Mr Deputy Speaker, Sir, I am honoured to have this opportunity to share my views on the Budget Statement. It is reassuring to know that we will have an overall surplus of $1.9 billion, even though we are running an expansionary Budget.[+4 sentences] Such prudence in our fiscal management has served us well and will ensure that we will have sufficient resources to tide us over future downturns. The most notable feature of this Budget is the line-up of initiatives to transform our economy. These measures are expected, coming on the heels of the recommendations by CFE. I am heartened that we are taking bold and swift steps to prepare for the changes new technologies will bring. Much is at stake as our economy moves into a higher gear. However, the impending 30% water price increase has dominated most of the discussions on the ground instead. Residents and businesses alike were taken by surprise − "why so much so suddenly" − and worried about the impact from such a big hike.[+15 sentences] Fortunately, numerous clarifications since the announcement have helped to reduce public anxiety. The feedback I have received from many residents has been quite encouraging. They do accept that a 30% increase after 17 years is not unreasonable. They support our efforts to be self-sufficient in water. They are also aware of how expensive water processing technology and infrastructure can be. What they did not like is that there were no prior public consultations about the increase. Such discussions would have provided the opportunity for the people to share ideas about water conservation and sources of funding for water infrastructure. While price increases are never welcomed, periodic increments with justifications shared in advance would be preferable to a sudden jump. This incident highlights the importance of good public communication. We need a better approach for communication between the Government and the public. How well we communicate new policies and measures will affect the level of support and cooperation we receive from the public, especially for those which affect our daily lives. In recent years, our Ministries have held many public consultation exercises on a wide range of issues with success. Valuable inputs from stakeholders and the public help shape our policies and legislation. Such dialogues also build trust and goodwill, which the Government will need to draw upon for unpalatable but necessary policies in the future. A similar exercise for water would have been useful. While the increase in water prices should not lead to drastic increases in the prices of our food, I still see the need to appeal for rental rebates for our hawkers and stallholders who will have to incur higher costs due to higher water bills and, later on, electricity price hikes from the carbon tax, on top of a rising trend in food prices.[+13 sentences] Their profit margins are low and any assistance will be very much appreciated. Rental rebates also mean that they will not have to pass on as much of the cost increases to their customers. While the new model of having social enterprises like NTUC Foodfare manage our hawker centres has made some progress in keeping the prices of certain food affordable, this remains limited to some basic dishes in these hawker centres and I believe more can be done to reduce overhead costs for the hawkers through some form of rental rebates. Next, I would like to speak on behalf of a group close to my heart − the elderly. As we set about restructuring our economy, we must bear in mind that whatever changes we make, we must continue to make an effort to consider the impact on our senior citizens and ensure that they are accommodated in our plans. Coming back to the topic of better communication between the Government and the people, seniors used to joke that the answers to their queries at Government departments always start with "www" − the website addresses which the staff shared helpfully, or so they thought. We have learnt since then that we need to reach out to our elderly through more interactive ways. Making adjustments to accommodate our seniors is a signature of a caring society. Another example of an area where improvements can be made to be more elderly friendly would be our Mass Rapid Transit (MRT) stations. Last week, I witnessed a horrific incident when a senior, who had difficulty walking, was going through the door of a train car. It closed on her hands while she was holding onto her trolley. Her trolley was out on the platform while her hands were stuck in between the doors inside the train. Luckily, the doors opened and she rushed out, very pale and very frightened. Would it be possible for our MRT doors to stay open for a little longer during off-peak periods at stations where there are more seniors, for example, at Outram station which serves the Singapore General Hospital?[+7 sentences] How about designating a train car for the elderly, disabled and commuters with children in prams? Able-bodied passengers will be allowed to use it but priority will be reserved for the less ambulant. The train car should be the one nearest to the platform lift when it stops and have seats in a loud and contrasting colour, for example, ang pow red, to signal its function. This car will be an additional service to our current priority seats. If possible, a staff can be stationed on the platform nearest to this car so that he or she can provide assistance. This staff can also provide instructions to other passengers when necessary and help enforce order and security on the platform. In addition, we should try to build flexible, adaptable structures which can accommodate the elderly since this is a rapidly growing group. For example, we build childcare centres to cater to children but, with shrinking family sizes and an ageing population, the childcare centres located in the older maturing estates which may experience falling enrolment in the future should be convertible into eldercare centres. This way, the Government will not have to look for a new space, nor incur heavy building expenses. Hence, when building new childcare centres, the Government should also consider that the design can accommodate changes to eldercare centres in the longer term.[+7 sentences] The speed at which we are developing today can be intimidating for our elderly, particularly older women who are considering rejoining the workforce. I would like to request for additional course subsidies for them, on top of the SkillsFuture Credit, because many of them do not have much savings and would hesitate to ask for money from their husbands or children to attend classes. This is typical behaviour for many homemakers who are used to putting the needs and wants of their family members above their own. Since they have already embraced personal responsibility in picking up new skills, let us help them by lowering the barriers to learning as much as possible. I am now on a personal quest to persuade more of the elderly in my constituency to pick up courses. Not all of them see the need to. It is not easy to convince some of them that learning is good for their mental and emotional health and would enhance their quality of life. How do we motivate them and get them excited about trying out new things? I hope the Government will conduct a study into the psyche of our local elderly to find what motivates them so that we can use the information to formulate attractive ways to run our courses. It would also be helpful if the Government can support the recruitment of retirees for the care sector with subsidised training and training allowances.[+6 sentences] In the process, they may find their calling in certain areas of the care sector and want to develop further in these areas, carving out a new career in the process. These personnel will help to fill up the manpower shortage in the sector. Finally, I would like to conclude with a proposal to engage private-hire car services, such as Grab and Uber, in community service for the elderly. Both companies have been viewed as disruptors in their sector. It would be good if they would consider giving back to the community through volunteer services, such as driving vulnerable seniors to and back from hospitals or dialysis centres. This is already done by taxi companies, such as ComfortDelgro, that have programmes in place to provide ferrying services for the elderly and the disabled. Grab and Uber should likewise consider doing so, and the Agency for Integrated Care can work with these car hiring companies to make good use of their spare capacities, instead of relying solely on ambulances.[+1 sentence] Sir, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Dr Lily Neo.
Dr Lily Neo (Jalan Besar)1822 words
[+1 sentence]Mr Deputy Speaker, I stand to speak in support of the Budget Statement raised by the Minister for Finance, Mr Heng Swee Keat. The Finance Minister struck a chord with me when he said, "We need to foster partnerships in the wider society so we can maintain a good balance between state action and community initiative".[+1 sentence] He also said that, "It is critical that we take decisive action to reposition ourselves for the future. Budget 2017 will outline measures for our economy and our society." Today, I would like to base the rest of my speech on the above points concerning our society. I was most heartened when the Finance Minister said that: "We are building an inclusive and caring society − one where Singaporeans of all backgrounds can improve their lives, where the vulnerable are uplifted, and where people of all ages can look to the future with optimism." I want to suggest the following action to reposition Singapore for better care of our ageing population.[+5 sentences] The title of my speech is "SAFEcare" which stands for Smart Ageing and Future Enabling care, through technology and preventive medicine. As the Finance Minister said: "Our needs are growing. Our population is ageing, families are smaller and our social needs are more complex." There is thus an urgent need to consider an innovative way, with the help of technology, for preventive healthcare to keep disability away for as long as possible. This will ensure seniors improve their lives with graceful living, especially at the later stages, when their needs are at a peak. The Finance Minister said that over the last five years, our annual healthcare spending has more than doubled to around $10 billion in financial year 2016.[+1 sentence] He also said that the healthcare spending will continue to rise as our population ages. Elderly healthcare costs here are projected to rise 10 times over the next 15 years to more than $66 billion annually. This means an average of $45,000 will be spent on healthcare for each senior by 2030.[+38 sentences] This is according to a report by Marsh and McLennan. This estimate also assumes that there will be continued ready access to cheap foreign labour, which may not be the case in the future. So, going forward, how do we care for our seniors better and at the same time reduce this steep cost curve? Let me suggest the following ways. The concept I am suggesting is based on the tenet of prevention is better than cure. In this instance, it means it is better to prevent mobility difficulty and maintain independence, rather than treating the disability. For example, it is better to prevent fall and getting fractures, or having uncontrolled hypertension and getting strokes, rather than curing the fractures and strokes to gain back independence. The purpose is to facilitate independent living for the seniors, till ripe old age, in their usual dwelling places, without having to be admitted to nursing homes, community or acute hospitals. Presently, this is the only option available for many, although not all of them require the intensive nursing care. This is a pity, as it is not making wise use of our limited resources, which are increasingly expensive. Many older adults express the desire to age-in-place for as long as possible. Thus, the aim is to enable seniors to age gracefully in their own homes despite their frailty or medical conditions by preventing disability and to better manage disability. How do we prevent disability among our seniors? The most common causes of disability among older adults are chronic diseases, injuries, mental impairment and visual impairment. Physical activities and keeping active can make our seniors stronger and lower their chances of falling, reducing fractures and injuries that result in disability. It is never too late to exercise even for seniors. The good control of chronic diseases, such as hypertension and diabetes, can prevent disability, such as stroke, and regular eye check-ups for seniors can diagnose cataracts and other visual impairments for early treatment. Facilitating social wellness to seniors helps prevent mental illness, such as depression, that can cause disability. All the above should be practised as early as possible before disability sets in. The use of medical technology is the way forward. It can improve the quality of living. Technology-assisted centralised-control health monitoring can be deployed to check on the well-being of seniors. These monitors can screen many seniors for hypertension, pulse rate or heart rate, temperature and so on from seniors wearing medical technology wristbands. Monitoring devices using advanced sound event technology and long-range passive infrared motion sensors to detect abnormal sounds and motions inside the house are useful for detecting falls at home. Remote monitoring systems allow the care required by seniors to be significantly reduced, alerting caregivers to intervene early when necessary. The ideal scenario is to have one central monitor overseeing hundreds if not thousands of residents. The main aim is to have good preventive medicine in detecting emergency health conditions and preventing disability. Information technology can ensure a realtime flow of data between care recipients and providers and make administration, record keeping and reporting of data more efficient. More collaborative partnerships with Institutes of Higher Learning can be forged to develop new technology, while researching and developing cost-effective systems that promote age-friendly living environment in homes. In embracing technology, over time, it will be increasingly beneficial and affordable, when more advanced technology is launched with more competition in the market. A living environment that embraces accessible design and fosters independent living can make a difference in terms of a good quality of life for seniors. The suggestion is to help seniors overcome their intrinsic disability through either the removal of environmental barriers or the provision of environmental modifications. The environmental hazards at home are situated about 60% in the bathrooms and 40% in the other rooms. Common hazards are the absence of grab bars in the bathrooms, dim lighting, slippery tiles, and absence of kitchen work surface at a height suitable for sitting and so on. The use of smart technology is useful for a safe kitchen that will help seniors to function with automatic turn-off for stoves and other electrical appliances. Thus, modifications and adaptations of the home environment or elderly-smart home for those with disability, according to the individual's need, will improve functional ability-related outcomes. Environmental modifications are particularly important for those living alone. Today, those living alone with no family members to depend on are the ones who usually require nursing homes when they face disability. In 2012, about 7% of seniors older than 65, or 35,000 seniors, live alone. This will go up to about 90,000 by 2030.[+23 sentences] Living alone per se may not be such a bad thing. According to one study, of the seniors aged 85 and older who were found to be in excellent health, one in five or 20% lived by themselves. What is the best avenue to practise "SAFEcare" through smart technology and preventive medicine? The main aim is to enable seniors to continue living on their own with graduated daily living assistance according to their frailty and keeping residents independent for as long as possible with the prevention of long-term disability by preventing the causes as mentioned earlier. In these instances, the daily service delivery accessibility is important, as this will provide better management of service delivery and resources, such as helpers, nurses and doctors. For this, accessibility to as many seniors as possible will be ideal. Cluster housing concept where many seniors live in the same block of flats is one example. Seniors live on their own in 1- or 2-room flats in such clusters. This will be better for planning and prompt delivery of services. This will also facilitate companionship for residents with their neighbours. A team of several helpers will be able to provide daily living assistance, where necessary, such as food delivery, cleaning of the homes or bathing for the very frail seniors. Some may only need such daily assistance during short-term illnesses. Nurses can assist in monitoring the well-being of the residents in such blocks of flats. The nurses can help to monitor the seniors' medical conditions and to refer them for early treatment when necessary before disability sets in. These conditions may include uncontrolled hypertension and diabetes. We can build new HDB flats with the above concept or we can also modify and convert more HDB rental homes or the present 14 senior group homes, or some of the studio apartments with the above concept as and when the need increases. Instead of using the whole high-rise blocks, using the lower half of the blocks will suffice for ease of service delivery. The upper floors of flats can still be used for younger families and so on. The ground floors of such flats should cater for community services, for example, senior activity centres to enable those well seniors to come down daily for physical, social and mental wellness to prevent disability and to monitor their chronic diseases. This venue also serves as a coordinating centre, enabling concept partners like the grassroots organisations, voluntary welfare organisations and various corporations to volunteer their services. This is the concept of the many-helping-hands approach in the community. It is especially useful for disadvantaged seniors. Since we are starting the PAP Community Foundation (PCF) Sparkle Care centres to cater to the more dependent seniors, it will be good to plan such concept homes hand in hand with Sparkle Care in the same vicinity. Presently, about 5% of seniors live in some form of residential aged care facility and this will translate to about 50,000 of seniors requiring assisted living by 2030. Despite a 30% increase in capacity since 2010, Singapore still had fewer nursing home beds per 1,000 people aged 65 and above in 2015.[+1 sentence] Besides focusing on building more nursing homes, perhaps MOH will consider my above proposal of smart cluster homes through technology and preventive medicine as a cost-effective alternative but, more importantly, to enable our seniors to remain in their own homes and to have better living. Singapore's old age support ratio has been dropping from 7.4 in 2010 to 5.4 in 2016 and is expected to drop to 2.3 by 2030.[+5 sentences] How do we cushion the dependence cost curve impact? It is through preventive medicine to keep our seniors as healthy for as long as possible, and the use of technology to mitigate the manpower needs to enable independent living as I mentioned earlier. The Finance Minister provided Enabling Masterplan 3 to support persons with disabilities and their caregivers in this Budget. In view of the urgency of our ageing population, will the Finance Minister provide another Enabling Masterplan to provide for seniors with disability next? I hope the Finance Minister would consider my "SAFEcare" or Smart Ageing and Future Enabling care favourably and to improve the lives of our seniors and helping them to age gracefully.
Mr Deputy Speaker3 words
[+1 sentence]Mr Azmoon Ahmad.
Mr Azmoon Ahmad (Nominated Member)1448 words
[+5 sentences]Mr Deputy Speaker, good evening and good evening to all Members of the House. First, let me deliver my speech in English and later in Malay. First, let me express my appreciation to the Finance Minister for the delivery of Budget 2017. It is a Budget that I consider as targeted at ensuring continued employment and employability for our citizens by helping to keep our SMEs afloat and sustainable in this choppy and uncertain economic trend and yet, preparing the nation for the long-term challenges as recommended by CFE. While I applaud the various measures and "goodies" that have been suggested, I would also like to highlight the worrying trend on the rate of job redundancies that has occurred in 2016. If my facts are right, there were several layoffs late last year which account to more than 10,000 jobs being lost.[+8 sentences] While this can be considered as small in percentage, it also means that the same number would have lost their income stream, which also means that the same number of families is now being impacted. What would this mean if we are to relate it socially? What does it mean to those families who have school-going children? How will this impact us in the next 10 years, or will this, at all, have any impact? The biggest question is: what does it mean when someone loses a job today and, 10 years later, what will that be? Before I proceed further, please allow me to share and relate the experiences which I gained whilst I was serving as a Board Member of the Association of Muslim Professionals (AMP) on many of the community activities there. Many social issues which the Malay/Muslim community faced then and now, can be traced back to dysfunctional families as one of the several main root causes. Be it issues related to drugs, underperformance in academic studies, juvenile delinquency or even teenage pregnancy, and many more, one of the main root causes will often, more than not, stem from dysfunctional families. A study made by AMP then showed a strong correlation between dysfunctional families and the financial instability of the family.[+13 sentences] The more unstable the financial position of the family is, the higher the correlation to dysfunctional family will be. The difficult part with regard to this phenomenon is time. The whole process leading to the social problems is usually a long one. It is not immediate. When a family becomes financially unstable which can lead to social problems may take many years. The impact can only be seen much later in time. When this process starts and ends with a social problem, then a new vicious social problem cycle exists and even starts, unless we intervene. Simply said, a family with a sound and stable financial position will have a better chance to be not dysfunctional, hence will also mean a higher chance to stay out of the social problems, hence lower social issues. As such, being employed and staying employed are the best assurances to keep our social problems at bay. I guess you do not have to be a rocket scientist to understand this. Thus, in our quest to eradicate, if not, minimise problems, it is best to ensure high employment as much as possible. And I am sure this sentiment is also strongly shared by Minister Lim Swee Say, I believe. The less social problem we have, the healthier we are as a nation. In my view, the worrying downward trend of the economy is expected not to get any better in 2017 and 2018. If this trend prevails, more job layoffs and retrenchments may occur, especially affecting the professionals, managers, executives and technicians (PMETs).[+8 sentences] Of particular concern are the middle- and low-income segments, which the Malay/Muslim community is a big part of. While I appreciate the slew of schemes and programmes that MOF and MOM have taken and embarked on, this may not be sufficient to circumvent the problems that it may entail. In fact, anecdotally, it is said that there are not many Malay/Muslim clients who have come forward to MOM, after being retrenched, to seek help in finding new jobs, or even for advice to take up the various schemes and programmes that MOM has to offer. It could be due to many factors which led to this phenomenon. Understandably, this is logical as it is quite normal that a person's self-esteem is negatively affected after such an experience, which may make him to react as such. However, I believe that the affected worker may be open to engagement to his or her own community organisation like AMP, Majlis Pendidikan Anak-Anak Islam (MENDAKI), Persatuan Pemudi Islam Singapura (PPIS) or Jamiyah. I guess they may be more comfortable to relate and be advised on the available options which MOM has to offer. Hence, I would like to suggest the following idea. Can some of the work done by MOM in engaging the outplaced individuals be "outsourced" and handled and managed by some of the credible Malay/Muslim Organisations (MMOs) or even self-help groups (SHGs)?[+4 sentences] The chosen or appointed MMOs can play an important role in trying to ensure that the affected workers can be counselled and engaged so as to try to have them back in the workforce. This work must be done in conjunction with MOM. As such, MOM will have a kind of mini-MOM at the various VWOs and SHGs. In doing so, we can expect a better outreach to the affected workers or PMETs, with the objective of placing them back in the workforce as soon as possible. This is with the belief that we should thwart future potential social problems by ensuring that our affected workers are unperturbed by the disruption in their job, leading to a stable financial position.[+3 sentences] Mr Deputy Speaker, I shall deliver the following speech in Malay. (In Malay): Good evening. Firstly, I would like to thank Minister Heng Swee Keat for Budget 2017 which he presented earlier. It is a noteworthy Budget that aims to ensure job security for Singaporeans by proposing measures to assist the smaller firms (SMEs) and preparing our country for challenges in the long term, in line with the recommendations by CFE.[+1 sentence] However, I would like to express my concern on the uncertain and worrying economic outlook in the coming years in 2017 and 2018. If this situation persists, I am certain that retrenchments will still occur, similar to what we have witnessed in 2016.[+9 sentences] It is very important to look at the impact on families when a person had the misfortune of losing his job. It is very likely that this will affect the family's finances and stability and, hence, will result in a situation that is both significant and worrying. The bigger impact is the likelihood that this will result in social problems, for instance, dysfunctional families, drugs, youth issues, children borne out of wedlock and so on. This phenomenon was observed in a short research conducted by AMP in 2015. This process will take place over a relatively long period of time. Hence, the impact of job loss is very serious and can haunt us in the long run. In order to eradicate the possible social problems that may arise, it is imperative for us to ensure that every individual who lost their jobs is helped and be able to rejoin the workforce as soon as possible. This will ensure that their financial situation will remain stable. We can, therefore, avoid the undesirable social problems that may appear in the future. Although MOM provides various schemes and programmes, it was found that not many affected Malay/Muslim individuals sought MOM's help as compared to the other races. Therefore, I would like to suggest that action should not be undertaken by MOM solely and, in fact, we should also mobilise the efforts of major Malay/Muslim bodies like AMP, MENDAKI, PPIS and Jamiyah.[+2 sentences] These Malay/Muslim bodies can play a role as agents of MOM and help those who are affected. (In English): Mr Deputy Speaker, the involvement of the self-help groups or VWOs and MMOs is a very important step in dealing with our social problems. Their involvement with MOM, in order to facilitate as an agent for MOM, to engage individuals who have lost their jobs and get back into the workforce is so important, in my opinion, which will help the country to avoid long-term social issues. I hope the Finance Ministry can look into this and provide the necessary financial help and funds to the self-help groups in order to be able to make this a success.[+1 sentence] With that, Mr Deputy Speaker, I support Budget 2017.
Mr Deputy Speaker33 words
[+2 sentences]Mr Azmoon, I just want to assure you that the Senior Minister State for Finance Ms Indranee Rajah takes cognisance of the points made in your speech as well. Mr Yee Chia Hsing.
Mr Yee Chia Hsing (Chua Chu Kang)982 words
[+6 sentences]Mr Deputy Speaker, Sir, I rise in support of Budget 2017. First of all, I would like to say that I am very happy to see Finance Minister Heng Swee Keat back in the Chamber delivering his Budget Speech. The past year must have been difficult for him and his family and I wish him good health for many years ahead. Sir, last year, our economy grew by 1.8%, which is above an earlier forecast of 1% to 1.5%. However, we have to accept that as a developed economy with labour force constraints, our target long-term growth of between 2% and 3% will be slower than what we have experienced in the past. Against a backdrop of slower growth and thus flat Government revenue, our spending on infrastructure, health and social support has increased and will continue to increase significantly, especially as the Baby Boomer generation is reaching their 60s and 70s. Minister Heng mentioned that additional investment in our public transport infrastructure is expected to cost the Government more than $20 billion over the next five years. Our annual healthcare spending has more than doubled over the past five years to around $10 billion a year.[+1 sentence] Over the past few years, we have also introduced and strengthened various social support schemes, all of which are necessary and welcomed by residents. For instance, the Silver Support Scheme, which gives up to $750 every three months to the elderly, has really helped reduce hardship for some of our most vulnerable elderly staying in 1- to 2-room flats.[+9 sentences] The truth is that our overall expenditures will continue to grow with an ageing population and we have to prepare for it. As a responsible and prudent Government, we must maintain a balanced Budget and ensure that the Government's revenue can match the increasing social and health spending as our population ages. As Minister Heng mentioned in his speech, we may have to raise revenues through new taxes or raise tax rates in future to meet the rising domestic expenditure needs. On this front, I would like to talk about our stamp duties related to residential properties, which I believe there is room for us to be more progressive. Buyers of residential properties are required to pay Buyer's Stamp Duty. There is also Additional Buyer's Stamp Duty (ABSD), which was introduced in December 2011 and revised upwards in January 2013 to cool the residential market. Sir, I have two suggestions for consideration. First, I would like to suggest replacing ABSD with a tiered Buyer's Stamp Duty. I understand that the objective of ABSD is to moderate demand for residential properties and to promote a stable and sustainable property market. Private residential prices in Singapore have slipped for 13th straight quarters and have fallen by 3% last year.[+6 sentences] Because the ABSD scheme is seen as a cooling measure, it is viewed as a temporary measure which will be removed when the market has indeed softened. But we always run the risk that the property market may spike up when ABSD is removed. Sir, to solve this conundrum, my suggestion is to remove ABSD for Singapore Citizens and add an additional tier to the Buyer's Stamp Duty. ABSD for non-citizens should remain but be adjusted to take into account the revised tiering of Buyer's Stamp Duty. Allow me to explain. As it stands, the rates for Buyer's Stamp Duty are computed on the purchase price or market value of the property, whichever is higher. The Buyer's Stamp Duty rate for the first $180,000 is 1%, followed by 2% for the next $180,000.[+15 sentences] Stamp duty payable for amounts above $360,000 is 3%. I would like to suggest adding an additional tier of 10% for transaction values above $1 million. With the higher threshold of $1 million, I believe this will not significantly affect most middle-income families and HDB upgraders. This would also be similar to having ABSD of 7% on top of the current Buyer's Stamp Duty of 3%. This change would also be seen as a permanent change to the stamp duty structure rather than the current ABSD scheme which is seen as a temporary scheme. Sir, my second suggestion is for the Government to review its concept of ownership of residential properties which currently only applies to the registered owner but not the beneficial owner. Currently, if a residential property is held under a special purpose vehicle (SPV), and if the SPV is transferred from seller to buyer, normal residential stamp duty is not payable. This is because the registered owner of the residential property still remains as the SPV and does not change. I think this is an anomaly which needs to be addressed since, for all intents and purposes, the beneficial interest of the property has changed hands. In this type of situation, not only does the buyer of the SPV avoid paying Buyer's Stamp Duty and Additional Buyer's Stamp Duty, he also avoids paying Seller's Stamp Duty, which would have been payable if the new buyer then flips out the underlying residential properties within the four-year period. Most of the time, transactions of such nature are carried out by property developers and property investment companies, and this change is unlikely to affect individual buyers and sellers of residential properties. Moreover, the nature of such stamp duties is that they are discretionary in nature, as buyers and sellers already know the stamp duties payable beforehand and would have a choice of whether to enter into the property transaction. I hope that with these additional revenue sources, we will not need to increase other taxes which may impact low- to middle-income families. Sir, in conclusion, the initiatives for Budget 2017 are balanced and forward-looking, but we need to see how we can meet the fiscal challenges ahead while minimising the tax burden on the man in the street. Mr Deputy Speaker, Sir, I support the Budget.
[+3 sentences]Mdm Speaker, thank you for allowing me the privilege of speaking in these Budget Debates. I think I speak for everyone in this House when I say that perhaps the best thing about this year's Budget Speech was to see it being delivered by Finance Minister Heng Swee Keat. Welcome back, Sir! I speak in support of the Government's Budget and its various initiatives that I believe are necessary in these uncertain times. They include: the promotion of digitalisation for Small and Medium Enterprises, the International Partnership Fund that encourages companies to internationalise, as well as the various public sector productivity funds that encourage innovation. These are all measures that will be crucial for businesses that need to dial up their innovation in the face of ever-faster disruptions arising from technological advances.[+12 sentences] Mdm Speaker, while these are vital issues of concern for the livelihood of Singapore and Singaporeans, I would like to address an equally important matter: the social development of Singapore, in particular, graciousness. Or the increasing lack thereof. Singaporeans want to be the best at whatever we do and strive hard to achieve this. It is that drive that has brought us this far and will take us further. But I wonder if this almost instinctive need to compete, to be the best, has come at the expense of graciousness, compassion and kindness. It seems to me that the more achievements and accolades we collect as a country, the harder we drive ourselves. It is a relentless drive for excellence that, in my view, has some Singaporeans climbing up the scale of increasing ungraciousness. How else can we even begin to understand ungracious behaviour that has become everyday experiences? There are people who now drive against the flow of traffic on Singapore roads, block your way out of a lift or MRT train and complain about everything – from the noise that kids make playing football to harmless neighbourhood chickens that remind us of our kampongs. And we must surely be one of the few countries in the world where a car indicator signal to change lanes almost always results in other drivers who speed up to prevent you from making that switch. We are not short on daily anecdotes of ungracious behaviour. We just seem to be short on patience, courtesy and kindness. Ten years ago, in May 2007, Prime Minister Lee Hsien Loong gave a speech at the 10th anniversary of the Singapore Kindness Movement. He said, and I quote, that our efforts to build a vibrant, global city "will be in vain unless we complement them with social development, to build a Singapore with a heart. As we grow and globalise, the values of care, compassion and neighbourliness will become even more important." Mdm Speaker, Singaporeans have been trying to be a kinder people − at least officially − for the past 20 years.[+44 sentences] I am not quite sure that we are succeeding. We have made tremendous achievements as a country along the political and economic fronts in those two decades. Can we say the same for our social development as a gracious society? Performance and graciousness are not mutually exclusive. Graciousness is a building block of a strong community and is as important as productivity, resilience and all those other qualities that define us as Singaporeans. Research has shown, many times, that attention to the social development of a community results in deeper bonds, improved health and a culture of paying it forward. Key social values, such as graciousness, compassion and kindness will help address issues, such as the unity of our society, our attitudes toward the elderly and the development of our youth − all crucial factors in achieving the goals set out in Budget 2017. Let me explain how. Unity as a people. Some in this House may find it surprising that I have never felt like a minority in Singapore. Yes, it is true, and it is not because I am delusional as I am fully aware that the Indians are a minority in Singapore. But the reason I have never felt like a minority is because of a life lesson I learned in an HDB lift when I was about five years old. My mother had been walking me home from kindergarten to our 1-room rented flat in Margaret Drive. We lived on the seventh floor and had entered the lift to go up. The two middle-aged Chinese women in the lift immediately pinched their noses as soon as my mother and I entered the lift. I tugged at my mum's saree and wanted to know what was going on. She gave me a look that said "Keep quiet and behave", so I stayed silent. When we got out of the lift, I asked my mother why the women had pinched their noses. She said, "Didn't you smell it, Ganesh? Someone had spilt something in the lift and it was very smelly." I insisted that there had been no such smell in the lift, to which she replied that it was probably because I had been hiding under her saree. I was a lot smaller back then. That incident took place about 45 years ago and her graciousness in the face of deliberate prejudice taught me a life lesson I will never forget. It shaped my deep appreciation for diversity and understanding in Singapore. Consequently, my childhood was spent running in and out of my neighbours' flats along the common corridor. I grew up thinking we were all the same − it did not matter whether we were Malay, Indian, Chinese or Eurasian. And I suspect that a lot of us from that generation grew up in similar communities. So, when the Government introduced the Elected Presidency Bill late last year, I had thought that most Singaporeans would, like me, share similar views. The ethnicity of the President does not matter to me as long as he or she is qualified for the role and deserved to be there. However, I soon realised after attending a few community dialogue sessions that the Singapore of today is very different from the one that I grew up in. I was shocked that the community that I belonged to had some serious and deep prejudices about sub-communities within the group, perceived divisions carved along the different dialects spoken. Let me clarify that these views are held by a very, very small portion of our society, but, even then, it is worrying. The Government has made great progress in fostering unity in the community and continues to take the lead. But surely, the rest of the unity-building must be undertaken by members of the community. Parents must still be the main role models for children to learn about graciousness and understanding. Our young learn from us and it is vital now, more than ever, that we step up and behave in a manner befitting citizens of a proudly multi-racial society. We live in an age where the world is becoming more polarised, and communities and countries are becoming more inward-looking. Singapore's strength and resilience as a nation has always centred on our multi-racial unity. This foundation will be crucial as the nation moves into the next phase of rapid development. We will welcome more and more new Singaporeans and friends of Singapore who will join us in our transition to the economy of the future. We will need to give them time to adapt and understand our norms and the values we hold dear. We will need to be gracious, compassionate and kind, as was my mother all those years ago. Because that is what Singaporeans do. Mdm Speaker, another area that we need to pay special attention to is the way we treat our elderly workers. By 2030, one in every five Singaporeans will be aged 65 and above.[+1 sentence] We are an ageing population and we stand on the shoulders of those who came before us. While the Government has done a tremendous amount of work in drafting legislation and schemes that protect the rights of the elderly and promote re-employment, more can be done to ensure that the elderly remain as a core driving force of our economy. The challenge we see in industry is a worrying trend of employers who seem to favour the young because of lower wages.[+10 sentences] The logic behind this thinking is that, for a fraction of the cost, a young worker can actually take on a lot more than an older worker leading to a perception of increased productivity. That is not always the case. Let me illustrate this with a real example. A few years ago when a local telco launched its digital television service, as with any new service, there were teething problems. On two separate occasions, rather young and inexperienced technicians were sent to my home. On both occasions, after several hours, the technicians could not resolve the problem. On the third try, I asked the telco to send someone a little more senior, someone with experience, to help resolve the matter. They sent me a senior gentleman in his early 60s. He sorted out the issue in less than 15 minutes and even gave me his personal handphone number so that I could call him if I encountered any further issues. This senior technician had about six months to go before retirement and wanted to continue working. Unfortunately, it was cheaper for the company to use external vendors for his position.[+10 sentences] These attitudes are prevalent in other industries, too. In the local media industry, we see a diminishing representation of experienced anchors and veteran journalists. Newsrooms have become very young. On international cable networks, we watch Christiane Amanpour, Wolf Blitzer, Richard Quest and natural historian Sir David Attenborough − who is in his 90s now, many of us have followed them for decades. They have paid their dues and earned their credibility. When they give an opinion, it is backed by decades of experience and stories. In Singapore, we seem to be losing experienced talent, both in front and behind the camera, as well as in print newsrooms. The common comment I get from international media colleagues is that the newsrooms in Singapore are very "young". While there is need for a balance in the composition of the newsrooms, I do wonder, as do many older Singaporeans, if we might have a better representation of experienced news anchors and journalists. We may have an ageing population, but that does not mean that we should hide them away from public view. Instead, age, experience and credibility should be treasured, celebrated and embraced, somewhat like fine wine, and rewarded accordingly, particularly in this era of "fake news" and "alternative reality".[+18 sentences] Mdm Speaker, teaching the value of graciousness must begin in the home, and be reinforced in the schools. Earlier this year, Minister for Education (Schools) Mr Ng Chee Meng spoke to The Straits Times about his journey in his life from fighter pilot to Cabinet Minister. There was one particular phrase the Minister used which caught my attention − and the attention of many others, too. He used the colloquial term "chiong", and urged students to "dare to 'chiong'". Loosely translated, what this means is to go after opportunities and to make the most of opportunities. Of course, the Minister explained at length that "chionging", and I quote, "was about breaking boundaries, creating value and having that x-factor". Sadly though, we seem to have created a system of "chiong kings" − people who "chiong" at all costs − at the expense of important values like empathy, graciousness and compassion. For a lot of parents, "chionging" means winning at all costs. This is not a bad trait if children are also taught how to moderate the amount of "chionging" because what we want to hire in industry are people who are both independent workers and team players. The key to tempering this over-enthusiastic drive to be the best is for parents and schools to ensure an equal emphasis on graciousness and compassion. The signal must be sent that gracious and compassionate behaviour are as important as good grades and impressive CCAs, for it is these values that will ultimately guide them through their adulthood and careers. Mdm Speaker, lastly, let me touch on gratitude. There is much that Singaporeans have to be thankful for. However, these days, thanks to social media, as a society, all we seem to be doing is to complain and criticise. Social media has created a community of self-styled "experts" in crisis management − individuals who seem to be waiting in the wings to freely offer their opinions on everything from politics to PR, from sports to poultry. While some of the commentary has been constructive, much has been conjecture and assumptions that are not necessarily based on facts. These opinions and comments are shared and repeated often enough on social media that they become the "truth" in the eyes of many. This is not constructive. Take the recent example of the Singapore Armed Forces Terrex vehicles that were detained in Hong Kong. Social media was rife with callous and irresponsible conspiracy theories and conjecture. In my humble opinion, I felt that the Government's approach and handling of this delicate situation was spot on. I commend Minister for Foreign Affairs Vivian Balakrishnan and Minister for Defence Ng Eng Hen for their gracious and measured approach on this issue.[+1 sentence] Quiet diplomacy was the key here. And after a few weeks, we got our tanks back, safe and sound.[+8 sentences] Social media, of course, was rife with criticisms and even comparisons to governments of a bygone era, completely ignorant of the current state of geopolitics in the world. Much of the vitriol might have been predicated on an arrogance stemming from a history of accelerated development and success. Instead, what we needed from social media was balance, a sense of gratitude and support for the way in which the Government dealt with the issue. It has become almost unfashionable to credit the Government on a job well done. It would be a shame if this self-defeating sentiment continues. Mdm Speaker, my hope is that armchair critics and self-styled experts can learn to be constructive, not personal and abusive. Remember that the person you are criticising and abusing is someone's father, mother, son, daughter, brother or sister. Put yourself in their shoes − how would you or your family feel if it were you who was being abused online, or your photo shared without reservation? In this fragmented, polarised world where "alternative facts" and "fake news" are celebrated and validated, it is all the more important that we work together to foster a more caring and inclusive society by exercising empathy and grace.[+2 sentences] Singaporeans have much to be thankful for and even more to look forward to the in future if we can embrace these virtues. Thank you, Mdm Speaker, I support the measures outlined in the Government's Budget.
Mdm Speaker14 words
[+3 sentences]Thank you, Mr Rajaram. That was, indeed, a very insightful speech. Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)1176 words
[+1 sentence]Mdm Speaker, when the Finance Minister delivered the Budget Statement last week, the announcement which grabbed the most attention was the increase in the price of water by 30%. Besides the quantum of the increase, what shook people were the suddenness of the announcement and the very short lead time from the announcement in February to its implementation in July.[+4 sentences] Yesterday, the Minister for the Environment and Water Resources gave various reasons for the water hike. But these reasons are longstanding. The justifications, such as increased cost of production, the need to build more desalination plants and so on, did not come up suddenly. For the last 17 years that the water price was unchanged, did it not cross the Government's mind before this year that it would want to raise the price of water? By contrast, there is a two-year lead time for the impending carbon tax, which the Government is announcing ahead of its implementation in 2019.[+12 sentences] This lead time is welcome, as it will enable businesses and consumers to prepare, such as by strategising and investing in energy-efficient measures. Coming back to water, why was it not possible to prepare Singaporeans for the increase to take effect in July this year, with an announcement similarly two years ahead of time − in July 2015? Perhaps, July 2015 was not a good time to make such as announcement. Madam, the other statement in the Budget speech which caused insecurity and unease was at paragraph E.18 − that as we invest more in healthcare and infrastructure, the Government would have to raise revenues through new taxes or raise tax rates. Few people would quarrel with the need to invest more in healthcare and infrastructure. Our healthcare system is still facing capacity shortages, as seen from the 20-hour waiting times for beds at certain public hospitals. I understand that the waiting time at some hospitals providing Long-Term Acute Care are indefinite. As for infrastructure, Singaporeans will benefit from a more comprehensive rail network, which will hopefully ease traffic congestion and provide more efficient connectivity. One legitimate question to ask, however, is whether there is an effective mechanism to assess whether expenditure that has been incurred has been effective in achieving desired outcomes. Take, for example, the Productivity and Innovation Credit Scheme (PIC) introduced in 2010. I believe the Government's intention was to design an inclusive scheme, with less red tape, which would be easy for businesses to access. I am aware that businesses are supportive of the PIC scheme, but for various reasons, not necessarily related to productivity. For example, in 2014, a post-Budget survey conducted by KPMG, 58% of the 80 senior executives surveyed admitted using the PIC to defray operating expenses, instead of using it to raise productivity.[+14 sentences] Madam, I am not faulting the Government for its system design at the outset, as it may not be possible to foresee initially all the ways in which a scheme may be gamed or exploited. But now that the scheme has run for some years, how effective has the PIC scheme been in achieving its aim of boosting productivity? The PIC is a huge scheme, with the Government putting in billions of public funds. Do we know whether the results were worth the huge cost? As it turned out, millions of dollars were also sucked out of the system through fraudulent or dubious PIC claims. What lessons have we learnt from this? We now read that the SkillsFuture Scheme launched just last year, has also been subject to a potential fraud of $2.2 million, already paid out. While I understand that designing a scheme is not a simple process, what lessons have we learnt in order to minimise such wastages of public funds? This year, the Committee for the Future Economy (CFE) has come up with seven broad strategies to tackle the challenges ahead. Minister Iswaran took us on a tour on some of the key thrusts on Monday. We have also had such committees to review our economic strategies in the past. Have we had any review of what had worked in the past and what had not? For instance, in 2010, we had the Economic Strategies Committee (ESC). The ESC had made recommendations to improve productivity which the Government accepted and implemented. The aim was to grow productivity by 2% to 3% per year over a decade, which should bring us to a 30% productivity increase by 2019.[+13 sentences] However, after seven years, productivity improvements are way off target and weak in domestically oriented sectors like retail and food & beverage. What lessons have we drawn from here? And can these lessons be applied to the CFE's strategies? Madam, after the Budget Statement, several economic round-table discussions were held. Various economists expressed concern about fiscal sustainability. They called for greater accountability on the outcomes of public spending, which they thought was necessary before the need for additional revenues and new and higher taxes should be called for. At the roundtable organised by the Economic Society of Singapore, SIM University economist, Dr Walter Theseira, made the following observation, "Every few years, we have a big transformation package. We spend a few hundred million dollars here, a billion dollars there on different kinds of programmes, but we never really found out years later whether those programmes were any good or not." Since the Government looks to the people to raise funds for such expenditures, public accounting of the outcomes of spending is warranted. Madam, another issue that has been raised from time to time is whether the Government's revenue from land sales should be factored into the Budget as a source of revenue. I raised this matter during the Budget debate 10 years ago and I am glad that other Members also see the pertinence of raising this question in this year's Budget debate. Economists have recently also revived this question in their current discussions on Singapore's fiscal sustainability. At the time I made my speech 10 years ago, the revenue from land sales was in the region of $4 billion to $5 billion. Today, we see the revised land sales figure for this Financial Year to be $11.8 billion and the projection for the coming Financial Year to be $8.2 billion.[+4 sentences] Tapping on land sales to fund annual Budgets is internationally accepted and practised by other governments. As our expenditures are expected to rise in the coming years, is it not reasonable to seriously think about utilising land sales revenue to fund the Budget? This will reduce the need to tax the people further. Madam, as I mentioned at the start of my speech, few will quarrel with the need to spend more on areas, such as healthcare and public transport infrastructure. The legitimate questions being asked are whether we have done adequate reviews of past and current initiatives to weed out wasteful and ineffective expenditures. The other issue is whether we have completely recognised our sources of revenue. Doing so will help to ensure that we do not place unnecessary tax burdens on the people.
Mr Christopher de Souza (Holland-Bukit Timah)2088 words
[+4 sentences]Mdm Speaker, thank you for allowing me to join in the debate. Today, I would like to touch on four topics. First, the need to maintain a strong defence budget in light of the growing tide of nationalism in countries around the world. Second, the need to support workers to transition from one type of career to an altogether different type of job scope on account of changing growth sectors in the economy. Next, the need to continue progressing on the path of social mobility and providing Singaporeans with opportunities and, finally, to accord strong support for the increased grants on resale HDB flats as they will provide young couples with the real possibility of owning a more affordable first property more quickly.[+9 sentences] First, defence. It is heartening that, despite the challenging economic outlook, we are maintaining a strong defence budget. Just a few weeks ago, Singapore was remembering the 75th Anniversary of the fall of Singapore into the hands of the Japanese. The pain that the Japanese Occupation brought to many is still fresh in the memories of our pioneer Singaporeans. Since the birth of Singapore as a sovereign nation, spending on defence has always been one of our top priorities. Defence planning continues to be important as the very existence of Singapore's sovereignty as a nation depends on it. Thus far, Singapore has enjoyed exceptional defence relations with many countries. For instance, Singapore's forces have been able to train overseas in countries, such as Brunei, France, United States, India, South Africa, Indonesia, Canada, Australia, Germany and in other skies and fields. This allows Singapore's forces to test their mettle and manoeuvres in a wider area − something that is difficult with Singapore's space constraints. A key highlight last year was the signing of an enhanced deal with Australia for a piece of land to train 14,000 personnel for 18 weeks per year.[+21 sentences] Not only does this stand as testament to Singapore and Australia's close defence ties, but it also allows Singapore to have yet another terrain to train in. We must regard the defence of Singapore as a priority. This means allocating a strong and healthy fiscal budget for defence. The recent growing tide of nationalism around the world provides a clear signal that Singapore and the Government must continue investing in the protection of our sovereignty. Therefore, in Parliament, we should continue to press for and secure a strong defence budget. In Europe, there has been a rise in nationalism and anti-globalism. In France, Ms Marine Le Pen's nationalistic party is gaining popularity. In Germany, the Alternative for Germany party has increased in popularity in recent times and is reported to have attracted voters who are "anti-establishment, anti-liberalisation, anti-European, anti-everything that has come to be regarded as the norm". This is not an isolated movement, but one that has pockets of trends around the globe. Growing tides of nationalism across the globe must prompt Singapore to muscle up its defence capabilities to ensure our sovereignty. In Singapore, there have been plans to enhance Lim Chu Kang for military training purposes. The plans for the new urban training facility include featuring high-rise buildings, complex road networks, an MRT station and a bus interchange. Simulation technology is also increasingly used in training. With such political climates around the world, such initiatives are timely and necessary. It is important that we maintain a strong defence budget, and I am heartened that we are doing so. We should maintain this even if we enter lean economic times. Madam, my second topic is on employment. It is necessary to support workers to transition from one type of career to an altogether different type of job scope on account of changing growth sectors in the economy. The employment market has changed significantly. Lucrative industries in the past no longer pay as much today. For instance, the oil, gas and marine industries in Singapore went through − and continue to go through − a very competitively tough environment. In fact, Keppel, one of the largest oil-rig builders in the world, cut its yard capacity − two overseas and three in Singapore. It had also cut 10,600 jobs from its Offshore and Marine division last year.[+7 sentences] When industries slow down, ripple effects are felt across the economy, including the finance and banking sector. I have met with residents in the constituency I serve, who have, unfortunately, lost good paying jobs in the marine industry. Freelance or temporary contract work becomes options for them. Unfortunately, as a result, they face a large pay reduction and no CPF employer's contribution. It is a tough position to be in. Therefore, the drive to assist these workers − from presently vulnerable industries, such as oil, gas and marine − to reskill and get employed in permanent jobs is key. This will allow the laid-off worker to chart his employment path in a more permanent second career instead of relying on temporary contract jobs to make ends meet. This allows the worker to plan longer term − in terms of the housing, educational and fiscal needs of his family. This is why the Adapt and Grow Initiative, which has been enhanced to include Attach and Train, is key in the present economic climate. Under this enhancement, participants have "opportunities for work attachments to improve prospects of employment." This is a win-win situation − employees pick up valuable on-the-job skills while employers see the potential employees' strengths in action.[+16 sentences] To reduce the hindrances to reskilling, the focus will be on providing short, modular, e-learning opportunities to upskill and retrain. This increases the flexibility so that learning and upskilling becomes easier and more a part of life. Eventual consequence is more potential job openings for reskilled and resilient workers who seek to move from vulnerable industries to enterprises where the sun is rising. I move to my third and penultimate point, Madam, that of social mobility. Ensuring social mobility of Singaporeans is a precious ideal and a worthy aim − it is a constant work in progress. It is important for Singaporeans, and critical for a cohesive society, that all Singaporeans are presented with a wide menu of opportunities to excel. When in the constituency, I am so happy when I meet residents who decide to purchase a 2- or 3-room HDB flat instead of continuing to rent their flats at subsidised rentals from HDB. That is a classic example of social mobility − from non-ownership to home ownership. It is a considerably larger financial commitment but it is always good to see that with a steady income, CPF contributions and a HDB loan, residents decide to own their first major asset − a home. This is the Singapore way and we must preserve it, nurture it. Education plays an important role in catalysing and fuelling social mobility. We need to continue to provide Singaporeans with opportunities, especially at an early stage of their lives. It is good that we start early with pre-school, providing affordable, accessible pre-school for children. This year, we are investing into increasing the infrastructure of our pre-school sector at an even earlier stage − infant care. This accommodates an increased demand for centre-based infant care. This helps ensure that Singaporeans, even at an early stage, are given a wholesome menu of opportunities allowing the potential for social mobility to commence early. The emphasis on opportunities should continue and be prioritised throughout a student's schooling life. Therefore, it is good that the Budget this year provides for an increase in Post-Secondary Education Institution bursaries.[+14 sentences] To provide a wide a range of learning opportunities throughout a child's schooling life, MOE could help ensure the fair distribution of very good teachers across all schools. Madam, the fourth and last topic I would like to talk about is the new grants for resale HDB flat purchases. This is an excellent move and one that is important to young couples who are planning to get married or wanting to start a family. For young couples commencing working life, a private property purchase can be very financially daunting. This new HDB resale grant provides young couples with the real possibility of owning a more affordable first property more quickly and quite possibly near their parents. This would mean that when the parents happily become grandparents, the precious and necessary support will be close by. So, there are many merits to these new resale grants. Before I close, Madam, I would just like to share that I was in the House and had the opportunity to listen to the hon Ms Sylvia Lim's speech just moments ago. She seems to be supporting the Workers' Party position that it is good to not have carbon tax introduced so quickly, yet it is not good to introduce the tax on water quickly. I respect that she is entitled to her views but I am afraid, Madam, I cannot agree with those views. Carbon tax and water are quite different. For carbon tax, the history was that once we ratify the Paris Agreement, we have to reaffirm commitment to address climate change and reduce emissions. It is actually quite a long runway in order to implement what we need to implement to honour the ratification. The issue of carbon tax affects all countries, not just Singapore, or not just Singapore and our immediate neighbours. In particular, small island states like ours, as part of the Agreement, Singapore has pledged to cut emission intensity by 36% below 2005 levels by 2030 and stabilise emissions with the aim of peaking around 2030. So, it is a long runway, it is actually a 13-year runway. And carbon tax, there is an aim to implement it from 2019 and target industries and not consumers, in order to price -signal to incentivise industries to reduce emissions, and it will also help us to achieve our commitment to reduce emissions under the Paris Agreement, do so efficiently and at as low a cost to the economy as possible.[+6 sentences] So, a long runway and we can be cautious in how we move ahead, and we have the freedom of time to decide these things. Compare that with the situation of water. I think water, the Workers' Party's position is why is it so fast, why not take a little bit more time as you have done for carbon tax? Water is completely in a different pool, if I may say. There has been an increase in price as demand for water that cost more to produce increases. We need to value water, and technology has already been deployed for water and has already been invested in. Two-thirds of Singapore's land is for water catchment, with 17 reservoirs, and the desalination plants have to be increased.[+3 sentences] And why the need for a rush? I think we have heard from both Minister Chan Chun Sing and also Minister Masagos that the Linggiu Dam is twice the size of Singapore, and we need many years to build the water level up again. We also need to take into account climate change. So, to compare carbon tax on the one hand and having a long runway and say, "Why are we not in a rush there?", and to juxtapose, contrast or alienate water as a completely comparable commodity is not something that I can agree with. It would cost less than a dollar per day for 75% of businesses. For 1- to 2-room flats, we will not see an increase through U-Save. So, while I listen to Ms Sylvia Lim's speech − I respect she can have a different view − I am not sure that the comparison between carbon tax and water is, indeed, a fair comparison.[+1 sentence] Madam, in closing, I conclude by observing that we live in a rapidly-evolving world. As a country, we need to have the foresight to prepare for the future. But, we must also guard the fundamentals and should, therefore, maintain a strong defence budget so as to protect our country's sovereignty and overcome those who seek to do us harm. Let us work together to protect and partner fellow Singaporeans who move from vulnerable industries to sun-rise enterprises. Let us ensure that a wide and wholesome menu of opportunities pervades our schools for the benefit of all students who turn up to learn every day. And let us assist younger Singaporeans to sink roots here, start their homes here and be part of a new band of Singapore pioneers.[+1 sentence] Budget 2017 advances these ideals and, therefore, merits our support.
Ms Sylvia Lim96 words
[+5 sentences]Thank you, Madam. A clarification for the Member. I would like to thank him, first of all, for his explanation of our long runway for the carbon tax. But I think if he had listened to my speech carefully, the point I was making was that the reasons used by the Government to justify the water price increase have been there for quite some time. Unless he is trying to suggest that these factors only dawned on the Government recently and that is why they had no time to give Singaporeans more warning of the increase.
Mr Christopher de Souza282 words
[+9 sentences]Thank you, Madam, for the right of reply. That is not my understanding of what Ms Sylvia Lim said. I think Ms Sylvia Lim said, "Look, on the one hand, you have a two-year runway or an X number of year runway for carbon tax. Why do we not just take a little bit more time for water?" I have explained that they are completely different subjects. Carbon tax, we have got to look at how our commitment is corralled within an overarching Paris Agreement, and how it impacts all the members who have ratified that. Therefore, a longer runway is completely justifiable. Versus a situation where we have had to deal with a situation where water is precious, it is a commodity, it is scarce and we have to act promptly. We are doing all we can in terms of the 17 reservoirs. The Linggiu Dam has been reported in Parliament to be twice the size of Singapore and has been depleted. So, rather than procrastinating about this, a swift move will also increase the value of water as being a precious commodity in the minds of Singaporeans. In addition to that, where price increases are concerned, I think it is a dollar increase per day for 75% of the businesses and, with the U-Save rebate, the 1- and 2-room flats will not suffer a detriment. Even with the swift movement, there have been measures to ameliorate the possible rise in price.[+3 sentences] Again, I go back to Ms Sylvia Lim's point. Ms Sylvia Lim's point was to compare carbon tax versus water. I think people in this House and people reviewing this debate will say that it is chalk and cheese.
Mr Gan Thiam Poh (Ang Mo Kio)1579 words
[+1 sentence]Mdm Speaker, for this Budget, MOF has maintained our tradition of prudent public spending and I am glad to support it. Although FY2017's primary deficit will be double last year's, we will still manage a surplus of $1.9 billion even after factoring in Special Transfers, thanks to the $14 billion contribution from our Net Investment Returns.[+2 sentences] This is good news. This Budget has many good and targeted initiatives to support businesses, in response to the report by the Committee on the Future Economy (CFE). The Government's commitment to drive innovation is clear as we can see in the $500 million top-up to the National Research Fund and an additional $1 billion for the National Productivity Fund.[+13 sentences] However, as we had just experienced our weakest economic growth rate since 2009 and the growth outlook is weak, many are waiting for the Government to share more details about how the economy will achieve the target growth of 2% to 3%. Where are the growth sectors in the immediate future? Notwithstanding, I must thank Minister Iswaran for his assurance to the House the day before. Mdm Speaker, in Mandarin. (In Mandarin): Some residents told me that they could not understand the relevance of the CFE Report. Not everyone can be in the fields of engineering, information technology (IT) or artificial intelligence (AI). In fact, quite a number of residents feel stressed by the advance of disruptive technologies. They are totally at a loss about how to stay in the competition, never mind about staying ahead. They cannot keep up and cannot fill in the gaps in knowledge and skills. They are fearful, feel down and left out. The Government can step up their efforts to share relatable success stories to motivate them, show them how others have adapted so that they do not have to worry or be fearful, share information about how people have managed transitions and, very importantly, how changes can benefit them. Singaporeans must recognise that these changes are not threats but opportunities. The fundamentals do not change – for example, robots assist, not replace humans. When residents heard about the initiatives, such as the acceleration of $700 million worth of infrastructure projects, they were heartened.[+19 sentences] These are concrete developments they can relate to. Hence, the Government should share more news about how it will pump up the economy and attract more investments. For example, the Government can highlight updates about how many more direct and indirect jobs will be generated by Changi Airport Terminal 4 and the other projects in progress. (In English): We have to make a greater effort to focus on the tangible benefits for workers. Success stories about jobseekers benefiting from matches at our National Jobs Bank, our Career Support Programme, Professional Conversions Programme and the Work Trial Programme will also boost the morale of the unemployed and encourage them to enrol and persist in their training. Periodic updates about the new Attach and Train initiative should be shared in the media to raise awareness of its benefits. Mdm Speaker, US President Donald Trump wanted to make America great again; Americans first. We must strive for "a great Singapore: Singaporean is the most preferred choice" for all employers, not only locally but internationally and wherever Singaporeans are. The Singapore Government must continue to invest in all Singaporeans and make every Singaporean the best and most preferred person to employ and work with wherever Singaporeans are in the world. The world is our market and oyster. The Internet has removed many geographical barriers to enable a global market. Hence, more local companies should think about tapping the bigger global market overseas through e-commerce. The number of people making purchases online is increasing exponentially and they do not care where the e-commerce websites are based. Is it possible to compete with Amazon, or Tmall or Taobao? Yes, it is. Even though these sites seem to sell almost everything, there are many niche sites out there which are able to build their brands online and secure loyal customer bases. However, even as we encourage our companies to venture overseas, the fact is that they are based here in Singapore and our high business cost structure is a problem. Some sectors, like construction, are heavily reliant on foreign workers. There are limits to how much innovation in construction can help assist to reduce costs. Would the Ministry reconsider deferring or staggering the foreign workers levy increase for all sectors and providing rental rebates to help SMEs offset higher utilities bills, compliance costs and the new carbon tax?[+8 sentences] As HDB is a major developer, it can consider taking the lead in construction innovation as it is in a position to enjoy economies of scale. Would the Government share what innovative practices it will be engaging in and what would be the expected savings in terms of costs, manpower and time? I recall meeting a foreign contractor recently and checking with him how the contractor competed in the market. I was particularly struck by the fact that the company was not reliant on the relatively cheaper unskilled labour for their competitive advantage. He shared a good example. A good, experienced, skilled and productive plasterer could produce four times more than an unskilled labourer even though he may be one and a half times more expensive than the unskilled labourer. In addition, the company could save on unnecessary hidden and unforeseen costs, such as wastage and material costs ,if the job needs to be reworked or improved. He shared that, in conclusion, cheap is not necessary good, and increased productivity is relatively important in ensuring the competitive advantage. Another topic which features prominently for this Budget is the 30% hike in the water price.[+5 sentences] I do share the concern of Singaporeans over the price hike and worry about the impact on the cost of living and business costs. Even until today, people do still laugh at us for drinking "long kang" water. Putting aside such remarks, businesses that I spoke to shared that the consequences of not having reliable and sustainable water solutions are far-reaching. If not solved, it might be worse, and we might lose businesses and investors. Imagine, if we do not have such alternatives, what would be the price Singaporeans would have to pay in the future? A few months ago, there was an interesting article by Channel NewsAsia. It shared that Singapore consumers spent about $134 million on still bottled water in 2015, up 25% from five years ago.[+1 sentence] A 60 ml bottle of drinking water usually retails for about 50 cents to about $1 in the supermarket. For the same amount of tap water, PUB reported it would cost only 0.1 cents, not even 1 cent. This makes it 500 to 1,000 times cheaper than the bottled water.[+4 sentences] It made me puzzled and I could not reconcile it. I certainly support our move to become even more self-reliant in our water supply through the use of the latest technology. While the cost increase cannot be avoided due to the huge investments required, more efforts should be made to continue to increase the sources of water supply and the use of technology that can help reduce the cost of water production. We should continually remind Singaporeans of the importance of conserving water. On this note, may I know whether the Ministry will consider opening up the water supply sector to more private players to set up more plants to increase competition?[+14 sentences] We should have more dialogues and discussions about how to motivate Singaporeans to save water. In short, I believe in incentivising rather than having penalties in promoting water conservation. May I recommend that we look more closely at how other countries conserve water? For example, in Hong Kong, every household is served by two water pipes − one for potable water and one for non-potable water. In some areas in Japan, it is common for the toilets to be designed in such a way that used water from wash basins are fed to the flush tanks. I am also heartened to note that the Singapore Government has increased the grants for Singaporeans to buy resale flats so that they can live near their parents or working area. However, we need to be mindful and remain cautious, and monitor whether such additional grants may end up pushing up the prices of resale flats. Also, with these grants, resale flats are becoming more attractive. Will the Ministry share if the prices between BTO and resale flats are narrowing? I am heartened by the announcement that more flats may be built to shorten the waiting time for BTO flat applicants. My residents have given me positive feedback on this. Will HDB consider increasing the allocation for new BTO flat upgraders or second-timers slightly, cautiously, moderately? These owners will, in turn, release more resale flats into the market for young couples looking for this option. Finally, I would like to conclude with my thanks and appreciation for the extension of the Additional Special Employment Credit. This is something I have been hoping for as I think it is effective in incentivising companies to retain our older workers and help them stay employed. We should also remind companies that the Government is continuing to support them through ongoing schemes, such as the Wage Credit Scheme and the Special Employment Credit scheme.[+2 sentences] These are not small amounts, totalling $900 million. Mdm Speaker, with that, I support the Budget.
Mdm Speaker2 words
[+1 sentence]Minister Heng.
The Minister for Finance (Mr Heng Swee Keat)1995 words
[+9 sentences]Mdm Speaker, I thank Members for their thoughtful views in the Budget Debate. I also appreciate the diversity of opinions from economists and journalists; and heartfelt feedback from Singaporeans and business owners. The more specific issues that Members have raised will be taken up by my Ministerial colleagues during the Committee of Supply (COS). As Mr Liang Eng Hwa observed, the Budget is not an occasion where there will always be many "tasty goodies". Rather, it is an opportunity for the Government to set out our plans and priorities to work with our people and businesses to bring Singapore forward. Last year, the economy grew by 2%. It is within the range of 2% to 3% as set out in the CFE report, and is comparable to the performance of many other high income economies. In the US, Switzerland and Germany for example, their economies have been growing at about 1% to 2% yearly on average in the last five years. We also remain an attractive investment destination globally. In 2016, we climbed to fifth position for FDI inflows in a difficult international environment.[+28 sentences] I think it is a good vote of confidence for Singapore. Our demographics are changing. Our labour force growth is slowing down because of smaller cohorts entering the workforce and a slowdown in foreign worker inflow. To counter this, future growth has to come from sustained productivity growth. We need to help every worker maximise his potential, and support our businesses in innovation. This will put us in good company among high-income, productive economies. Winds of change are also sweeping across the world. Many of the favourable conditions that buoyed our growth over the past few decades are now under threat. Protectionism is on the rise. Global trade and production patterns are shifting. New technology arrives in waves, sometimes with disruptive consequences. Unlike the 2009 Global Financial Crisis or the 1985 recession, we are not in a crisis. Nevertheless, the changes we are facing have far-reaching implications. The best way to address them is to meet them head-on. I understand that this is not easy. Many Members, including Mr Lim Biow Chuan, Mr Murali Pillai and Mr Saktiandi Supaat, have spoken about the pressures on our businesses, especially SMEs, in a time of restructuring. Notwithstanding the 2% growth in 2016, we recognise that the economy and labour market exhibited uneven performances across different sectors. Some sectors did well and could not fill vacancies. Others faced cyclical weaknesses. Yet others had to relook their business models due to more fundamental changes in their sector. We recognise that some businesses are facing cost pressures. But we must also recognise that in a functioning economy, cost pressures serve as price signals, so that resources can be channelled into the most productive use. We must be careful not to hamper this process. An across-the-board stimulus would not be effective as it may further push up cost pressures. So, we monitor the situation closely and calibrate the fiscal stance accordingly. The Budget this year strikes a careful balance between reinforcing restructuring efforts and providing support to businesses and households. Against the current macroeconomic backdrop, the slightly expansionary fiscal stance is appropriate. There are many Government schemes, as Minister Iswaran pointed out, that benefit businesses. For example, the near-term support measures mentioned in this year's Budget total up to $1.4 billion. These include the existing Wage Credit Scheme and Special Employment Credit, along with enhancements to the Corporate Income Tax Rebate and the Additional Special Employment Credit; $1.4 billion is not a trivial amount.[+5 sentences] These are on top of the substantial stimulus measures introduced in the last three to four years, of which their cumulative effects are still working through the economy. So, the Government is providing support, and Minister Iswaran has given a very comprehensive explanation of the range of support from the Government for businesses, especially SMEs. Indeed, different firms and different sectors face varying challenges and opportunities and will require different solutions. We are thus giving more targeted and customised help. For firms that are ready to internationalise, we are providing more help to scale up and go abroad. The most recent examples are the enhanced Internationalisation Finance Scheme and the new International Partnership Fund.[+3 sentences] For firms that are ready to upgrade their capabilities, they can tap on the Capability Development Grant in a wide range of areas, from raising service standards to adopting technology and staff training. There are also firms in sectors, such as retail, which are facing structural challenges. The Industry Transformation Maps (ITMs)are the platform for individual companies to work together with agencies, unions, trade associations and others to restructure, to stay competitive in the new environment. For those facing cyclical weakness, such as the marine and process sectors, we are deferring foreign worker levy increases.[+10 sentences] We are also accelerating public sector infrastructure projects to support the construction sector. This is what in Chinese is called "对症下药", or giving the right medicine to cure the ailment. A painkiller may work for a while to dull the pain, but it masks the underlying problem and delays needed action, or, in Chinese, "治标不治本". We are providing near-term relief, but we do not want to provide only temporary relief. We want to help our businesses build deep capabilities that will enable them to adapt to a fast-changing world and seize new opportunities where they arise. And this is the key to continued success. Mdm Speaker, may I say a few words in Mandarin. (In Mandarin): I thank various Members for their suggestions on how to help businesses overcome challenges. We understand that many companies have been affected by the slowing economy and are hoping for the Government to come up with some near-term measures to give them a helping hand. In reality, different companies and industries face varying challenges and opportunities. Therefore, the measures introduced by the Government must be targeted. We have provided some near-term measures to help them, but these are like painkillers; they provide temporary relief but do not address the root of the problem, so it is best not to take them too much. The key is to help companies upskill and enhance their capabilities, to get to the root of the problem and build themselves up.[+15 sentences] We urge leaders of trade associations and chambers to continue to work closely with the Government and to take the lead in bringing about transformation and innovation amongst their member companies. Only then will companies be able to maintain their competitive edge, seize new business opportunities and succeed in the ever-changing environment. (In English): Let me now touch on building our future economy. When the Prime Minister announced that we will form the CFE, he said, and I quote, "With an ageing population and uncertain global conditions, growth will be harder to come by. Yet, our economy must grow to create opportunities for Singaporeans and to improve our lives." And, indeed, this is what guides us in the CFE work − to create opportunities for Singaporeans and to improve our lives. We live in a world undergoing major and rapid structural changes. Shifts in global trade and production patterns are opening up new markets, even as parts of the world appear to be moving towards greater protectionism. Advances in technology, in particular, digital technology, give us new ways to improve productivity, efficiency and service delivery. These trends may throw up potential disruptions, but they also bring many new opportunities. To seize these opportunities, our businesses and our people need to build deep capabilities. Only with deep capabilities can we thrive in an unpredictable and fast-changing world. Our businesses need to digitalise, innovate and internationalise, to create value and bring it to the world. Our people need to continuously learn and re-learn skills, to be entrepreneurial and flexible in adapting to varying circumstances. All these are brought together in the CFE's recommendations. Of the CFE's seven key strategies, the first five are about building the very capabilities that I have described − to internationalise, to develop and use deep skills, to innovate and scale up, to digitalise, and to make the most of our city. These five are brought together by two other strategies: through the ITMs and through effective partnerships.[+15 sentences] These seven strategies are mutually-reinforcing. It is not about different people pulling in different directions. Instead, we need a sense of partnership and collaboration, to work together for economic development and in all areas. Taken together, the whole is greater than the sum of its parts. The way in which the CFE strategies can be brought to life is through two critical elements. First, we need a spirit of enterprise, a willingness to try new things, to seek creative solutions to problems, to venture where few others have gone; an attitude of continually striving, of persevering, of drawing out the best ideas from every individual. Second, effective partnerships with one another − between the Government, the community, businesses and individuals. Together, we will refine our ideas and put them into action. By working together and making the most of everyone's abilities, we can achieve more than we will on our own. To those who are looking for a new blueprint and a plan to follow, let me say that what we need is not a change in strategy, but a strategy for change. We must recognise that we are in a different world. The world is changing, but we do not know for certain the pace and direction of change. Many Members, such as Ms Jessica Tan and Mr Muhamad Faisal, have also noted this uncertainty. What we need is not a cast-in-stone roadmap, but a spirit to constantly forge forward and to find a new way forward. This strategy for change requires a significant shift in mindset. The CFE strategies are part of a broader movement to develop a pervasive culture of innovation, nimbleness and adaptability. This will not take place overnight and Budget 2017 is but a step in that direction and builds on what the CFE has put forward.[+14 sentences] This is a Budget to position us for the future. This is about doing, learning and adapting. We cannot afford to wait and see. Those who wait will only miss out. As Ms Chia Yong Yong has shared, it is time for us to take our own future into our hands. Structurally, we have always faced constraints as a small nation-state. But our strength, our enduring strength, has been to break through all of these constraints. We have proven to the world that we can do this time and time again. We are on a journey of transformation together, where success is not an endpoint but an ongoing process of change, as Assoc Prof Randolph Tan put it. I am confident that we will succeed, as one people, on this journey of change. I am confident because I see many positive examples of people, of firms, that have embraced the spirit of enterprise and partnership. So, let me first talk about our people. Our people must be willing to go beyond the familiar and explore new prospects. For example, as Mr Ong Teng Koon, Mr Melvin Yong and Mr Kok Heng Leun noted, with rapid changes in technology and business models, job roles will be redefined more often, and new skills will frequently be required. Given these trends, Members like Mr Ang Wei Neng, Mr Leon Perera and Mr Patrick Tay have expressed concerns about how Singaporeans can adapt. To thrive in such an environment, we need to continuously upgrade our skills and keep them relevant. In some cases, we will have to go beyond the job scopes that we are familiar with and try something different. We can use the knowledge, strengths and personal interests that we have developed to contribute in a different way.[+2 sentences] Here are some examples. With your permission, Mdm Speaker, may I display some slides and photos on the screens?
Mdm Speaker10 words
[+1 sentence]Yes, please.
Mr Heng Swee Keat6128 words
[+5 sentences]This is Chandra. Chandra used to be a network engineer in a bank. In 2008, he was retrenched but he persevered and found a network engineer job in a telco. Similar skills, in different sectors. It was in his new job that Chandra got exposed to a very interesting and growing new field of work with good opportunities: cybersecurity. So, he started to look seriously into this. He took up on-the-job training through the Cyber Security Associates and Technologists Programme under the TechSkills Accelerator.[+3 sentences] Now, he has taken up a new job in cybersecurity. This is Yvonne. Yvonne has done different things in her career, including working in the financial sector and helping with her family business. But throughout, she knew that her passion is working with children. So, she exited senior management positions at mid-career to enter a completely new area by joining the Professional Conversion Programme for Pre-school Teachers.[+12 sentences] Through this programme, she is currently taking the WSQ Professional Diploma in Early Childhood Care and Education and working as an assistant teacher in a childcare centre. Upon completion of the PCP this April, she will take on the role of a pre-school teacher. So, one way we can explore new opportunities is by going beyond our current job roles. Another is to go beyond our geographical borders and venture into different markets. I was interested to hear Amirul's story. Amirul was the first Singaporean Malay student to participate in the NUS Overseas College in Beijing. He did an internship there with Traintracks.io, a data analytics startup. Despite not knowing much Chinese, Amirul had such a positive experience in Beijing that when he returned to Singapore, he joined the local startup scene, working full time at F&B tech startup Oddle after graduation. He is currently the company's Digital Marketing Lead, introducing the company's solutions to the Southeast Asian and US markets. Indeed, I share Mr Gan Thiam Poh's objective of helping Singaporeans to be great in what they do. Chandra, Yvonne and Amirul exemplify the spirit of enterprise we need to flourish in today's economy. So, I urge all Singaporeans to be bold and proactive like them, to go beyond the immediate confines of what we are used to and find new prospects in different places. To do this, Singaporeans can tap on a wide range of support measures, from SkillsFuture Credit and subsidies for training courses, to Adapt and Grow initiatives that can help with job placements and attachments.[+2 sentences] The Global Innovation Alliance will also give our young people more overseas exposure, especially to exciting startups with good ideas. At the same time, in supporting our people to try new areas and learn new skills, we will also pay careful attention to those who may be more vulnerable: As Mr Zainal Sapari has noted, it is important to take care of the needs of lower-wage workers. The Workfare scheme provides them with income supplements and training support.[+14 sentences] This tops up their wages as they upgrade themselves with new skills. The Wage Credit Scheme has also supported businesses in sharing productivity gains with workers through wage increases. In addition, we share Mr Desmond Choo, Mr Ang Hin Kee and Mr Ong Teng Koon's concerns for freelance workers, and are looking into how we can work with our tripartite partners to support them better. The Minister for Manpower will say more on this at the COS. Having spoken about our people, let me now talk about our businesses. Like our people, our businesses must have the courage to adapt and try new ideas. Often, we can tap on the expertise we already have to create new value for others. I am encouraged by the progress that many of our local firms have made. Many of us use radio frequency identification (RFID) tags every day − when we check out library books or tap our EZ-Link cards. Tunity Technologies, in collaboration with A*STAR's SIMTech, applied this technology to something unexpected − food trays. Customers make a $1 deposit to borrow a tray and they get their deposit back when they return their tray to an automated system, which detects the returned tray using RFID technology. This encourages customers to return their trays after use and allows the cleaning staff at a food centre to concentrate on other more productive tasks. An innovative solution to an old problem! Matex International Ltd is a specialty chemicals company that has adapted to enter a new area of business. With the help of Intellectual Property Intermediary, a SPRING affiliate, Matex licensed a specific advanced membrane technology from NUS to help it develop capabilities to treat its own waste.[+10 sentences] Subsequently, Matex combined this technology with its own in-house knowledge to create customised ways to remove particles from waste water more efficiently. This allowed Matex to move beyond being a specialty chemical manufacturer to also offer industrial waste water treatment solutions. It could have stopped with solving its own problem, but Matex took its solution, asked themselves who else would find it useful and opened up new business opportunities. These are good examples of creating value. In addition, our businesses stand to gain when they bring these ideas into new markets. To do this, we should develop stronger in-market presence to gain insights about consumers' needs and preferences in foreign markets, so that we can tailor our products and services accordingly. As Mr Lee Yi Shyan put it, we need to develop a "deep awareness of the world". We should also be willing to explore new destinations, especially those places where few others have gone. We can contribute most in these places. This is about improving our businesses, as much as it is about contributing to the world. Ninja Van has brought innovative technologies to the logistics industry.[+1 sentence] For example, businesses on the Ninja Cloud platform can make use of spare capacity on other fleets in real time. In addition, Ninja Van has managed to expand its presence into regional markets like Malaysia, Indonesia, Vietnam, Philippines and Thailand. It did this with some help from IE Singapore, which helped Ninja Van to understand and navigate in-market conditions and build up overseas market operations.[+4 sentences] Our businesses need to develop a strong spirit of enterprise by innovating to create new value and internationalising to bring this value to new markets. They can tap on a range of support measures for these efforts. For example, businesses that wish to innovate can tap on measures like A*STAR's Operation and Technology Road-mapping, Headstart and Tech Access initiatives. Even as our people and our businesses adopt a greater spirit of enterprise, we must all work together in close partnership, as Mr Darryl David and Dr Tan Wu Meng pointed out. We each have different strengths and, when we work together, we can achieve more. This is why one key CFE strategy is to use the ITMs to bring industry partners, trade associations, unions and public agencies in a movement for economic transformation.[+24 sentences] Many Members, including Ms Jessica Tan and Ms Foo Mee Har, have expressed support for the ITMs and I thank them for their support. As Mr Heng Chee How pointed out, these ITMs must be dynamic plans, which will be updated even as they are carried out. And as Mr Henry Kwek noted, the key is in getting things done − how the different partners can work together to drive industry development. After the Budget, one economist asked me, "Is the Government really the right party to drive the ITMs?" It was an indirect way of saying: does the Government really have the business experience to say what should be done to restructure each sector? My answer? He is right. The Government cannot, on its own, design plans for the tens of thousands of firms across different industries. This is just not possible, nor is it what we want to do. Miss Cheryl Chan has expressed similar sentiments. What the Government can do is to catalyse and bring stakeholders together. This is what we seek to do with the ITMs. The ITMs are a joint effort among all partners in an industry. What the Government will do is to catalyse action through ITMs. We can provide a platform for different partners to share ideas; we can help to facilitate change, for example, by reviewing regulations where appropriate. But, ultimately, the ITMs need to be driven by the industry with strong participation. The quality of the ITMs will depend on the quality of inputs from industries and partners and how well we work together for the larger good. I hope that entrepreneurs, businesses and trade associations will take the lead in developing and implementing the ITMs. We need everyone to contribute actively, to work together to get things done, in order for the ITMs to succeed. So, I am glad to hear Mr Thomas Chua's call for companies and TACs to play a more proactive role in industry development. Indeed, our TACs must play a leadership role to galvanise companies to seize opportunities and embark on the challenging but fulfilling journey of transformation. In this environment of rapid change, when individual companies may be uncertain about how to proceed or how best to tap on available Government support, this is a great service that TACs can perform for their members. Unless we have strong leadership among our partners in the ITMs, the ITMs cannot take off. I am also encouraged to learn that even before all 23 ITMs have been launched, we are already seeing good collaborative work among different industry partners. For example, to raise the standard of pharmaceutical handling in Singapore, Changi Airport Group has partnered the Civil Aviation Authority of Singapore and Workforce Singapore, to build a community of companies certified by the International Air Transport Association (IATA) in pharmaceutical handling.[+7 sentences] Companies involved include both ground handlers at Changi, as well as Singapore Airlines Cargo and four freight forwarders. These companies from across the air cargo supply chain will undergo training and have their processes and facilities accredited by IATA. This will help to attract global demand for these services, thus boosting the growth of the airfreight, logistics and pharmaceutical industries in Singapore ‒ a good example of cross-industry collaboration. Another example of partnership involves local firm, V-Key Pte Ltd. V-Key has developed a patented virtual secure element which makes mobile phone applications and transactions secure, and serves more than 30 million banking and e-commerce users across Southeast Asia, India and China. To develop more digital talent and nurture future digital leaders, V-Key has partnered our Institutes of Higher Learning and local banks, to enable selected students in infocomm to complete multiple structured internships with V-Key over the course of their studies. Students can gain valuable industry experience, and those who perform well are offered a permanent job at V-Key. V-Key ends up hiring about 50% of its interns.[+2 sentences] Such programmes benefit both the student and the employer. The TechSkills Accelerator (TeSA), which was launched last year to develop talents for the infocomm sector, brings together trade associations like the Singapore Infocomm Technology Federation (SiTF), NTUC representatives and Government agencies like the Infocomm Media Development Authority (IMDA). One of TeSA's initiatives is the Company-Led Training Programme which allows individuals to deepen their ICT skills through on-the-job training hosted by various companies. So far, the job placement rate has been high for this programme.[+41 sentences] We should encourage joint efforts like these. On our part, the Government will support the needs of our people and businesses, so that they can achieve their full potential. For example, we will create a regulatory environment that both supports innovation and manages risks. It is a balance. We need not regulate everything down to the last detail for fear that we will expose our society to risks. Instead, we should stretch our thinking and come up with ways to encourage enterprise growth, while still mitigating risks to an acceptable level. As I mentioned in the Budget Speech, agencies like MAS, LTA and HSA are already moving in this direction. The seven strategies of the CFE are mutually reinforcing. It is important that we pursue this with a spirit of enterprise and partnership. Only then can we come together to transform our economy and succeed in a more unpredictable and fast-changing world. Rather than following a blueprint, this is a journey of doing, learning and adapting. I am excited for what we will achieve together. Let me now turn to the environment. We have had a lively debate in this House on this Budget's measures for protecting the environment. Many who spoke expressed support even as others pointed out the impact on households and businesses. In particular, Mr Chong Kee Hiong, Mr Pritam Singh, Ms K Thanaletchimi, Mr Dennis Tan and Mr Png Eng Huat raised concerns about costs. There will be some costs, but also assistance measures. These should be debated, but at the end of the day, as Minister Chan Chun Sing said, the Government needs to be responsible in taking care of not only the short-term needs but also address future challenges. We must also change our mindsets and habits, as Er Dr Lee Bee Wah pointed out when she suggested the need to reduce consumption and to be more conscious about recycling. And indeed, everyone has a part to play − from parents teaching our children conservation, to volunteers picking up litter in our waterways and parks, and firms adopting green technology. Let me touch on water pricing. The Minister for the Environment and Water Resources addressed Members' questions yesterday. I shall reiterate a few key principles and say more about the Government's additional investments in the water system. Water sufficiency is a matter of national survival. Members are well aware of how Mr Lee Kuan Yew, our Founding Prime Minister, obsessed over water since the Separation Agreement. Securing a sustainable water supply for Singapore has been an all-consuming pursuit of the Government since Independence. We lodged our water agreements with the United Nations, invested in a strong defence force and developed strong capabilities in water technologies. Singaporeans have enjoyed uninterrupted and high-quality drinking water through rainy weather and droughts alike. This is not mere good fortune or our birth-right. Rather, it is the result of long-term planning, a can-do attitude, innovation and sound policy. As the Minister for the Environment and Water Resources explained, the cornerstone of our water policy is the pricing of water on sound economic principles to reflect its long-run marginal cost (LRMC). This reflects the cost of supplying the next available drop of water, which is likely to come from NEWater and desalination plants. This ensures that users will conserve water and we can make timely investments in the water system. Ms Sylvia Lim asked why raise the water price now and carbon tax later. The carbon tax is new and the details will have to be carefully studied. But I think a more fundamental point is whether Ms Lim agrees that water is of strategic significance and we should each do our part. Mr Seah Kian Peng highlighted yesterday that the Government spends more than it collects on the water system. This is, indeed, the case. The revenue which PUB collects from users is only enough to cover operations and the depreciation of waterworks, pipelines and water reclamation plants. The annual surpluses that PUB records are transferred to its capital reserves to finance these property, plant and equipment. This is clearly stated in PUB's annual reports. Over the next five years, PUB intends to invest $4 billion in additional water infrastructure. Besides PUB's investments, the Government makes further substantial investments in the sewerage network. This includes the Deep Tunnel Sewerage System which will be completed in 2025 and will cost more than $4 billion. In the next five years, the Government will spend about $3 billion on other sewerage network projects and to strengthen the resilience of our water supply.[+8 sentences] These expenditures exceed the amount of revenue from the water conservation tax which is expected to be about $1.6 billion over the same period. In other words, the Government pays for part of the total cost of securing a safe and clean supply of water for our people and businesses. Let me now speak on protecting our environment. Dr Lim Wee Kiak, Assoc Prof Daniel Goh and Dr Teo Ho Pin shared their views, among others. Introducing a carbon tax is the economically efficient way of reducing greenhouse gases. A carbon tax places a price signal to incentivise emitters to lower emissions. Singapore will join dozens of other countries in pricing carbon to address climate change. Many jurisdictions that have put a price on carbon, such as Sweden, are reducing their emissions while maintaining economic growth, promoting green growth and reaping environmental benefits. Singapore continues to provide a favourable business environment for companies. We will consult widely before implementing the carbon tax. Industry consultations have already begun and will be expanded, and public consultations will begin this month.[+8 sentences] We welcome all to contribute. Let me now turn to diesel. We have restructured diesel taxes to introduce a volume-based component. This will incentivise reduced usage and lower pollutive emissions. Nonetheless, as a number of Members have noted, the restructuring of diesel taxes will impact some businesses. This is an important measure to help improve the health of all Singaporeans. In the longer run, we hope users will switch to cleaner fuels and technology. In the short run, we have put in place significant offsets to help businesses manage the transition. The first year 100% road tax rebates will more than offset the diesel duty incurred for the majority of commercial vehicles. There will also be partial road tax rebates for two more years.[+11 sentences] The reduction of the annual Special Tax on diesel cars and taxis will also help to cushion the impact on these drivers, as Mr Sitoh Yih Pin has noted. In the Budget speech, I had urged taxi companies to pass on the Special Tax reduction to drivers. I am glad that taxi companies will be doing so in various forms. I have earlier spoken about the spirit of partnerships which will help drive our economy. Similarly, everyone has a part to play in securing a better living environment for Singapore. We are taking decisive steps in this area because we want a cleaner and healthier environment for ourselves and our children. We want businesses, visitors and Singaporeans from all backgrounds to enjoy a lush city scape to work, live and play in. We invest in keeping our living environment in good shape because we care for our future and our children. This is the home that we have been building and will continue to build. Home comes alive because of our people, because of our relationships. Over the last decade, we have steadily increased our social investments. Our social expenditures, including in housing, healthcare, education and community development, have almost tripled, from $12.7 billion in FY2006 to $34 billion in FY2016.[+35 sentences] We introduced major schemes to open up multiple pathways to success for all, provide assurance in key areas of need, and strengthen social safety nets. In education, we significantly enhanced the quality, affordability and accessibility for all, across all levels from pre-school to tertiary. In housing, we increased housing supply and housing subsidies. In healthcare, we enhanced Government subsidies across all care settings, like CHAS, and introduced MediShield Life. Pioneers receive additional subsidies and benefits from the Pioneer Generation Package. For the lower income, we enhanced Workfare, introduced Silver Support and made GST Vouchers permanent. We will continue to refine our social policies and study new ideas and suggestions. For example, MOH is doing a major review of ElderShield. Each Budget builds on past Budgets. Over the years, we have built up a strong social security system that serves Singaporeans well. In Budget 2017, we are focusing our efforts on continuing to empower the community and forge partnerships. This is a movement towards the future, where we nurture a culture of caring for one another, of many helping hands, to meet a significant increase in societal needs. Our demographics are changing. We have a rapidly ageing population and our families are getting smaller. We can expect social needs to increase, for example, in healthcare. At the same time, Singaporeans are living longer, healthier lives. Our seniors can contribute meaningfully to the community as they age gracefully and actively. Indeed, many Singaporeans, both young and old, want to make a difference and give back to society. We want to empower all to try new ideas. Hence, our social compact must be one of partnership, where each of us gives our best. As Ms Rahayu Mahzam and Mr Louis Ng pointed out, we need to strengthen community bonds. And as Ms Kuik Shiao-Yin pointed out, it is up to, and I quote, "all of us". Indeed, everyone − the Government, the community and individuals − all of us have a unique role to play. There are functions that the Government is best placed to perform − such as legislation and the provision of public goods and services. And there are areas where we can achieve more, much more, when we all work together. When it comes to customising assistance to the specific needs of certain communities, or providing last-mile social service delivery, community action is critical. Even the strongest social safety nets are no substitute for the caring hearts and helpful hands of neighbours. And we want a close partnership among individuals, communities and the Government, because this is an end in itself. This is a society that we aspire to for Singapore − a caring, resilient and inclusive society. A society where Singaporeans help fellow citizens in each way we can and where individuals and community organisations work together to make Singapore a better home for all. This is not new to us, but we can do more to foster stronger partnerships and bring collaboration to the next level. The Government will do more by helping to create the right supportive environment to encourage community efforts, where everyone plays the part that we are best placed to perform. We are placing greater emphasis on bringing together community efforts for key areas of need. Last year, we piloted the Community Network for Seniors to better support seniors. It has brought the Government and the community together to build "communities of care" right within our heartlands. In the three pilot sites, the Community Networks have reached out to more than 15,000 seniors or 40% of seniors there. Of these, they have assisted 380 seniors with multiple needs, engaged over 5,000 seniors in active ageing and preventive health, and recruited 180 volunteers to support seniors as they age in the community.[+24 sentences] It is a small start but, at the same time, it is rewarding to see how community and the Government are working together to touch lives. This is Mdm Lee Ah Kiow. It is nice to see her energetic and happy, exercising outdoors. But it was not like this for her just six months ago. You see, at 70, Mdm Lee has weak knees and a history of falls. Until the Community Networks learnt about her, Mdm Lee was keeping to herself at home, afraid to go out for fear of falling. A Pioneer Generation Ambassador visited Mdm Lee and saw that she was at risk of social isolation. All the parts of the Community Networks sprang into action. NTUC Health Cluster Support visited her. They worked with HDB to install grab bars in her home under the EASE programme. REACH Community Services Society introduced befrienders to Mdm Lee. Her new friends visit her regularly and bring her down to the fitness corner near her house for simple exercises. This is the story of how the Community Network for Seniors, by bringing the different parts of the community together, helped to bring Mdm Lee out of isolation and lead a more active lifestyle. The Community Network for Seniors pilot shows us the power of partnership. Ms Joan Pereira, Ms Tin Pei Ling and Dr Lily Neo raised interesting ideas on how we can better support the elderly to age gracefully. These are useful suggestions that we will study further. In this Budget, we introduced the Community Mental Health efforts and the Third Enabling Masterplan. I thank Miss Cheryl Chan and Assoc Prof Fatimah Lateef for their support for these initiatives, and am confident that community partnership will help us build a more inclusive society. I also take heart to see a growing spirit of enterprise in the social sector. I hope that, over time, there will be more enterprising Singaporeans and community organisations that start ground-up initiatives and make significant social impact. Bakery Hearts is one such example. It was started by AMKFSC Community Services Ltd to help prepare unemployed women from low-income families to enter the workforce by equipping them with baking and other skills, while providing them opportunities to supplement their household income. The project grew with support from community resources and is able to touch the lives of many more families. We continue to encourage more of such ground-up projects, as well as philanthropy and volunteerism. Last year, we introduced Our Singapore Fund and piloted the Business and IPC Partnership Scheme to encourage more businesses to organise their employees to volunteer and provide services to IPCs.[+1 sentence] Mr Azmoon Ahmad suggested VWOs and self-help groups can play a greater role to support communities in various areas. I agree and strongly encourage our community partners to continue building up their capabilities so that they can better serve communities. This Budget provides additional funding, through the VWOs-Charities Capability Fund (VCF), to support their efforts.[+6 sentences] Members would know of the Alzheimer's Disease Association, which provides a range of services for people with dementia and their caregivers. Tapping on the VCF, it is upgrading its IT system to centrally manage client and caregiver records and enhance data analysis capabilities. This allows its staff to increase productivity and better serve their clients. I hope many other community organisations will likewise build their capabilities to do even better work for those they serve. By building many overlapping networks of community self-help and Government support, we build a more caring and inclusive society, and one that is resilient to weather change, in whatever form it takes. Just as we seek to protect our home and environment for our future generations, we must ensure that our finances are sustainable for the long term. As Ms Sun Xueling pointed out, our expenditures have started to exceed our operating revenues since FY2015.[+16 sentences] The Government had, in fact, anticipated this and prepared early, by raising revenues ahead of our spending needs. Indeed, this is the approach this Government has always taken. We had, therefore, raised the GST in 2007 and introduced the NIR framework in 2008. In the last term of Government, we had also undertaken measures, such as making our property tax rates more progressive and increasing the duties for betting, liquor and tobacco over time. In Budget 2015, we announced increases in top marginal rates for personal income tax and revisions to the NIR framework. These measures now serve us well to meet our spending needs through to the end of this decade. But beyond this decade, we can expect the fiscal situation to become more challenging as expenditures exceed revenues in the longer term. First, our economy is maturing. With slowing economic growth, our revenues will also grow more slowly. Second, our population is ageing rapidly and we can expect rising expenditure needs, especially for healthcare. Third, our infrastructure needs are rising, as we seek to build new infrastructure and renew old ones to enhance our quality of life and Singapore's economic competitiveness. Going forward, we must continue to prepare for our greater needs in the long term by working on two fronts: spending prudently and effectively; and growing our revenues fairly and sustainably. With higher spending needs, it is ever more critical to ensure that we spend within our means to get the outcomes we want, as Mr Vikram Nair noted. At the Ministry level, we have designed our funding policies to drive agencies to operate efficiently and effectively. Today, we budget for on-going functions using a Block Budget Framework, where Ministries are provided with budget caps for a medium term period. Within the cap, each Ministry decides how best to allocate its budget. This approach encourages Ministries to strive for cost-effectiveness, because every dollar optimised means more resources available for worthwhile programmes. This year, we sought to further reinforce the importance of spending prudently and effectively, by applying a permanent 2% downward adjustment to the budget caps of all Ministries and Organs of State.[+3 sentences] This will free up resources that MOF can re-deploy towards higher priority requirements and projects that deliver value to citizens and businesses, such as initiatives by the Municipal Services Office. Within their adjusted budget caps, agencies will decide how to prioritise their programmes and projects, and review how they can achieve greater efficiency. Fundamentally, we want to imbue these values of prudence and innovation in all officers in the Public Service: to always seek value for money and constantly strive to improve and innovate, so that we can do more, and do better, with less. At the project level, we are tightening scrutiny of major infrastructure projects to ensure robustness of its business case and value-for-money. We have a process today that puts large infrastructure projects, those more than $500 million, or those that are highly complex in nature, through a series of reviews before funding is approved.[+17 sentences] This process taps on a panel of senior public officers and industry practitioners, those with deep technical expertise and experience in major infrastructure developments, with the aim of optimising the project's overall design, use of space and cost-effectiveness. At the programme level, we are designing our schemes so that subsidies are targeted at the right groups. As a general principle, we price services to recover full cost and discourage over-consumption. We then target subsidies appropriately at those in need, such as through GST Vouchers, S&CC rebates and Public Transport Vouchers. This is more progressive than under-pricing services, which implicitly subsidises all groups, including the rich. Ms Sylvia Lim asked whether we evaluate programmes. On economic programmes, Minister Iswaran gave a detailed explanation about how agencies evaluate those programmes and have to adapt and change when necessary. Then, she raised the issue of the PIC. The PIC, in fact, has largely achieved its objective. But she raised examples of abuses to make her case. This is mistaken. In fact, the fact that those abuses are uncovered is because of extensive audits that are done by the agencies, and we should commend the officers for the seriousness in which they undertake this. In many other countries, those abuses would not even be known. The schemes were done in a way that is broad-based and reaches the right groups of people. The alternative, of course, is to have every detail scrutinised and approved before the businesses can use it. And, in fact, in many of the Budget dialogues we had with businesses, their concern was if you have too many schemes that are just based on approval, things will not move. So, it is a delicate balance and a good balance which the agencies should be commended for. Besides spending prudently and effectively, we will have to grow our revenues through new taxes or raising tax rates over time.[+6 sentences] This challenge of raising revenues for growing needs is not unique to Singapore. If you look at many other countries, the need for more revenue to meet spending needs is a common theme that cuts across different systems. For example, Hong Kong had announced at its recent Budget that it would be setting up a tax policy unit to comprehensively review its tax system. One of its objectives would be, and I quote, to "explore broadening the tax base and increasing revenue, so as to ensure that adequate resources are available" to support sustainable development. Mr Saktiandi Supaat and Mr Yee Chia Hsing had asked how we intend to review our own tax system. I would like to assure them that we will ensure that our tax system continues to be both fair and sustainable. First, our tax system must be fair and progressive across income groups.[+5 sentences] What this means is that those who are better off must contribute more. In recent Budgets, we have continued to make our personal income tax and property tax rates more progressive, even as we introduced or enhanced permanent schemes, such as Silver Support and Workfare, to provide more support to lower-income groups. Second, a sustainable tax system is fundamentally one that rewards efforts by individuals and enterprise by our companies. As Ms Foo Mee Har pointed out, the only way to sustain a healthy revenue stream is to have a healthy and growing economy. In more recent years, more countries have lowered or announced their intention to lower corporate income tax rates. The UK has lowered its corporate tax rate from 30% to 20% over the last 10 years and plans to further lower it to 17% by 2020.[+4 sentences] The new administration in the US has also indicated plans to cut corporate tax rates. We must ensure that Singapore continues to be an attractive place to work and do business, so that we have a thriving and vibrant economy. Third, sustainability is also about striking the right balance between current and future generations. We have spent prudently, built up our reserves and tapped on their returns judiciously. Ms Sylvia Lim suggested using the proceeds from land sales. Now, the proceeds from land sales go into past reserves and it is because of this prudence that we are able to build up our reserves and we can use part of these returns for our expenditure. So, we must remain disciplined and prudent in spending the returns of our reserves, so that they remain a stable and sustainable source of revenue over the long term. Any decision to raise taxes will not be taken lightly.[+1 sentence] We will study all options carefully. While our finances today are sound, we must start planning early.[+5 sentences] This is the right and responsible way, rather than leaving problems to be dealt with by future governments when Singapore comes under fiscal strain. Planning for the issue now will allow us to better ease in the needed measures, to give our people and businesses some time to adjust. We must plan for the long term, not five years, not 10 years, but big ambitious plans for decades ahead. Like the new airport, new towns each with distinctive features to attract families, new MRT lines. We are in a good position today, because we have planned early and invested in the long term. This ability to plan and invest for the long term is a key strategic advantage. So, we must ensure that we continue to have this capacity to invest in critical programmes and infrastructure with long-term benefits, in a way that is equitable to both current and future generations.[+15 sentences] Mdm Speaker, let me conclude. This Budget sets the strategies for building a better Singapore in a sustainable way. We can move forward confidently on these strategies, as we are starting from a position of strength. This is a cumulative effort from previous Budgets. We have a well-functioning economy where most Singaporeans have good jobs; we have a good social security system that serves the majority of Singaporeans well; we have spent prudently so we have the necessary resources. In this fast-changing world, we cannot predict how the journey ahead will pan out, but we can expect that it will not be always smooth-sailing. There is no step-by-step guide for how to venture into the volatile, unpredictable future that lies ahead for the whole world, not only Singapore. But for Singapore, we have our compass, a compass of our shared values and our common hope. In this Budget, we set our minds to seize opportunities to succeed; to be part of, to play a part in, a caring and inclusive community; and to build, protect and pass on a truly special home to future generations. Let us develop the deep capabilities, strengthen the spirit of enterprise to adapt and try out new things, work together in partnership, and care for and support one another. I am confident we can do it. We have been through tougher situations. Each time, despite the naysayers, we emerged stronger and more adaptive, as we held strong together as one people. I thank Members for sharing your ideas for our future. Let us move forward, together.
Mdm Speaker3 words
[+1 sentence]Mr Desmond Lee.
The Senior Minister of State for National Development (Mr Desmond Lee)209 words
[+7 sentences]Madam, I would just like to seek a clarification. Yesterday evening, those of us who were in this Chamber were very moved by Ms Kuik Shiao-Yin's speech, a heartfelt one about how much heart we need to put in to help people in need. As I reflected through the night, I thought I would like to clarify with her, in respect of the divorcee she mentioned with two children earning $1,600 seeking rental housing and other forms of social support. The first clarification is: is this an individual whom she could put us in touch with so that we can look at what happened and see how best we can assist her? Even as cases do fall through the cracks, it is important for us, as a Public Service, to make sure we pick up on all these cases and assist them. The second clarification is: some people may take away from the speech the impression − perhaps wrongly − that the Public Service has lost heart. I am asking for this clarification on behalf of the officers who work at the rental department, the Social Support Offices, the Family Service Centres and the many other social service agencies across the Public Service who are Singaporeans and who care.
Ms Kuik Shiao-Yin (Nominated Member)266 words
[+6 sentences]I want to thank the Senior Minister of State for his care. First, I want to affirm what I said yesterday. I actually do not believe that it is all on the Government and that everyone has to work together to solve all these issues. I want to affirm that I actually do not believe that the Public Service has lost heart, as some reports have said. I personally know of many deeply compassionate civil servants, especially those who work for people in rental housing, who actually go out on a limb to make things work out for the needy. That I really want to state. The story that I mentioned yesterday, as I said in my speech, is also not based on a single story. It is based on a composite of a few stories of single-parent households. So, it is entirely possible also for some of them that they slip through the cracks − as the Senior Minister of State has said − and they could have also met the wrong person who gave the wrong advice. So, I am more than glad to link you up with each of the organisations working with each of these women for their cases to be reviewed.[+2 sentences] I would also like to take the opportunity to state that I am also aware that, for some, they do not actually look for help because they believe mistakenly that nobody cares about them in the civil service and I think that is a mistake because that stops them from actually getting their needs met. Thank you for the question.
Mr Desmond Lee37 words
[+4 sentences]I thank the hon Member for her clarification. On behalf of all the officers who work in social agencies, we will continue to work hard. And for those cases, we will follow up on them. Thank you.
Ms Sylvia Lim133 words
[+7 sentences]Thank you, Mdm Speaker, a clarification for the Minister for Finance. Earlier, he referred to my raising of the PIC scheme. The point I was making was whether, as an example, the PIC scheme, but, in general, whether there are any mechanisms to assess the effectiveness of expenditure in terms of the outcomes that are intended to be achieved? He mentioned that the PIC scheme was largely effective. We have seen productivity data that seems to be very mixed and also weak in the domestic sectors for the last couple of years. And I am wondering whether he could elaborate further on whether there is any publicly published Government report that shows the effect of the PIC scheme on productivity. Because I may have missed something that his Ministry or MTI has published.
Mr Heng Swee Keat222 words
[+1 sentence]I thank Ms Sylvia Lim for her question. In fact, in terms of productivity growth, the productivity growth over the period of 2011 to 2016 has been above 2%.[+5 sentences] I think it is 2.1%. It is within the range of what the ESC has set out to do. So, these measures, in terms of the productivity numbers − yes, it has achieved that sort of outcome. But I think, more importantly, the PIC scheme was also intended to create a greater awareness amongst our SMEs of the need to take productivity seriously, to upgrade. The fact that so many businesses have actually taken up the scheme and improved their performance is a sign that the objective of raising awareness of getting businesses much more involved in it has achieved its purpose. So, there are schemes that you cannot measure just by one parameter that it has achieved or not achieved its objective. But in terms of what it sought to do − which is to raise this broad-based awareness of the importance of productivity, getting companies involved and then getting people to participate in it, and also achieving certain measures of productivity growth − it has achieved its objective, largely.[+1 sentence] That is why, last year, I spoke about why we need to move on to more targeted measures in the next phase.
Mr Leon Perera (Non-Constituency Member)210 words
[+12 sentences]Thank you, Mdm Speaker. I just have three points of clarifications for the Minister for Finance. Before I start, I just want to wish the Minister many more years of good health. I thank him for his hard work on the Budget. My first point is regarding the presentation of the Budget Statement. I raised this in my speech. Will the Minister for Finance consider presenting one or two pages in future Budget Statements which presents the Budget according to IMF guidelines, reflecting the total net amounts of money leaving the economy to the state, and money that the state is pumping back into the economy? This is so that Singaporeans can make a well-informed assessment of whether future Budgets are expansionary enough to facilitate genuine, democratic consensus formation. Secondly, I would just like to refer back to the net births of companies' statistics that I cited in my speech to ask what is the Minister's evaluation of the state of the SME sector. Because I highlighted that net birth of companies has been plunging in 2016. The last time we saw such a figure was in 2009. And if we push the data series even further back, the last time we saw a below-10,000 net birth figure was —
Mdm Speaker15 words
[+2 sentences]Keep it short, please, Mr Perera. Your point has already been made in your speech.
Mr Leon Perera144 words
[+2 sentences]Okay. The last point is that I just wanted to ask the Finance Minister again about the timing of the price hikes that we have seen. As other Members have alluded to, the Government did have the option of either pre-announcing some of these price hikes, and/or phasing or staggering them, and/or deffering them. So, given that there have been four price hikes − gas, water, electricity and parking − all within a space of three months, at a time when GDP growth is the lowest it has been since 2009, jobseekers outnumber job vacancies and so on.[+2 sentences] And given that the Government has shared that the reasons behind these are not political − and I believe that was shared yesterday − can the Minister help Singaporeans understand a little better? What are the non-political reasons behind timing the price hikes in this way?
Mr Heng Swee Keat690 words
[+1 sentence]I thank Mr Leon Perera for his questions. First, on whether the data that he has asked for, as prescribed in the IMF format, is available.[+1 sentence] In fact, it is. And if he actually accessed the IMF website, he will find that our numbers are there, because we submit these numbers to the IMF.[+20 sentences] The reason why the Budget Book is presented the way it is, is that this meets our specific needs. We need to know, for particular Ministries, how much spending is available, what is the development spending, what is the operating spending. Whereas the IMF is for a macroeconomic evaluation. It serves a different purpose. As to whether a particular Budget is expansionary or not expansionary, in fact, it is not just by looking at those numbers. If you consult the economists, you will know that they actually take great pains to model the effects of the monetary and fiscal policies. And, in the case of fiscal policy, how much of a fiscal impulse a particular Budget provides to the economy. Here, we are fortunate that MAS would do some of these simulations to give us a sense of whether it is appropriate or not appropriate, because we also have the important objective of keeping inflation in check. These are not numbers that are not available, or numbers that you can just read off and conclude that it is expansionary or not expansionary. It takes a general equilibrium model for us to look at some of these impacts. The next question on the net birth of companies, whether it is an indication that companies are not doing well. In fact, there are many reasons behind the birth rates and exit rates of companies, and we must expect that it will fluctuate over cycles, depending on the economic conditions and so on. I think Minister Iswaran has explained that if we are looking at the health of SMEs, there is a broad range of factors that one has to look into. If the Member's specific question is, are SMEs doing okay, I have indicated in both my Budget Speech and in the round-up speech that the performances across sectors, across industries and across firms differ. And that is why we need a targeted approach. That is why I used the Chinese phrase, 对 症 下 药, which means to have the right remedy for the right ailment. It is not a case of having broad-based measures, that every firm is doing badly and therefore, we need a big rescue operation, as we had during the Global Financial Crisis. So, those things will have to be carefully studied and we cannot just draw a simplistic conclusion, just a number of firms are formed this year, that year and, therefore, the situation is better or worse. The Member's final question was on the timing of the increases. The fact is, first and foremost, do we agree that the price signal is important so that consumers know what the actual cost of the resource is and, therefore, can then take action to mitigate the use? If the answer is yes, then, there is never a good time.[+6 sentences] Because I do not think any Finance Minister finds it a popular thing to come here and say, "Oh, I am going to increase this. I am going to increase that". It is never. I do not take great joy out of announcing all these increases. But the fact is, we have to do the right and responsible thing. The right and responsible thing is to make sure that the price signal and the correct price feeds through with the economy early enough. If we do things early, often we will also have the ability to provide the mitigation package, the support package, which is what we have done, whether it is for diesel duty, whether it is for water, whether it is increases in U-Save rebates.[+1 sentence] This is a fundamental point that we got to make sure that we do things correctly, we have the right price signal, and that every one of us factors this into our decision-making and do our part.
Ms Foo Mee Har (West Coast)131 words
[+2 sentences]Thank you, Mdm Speaker. I would like to ask the Minister on two suggestions that I made to support businesses and individuals during this difficult period. One is: there has been a lot of questions about the use of state land or vacant properties − about 1,000 of them − whether the SMEs or operating businesses that find rentals high could use the spaces as public offices, low-rent public offices, borrowing the idea of JTC LaunchPad.[+2 sentences] There has been quite a lot of calls on that, so I would like to hear the Minister's response. Second, Mdm Speaker, is whether the Minister will also consider suspending income tax payment when someone is unemployed, as well as more flexible use of the CPF in order to tide them over to pay mortgage.
Mr Heng Swee Keat207 words
[+6 sentences]I thank Ms Foo Mee Har for her questions. First, on state land, whether it can be used by SMEs and so on. The amount of land that is used, whether it is commercial, industrial or residential, is planned very carefully by the various agencies, and also together with the economic agencies. Where there is a need, more land can be released, but where some temporary uses can be made, in many cases, the Singapore Land Authority has allowed for some of them to be used. But we should not take that as a matter of course, because, if we do, then a lot of that planning will have problems later on. If the business is a startup, perhaps, it requires a lower cost, but if it is going to operate permanently in a particular way, we cannot just permanently subsidise rental because that would eventually make it harder for businesses to adapt. On the second question on whether we can suspend income tax payment, for those who have particular difficulties, they can, in fact, apply to IRAS for a deferment of payment or for payments over a period of time.[+1 sentence] So, if you do know of particular cases, you can advise them to apply to IRAS.
Ms Chia Yong Yong (Nominated Member)90 words
[+3 sentences]I seek two clarifications. The first is to the Minister for Finance in relation to the diesel tax − whether he would consider ameliorating the impact for vehicles that are serving the needs of VWOs, in order to also help the organisations save some costing. My second clarification is for the Minister for the Environment and Water Resources − whether the Government will consider water rationing across the board for individual households as well as commercial entities, as also previously suggested by a former Nominated Member, Prof Tan Tai Yong.
Mr Heng Swee Keat66 words
[+1 sentence]I thank Ms Chia Yong Yong for her questions. Whether we can ameliorate the impact on VWOs, we have the diesel tax and the road tax rebates for certain types of vehicles.[+2 sentences] I would ask the Ministry to have a look at it in greater detail. But let me say that for the VWOs, there are also many other schemes to help with the transport-related matters.
Mdm Speaker7 words
[+1 sentence]Mr Masagos, do you wish to respond?
The Minister for the Environment and Water Resources (Mr Masagos Zulkifli B M M)21 words
[+2 sentences]If I may, Mdm Speaker. I thought it is odd for me to respond during the clarification of my Ministry's COS.
Mdm Speaker2 words
[+1 sentence]Yes, please.
Mr Masagos Zulkifli B M M135 words
[+2 sentences]Thank you. For rationing, we have been asked by many Members, as well as the public, to try and put this rationing regime into a yearly exercise for everybody. There are many reasons why we should do it and there are also problems when we want to do it. Therefore, what we have decided to do is to start small in schools, and we started last year.[+5 sentences] Ten schools participated. This year, more schools – 11 schools – are participating and preschools are also participating. That is addressing part of the problem. Hopefully, we will never have to go into rationing when we are ready with our desalination plants and our NEWater plants. I think to press the point about how precious water is by making it difficult through rationing may not always be productive.
Ms Sun Xueling (Pasir Ris-Punggol)112 words
[+2 sentences]I thank the Finance Minister for his speech. I have a clarification. NIRC has consistently contributed 20%-21% of total revenues in the most recent two Budgets.[+3 sentences] In a recent article on Bloomberg, Norway Central Bank Chief warned of how the risk of a 50% decline in 10 years of the sovereign wealth fund increases five times if government withdrawals from the fund increases from 3%-4%. Given our reliance on NIRC to fund our Budget, what are the inherent risks we face? Should there be huge changes in global outlooks of capital markets, how does that change our expected long-term rates of returns and our ability to use NIRC to fund our Budget?
Mr Heng Swee Keat414 words
[+12 sentences]I thank Ms Sun Xueling for her question. Indeed, it is an important one. First of all, let me put it in perspective that, indeed, we are drawing about 20-odd percent of our Budget from the NIRC. The fact is that we still have 80% that is based on current revenue. It is important that we keep a vibrant economy and that we keep our tax rates in such a way that allows us to do this. Is there a risk that the returns will not be adequate in the future? When the former Finance Minister, Deputy Prime Minister Tharman Shanmugaratnam, revised the NIR framework, there were a number of careful safeguards that were put into the spending rules. Our spending, first of all, does not depend on the fluctuations in the market from year to year. In fact, it is the expected long-term rate of return. That means that in a very good year when markets are very vibrant, we do not just take very vibrant returns but, rather, the agencies give us an expected long-term rate of return, and we look at that number. If you look at the numbers, it has been conservative, compared to many of the endowment funds. That is one important safeguard. Two, it is that we only use up to 50% of the expected returns.[+7 sentences] As long as the return is positive, we add to the reserves, not only through new revenue sources, new surpluses but we add to it through the returns not spent. That is something that we take very seriously. The third thing that we do is to make sure that if the returns are very good in one particular year, asset value tends to be very high, the rate that we apply, the long-term return that we apply, is not to the very high base, because we know that the markets will go up and down. If you apply to a very high base, you may overspend. For that reason, it is based on a smoothed asset base, so that in good years, we do not overdo it, and, in bad years, we will still have adequate resources. All these returns are real returns, net of inflation; it is not just some big nominal numbers that are used. Indeed, the Member's point is a very important one; that we have to be very, very careful in guarding the use of these reserves and in making sure that we spend on a sustainable basis.
Ms Chia Yong Yong59 words
[+3 sentences]Further clarification for the Minister for Finance. I apologise I did not make myself very clear just now. I was not referring to vehicles owned by VWOs but, rather, to the commercial operators because many VWOs are not able to or, for some reason, do not own their own vehicles. They rely on commercial operators to supply the services.
Mr Heng Swee Keat60 words
[+2 sentences]Thank you, Ms Chia, for the clarification. I am sorry I misunderstood your question. This is something which I will ask the Ministry to look into.