Committee of Supply − Head U (Prime Minister's Office)
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[+4 sentences]Mr Speaker, Sir, I would like to touch on four areas of Budget 2019, namely, Growing our Enterprises; Supporting our Workers; Healthcare Support; and Fiscal Management. Firstly, on growing enterprises. Budget 2019 continues to press on with efforts to build competitive enterprises within our economy with greater focus and emphasis on changes at the microeconomic level. The slew of schemes and programmes announced aims at helping enterprises deepen capabilities and to scale up. Besides new schemes, such as Scale‐up SG, Small and Medium Enterprise (SME) Co‐Investment Fund III and the Innovation Agent Programme, the Finance Minister has also extended and enhanced existing schemes, such as the Enterprise Development Grant (EDG), the Productivity Solutions Grant (PSG) and others, with the intent to boost effectiveness and reap better outcomes. Eight existing financing schemes offered by Enterprise Singapore (ESG) were also streamlined into a single Enterprise Financing Scheme (EFS), making it simpler for businesses to apply and easier to access the loans.[+5 sentences] The merged EFS is also extended to companies which have been incorporated for less than five years and may not have yet met the credit evaluation criteria or vintages as required by banks. The Government's willingness to risk sharing up to 70% of the loan amount significantly enhances the lending proposition which would encourage more financial institutions to participate. The ability to obtain financing means a great deal to companies, especially those in the early growth phase. Being able to readily access funding and liquidity can make or break a company. This is an essential enabler for a flourishing enterprise ecosystem to exist. Besides financing, companies that are in the scaling up phase also often need private capital from investors who are more patient and with a longer time horizon. Hence, the additional $100 million injection to establish the SME Co‐Investment Fund III can act as a catalyst to entice even more crucial investments in these high-growth potential companies.[+17 sentences] Of course, there is no guarantee of success in such co‐investments, but it is necessary to make available such risk capital so as to give promising startups a lift. Sir, today, our economy is more innovative‐ and technology‐driven and we do have a vibrant startup ecosystem. More new‐to‐economy activities have also been developed in recent years, such as the proliferation of FinTechs, sharing economy apps, deep tech ventures and so on. Progressing from startup to scale‐up is the next logical move. Startups and enterprises can only thrive when they scale up and seek greater market opportunities. To achieve this, we must be open to trying new approaches to grow our enterprises. From an economic resource allocation standpoint, it makes excellent sense to help grow the sizes of our companies, especially the smaller enterprises. Bigger companies enjoy better economies of scale advantages and are in a better position to expand, innovate, internationalise and manage business risks. In general, larger companies tend to be bigger value contributors to the economy as a proportion and offer better job opportunities for Singaporeans. The new Scale‐Up SG programme is a bold move to help fast track growth for promising enterprises. I would imagine that such a programme will offer highly customised assistance which may entail differentiated support and assistance, better financial support for the adoption of technology and so on. We will await more details from the Committee of Supply (COS) debate on the Ministry of Trade and Industry (MTI). But the instinctive question I have in mind is whether such schemes, being customised and, hence, selective in nature, would involve some extent of picking winners? Would the Scale‐Up SG be a separate track of work from the Industry Transformation Maps (ITMs)? How do we eventually expand or scale up the Scale‐Up SG to move the needle for the economy? Second, on supporting our workers. Sir, I am most heartened that the Finance Minister has again committed solid budgetary support to help Singaporean workers stay employed and be re‐employed. Out of the $4.6 billion allocated to transforming the economy, a lion's share of $3.6 billion will go towards helping our workers.[+3 sentences] It underscores the Government's resolve to help workers adjust to the future economic landscape, no matter how difficult the adjustments may be. Among others, the Professional Conversion Programme (PCP) will be expanded to cover new growth areas. This would help jobseekers reskill to transit into new occupations or sectors with good prospects and opportunities for progression. PCP, which is part of the Adapt and Grow initiative, has since achieved encouraging results, helping 76,000 jobseekers find jobs in the last three years.[+11 sentences] But we should continually raise the bar here, aiming not only to help even more jobseekers find new jobs but also to improve the overall experience of the jobseekers. The newly harmonised Global Ready Talent Programme (GRTP) will help young Singaporeans gain overseas work experience in the key growth regional markets where we are seeking greater economic interdependencies, such as Southeast Asia, China and India. Under the scheme, participating local firms can receive funding support of up to 70% of costs. These are markets in our immediate neighbourhood where we need to strengthen our connectivity and expand the talent pool of people. I thank the Finance Minister for extending the Career Support Programme (CSP) for another two years. CSP is a much‐appreciated scheme by both companies and workers. The programme encourages companies to hire mature workers who may have been in long-term unemployment by subsidising a significant share of the workers' salary. Rather than renew this programme every two to three years, I hope that the Government can turn the CSP into a permanent scheme. Of course, the terms can be refined from time to time to meet changing circumstances. It will give workers, especially mature workers, who are concerned about their job security a sense of assurance that the Government will be there to help in their transition to a new job. It will also demonstrate the Government's resolve to keep long-term and structural unemployment to the lowest possible level even as our economy becomes more innovative‐ and technology‐driven. To encourage employment of older workers, the Special Employment Credit (SEC) scheme and the Additional SEC have been extended by another year. SEC provides a wage offset to employers for hiring workers aged above 55 earning up to $4,000 per month.[+1 sentence] These are consistent with our strategy to tackle the twin challenges of a tightening labour market and our ageing demographics. The enhancement to the Workfare Income Supplement Scheme (WIS) is another piece of welcome news, especially to low-wage workers. The higher payouts of up to $4,000 per year will help low-wage workers cope with the cost of living.[+3 sentences] Sir, I support the reduction of services sector S Pass Sub‐Dependency Ratio Ceiling (DRC) to address the sharp growth of S Passes in this sector. It is not sustainable, both economically and socially, to keep having more and more foreign workers in the workforce. In particular, such mid‐level skills labour is also increasingly in demand in other countries as well and companies will, in a matter of time, face competition in getting those workers to come in. Hopefully, this tightening will also signal to companies that they need to revamp their work processes, redesign jobs and reskill their local workers. There are already almost 200,000 S Pass holders in the workforce now.[+36 sentences] Our S Pass system should be structured in a way where companies are given more S Pass only if they have more local workers at mid‐ to high‐wage levels and demonstrate high value contribution to the economy. We should strengthen this linkage. Can I also suggest that the companies that have been shown to hire more displaced or retrenched local workers, for example, via Workforce Singapore (WSG) or the Employment and Employability Institute (e2i), be given favourable consideration for their renewal of S Passes as well? At the end of the day, we want more of the S Pass type of jobs to be undertaken by Singaporeans, whether they are seniors, Institute of Technical Education (ITE) or polytechnic graduates or back‐to‐work mothers. Tightening of the foreign worker quota is understandably painful to companies which are unable to find local workers. I hope that with the EDG and PSG extended and expanded, it would help firms adjust to this round of tightening of the labour market. I look forward to hearing more details at the MTI COS on the measures. Sir, I like the statement from the Finance Minister that starting from 1 April 2020, all transformation efforts supported by ESG's EDG must include positive outcomes for workers, such as wage increases. Growing the economy is a means to an end, and the end must be to create good jobs and better salaries for our people. We have seen how economic growth in other developed economies has not always led to better workers’ outcomes and resulting in deep divisions within their societies. At the end of the day, economic development cannot be delinked from the social well-being of the people. Thirdly, on healthcare support. For many years, the Government has been highlighting the challenges of our ageing demographics and have put in place a series of long‐term policies to deal with this imminent development. One serious implication of an ageing society is that healthcare needs will grow, will increase. The Government has put its money where its mouth is. Over the years, the Ministry of Health (MOH) has expanded the healthcare infrastructure, such as hospitals, polyclinics, senior care centres and many others. At the community level, there are also more social support, such as the Community Network for Seniors (CNS) and the People's Association's (PA) Wellness Programme, as well as the many voluntary welfare organisations (VWOs) working with the community organisations. The Agency for Integrated Care (AIC) and Silver Generation Office (SGO) are today better resourced to assist and engage seniors. Besides the infrastructure, healthcare support must also include providing assurance that healthcare services will be affordable and that individuals will have adequate savings and insurance coverage to meet their old age needs. Building more polyclinics and the introduction of the Community Health Assist Scheme (CHAS) have made affordable primary care more accessible to the people. The enhancement in CHAS to cover all Singaporeans for chronic conditions, regardless of income, is another indication of our improving social safety net. As a further icing on the cake, we now have the Merdeka Generation (MG) Package (MGP), which will have benefits better than the Blue CHAS card. I support the decision not to have means-testing for the MGP, just like the Pioneer Generation (PG) Package (PGP). These are a very special generation who went through some of the most trying times during our pre and early Independence years. Sir, to help with large hospital bills, we now have the enhanced MediShield Life coverage covering all Singaporeans, including those with pre‐existing conditions. To protect against the uncertainties of long‐term care costs, we will soon transit into CareShield Life. Premiums for both schemes can be paid using MediSave, which is why it is helpful that the Government constantly look to top up the MediSave account of Singaporeans whenever we have Budget surpluses. Both MediShield Life and CareShield Life are now administered by the Government. My ask to the Ministry of Finance (MOF) and MOH is that we should continually looking to enhance the terms of the coverage. Whenever there are surpluses, we should consider one‐off injections into the risk pool to continually improve the claims economics for the insured. Overall, credit must be given to MOH and Minister Gan Kim Yong for their tremendous efforts to strengthen our massive healthcare system and for giving Singaporeans much better peace of mind today. Fourthly, on fiscal management. Sir, Budget 2019 will have a long‐lasting impact in many areas, such as national security, economic transformation, helping our workers, infrastructural development and enhancing the social safety net. For a Budget to be impactful, having the required financial resources is, of course, a given. But we also need the right strategic plans and the ability to carry out the plans coherently across financial years and across terms of government. We are in this enviable position because, in each Budget since our founding years, we have always been prudent and steadfast in resisting the temptation to spend more than necessary. As the base of our Reserves grow, the investment returns have now become the largest revenue contributor, helping us balanced the Budget, which we would otherwise run into deficits. Given this is the case, our Budgets in recent years, including Budget 2019, are, by definition, expansionary budgets, with the Net Investment Returns Contribution (NIRC) the stimulus injection.[+2 sentences] Of course, we cannot count on NIRC to fund all our expenditures. Growing the economy to generate tax revenues and create good jobs for our people continue to be critical to our long‐term survival. The Constitution requires the Government of the day to maintain a balanced Budget over each term so as to ensure that public funds are allocated sustainably.[+4 sentences] This arrangement has worked well for Singapore, requiring the Government of the day to be disciplined and prudent in managing our finances, and sharing of the fruits of our better economic performances whenever surpluses are generated. The surpluses are also used to fund massive social and healthcare programmes, like the PGP and MGP, without adding the burden to future generations. Sir, based on the estimates from Budget 2019, the accumulated surplus from this term of government is projected to be about $15.6 billion, after allowing for the projected deficits of $3.5 billion for financial year (FY) 2019. Under the Constitution, this amount not spent will be locked up as past Reserves in the new term of government. With about two more years of the term to go, I would like to ask the Finance Minister how he envisages the accumulated surpluses for this term of government to be utilised.[+2 sentences] Sir, my final point relates to the recent spate of incidents and lapses involving public service and public service providers. These series of incidents have naturally raised concerns whether the standards in the delivery of public services have slackened. In each of these incidents, the Government has been transparent in getting to the root of the problem, holding the organisations or companies accountable, and each time committing to take the necessary corrective measures.[+21 sentences] I appreciate Minister Heng Swee Keat's article to the Straits Times on 9 February 2019, reaffirming the Government's commitment to strive for the highest standards of excellence in Singapore. Singapore has always been effectively governed and has achieved very commendable outcomes for our people. Whether it is growing our economy and creating jobs, building a liveable home or building a harmonious society, providing law and order or securing our sovereignty, we have always gotten our fundamentals right. We always do what is right for the long-term good of the country. I am sure Singaporeans feel proud of our achievements. But we also know that the public wants their day‐to‐day services to run well, too, and to have minimal disruption in the delivery of services as they go about their daily lives. In other words, besides doing big things right and well, which is critical, the public also expects those who are mandated to deliver public services to achieve operational excellence and do the last 5% well, too. This entails a different mindset at both the organisational and leadership levels as to how we look at operations and the daily functioning of services. Operational responsibilities cannot be just delegated to line managers, supervisors or individual employees. It is a collective responsibility of the management and their employees, with each employee at the individual level taking ownership and pride in carrying out their duties and responsibilities. Minister Heng Swee Keat, in his article, also mentioned about leaning from the Japanese and the Swiss who have a strong sense of personal responsibility in what they do at work and a meticulous attention to details. It reminds me of this story about President John Fitzgerald Kennedy's visit to the National Aeronautics and Space Administration (NASA) in 1961. He met a janitor or cleaner who was mopping the floor as he walked in and asked what he was doing. The janitor replied, "I am helping put a man on the moon!" The leadership and the management set the culture. But it must manifest through the actions of every individual and on a daily basis. Management must take deeper interest in what each of their employees is doing, what their daily challenges and pain points are, whether the employee is adequately resourced to do the work and how can we improve their work situation and employee journey. Sir, our system as a whole is in a good position to deliver the excellent service to our people. We just need to bring everyone on board, instil ownership and pride in what we do, ensure that there are adequate support and resources for people to do their job well, and to build a strong sense of purpose that each of us can make a difference. I agree with Minister Heng Swee Keat that we do have this ethos and DNA within us, and I am sure we can do a better job, going forward. So, with that, I support the Budget, Sir.
Mr Speaker3 words
[+1 sentence]Ms Jessica Tan.
Ms Jessica Tan Soon Neo (East Coast)2125 words
[+3 sentences]Mr Speaker, thank you for allowing me to participate in the Budget Debate. I would like to thank Minister Heng Swee Keat for delivering a Budget that balances the needs of Singaporeans in areas that matter at each stage of life and, the same time, supporting businesses as they restructure, while continuing to push forward the strategic long-term goals needed to enable Singapore to stay relevant and build the society we aspire. In my speech today, I will touch on the following areas: (a) building SME capabilities; (b) lowering the foreign worker DRC; (c) supporting an inclusive society; and (c) tightening of relief for travellers. Small and medium enterprises (SMEs) make up more than 90% of the total number of the businesses operating in Singapore and employ 65% of the workforce. Therefore, supporting SMEs to build deep capabilities and grow to stay relevant and competitive are key for both companies and individuals.[+14 sentences] This will impact the number and quality of jobs, as well as the competitiveness of businesses. The feedback I have received from dialogue sessions I have had with SME leaders and members of business associations that operate in my ward is that existing schemes with pre-approved digital solutions are helpful, but more flexibility is needed to support the diverse needs and stages that their businesses are at. This will enable them to address the opportunities and challenges, with the major shifts that Minister Heng Swee Keat had spoken about in last year's Budget as well as in the opening of his Budget speech, that are impacting these businesses – the shift in global economic weight to Asia, which brings opportunities for our businesses, but also increases competition; rapid technological advances that enable new capabilities but disrupt business models; changing demographic patterns, with an ageing population impacting both our talent base as well as our manpower requirements; and the decline in support of globalisation that is impacting and creating greater geopolitical uncertainties. Just last week, a resident, who is an SME business owner, came to our Meet-the-People Session (MPS) seeking help for his business. We initially thought that he was seeking for financial support and grants. But after discussions with him, I realised that what he was really seeking help for was to restructure his business and digitalise. He was, however, at a loss and did not know how to go about it. He did take advantage of the current schemes available to digitalise to have his website and online presence set up. But he, too, realised that it was not enough. He needed to rethink how he did his business in order to better leverage technology to help him stay competitive. He clearly needed help not with funding but in transforming his business. Transforming how he did business in the markets and market his products and services, he needed new skills to understand how to do so. And he needed to also understand how to leverage the technology. The Budget builds on programmes already in place to support businesses but introduces new initiatives to help businesses restructure. I believe that an approach that supports companies at different stages of growth is needed. I welcome the announcement in this year’s Budget to focus support in an enterprise-centric way, noting the different approaches for large companies with complex needs as well as the common challenges that SMEs are facing, and digitalising in common functions like HR, finance and customer relationship management and more targeted support for SMEs as they restructure and grow. Minister Heng Swee Keat spoke of the introduction of the Innovation Agents Programme where businesses can obtain advice from experienced industry professionals who have both technology expertise and business experience to support their innovation efforts.[+1 sentence] I would like to ask how support will be provided by the Innovation Agents and how will it be structured. What are the qualifying criteria for support and how can businesses tap on this programme?[+1 sentence] Let me touch on the lower foreign worker DRC. This announcement on the reduction for the services sector had sent a very strong message to companies on the need to be more productive and to rely less on foreign workers.[+31 sentences] We must recognise that this will not be easy for companies in the services sector as they rely heavily on manpower and currently are facing challenges in attracting Singaporeans to take on jobs in the service sector. The countries of sources for foreign manpower are also developing fast and will progress well and businesses must understand that supply for this manpower will eventually diminish as well. While it is painful and difficult, if companies in the services sector do not reduce reliance on foreign manpower for their businesses now, they will be more severely impacted if they are not prepared for it. To raise productivity of the services sector, companies will need to innovate and restructure. We will see some companies struggle to make the shift. Apart from the extension of the EDG and PSG, more needs to be done to help businesses in the services sector improve productivity and reframe their business models and strategies. The same challenge will be met by other sectors that are labour-intensive and have low productivity. Why is it challenging for companies in the services sector to reduce their dependency on foreign manpower? Is it a question of not being able to attract Singaporeans to the jobs? Are the factors due to the demographic changes with an ageing population? Is it because of the demand and working conditions of the jobs? Or is it due to the high expectations of Singaporeans for work? Is it an issue of salary? Or is it an issue of cost of getting Singaporeans? The questions and issues have been debated and many of these factors have been attributed as possible reasons. I believe that the answer actually is in all of the above. What is important now is that, for businesses to build a sustainable model in a market like Singapore which is developed, where we are not a cost leader, we have a tight labour market, our market is small. So, therefore, we have to differentiate by being more innovative and delivering better quality. How we do this will decide whether we are competitive or not. The answer though is not a simple one and it cannot be achieved by doing more of the same. And it is also not about just innovating and applying technology and automation. It requires rethinking of how business and work are done. The services sector, as the name suggests, is all about service and customer experience. Many do fear that technology will result in lower customer touch, lower personalisation of services and poorer customer experience. With innovation, technology, if applied right, can achieve greater productivity and better quality but requires rethinking of the way we do things. Let me share an example, a very simple one. This is an example that was shared with me of a business, Kopi Ong. It is a food and beverage (F&B) business. It services professionals in the Central Business District (CBD) area with freshly brewed coffee and tea. They differentiate themselves in a very simple way, by the signature kopi and teh to each of the customers' preferences. What it means for them though is that their staff will take longer in preparing the coffee, leading to queues and longer waiting time. What they did was that they tested a solution offered by Foodster, a chatbot solution developed by the Development Bank of Singapore (DBS) and Every Botty, a chatbot developer. And it allowed them to be able to let their customers chat via Facebook Messenger and order the drinks they want and pick it up and get notification when the drink is ready to go and pick it up. What it meant is that the business was able to achieve greater sales, better customer satisfaction because they picked up the coffee and did not have to wait in the long queue and they did not need to have more workers.[+23 sentences] They did not need to have more space as well. What this allows them to do is use technology, make it easier for their workers to plan the work and, at the same time, be able to get better personalised customer service. So, if applied right, with the right partnerships, the right support, businesses can change. Just a simple example. But I thought it is important to make the point that it is not just about technology, it is not just about the way we do business, it is not just about people and the skill, it is all of them. Therefore, the support that is in place needs to do that. Now let me talk about supporting an inclusive society. Education, employment, healthcare benefits and affordable healthcare and caregiving affect all Singaporeans at different stages of life and regardless of status. The various programmes announced in the Budget did signal an inclusive approach to support Singaporeans through the stages while building on the fundamentals for the long term. Whether it was the MGP, the extension of CHAS for chronic conditions and some of the measures in the Bicentennial Bonus like the five-year MediSave top-up, these gave Singaporeans who are eligible, regardless of income and type of property they lived in, the support and the assurance. This inclusive approach in important in building our social fabric. Similarly, Edusave top-ups to support families with school-going children as well as employment support for workers and seniors to enable access to opportunities were equally welcomed. And it is very important as they help give opportunities to all at different stages to be able to take advantage of the opportunities that they are presented with. But as with all Budgets, we do have to recognise that finances are finite. To be sustainable, most support packages are means-tested to ensure that they are targeted and go to those who most need it. The challenge is finding the right criteria to use for the means-testing. While not perfect, per capita income and annual value of property living in are used in Singapore to assess eligibility. For several healthcare and care support programmes as well as the cost-of-living relief initiatives, when there is no household income, the annual value of property is used. With an ageing population, there are many middle-income seniors who live in modest private properties that will be above the $13,000 or the $21,000 annual value criterion used for means-testing. They, therefore, will not be eligible for many of these support schemes. An example is the Caregiver Grant that has recently been announced. Another is the support given to lower-wage seniors who work, which is WIS. For some of these seniors who do not own properties, they are not eligible for WIS if they live with a relative in a private property which will obviously have an annual value above the criterion. With people living longer and cost of living concerns in a developed market like Singapore, while I agree that these schemes must continue to be means-tested and targeted to provide support for those who most need it, will the Minister give consideration to refining how we use the criterion of annual value of the property lived in? The current blanket rule of annual value of the property in relation to all who live within the same dwelling unit may miss its intent for scenarios that I had highlighted.[+4 sentences] Is it possible for there to be consideration for more flexibility in such cases to allow for eligibility? The last point that I would like to touch on is the Goods and Services Tax (GST) Import Relief for travellers. I had not intended to speak on this, but it did intrigue me and the feedback I got was quite surprising. With the increasing trend of Singaporeans travelling, and if I understand correctly, the intent of the change is to make the tax system more resilient. If this is the case, has assessment been done on how much it is going to cost to collect the tax?[+4 sentences] I believe there will be some digital methods to submit the tax. But there will be administrative cost, workload for customs officers and inconvenience to travellers. This will all increase. So, I hope consideration is given to that. Will the cost of collecting the tax result in net revenue loss from the taxes collected? Can the Minister share the anticipated amount of tax to be collected and the significance to the tax revenue? Regardless, all Singaporeans traveling will have to be more diligent in declaring their expenditure as failure to declare or incorrectly declaring the expenses does carry fines as well as prison sentences.[+1 sentence] Mr Speaker, notwithstanding my concerns and comments, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Foo Mee Har.
Ms Foo Mee Har (West Coast)1465 words
[+10 sentences]Mr Speaker, Sir, I agree completely with the Finance Minister’s statement that Singapore's ability to plan for the long term is our strategic advantage. The social and economic measures unveiled in Budget 2019 build on the Government's efforts and investments in prior years to address ageing, social mobility and economic transformation. I welcome the targeted measures that build on that momentum to transform our economy and care for our people. This Budget offers a systematic set of programmes, each reinforcing and building on existing ones. I am also heartened to see how, over the years, social safety nets continue to be strengthened for Singaporeans, and how our drive to raise productivity and transform the economy begins to bear fruit, even as much remains to be done. As we celebrate our bicentennial year, we should count our blessings of a strong economy, a united people and the enormous advantages this presents in enabling us to chart our future confidently over the long term amidst a complex and volatile world. Our unique position contrasts starkly with many other countries. These include two of the world’s largest economies. I witnessed the anxiety and suffering of many American families resulting from their government shutdown, and the nightmare scenarios that the British people and businesses are contemplating in anticipation of the Brexit outcomes. Sir, the generous measures in this Budget to help alleviate cost of living pressures are, indeed, timely. The MGP of $6.1 billion will provide half a million Singaporeans born in the 1950s better peace of mind in regard to their healthcare costs. The Bicentennial Bonus of $1.1 billion will provide additional help for broad groups of Singaporeans with their living expenses. This year's Bicentennial Bonus follows last year's $700 million SG Bonus.[+5 sentences] This gesture of sharing surpluses with Singaporeans, whenever our finances allow, should be the regular feature of all future Budgets. There is no better way to build social cohesion than to share these upsides with the people. Sir, Budget 2019 attempts to tackle many core issues facing Singapore, and I would like to focus my speech on the measures proposed to transform our economy and strengthen Singapore’s economic competitiveness. The Finance Minister's vision of building Singapore as the Global-Asia node of technology, innovation and enterprise is very exciting. We can be very proud of the progress we have made in nurturing a flourishing startup ecosystem. We saw a significant rise in venture capital deals and the setting up of 150 global venture capital funds, incubators and accelerators based right here to support startups in Singapore and in the region. We invest substantially in scientific research, with $19 billion set aside for the Research, Innovation and Enterprise (RIE) 2020 Plan.[+20 sentences] We now have a huge pulling power to bring the global innovation community to Singapore, as witnessed by the success of the Singapore FinTech Festival. As a globally recognised leader of intellectual property (IP) protection and scientific research, we are, indeed, very well poised to fully deploy our strengths and make this vision a reality. Sir, to support this vision, we should focus our support on startups in deep-tech with research-based IP at its core rather than just general startups, especially on startups with the potential to scale globally. We should also strengthen our funding strategies for our universities and research institutes to encourage multidisciplinary collaborations, including partnerships with corporates, to solve impactful real-world issues. The reward system for our researchers and academics should provide the motivations for them to supercharge commercialisation of research and development (R&D) and industry applications. I am excited about the plans to encourage young Singaporeans to gain overseas working experience with GRTP. Such internships afford an eye-opening and mind-broadening experience that no amount of book learning can offer. Our youths, equipped with unrivalled education and multilingualism, will better understand our place in the world and how to make the most of it. During my own corporate days, overseas assignments were a key component of development programmes typically reserved for the selected top graduates only. So, I am very pleased that this is now readily available to many Singaporeans through the Government's support. My advice to our lucky young people is, "Go seize the opportunity!" Going digital and automation continue to be big themes in Budget 2019. The call for businesses, big and small, to go digital is loud and clear. Many companies have highlighted skills and talent shortages as significant barriers for them going digital and adopting new technologies. Sir, besides the basic digital skills for everyday activities, our push to go digital must include an expansive talent strategy, especially for expertise in high demand areas, such as quantum computing, data analytics, artificial intelligence (AI) and cybersecurity. The expertise and skillsets we need for this digitalisation drive are in short supply the world over. So, we must critically evaluate how Singapore can build a sustainable pipeline of local talent as well as attract the best of foreign manpower, in order to build the critical mass necessary for a thriving innovation hub. We cannot do this alone. We must also look around. We must benchmark our attractiveness to compete for these globally mobile talents with other established centres, such as Silicon Valley, as well as new clusters like the Guangdong-Hong Kong-Macau Greater Bay Area. With ITMs covering 80% of our economy, their progress is central to our economic restructuring effort to foster innovation, boost productivity and develop skills of workers in their respective industries.[+5 sentences] Even with 23 ITMs launched, their contributions so far are unclear. The feedback from the ground is that the pivotal roles that industry stakeholders and Trade Associations and Chambers (TACs) are expected to play have proven to be uneven across industries. Far too few TACs are able to lead the development of industry-wide capabilities and help their members access local and international networks. There is really an urgent need for the Government to evaluate the partnership model and support structure of how the different Government agencies, TACs, industry players, unions and training providers can come together to accelerate deep capability development. Sir, amongst the economic measures, I am comforted to see that the Minister for Finance has dedicated $3.6 billion to support workers across many schemes. Many lower-wage workers who previously earned just over $2,000 are rejoicing to see the WIS qualifying income cap being adjusted from $2,000 to $2,300 per month. WIS is a key pillar of our social security system. This enhancement will provide $1 billion a year to supplement the income of 440,000 Singaporeans.[+4 sentences] I would like to ask the Government to consider qualifying more low-income Singaporeans to this uniquely Singapore scheme. With the rise of the gig economy, more Singaporeans, young and old, are engaged in work without the security of regular contributions to Central Provident Fund (CPF) and healthcare support. So, keeping in mind the overriding social objective of helping Singaporeans with earnings in the bottom 20%, it really would make sense to offer a form of WIS to lower-income gig economy workers to also help them save for retirement and healthcare, encourage work and raise their income. Mr Speaker, Sir, with regard to the outlook for our fiscal position, Budget 2019 is expansionary, with an overall deficit of $3.5 billion. The healthy fiscal surplus accumulated by this Government in its current term has provided significant room for the Minister for Finance to plan ahead. He set aside a large sum of $15.3 billion under Special Transfers, including $6.1 billion for the MG Fund and $5.08 billion for the Long-Term Care Support Fund, to meet Singaporeans’ long-term needs. This is on top of the FY2018 Special Transfers of $9 billion for future rail infrastructure and GST Voucher needs.[+1 sentence] This enviable financial position is made possible by our strong fiscal discipline, robust contributions from NIRC and a strong economy in 2017 and 2018. With the accumulated surplus of about $18 billion from previous years, there is also an ample buffer for counter-cyclical measures should the global economy pose greater downside risks than anticipated.[+6 sentences] With the significant funds already set aside in the last two years for future healthcare and infrastructure needs, I believe we are now in a much stronger fiscal position than planned. This scenario, coupled with the Government’s differentiated fiscal strategy of using borrowings to fund major long-term infrastructure projects, should offer relief from the need for major tax increases in the near to medium term. I urge the Minister for Finance to maintain our current tax regime for a much longer period, postponing the unpopular GST rate hike for as long as possible. Mr Speaker, Budget 2019 addresses many issues, none more urgent than the need to restructure our economy for the next lap. This is truly our "burning platform", and we must press on. Mr Speaker, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)2736 words
[+11 sentences]Mr Speaker, this year's Budget caught the eye for its strategic purpose – to build a strong and united Singapore. Singaporeans from different walks of life would inevitably have different ideas on how best to achieve this, with perspectives and views shaped by one's values and sense of justice and equality. To that end, the Workers' Party is no different. Apart from the strategic objective of the Budget, three statements resonated strongly for me, each albeit in a different context. These were: first, developing our people on a lifelong basis; second, taking care of not just this generation but our children and their children’s generation; and, finally, that the changes ahead will be deeper and faster. My speech will use these overarching statements to cover areas where the Government should consider and reassess its approach to build the strong and united Singapore that all Singaporeans, not just the Government, must navigate towards. First, "developing our people on a lifelong basis". Mr Speaker, on this broad idea, I will share my thoughts about the MGP. The ground feeling is that even though it helps our senior citizens with their medical bills, albeit less generously than the PGP, there are also quarters who conclude that it is pungently timed with the election cycle, giving off the odour of an unfair advantage aimed at the electoral prospects of the People's Action Party (PAP). Another feedback I received about periodic benefits like the PGP and MGP is the inherent inequity for some of our senior citizens who, by virtue of their year of birth, stand to miss out on a few years of medical benefits because of the interval between one-time packages. Similarly, senior citizens who missed out on the more substantial PGP when they were between the ages of 60 to 64 in 2014 also feel that the eligibility age of 60 for the MGP is inconsistent with the PGP. To address such feedback, the Government should introduce a basic level of medical benefits through a universal and permanent senior citizen healthcare package from the age of 60.[+3 sentences] Quite rightly, the MGP announcement has led some Singaporeans to enquire whether our Budget can support such a package for our senior citizens. There is good reason to opine that it can. Firstly, the introduction of Temasek into the NIRC framework from 2016 brings an additional $5 billion a year into the mix instantly and about $25 billion across a 5-year term starting from this term of Government. Notwithstanding the greater spending needs of the Government that certain Ministers have raised in the past, going forward, the 35%-odd increase in the NIRC from 2016 goes some way to explain the healthy accumulated surpluses accrued to this term of Government from the Opening of Parliament in 2016.[+3 sentences] Secondly, with Finance Minister Heng Swee Keat's announcement this year of new modalities of development funding through borrowing, does this development free up revenue to fund recurrent spending? If it does, it would appear that funding such a universal and permanent healthcare initiative for our seniors cannot be dismissed as dishonest, unreasonable or imprudent. Instead, it can and should be viewed as the key pillar of a strong and united Singapore. To begin with, the centrepiece of such a scheme should be aimed at alleviating the out-of-pocket expenses for primary healthcare, so as to address cost of living for all Singaporeans from the age of 60.[+5 sentences] Here, the additional subsidies for common illnesses and chronic conditions for outpatient care and meaningful discounts off subsidised bills at polyclinics and specialist outpatient clinics should be its central features. The additional components of both the PGP and MGP, such as top-ups to PAssion Silver Cards, MediSave top-ups and other specific enhancements, such as the participation incentive to join CareShield Life for other unmet healthcare needs, can turn on the fiscal position of the Government. This would also provide a sufficient buffer to allow each Government to look into addressing more unique healthcare needs of specific cohorts or categories of workers. They would include those that had taken up gig-economy jobs or, for example, to address the CPF shortages of workers who made sacrifices when the Government moved to cut the employer contribution of their CPF in 2003 to keep Singapore as a whole economically competitive. In addition, it is axiomatic that immigration is a permanent feature of Singapore for the foreseeable future. A permanent and universal senior citizen medical package would also represent a critical symbol of integration among all Singaporeans who hold the red passport, and it would follow that the eligibility age into such permanent schemes should be dispensed with. This is particularly so as about 20,000 new citizens are added to the pool of Singaporeans on a yearly basis.[+10 sentences] Mr Speaker, when the Minister speaks of "developing our people on a lifelong basis", this House should not underestimate the peace of mind a permanent and universal medical package can give not just to senior citizens above the age of 60, but to all Singaporeans throughout their lives. Indeed, to be constantly reminded that a covenant exists between the state and citizen. Vowing to assist all Singaporeans equally with their medical needs in their silver years augurs well for a confident and assured society, without compromising the work ethic. This is especially so as living in a developed country with one of the highest per capita gross domestic products (GDP) in the world comes with costs, particularly for the sandwich middle-class. As all Singaporeans commit their best years and pay taxes like the GST to the state throughout their working lives, a permanent package that helps our seniors manage their cost-of-living issues in their golden years will inject a powerful message of unity into Singaporeans of all ages. My colleagues Assoc Prof Daniel Goh, Mr Faisal Manap and Mr Dennis Tan will speak more on the MGP in the course of this debate. Secondly, I seek to share my views on the Minister's exhortation that the Government seeks to "not only take care of this generation but our children and their children’s generation". Mr Speaker, there is little to quarrel with such a statement. It coheres with the values many Singaporeans hold dear, regardless of race or religion. But looking after the next generation puts the question of intergenerational equity on the table. During the course of his speech, the Minister confirmed the Government's intention to pursue a differentiated fiscal strategy – one for major infrastructure investment and another for recurrent social and security spending.[+2 sentences] But this strategy also implies that there is a limit to how much the current generation should pay for the benefit of our children and their children, too. To this end, when speaking of specific infrastructure investments envisaged, the Minister only spoke of funding Changi Airport's expansion through borrowing, while speaking more generally about how the Government funded the first Mass Rapid Transit (MRT) line through borrowing as well. In comparison, at last year’s Budget, four separate infrastructure prongs were highlighted, and these included the expansion of our MRT lines, regional redevelopment including the Jurong Lake District, Punggol Digital District and Woodlands North Coast, the rejuvenation of our Housing and Development Board (HDB) flats and associated infrastructure and finally, Changi Airport Terminal 5 (T5), the Tuas Megaport and the now postponed High-Speed Rail (HSR).[+1 sentence] I have a few clarifications in this regard. First, can the Minister clarify if borrowing from the market for infrastructure development is only limited to Changi's expansion or does it extend to the other long-term infrastructure plans shared by the Minister last year?[+4 sentences] Secondly, and as a consequence, how will this new differentiated approach announced this year impact future budgeting and, more specifically, revenue available for recurrent spending? Mr Speaker, leaving a sustainable Singapore for our future generations would mean planning infrastructure for climate change and rising sea levels, a subject Minister Heng Swee Keat spent some time on. At the COS debate in 2016, I filed a cut on rising water levels and shared with Members a video of waves breaching the foreshore along a beach at the East Coast Park, flooding the back shore. The prospect of raising our roads, port areas amongst others, sounds like a massive undertaking both in effort and expense, particularly when one does not just imagine raising road levels, but thinks about building kilometres of dykes and so forth. The Minister shared that while it was difficult to project such spending, some preliminary estimates had been carried out. Could the Minister provide a sense of these estimates, the financing approach and the infrastructure required for this purpose?[+6 sentences] Continuing on the effects of climate change, how little is recycled and how much food waste is generated in Singapore, it is apparent that the conversation Singaporeans need to have on conservation has to be elevated. This objective should be an explicit goal of the Waste Masterplan. I look forward to the Masterplan and hope Singaporeans are sufficiently moved into action by it. In fact, like the Government's successful water story, closing the waste cycle would be a significant chapter of the Singapore story and provide a blueprint for other cities to consider. The Minister also mentioned in his speech that greening is an important public policy, given our dense urban environment. A few weeks ago, Channel NewsAsia ran a one-hour documentary on the effects of rising temperatures in Singapore with an emphasis on not just climate change in general, but the perils of greater urbanisation, identifying the urban heat island effect, with the loss of open areas and secondary forests like Tengah likely to have an immediate impact on liveability in future. Researchers posited that greening, it and of itself, contributes little to mitigate the urban heat island effect.[+24 sentences] How does the Government and the upcoming Urban Redevelopment Authority (URA) Masterplan accommodate the drawbacks of greater urbanisation, particularly rising temperatures, and how does it gel with our desire to leave a liveable Singapore behind for our children and their children’s children? If the Government is not finished building Singapore, how will it ensure that this effort will not come at the expense of our green spaces? I hope the Government addresses this matter clearly and actively welcomes a future where we place far greater emphasis on environmental impact assessments and its attendant social issues with a view to leave a sustainable Singapore for future generations of Singaporeans. Finally, Mr Speaker, the Minister shared that the "changes ahead will be faster and deeper". In this regard the Bicentennial offers a unique opportunity to reflect on the colonial experience, both the good and the bad, the choices made, and where we are headed as a people. As Singaporeans of the PG grew up through the 1950s and as the MG grew up in the years after self-government, the colonial masters in the United Kingdom (UK) had earlier taken a leap of faith, ambitious and bold, even if imperfect, implementing a universal healthcare system for about 50 million people as the flag of the empire was lowered across the colonies. The 50-odd years since decolonisation saw newly independent societies and governments fashioning their countries to improve the lives of their peoples. Not all succeeded to the same degree. The vast majority had to contend with extreme poverty and problems on a far greater scale and with a much larger population than Singapore's. As we move past the Bicentennial and into unchartered terrain, our challenges will be far more unique and complex than before. The availability of good jobs for Singaporeans first will be at the heart of many conversations. Employers and SMEs, many of whom have delivered phenomenal economic success to Singapore in the past, will have to adjust and effect real change at the workplace for the benefit of Singaporeans. This would include redesigning jobs for older and more experienced Singaporeans, more part-time or half-day or work from home opportunities, so as to better support our workers from mothers to senior citizens and gig-economy workers. On its part, the Government must be prepared to do more to support businesses that do so with tax relief or rebates so that the economic transformation many businesses are undertaking is directly dovetailed to jobs for Singaporeans. My colleague, Workers' Party Chair Sylvia Lim, will speak more on the employment landscape tomorrow. The faster and deeper changes premonitioned by the Minister would no doubt include the irreversible advance of the smart nation, the rapid evolution of technology and its disruptive and dislocative effects on jobs. But what this prospect also means is that Singaporeans must commit themselves to participate in civic affairs if we are to be united and strong. Mr Speaker, Singaporeans have been referred to as champion grumblers. I disagree. Singaporeans criticise because we care about the country and we care about the direction it is headed. But we also care about ourselves and our families and friends and do not want to be shortchanged. A strong and united Singapore will not be built with some Singaporeans being made to feel that they must conform or support the Government's narrative with little room for alternative views. This is a sure way of heralding not just a divided and insecure population, but a divisive conversation about the choices we have to make collectively. Increasingly, as we move into the future, the Government will not have all the answers. Since the days of decolonisation, numerous countries have introduced some form of legalisation that promotes greater transparency and accountability. In fact, out of the 110 or so countries in the world today which host some form of a freedom of information law, about 80 introduced such legislation only in the last 30 years or so.[+2 sentences] While such laws are no panacea nor a silver bullet, they are but one piece of a larger citizen-centric ecosystem, which moves the needle forward on civic participation. If change is, indeed, going to be deeper and faster, then Singaporeans must be ready to become active participants of that process, with the Government facilitating conversations by sharing more information. For example, insofar as the Budget is concerned, enough well-meaning Singaporeans do not just want to take the Government at its word but want to crunch the numbers themselves and better understand policy tradeoffs, but they are not necessarily able to do so today.[+2 sentences] Last year, an article in the Business Times put this quandary in stark perspective. It was appropriately titled, "Lack of data on Singapore's Reserves limits discussion on its use". With about 20% of our Budget financed by proceeds from our Reserves, one can understand why this issue is a relevant one.[+8 sentences] Mr Speaker, there are many well-meaning Singaporeans who want to consider different roads for Singapore, without losing sight of the hard truth of being a country without any natural resources and with our human resource (HR) of fellow Singaporeans as the only real substantive competitive advantage. The Bicentennial offers us an opportunity to imagine the richness and breadth of conversations about the Singapore we are entering into in the years to come, a Singapore that is not just economically successful, but socially and culturally confident, too, with Singaporeans of all stripes proud to call it home. In conclusion, Mr Speaker, many of the values that we hold dear – the importance of family, prudence, hard work and discipline – are all-weather values and must stand the test of time. These values must run through whatever future we envision for our children’s generation, wherever the winds of Global-Asia lead us and wherever we lead them. They must stand the test of time even if changes come thick and fast. They are at the foundation of the Singapore we all want. But each generation must also be given the freedom to shape the future they seek and to feel that they are an integral part of the country. The Budget should reflect and facilitate this. The need for a confident population, as opposed to an insecure one, will be the "X" factor that determines how united and strong the Singapore of tomorrow will be.[+1 sentence] A confident population being one with more choices to determine its destiny; a society that accepts that it is only as strong as its weakest link and its most vulnerable; and a people – both employers and employees – all rooted to the Singapore that will always be home for us as we transit into our golden years.
Mr Speaker3 words
[+1 sentence]Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar)1625 words
[+11 sentences]Mr Speaker, Sir, in his development and delivery of Budget 2019, our Finance Minister Heng Swee Keat, has lived up to his reputation of being both gentle and firm. This is a Budget that tries to uplift every Singaporean – the children, youths, seniors and, in particular, the MG. This is also a Budget that relentlessly pushes local enterprises and workers to step out of their comfort zone and build deeper capabilities to fend against the unforgiving disruptions caused by globalisation and technology. I would like to speak on, one, the key pillar of our economy, the SMEs, which form 99% of all local firms; and two, the key pillar of our social service terrain, the VWOs, which, together with the public agencies, jointly deliver many of the social and even healthcare services in our country. First, on SMEs, a key pillar of the Singapore economy, contributing about 50% of our GDP. In addition to creating wealth and jobs, a vibrant entrepreneurial spirit is a national asset that feeds a flourishing society. Hence, the responses by SMEs are important points of consideration in finetuning our policies or communications efforts. There are two Budget features that I would like to touch on concerning businesses. One is on the DRC or the restrictions on foreign manpower. It has been more than six years since foreign manpower dependence was tightened to drive higher productivity and redirect foreign manpower to higher tech-content businesses and also to protect the employment of our own local workers. However, whilst automation and digitalisation have helped industries, such as the construction and manufacturing sectors, the same cannot be said of the service sector. As Budget 2019 continues with the latest DRC reduction to 35% in 2021, sectors likely to be hit will be in hospitality, F&B services, the arts, entertainment and other lifestyle sectors.[+6 sentences] I spoke to Mr Benedict Choa, the owner of Cube Boutique Hotel, which specialises in the capsule hotel model with its highly space-efficient yet comfortable bunk-bed accommodation in both Chinatown and the Kampong Glam vicinity. Ben, who has fully used up his foreign worker quota, primarily in the housekeeping department, has tried all means to transform his business model. He has found a new market niche in the highly space-efficient capsule hotel market. He has also automated his guest check-in system, and he took a leap with the Government agency, Infocomm Media Development Authority (IMDA), to install a communal dining ordering system in the Kampong Glam tourist belt. And Ben is all ready to employ any local staff willing to work if he only can find them. This manpower challenge on the ground is also faced by larger service enterprises, too. Mr Andreas Sugaimin, Senior Vice President of Human Capital and Development of Pan Pacific Hotel group, in his efforts to employ local staff, has embarked on a programme to employ persons with disabilities.[+5 sentences] Despite this, the group is still short of manpower as shift jobs in his industry continue to be unpopular amongst Singaporeans. Andreas and his team shared that the pool of willing workers from Malaysia and China is shrinking. And these are the hard truths on the ground. How does the Government encourage enterprises like Cube Boutique Hotel and Pan Pacific Hotel which are aligned with our national directions and yet still face manpower challenges? Next, on the tiered support for different tiers, different types of SMEs according to size. Instead of broad strokes, a different tiered approach is explicitly adopted in Budget 2019 to provide different strokes of help to SMEs of different sizes. Hence, high-growth large firms get more dedicated support and account management to scale and internationalise, such as using the Scale-Up SG programme.[+8 sentences] Those in the mid-sized tier will get slightly less. And the biggest base, comprising many of the small and micro firms, are assisted through more plug and play solutions at mostly self-help platforms or the heartland SME Centres. So, very differentiated approach for different tiers. Dr Sue Ann Toh and her team, one of my grassroots, recently started Novi Health, a small firm, a medical clinic and health tech company which combines clinical care with technology-enhanced holistic solutions, to prevent and manage diabetes and other chronic conditions. Sue Ann spoke to me about her team's wish to access a roadmap and a competent Tech Coach which will likely not be available in view of her startup size and in view of our strategy of differentiated support for different tiers of SMEs. So, whilst differentiated support favouring larger SMEs makes sense as larger firms arguably give more returns to the economy and provide more jobs, all large firms themselves, however, started small, often with humble beginnings. How would the Government identify and nurture small startups which deserve a leg-up but which might be overlooked because of their being defined as a micro or small business? So, I have further suggestions to help the SMEs, for the Minister to consider. One, aggressively identify, train and develop a special workforce comprising senior citizens and persons with disabilities; two, incentivise SMEs through higher SEC to employ these special workforce members; three, provide a buffer foreign headcount for a duration if an employer guarantees the training and employment of, say, more than 10 local staff with disadvantaged backgrounds; four, update the pool of source countries to include countries, such as Myanmar, to allow employers to fulfil the DRC; and five, adopt and execute well a four-pronged process to nurture the largest base of small and micro SMEs, the largest base of most SMEs.[+1 sentence] And the four prongs being the 4As – Awareness, Affiliation, Action and Advocacy. Many SMEs are still not fully aware of the purpose and slew of measures the Government has in store for them.[+15 sentences] That is for Awareness. Those who are aware may not be convinced of the need to change and upgrade and will need to affiliate or buy in through a more impactful and regular targeted sharing of successful transformations in their specific industries. And three, SMEs which are aware and willing to take action often find themselves burdened by daily operational demands and fires. My search on the SME Portal was interesting, but it was insufficient to develop a roadmap or action plan if I were running my own business. So, some way must be found to competently facilitate clusters of similar SMEs on a regular basis to adopt or to pluck some low-lying fruits together, such as shared services in HR, accounting and common industry-specific applications. That is for Action. Finally, Advocacy, in this four-step process. Just as Dr Robert Yap from YCL Group has risen to become an advocate for transformation in the logistics industry, more aggressive efforts ought to be made for more of such evangelists to be profiled for the rest and its industry and to harness these advocates' ideas for further industry transformation. We need more of the Robert Yaps in the other industries as well. Sir, moving even the smallest SMEs from Awareness to Affiliation to Action and to Advocacy in Singapore's enterprise transformation vision is a framework that the Government can consider. Finally, on building a caring society and the role of VWOs. Sir, it is a known fact that the demand for healthcare and other social service to assist our disadvantaged is mounting in our society. Our Finance Minister had himself shared that these needs cannot be met by the Government alone and will require the rest of the society – the village – to join in the solutioning. Besides donors, one significant partner to the Government is the VWOs. Unless they are more financially independent, much of their time will be taken up to seek funds instead of strengthening their services. So, therefore, I have three suggestions to enhance the financial independence of the VWOs so that they can provide more sustainable quality services with the Government. I propose that the Government: (a) further incentivise donors to Institutions of a Public Character by offering a 300% tax deduction provision for the Bicentennial Community Fund, similar to that implemented for SG50; (b) help VWOs further earn their own stream of incomes by allowing VWOs to invest in Singapore Savings Bonds, for instance. This is currently not permitted; and (c) invest. For Government to invest in and nurture VWOs with good track records and help them build social enterprises and other revenue-earning arms to reduce their dependence on Government grants and donations. Create platforms similar to the enterprise model that we see in the economy side, such as VWOs Go Digital!, Scale Up VWOs!, VWO Co-Investment Fund or even VWOs Go Regional![+2 sentences] There is no reason why this sector cannot be more entrepreneurial and why they cannot spawn a MacDonalds' chain of sorts to create many more jobs for the differently-abled. There is no reason why they cannot set up e-commerce sites with plug and play solutions to market and distribute its own services and products. There is no reason why VWOs cannot start regional businesses offering much-needed training in social services, consulting services and disability management, for instance. And since there is no way that the Government will be able to fund all the needs, it must find ways, like it does for the SMEs, to strengthen its VWO partners so that they, too, can be more financially independent and continue to be a strong service partner to the Government.[+5 sentences] In conclusion, Sir, Budget 2019 is a comprehensive and sensible Budget. Will Budget 2019 make any major difference to the transformation of our country's business and social service sectors? I believe the devil is in the details and the key is in the execution. And I hope the Minister will consider some of my inputs. Sir, I strongly support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1694 words
[+6 sentences]Mr Speaker, Sir, it is against a backdrop of global economic uncertainty and geopolitical tension that Singapore is celebrating our Bicentennial in 2019. In recent times, waves of populism have swept across regions and countries, leading to the rise of nationalistic fervour, pressuring countries to adopt citizen-first policies and to implement protectionist trade measures over practices of global citizenship and internationalism. Although trade relations seem to be improving between global giants China and the United States (US), the global economic marketplace and international political landscape are far from stable and certain. However, with uncertainty comes opportunity, and it is important for Singapore to continue to explore how we can continue to remain relevant and ready on the global stage, and leverage our strengths in multilateral and bilateral arrangements that benefit our country. Sir, I would like to begin my speech by covering parts of the Budget that I believe supports this area. First of all, supporting and enhancing the capabilities of our SMEs. SMEs continue to be the backbone of Singapore's economy, forming a significant number of all enterprises in Singapore, employing 65% of our workforce and contributing almost 50% of our GDP.[+3 sentences] I believe my Parliamentary colleagues Mr Liang Eng Hwa, Ms Jessica Tan and Ms Denise Phua had already made this point. In the midst of economic uncertainty, our SMEs certainly cannot afford to be complacent and it cannot be a case of "business as usual" for them. I thus applaud this year's Budget for keeping our SMEs in mind, and for putting in place measures that help them grow, especially to develop digital capabilities so that they can eventually cut down on the reliance on foreign manpower. Schemes like the SME Co-Investing Fund III and the Enterprise Financing System are aimed at giving our SMEs a leg-up by improving their access to public and private funding so that they have the much-needed liquidity to import the latest technology, grow their businesses, and possibly eventually spread their wings beyond Singapore. I would strongly urge our SMEs to continue to tap on schemes like the Go Digital programme and Digital Services Hub to scale up on their digital solution capabilities and shore up their competencies in the area of the Internet of Things as well.[+15 sentences] This would allow them to revamp their business model so that they could find their own niche in the midst of the evolving global economic landscape. While the Government enables the financing system to help catalyse the growth of SMEs, I would urge International Enterprise (IE) Singapore do more perhaps to help our companies make their mark overseas, and to further enhance the Made in Singapore brand regionally and globally. Can IE Singapore do more to help identify areas of growth and help groom our local companies to develop capabilities in those areas? The development of Centres of Innovation in Aquaculture at Temasek Polytechnic and the Energy Centre at the Nanyang Technological University (NTU) have helped to synergise the R&D know-how of our Institutes of Higher Learning (IHLs) with industry-led innovations to commercialise cutting-edge solutions. Can this be a model that IE Singapore can further explore moving forward? Can more such centres and incubators be created to spearhead growth in other areas? I would like to move on to the topic of defence and security. Recent developments in the region have shown that it is important for Singapore to have a credible defence force and to enhance our capabilities against cyberattacks. Mr Bilahari Kausikan put it adeptly at a recent public lecture that a strong and capable defence is Singapore's only leverage on the international stage, giving us an equal footing and bargaining power against other nations. While much of the talks have focused on building our external defences, let us not forget to stay vigilant with regard to our internal security. As the Chinese saying goes, "it is easy to parry a spear thrust in the open, but hard to dodge an arrow shot in the dark." While we can prepare and defend ourselves effectively against any form of external aggression, internal aggression by an enemy in the dark will always be the one that could catch us offguard. So, we thus need to maintain our vigilance against any potential acts of terror on our soil that might rear its ugly head from time to time. Our SGSecure initiatives must thus continue to be strong. Very often, Mr Speaker, Sir, much more damage can be done by attacking the digital and cyber network of a country than attacking via a method of conventional warfare. Consider examples of how cyber terrorists could wreak havoc and create massive damage if they gained access and control of key services, such as our emergency services, airports and transportation networks or key installations like power grids. So, I am heartened that the Government has introduced a sixth pillar of total defence – Digital Defence – to combat this cyber threat.[+4 sentences] I am thus in favour of the proposed spending on defence as I strongly believe that we need to ensure that we stay safe and secure always. Without robust international defence and domestic security, all our significant economic progress and social development would be significantly threatened and that would have grave consequences for Singapore. I now would like to focus on a caring and inclusive society. Singapore has always adopted somewhat of a centre-left policy structure and we must continue to take necessary steps to look after our citizens. The current ComCare scheme, for example, is useful in the way that it is meant to provide short-term support, but it does have its shortcomings.[+1 sentence] At my Meet-the-People session, I have often encountered residents who need a little more support beyond what is presently available to get back on their feet. Although the ComCare short-to-medium term assistance that was rendered to them could be extended when needed, the process of putting in the repeated applications for extensions could be discouraging and demoralising for these residents who are already assailed by multiple challenges. As such, I am looking forward to the ComCare Long-Term Assistance scheme that will help provide a longer-term guarantee to help those who need more support, especially those who are unable to work due to unfavourable conditions and circumstances.[+12 sentences] I would like to especially commend the Finance Minister and the Government for the MGP that recognises the contributions of the generation that lived in a period of uncertainty during Singapore's early Independence and who committed their lives to Singapore, often at significant personal sacrifice. All of us here, Mr Speaker, would either have relatives or would know someone from the Mederka Generation, and one such person is one of my residents, Mr Sreevardhanan Vasu Pillai, or as he is known in our community, Mr Sree. Mr Sree was born in 1951 and brought up in a kampung in Sembawang. As his father was the sole breadwinner supporting a family of eight children, Mr Sree entered the workforce after his Senior Cambridge Certificate, working as a bicycle mechanic while enrolling at Lembaga Gerakan Dewasa Pelajaran (Lembaga) which was a night school set up by the Ministry of Education (MOE) for workers seeking to upgrade themselves. In 1969, he was called up to report for National Service as his request for a deferment to complete his studies was turned down. Mr Sree was eventually commissioned as an Artillery Officer in 1971 and he always speaks of his period of National Service with a great source of pride. As he himself says, and I quote, "I was very proud to be in the Artillery Battalion. The training I underwent in National Service was very tough, but having lived in a kampung within a big family unit, I was able to tolerate the training regime. Along the way, I made many friends and they remain a source of strength for me up to today. The early batch of National Servicemen were considered the Pioneer guardians of Singapore." That is a wonderful tagline actually to tag for our early National Servicemen, the Pioneer guardians of Singapore. Mr Sree then went on to join the Port of Singapore Authority as a clerk and, through continuous upgrading and learning, worked his way up to becoming an Operations Officer. In 2018, he retired from PSA after more than 45 years with the company.[+3 sentences] I think to some in our younger generation, that seems like an eternity. Forty-five years of loyalty to this particular company. This also included an eight-year stint in India that he saw as a form of "National Service", as felt he was part of a strategic initiative to develop a Singapore company overseas. There are many men and women like Mr Sree who have shown the grit and resolve to not only contribute to the defence, economic growth and societal development of a newly-independent Singapore, but managed to upskill and upgrade themselves along the way, while also somehow finding time to raise a family. These remarkable men and women are responsible for the trees that provide the shade that we are all now enjoying and I would urge the Government to review the MGP from time to time, and to top-up the benefits whenever we are able to so. I believe that this would give the MG peace of mind that their needs would be attended to and they would be looked after during their silver years.[+4 sentences] Mr Speaker, Sir, I began my speech referencing Singapore’s Bicentennial and how we can continue to maintain our relevance and importance in the global landscape. Singapore has, indeed, come a long way since our founding 200 years ago, and we have survived several existential crises in the process. As we celebrate the Bicentennial, I hope that we can all also take some time to think about not just where we came from, but where we are going to next. Let us embark on the search for deeper meaning behind what defines Singapore, our goals as a Country and our purpose as a People as these are important fundamental foundations and would certainly help our future generations remain anchored and rooted in the values that have brought us our success.
Mr Speaker7 words
[+1 sentence]Senior Minister of State Heng Chee How.
The Senior Minister of State for Defence (Mr Heng Chee How)2382 words
[+13 sentences]Mr Speaker, Sir, thank you for allowing me to join this debate. I listened to the Finance Minister's speech and noticed that he pointed to the role of unions, the crucial place of workers, many times in his Budget Speech. Therefore, it is true that we must continue to put workers at the heart of all we do. I thank Minister Heng Swee Keat for this. My fellow Labour Members and I will speak up for the different segments of our working population. The common point that we want to make is that every worker matters to the overall good of the economy, society and country. I will focus, as I have done over the years, on the mature working population. I would frame the context of my speech by making two points. First, we are running into predicted headwinds as far as economic growth is concerned because of population and workforce trends. If we do nothing, our ability to generate national wealth to invest in the future and fund the welfare for the present will face problems, and inequality in our society will grow. It is, therefore, crucial that we focus attention in this debate on how we can continue to grow this national economic pie. Second, that by taking the right coordinated steps, we can turn threat into opportunity, continue our ability to grow economically and cohere better socially. This is the practice of social and economic defence. For a few years now, we have been reminded that the local workforce in Singapore will plateau from around 2020, which is just next year. In other words, based on current employment and retirement rates, the incoming local workers will just be about enough to offset and replace the retiring workers, and there will be zero net growth in the local workforce.[+16 sentences] So, one may ask, "What if that happens?" Well, GDP growth is the sum of the growth of productivity and the growth of manpower. Thus, if the manpower growth component becomes zero, then GDP growth, which is how national resources are ultimately generated for use to care for Singaporeans, can only come from productivity growth. So, you have productivity and manpower, and if you get zero on the manpower side, then it is like flying a plane with one jet engine shut down. Obviously, we would do better not to let manpower growth become zero. The question are: how do we do that? Where do we get the manpower from? One way of looking at it is that we have four manpower taps. The first one would be school leavers coming out of school and entering the workforce. What about these school leavers? To all intents and purposes, these were the babies born about 20 odd years ago. So, whatever those numbers are, it was already preset about two decades ago. The second source is, indeed, productivity, and that is done through better work organisation, better design, technology, equipment and skillsets. And this is what Industry Transformation is about. By becoming more productive, the same number of people can create more economic value through their work, and this is very important and it is the other jet engine to fuel our growth. The third source is foreign manpower. About one in three persons in Singapore’s workforce is a foreigner.[+2 sentences] It is obvious that we have to judiciously manage the size, mix and growth of this manpower source so that while we benefit from their important contributions, Singaporeans have a fair go at opportunities and prospects at all times. In other words, we cannot just open the floodgates to foreign manpower in order to solve our zero net local workforce growth challenge. Therefore, we have to look very carefully at the fourth tap, and the fourth tap is: how do we make the best use of our local population in the working ages, both those currently working, as well as the latent pool waiting to be activated for work.[+1 sentence] Mr Speaker, Sir, prolonging the work years of those currently working was precisely the reason why I called for tripartite discussions to review the long-term retirement and re-employment ages in the Budget Debate last year. I am grateful that the Ministry of Manpower (MOM) has convened a Tripartite Workgroup on Older Workers to review retirement and re-employment ages and to consider adjustments to the CPF contribution rates for older workers.[+16 sentences] The Workgroup has been carefully considering these important and difficult topics, and there is much work ahead. I am also grateful to the Finance Minister for extending the SEC and the Additional SEC so that mature workers’ cost-effectiveness continues to be reinforced. There is more, however, that we can do besides reviewing the retirement and re-employment ages in order to get the best of our mature working age population. Sir, when Singapore started industrialising in the late 1960s and 1970s and our economy needed manpower, that posed a challenge as to where that additional manpower would come from. At the same time, that challenge also offered an opportunity for households to increase their incomes and living standards and for Singaporean women to become more financially resilient. There was a hurdle, however. Many women at the time were full-time housewives, having to look after the children at home while their husbands worked to provide for the family. How are they to go to work? Who is going to look after the children? So, the basic transformation then was the scaling up of childcare provision. Parents could entrust their children to childcare in an affordable and accessible manner. That liberated the women from being stuck with no choice, to being able to choose to work. At the same time, the economy got the additional manpower it needed. The country grew its wealth and could better afford to invest for the future and to care more for those in need. And because Singapore took coordinated steps then to overcome that obstacle, the Singapore economy and our society are better off today, both in living standards and in having less inequality than if the women did not have the choice to work and to earn. Sir, Singapore now faces a similar challenge to reactivate our latent working population to fuel growth and to meet short-term and long-term individual and societal needs. According to MOM's Labour Force Survey 2018, there are close to 170,000 female residents aged between 40 and 59 in Singapore who were not working. Of these, around one in five, or about 33,000, of them cited caregiving to family members or relatives, excluding childcare, as the main reason for their not being at work.[+7 sentences] Now, 33,000 is the equivalent of one year's birth cohort. And if we add to that caregiving that is cited as a secondary reason for the rest of that 170,000, net of the 33,000 citing caregiving, excluding childcare, as another important reason for their not working, then we are really talking about very substantial numbers. This leakage of national potential will grow as the Singapore population ages further, and more caregiving needs emerge within families. At the same time, companies across many industries are facing a tighter labour market and crying out for manpower to meet their needs, and many Members of the House spoke about that just now. So, there is a structural mismatch between the supply of and the demand for manpower, and it is not just a technical problem because there are profound social and financial consequences for the individual, family, economy and country if a large and growing pool of middle-aged Singaporeans is unable to earn for their immediate upkeep and retirement needs. This will then fuel inequality, and it will erode social cohesion. The question then is: how do we turn this socio-economic threat into a dividend that will benefit all? A 2017 survey by the National Trades Union Congress' (NTUC's) U Family Secretariat of 529 stay-at-home women aged between 25 and 54 found that two in three of them were keen on returning to the workforce, if only suitable part-time or flexible work arrangements (FWAs) could be found to allow them to balance between earning an income and undertaking caregiving.[+12 sentences] It is, therefore, clear that in order for this pool of latent workers to be activated, we need three key breakthroughs. Firstly, we must establish what the requirements are for accessible, affordable eldercare provision in the community so as to relieve these 33,000 or even more caregivers to be available to undertake work, or at least part-time work if not full-time work. Current capacity buildup and funding plans for such provision, be it for senior activity, senior day-care or live-in care, is mostly predicated on the expected health and social needs of senior care recipients. Considerations of how to relieve and liberate their caregivers to be able to choose to work are not central. So, this review must look at that and must also consider whether the funding model for service provision can ensure that supply is sustainably built up at the pace that is required. Here, I would also want to borrow the point from Ms Denise Phua earlier when she spoke about VWOs to become even more financially viable and so on as they undertake the important work because many of the providers in the eldercare sector are, indeed, the VWOs and social enterprises and so on. So, the sustainability of the funding model is actually very critical as we scale it up. Secondly, assuming that the effort to provide the care and to relieve the caregivers succeeds, then where can they find work and what can they find? This is a critical question, because if supply of manpower is increased without a corresponding increase in the demand for manpower or increase in absorptive capacity, then it will not solve the problem, but will, in fact, raise the frustration and just increase the unemployment rate. Earlier, I pointed to the U Family survey that showed a high proportion of caregivers wanting part-time or flexi-work. This also means that if more companies have such options for their workers, many of those who had to quit to care for family would have been able to stay on in work, thus continuing to earn and provide better for their immediate and longer-term needs, and also supplying the manpower on a continual basis to the companies. But when we look at the Singapore labour market, it has long been based on primarily the full-time staffing model. Comparisons of full-time employment rates for mature workers of ages between 55 and 64, comparing Singapore with the Organization for Economic Co-operation and Development (OECD) countries, it places us at about the 10th position with respect to our full-time employment rates for this group of 55 to 64. But when we look at the part-time comparisons, then we go down to the 23rd place, comparing with the OECD countries.[+4 sentences] These are 2017 figures. So, this tells us that most Singaporean companies may not have yet learnt how to ably utilise and integrate part-time and flexi-work options into their mainstream manpower model, or are also perhaps unwilling to do so. And this is so despite years of promoting flexi-work arrangements (FWA) by the tripartite partners at both the national and company levels. I note with interest that there is an article in today's Business Times entitled "Payoffs in productivity, engagement and creativity make flexi-work a worthwhile goal". In there, there is a paragraph that says, "A closer look at the data shows that although 93% of Singapore organisations offer flexible work, in only 21% is it offered broadly across the organisation.[+11 sentences] Flexible work needs to be implemented and not restricted in order for it to work". Therefore, a thorough review of how part-time work and flexible work options can become integral to the mainstream staffing models of Singapore companies, alongside the traditional full-time work model, is needed. We also have to determine how to set expectations of HR practitioners in Singapore, so that they can then pick up and have the competence to operationalise this and make this work for companies, and to work well for companies. We have to investigate mindsets, close knowledge gaps and consider incentives in order to open the way and grow the capacity. We can learn much from advanced economies like the Netherlands and Japan in this regard, as they have been able to achieve high employment rates for both full-time and part-time work. In other words, they are able to more fully activate their mature working populations. So, it is not just a question of substituting full time for part time. Keep the full-time work rate high. But increasing needs, so how do we then introduce and enable this latent force, which is looking a lot for flexible and part-time work, to enter? Success will only be achieved when potential supply is matched to potential demand. This matching is not trivial, and the outcome does not happen on its own. Today, more than 40% of jobseekers above age 40, as helped by e2i, are successfully placed mostly into full-time jobs. Therefore, we must identify sectors and occupations with good relative prospects to achieve strong placement outcomes for flexi, part-time work as well. We must also see whether training and placement mechanisms for part-time work may be different from those for full-time work and, therefore, what may need redesigning.[+2 sentences] Mr Speaker, Sir, I call in this year's Budget for a tripartite effort to, firstly, examine and ascertain the requirements for sustainable senior care provision so as to enable the activation of the latent mature manpower pool. Secondly, to determine how fair and flexible work, especially part-time work, can be structured and pervasively incorporated into mainstream company staffing models, and to clarify the role and competencies of HR practitioners in this endeavor. Thirdly, to determine how training and retraining and job matching methods should be adapted to achieve significant improvement in the placement rates into part-time jobs for the targeted returning stream of mature working age Singaporeans, many of whom currently have to make the stark choice between working and caregiving.[+3 sentences] In doing so, Mr Speaker, we will stay alert to structural trends. We will then maximise our chances of staying a "one united people" that will, together, "achieve happiness, prosperity and progress". I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Zainal Sapari.
Mr Zainal Sapari (Pasir Ris-Punggol)1497 words
[+6 sentences]Mr Speaker, every worker matters. As our society becomes more affluent, many of us are concerned with the plight of low-wage workers. Many of us have heard of the phrase "It takes a village to raise a child". In the same vein, I say that it takes everyone in society to help low-wage workers! Everyone, regardless of whether you are in Government, an employer, a service buyer or a concerned citizen, must realise that we all have a part to play to uplift the lives of our low-wage workers. This year’s Budget is pro-worker. NTUC applauds the Government for its continuous efforts to help low-wage workers. We welcome the enhancements to the WIS scheme. Perhaps, the Government may want to consider increasing the cash-to-CPF ratio to put more cash in the hands of the low-wage workers to help them better meet their immediate needs, without impacting the allocated budget.[+2 sentences] While NTUC continues to rally our workers to upskill, I believe that an important next step would be for the Workforce Skills Qualifications (WSQ) courses to be reviewed. NTUC stands ready to work with the industry stakeholders, training providers and SkillsFuture Singapore (SSG) to ensure WSQ courses are comprehensive and flexible to suit the needs of the industry. Our Government and employers have been very supportive of the Progressive Wage Model (PWM), and this has translated to real outcomes for our cleaners, security officers and landscape workers.[+2 sentences] NTUC hopes to see more industry stakeholders coming forward to work with the Government and NTUC to develop PWMs for their industries. Coupled with WSQ modules being made more relevant, it would be a sustainable way to raise the wages of our workers. In this year’s Budget, NTUC welcomes the condition to have positive outcomes for workers as a core criterion for companies to tap on the EDG.[+7 sentences] NTUC is encouraging companies to work with their union leaders to set up training committees to identify training that will equip workers with the relevant skills for sustained productivity increase. Although my previous call for better medical benefits under the Employment Act did not materialise, I welcome the enhanced CHAS subsidies and hope that MOH will allow CHAS cardholders to receive subsidised healthcare treatments at polyclinics even if referrals are made by CHAS-approved private clinics. Mr Speaker, I believe service buyers can do more. Service buyers have a key role to play in uplifting the lives of our low-wage workers. NTUC has been encouraging them to adopt Outcome-Based Contracting and to place greater emphasis on quality attributes rather than contract prices. Adopting progressive procurement practices will ensure more favourable outcomes for all, including better welfare for our outsourced low-wage workers. What are these progressive practices? First, contracts should specify service outcomes instead of headcounts and be evaluated more holistically based on the price-quality method, where quality has a higher weightage over price.[+24 sentences] Service buyers should avoid cheap sourcing which would lead to service providers undercutting one another in order to win contracts. Because with low margins, service providers are unlikely to provide better staff welfare beyond the statutory benefits. Second, service buyers should consider longer contract periods. This would incentivise service providers to invest in technology since they can amortise cost over a longer period. Technology makes work easier, smarter and safer, leading to better service outcomes and higher productivity. In addition, it gives outsourced workers greater job security. Service buyers can also consider aggregating their demand to potentially enjoy economies of scale and more efficient manpower deployment. Third, service buyers should treat their service providers as partners instead of mere contractors. They should ensure that their contracts have fair clauses and avoid unreasonable liquidated damages. When service providers have fair contracts, they are more likely to do a good job and train their workers to deliver higher service standards. Otherwise, workers would usually bear the brunt of bad contracts. This happens when service providers find ways to minimise cost at the expense of workers' welfare. Finally, when contracts are renewed, service buyers should consider the experience of the incumbent workers as well. These workers are more experienced and familiar with the job requirements. Thus, in awarding a new or renewed contract, service buyers should ensure that incumbent workers’ wages and benefits are not worse off than before. NTUC hopes to see more Government bodies take the lead to adopt these Outcome-Based Contracting and progressive procurement practices. Our unions have been working closely with the industry associations to engage buyers and catalyse this on the ground. Besides this, service buyers have a moral responsibility to look after the welfare of their outsourced workers. This includes the area of training, allowing service providers to send their workers to attend training without requesting for headcount replacements, and workplace welfare. Therefore, I call for building owners or service buyers to provide designated rest areas for their outsourced workers. I am sure if workers are treated well, they will put in their best efforts to deliver quality service. To lead by example, I call upon all Government agencies and related bodies to ensure proper rest areas are provided for outsourced workers. The unions can work with building management to propose solutions for proper rest areas to be built. On the part of service providers, NTUC has been vocal against the practice of price undercutting or suicide bids, because when service providers have difficulty maintaining the contract subsequently, it is their workers who suffer. Service providers should not gamble on their workers’ wages and welfare and hope that the contract they won through price undercutting will bring them profit. I urge the Government Ministries and service buyers to keep a lookout for price undercutting and exclude such service providers from getting contracts.[+1 sentence] NTUC has been instrumental in the recent changes to the Employment Act and the introduction of Tripartite Standards. We have been active in encouraging companies and service providers to adopt the tripartite guidelines and standards which promote fair and progressive employment practices, which have also helped to make working conditions better for low-wage workers. We hope that the Government will only do business with companies that have adopted these tripartite standards.[+19 sentences] Mr Speaker, workers must embrace training and technology. Low-wage, vulnerable workers must also help themselves to earn better wages through upskilling and knowing their employment rights. NTUC has been urging our workers to "train up to keep up" and "skill up to move up". We want workers to embrace the adaptive technology and technical skills relevant to their industry to become Worker 4.0, hand-in-hand with Industry 4.0. With the huge training subsidies provided by the Government, the onus is also on the workers themselves to seize the opportunities available. Finally, society at large can make a difference. Let us not take for granted clean, green and safe environments that we work, live and play in every day. These are not a given. They are the result of a lot of hard work put in by our cleaners, security officers and landscape workers. As individuals, we can show our appreciation to them with simple acts. Return our own trays at the food centres; greet and give them a smile when you see them. Do not litter and do not think that you are doing them a favour by creating work for them. These acts do not cost us a thing, but they can go a long way in brightening up their lives. Make it our habit to care. A gracious society does not happen by chance. It is up to you and me to make a difference. Mr Speaker, in Malay. (In Malay): Every worker matters. Helping low-wage workers should be everyone’s responsibility. In this Budget, the Government has increased the payout under the WIS scheme and provided other forms of assistance like CHAS and training support. It is important that service buyers and service providers conduct their business honestly and fairly so that low-wage workers can enjoy better salaries and a better working environment.[+10 sentences] Low-wage workers should also take up opportunities that are available to enhance their skills, especially in the application of technology. I would also like to encourage the public to be more considerate by lightening the workload of low-wage workers. Many of us are perhaps unaware, but in our daily duties and lives, we can play a part in helping our low-wage workers earn a living with dignity. (In English): Mr Speaker, let me conclude. As a society, we are judged by how we care for the less fortunate. Helping low-wage workers earn better wages, gain better welfare and be shown greater respect is not the responsibility of the Government alone. It is our collective responsibility to create a better society, one that is inclusive and caring, and one that ensures all workers feel a sense of belonging. Whoever you are, do what you can, and with whatever you have to help a low-wage worker live with dignity. Every Worker Matters. Mr Speaker, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Ang Hin Kee.
Mr Ang Hin Kee (Ang Mo Kio)1509 words
[+6 sentences]Mr Speaker, the Minister for Finance spoke on the need to develop deep capabilities and how our Singaporean talents have been making their mark in various fields, and how connecting with other highly skilled individuals from around the world have made us even stronger. That has been most aptly portrayed by how our freelancers have contributed to the successful making of the Hollywood movie “Crazy Rich Asians”. They have also benefited from collaborating with global talents in this regard. Let me declare my interest as a Director in charge of the Freelancers and Self-employed Unit in the NTUC. Freelancers have responded positively to the Minister for Finance's message on how the Government will help workers deepen capabilities and seek new opportunities. I will touch on this in the first part of my speech and thereafter on the impact of diesel tax. Today, one in 10 workers are self-employed or freelancers.[+4 sentences] The emergence of digital platforms has created more options and easier access to an alternative or additional source of income. However, freelancers that we spoke with cited challenges, such as loss of income due to prolonged illness or injury, training gaps and unclear contracts. The Tripartite Workgroup formed by MOM has come up with recommendations to address these concerns. Some ideas implemented have had good traction, but we can do more and do it faster. A case in point is the formation of the National Instructors and Coaches Association (NICA). It was registered with the Registrar of Societies and became an affiliate of NTUC just last month to represent the interests of freelancers who teach sports, enrichment and wellness. Because every freelancer matters, NTUC and NICA's first piece of work is to collaborate with insurers to offer Prolonged Medical Leave (PML) insurance to instructors and coaches.[+34 sentences] In fact, a member recently suffered an injury and was on medical leave for two months. Previously, he would have to rely on his own savings. But with the insurance cover, the payout enabled him to receive income during his recuperation. However, not many have taken up such a policy as they fear losing out on bids if not everybody takes it up. This is one area where Government Procurement entities can encourage freelance bidders to be protected. In January this year, the National Private Hire Vehicles Association (NPHVA) worked with ride-hailing operator Grab to help their active drivers enjoy free Prolonged Medical Leave coverage. I am also the Executive Adviser for NPHVA and, this morning, we managed to get, together with the help of MOM, GOJEK to also offer similar product protection for their driver partners. I hope all operators will do the same for all taxi and private hire drivers to be covered under such insurance coverage. To this end, I would like to appreciate the efforts by MOM and the Land Transport Authority (LTA) to engage these operators. It is actions, such as these, that will affirm their assertions that drivers' interests matter to them. I feel that Budget 2019 is pro-worker with initiatives like the GRTP and the Professional Conversion Programmes (PCPs) to help workers with skills upgrading and to move into new growth areas. Freelancers also want to participate in these initiatives. They do not have easy access to courses and support. It can be extra daunting if they work in specialised fields where there are few local providers or experts. Typically, for them, training is also self-funded. Potential loss of income when they attend classes also deters some from attending such training. But we have had some early successes in providing training support to them with the help of some Government agencies and NTUC Learning Hub. For example, we contextualised first-aid courses for outdoor learning and adventure instructors. We also customised SkillsFuture for Digital Workplace training for taxi drivers and sports coaches. Masterclasses and workshops were also co-organised with freelancer associations. We hope to receive more help even as we intensify our efforts to deepen the competencies of more freelancers. We are glad that there are initiatives like those by IMDA to develop the media sector skills framework. IMDA also provides training allowance to alleviate the loss of income when media freelancers attend approved training. I hope that other Government agencies will quickly put in place skills frameworks and training allowance for freelancers in sectors under their purview. We have also made some progress in technical training for individuals like riggers – those who set up lightings and sound systems on ceilings and walls – and boot camps to equip new media freelancers on how to go about submitting quotations and how to go about training and deepening their own competencies. This also includes upstream efforts with MOE’s Education and Career Guidance officers. Together, we co-curate sessions where youths in tertiary institutions can get a clearer picture as to what a freelance career entails. Mr Speaker, Sir, young freelancers shared that they want to be a part of the GRTP. They, too, want opportunities to gain working experience overseas. We hope that the Ministry can consider partnering us and freelance associations to send our young freelancers to key regional markets. We in the NTUC also stand ready to select and prepare young workers from among unionised companies, especially those who have displayed leadership skills, to gain overseas exposure so that they can support our unionised firms’ expansion plans. Freelancers and self-employed persons (SEPs) are often frustrated by late or non-payment for work done. Sometimes, they have to deal with buyers who exact additional demands beyond the agreed scope of work. Usually, disputes arise because the agreed terms are not documented or when the contract terms are vague. MOM recently reported that 500 companies have adopted the Tripartite Standards when contracting with SEPs.[+7 sentences] I am glad our joint efforts have seen some early take-ups. The standard helps. However, I also want to applaud the MOF team in getting all Government Procurement Entities to adopt the Tripartite Standards. Let us encourage more to do so, especially the recipients of transformation efforts supported by Enterprise Singapore’s EDG. I would also like to thank the MOF team for guiding freelancers to navigate Government procurement procedures. Many would like to tender and bid for projects offered by the Government, and I am happy that we will next co-produce with MOF a brochure with information on procurement procedures and practices so that freelancers know how to provide and bid for Government projects. Mr Speaker, the second part of my speech deals with the impact of diesel tax. The Minister for Finance's announcement that diesel duty will be increased has caused much concern among taxi drivers.[+3 sentences] Taxi drivers wished that the Government can provide more support to help them manage higher operating costs. Why is that so? First, while there is some rebate to cushion the impact, they need more assistance. The average cost increase even after the $850 rebate is about $2 to $3 or up to $4 per day because they use about 50 litres of diesel a day if there are two shift drivers of the diesel taxi.[+1 sentence] We have called upon taxi operators to help beyond just passing on this diesel rebate that the Minister has offered to the drivers. In fact, why is it that they can do more? It is because, firstly, they can consider reducing the daily rental of the taxis which, today, ranges from about $110 to $120.[+8 sentences] They can also consider cutting pump prices because they offer pump stations to their drivers. They themselves operate the pump stations. So, very different from other businesses. When their costs increase, taxi drivers cannot pass on this cost increase to commuters because they also do not set the fares of the taxis. The fares are set by the operators. The type of vehicle is selected by the operators. I cannot choose between vehicles A and B because you have 16,000 diesel vehicles that the taxi drivers choose from. So, if the operator offers non-diesel taxis, then the taxi driver would not have to incur this additional diesel tax. So, a lot of the conditions seem to be favouring the operator or beyond the control of the drivers. I urge the Ministry of Transport (MOT) and MOF to look at taxi licence operators implementing positive outcomes for workers to form part of the licensing criteria. Perhaps, if the operators are not keen on doing more, the Government can consider issuing fuel pump licensing rights to the unions.[+6 sentences] We can then appoint the appropriate operator who will sell fuel at the right price to members and manage them manage costs. Mr Speaker, Sir, personal responsibility in making well-informed choices about contracting practices, protecting against contingencies, for example, buying insurance, and planning for future needs remain core principles for freelancers. However, support from the Government in training and setting the tone for all buyers will be an important boost. I urge business buyers and operators to also offer freelancers a fair and reasonable deal. That is a Budget outcome that will matter most to freelancers. With that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Tanjong Pagar)1703 words
[+3 sentences]Mr Speaker, Budget 2019 has been billed as a strategic plan aimed at building a strong and united Singapore. I am glad that the Minister for Finance has acknowledged in his Budget Speech that strengthening Singapore's economic competitiveness is an ever-continuing journey and there is more that we can do to support Singaporeans on this journey. My speech today will focus on two areas which I think we can do more, especially for working Singaporeans – in Training and in Workplace Safety and Health. First, all of us in the Labour Movement are heartened to hear that the Government will be dedicating $3.6 billion towards helping our workers thrive and adapt to industrial and technological changes.[+5 sentences] With the increasing pace of technological advancement, we must ensure that workers – be it those in multinational corporations (MNCs) or those in SMEs – are able to tap on training opportunities and ensure that they continue to stay relevant amidst the Fourth Industrial Revolution. From the feedback that I have received in my weekly visits to workplaces and through speaking to a broad spectrum of blue- and white-collar workers, I have identified three key challenges facing our workers when it comes to training. They are course, cost and time. Let me elaborate. The first challenge that workers face comes when selecting their courses. The Government rolled out the SkillsFuture initiative to encourage a culture of lifelong learning. This initiative has done well, with about 465,000 Singaporeans benefiting from SkillsFuture Credit training subsidies.[+15 sentences] However, there is an overemphasis on having a breadth of courses available, rather than having in-depth SkillsFuture courses to help build mastery in the domain. Some have also given me feedback that the process of course selection can be disheartening, especially when they find that a course offered by a polytechnic or university is not eligible for reimbursement by their SkillsFuture Credit. The second challenge is cost. The $500 SkillsFuture Credit offered by the Government may not be sufficient for a variety of reasons. Many courses cost more than $500 and, often, going on a single one-off training course would deplete one's entire SkillsFuture Credit account. Many workers do harbour hopes of returning to school to get that diploma or degree that they did not pursue when they were younger. But the cost of these courses can be prohibitive, as they are no longer eligible for the same subsidies enjoyed by our young Singaporean students. The third challenge is simply the lack of time. Many working in the SMEs tell me that they do not have time to go for training as their organisations are already so manpower-lean. Those in the MNCs do not have it easier either. They tell me that while they are given the time to go for training in the day, they end up pulling what they call “double shifts” – having to still complete their work at night after class, in the office or at home. Cost and time are two of the most common reasons given by those who have yet to utilise their SkillsFuture Credits. How then can we collectively work to address these challenges that our workers are facing? I am proposing three strategies: (a) build depth; (b) bring training closer to workers; and (c) formalise the importance of training with management. First, building depth. The Government can encourage workers to go for training and build depth in their chosen fields by allowing all local polytechnic and university courses to be automatically offset by the SkillsFuture Credit.[+1 sentence] This should cover all types of courses, be it part-time diplomas, specialist certificates, executive education programmes or one-off specialist modules. Given the more expensive nature of such courses, I would urge the Government to consider providing a top-up to the SkillsFuture Credit to encourage Singaporeans to go for these courses that provide them with more depth to support their career goals. Better still, I hope the Government can give all adult Singaporeans a second bite of the cherry by providing education subsidies to mature students who wish to pursue a diploma or degree in our local IHLs.[+15 sentences] This will certainly cement our commitment to invest in lifelong learning. Helping to identify training needs and craft in-depth training courses is an area where tripartite cooperation is useful. The National Transport Workers’ Union (NTWU) has been actively working with LTA and the public transport operators to help our workers upskill and reskill. This includes setting up the Singapore Bus Academy and the Singapore Rail Academy to provide workers with relevant and timely training. Last year, the union worked with Singapore Bus Services Transit (SBST) to roll out the Operator-Maintainer training course, which empowers our bus captains to perform simple vehicle repairs. At the course’s graduation ceremony, I met 63-year-old Bus Captain Varathan. He has been a bus captain for over 40 years and this was the first time he was taught to do maintenance work on his vehicle. He was one of the pioneers to complete the course and shared with me that there were plenty of hands-on practices during the course which made the training very much easier to understand. He was also appreciative of this chance to develop skills and knowledge that would come in handy in his daily work. I hope the story of Bus Captain Varathan will inspire many more workers to have a lifelong learning attitude and be open to training and upskilling. Second, let us bring training closer to workers to support them in this lifelong learning journey. Some courses simply cannot be done online. For courses that require physical premises, our schools and IHLs can be a convenient location for workers to go and upgrade themselves. The Labour Movement has begun taking steps to bring training closer to our workers. Let me cite an example. The United Workers of Electronics and Electrical Industries (UWEEI) have signed memorandums of understanding with three polytechnics in the west, east and north to provide workers with a wide variety of training courses at locations close to their workplace or their home.[+10 sentences] For SMEs worried about sending their employees for training over a long period of time, we can bring training closer to them by having modular courses offered online. SMEs can leverage NTUC's e2i U Leap app. This is a mobile learning platform that allows users to learn bite-sized modules on the go and take anywhere between 30 minutes and two hours off work to focus on learning during the week. Last year, e2i also released U Leap Enterprise, a mobile learning platform where e2i works with companies to curate specific courses for their workers, which I think is very suitable for SMEs to address their workers’ training needs. This will not only save employees' travel time and hassle, it also minimises downtime for the company. To ensure that upgrading workers' skills is seen as a priority towards a company’s transformation, training must be formalised and recognised by the management. Therefore, I encourage companies to work with the Labour Movement to make training a shared responsibility and make training real for our workers. Mr Speaker, let me now touch on workplace safety and health (WSH). It is imperative that we continue to invest in WSH practices to ensure that our workers can return home to their families, safe and healthy, everyday. Our closely coordinated tripartite efforts in recent years have started to bear fruits. Workplace fatalities in 2018 have reached a record low of 41 cases. But despite the decrease in fatalities, the number of major and minor injuries have increased.[+6 sentences] There are four areas that we can do more to safeguard our workers' safety and health at the workplace. First, we need to place more emphasis on workplace health. Our workforce is ageing and many have shared with me that they are increasingly facing higher stress levels at work. Recent studies have shown that poor workplace health contributes to work-related injuries and fatalities. We can do more to place more emphasis on workplace health, for example, by mandating yearly health check-ups for better detection and prevention of chronic occupational diseases. Second, to encourage employers to build safer and healthier workplaces, we need to increase the cost to companies with poor WSH track record as deterrence. Under the Work Injury Compensation Act (WICA), all employees doing manual work, as well as all employees earning $1,600 or less per month need to be insured.[+6 sentences] Insurance companies should put in place a tiered insurance premium framework under WICA, where companies will have to pay higher insurance premiums if there are many claims of the same incident nature. Third, every company must have a trained WSH representative. The current legislation only mandates for a WSH officer to be appointed in some workplaces, such as shipyards, petroleum processing plants and factories which employ over 100 people. According to the 2018 National WSH Statistics Report released last week, even lower risk sectors are not spared from WSH accidents. As such, we should consider expanding the requirement of having a trained WSH representative to all companies, to make WSH pervasive in every workplace. Fourth, we need a National WSH Training Academy. Our workforce is diverse and it is this cultural diversity in our workforce that makes it challenging to train our local and foreign workers in workplace safety. There are currently 12 approved training providers that conduct WSH WSQ courses for the construction and metal working industries, but the training resources at each of these training providers can vary significantly.[+7 sentences] Having a National WSH Training Academy will better ensure high and consistent WSH standards across all sectors, particularly in high-risk sectors like construction and manufacturing. I will speak more about this during the upcoming Committee of Supply debate. In conclusion, the Labour Movement is heartened by the Government's commitment and investment in our workers throughout the years, in particular, the focus on deepening worker capabilities in this year's Budget. This is a Government that cares for our workers. Let us continue to invest in lifelong learning and put in place strong measures for WSH to ensure a well-trained, future-ready, safe and healthy workforce. Because, I am very sure, this House will agree with me that Every Worker Matters. Mr Speaker, I support the Budget.
Mr Speaker7 words
[+1 sentence]Senior Minister of State Koh Poh Koon.
The Senior Minister of State for National Development and Trade and Industry (Dr Koh Poh Koon)1858 words
[+3 sentences]Mr Speaker, Sir, the 2019 Budget is a strategic and forward-looking one, with measures that are meant to benefit Singaporeans of all ages. These include strengthened support in education for young Singaporeans, as well as the MGP and Bicentennial bonus that will help older Singaporeans and low- to middle-income families. In particular, I was glad to see strong support for businesses and workers, with measures that will help them embrace and adapt to industry transformation. For enterprises, the Scale-up SG programme and pilot Innovation Agents programme will help firms build deeper capabilities to innovate and grow. For workers, the extension of SEC and CSP will help them upskill so that they can keep ahead of the curve and be ready for emerging jobs.[+4 sentences] Businesses and workers must embrace change together so that everyone can reap the benefits of industry transformation. While these measures and announcements are encouraging, there is more that we can do and I want to focus my speech in two areas. First, to enhance the employability and employment of our older workers; and two, to make industry transformation "real" for our workers. Sir, our population is ageing. Older Singaporeans form a significant part of our workforce, which has a quarter aged 55 and above.[+27 sentences] This proportion is likely to grow as Singaporeans enjoy better healthcare and higher standards of living. Older workers are valuable assets who can contribute experience and maturity to our workforce, and we must better ensure their employability and employment. With our transition to a knowledge-based economy and the wider use of enabling technology, our workers rely less and less on physical strength and their work experience becomes an even more important asset. Our older workers with their years of industry experience are well-placed to leverage technological tools to maximise their productivity potential. Successful Industry 4.0 transformation must be complemented by a capable and competent Worker 4.0. But this transformation is not a straightforward process. There are challenges. The key challenge is mindset change of both employers and workers. Some employers prefer hiring younger workers, while some older workers are apprehensive and resistant towards emerging technology trends. In the face of rapid technological changes and the evolving demographic profile of our local workforce, the Government, businesses and workers must all be ready to adjust their mindsets and adapt to changes. This change in mindset must be led by employers. With supportive employers coming on board the transformation journey, workers will also be encouraged to pick up the relevant skills. Here, I would like to encourage enterprises and companies to focus greater efforts in two areas to integrate more older workers into the workforce. First, companies must put an emphasis on job redesign to ensure that older workers are able to adapt to new technology and to different work environments. This could mean improving the user interface of a process so that technology adoption is much easier. For example, some SMEs I have visited in the manufacturing sector have made the control of industrial robots via the use of iPads very much more intuitive. The operator does not need to understand the inner workings of the robot. He only needs to be familiar with the controls on the iPad. By using a familiar platform like the iPad as the user interface between the operator and the industrial robot, older workers found it much less daunting to adapt to robotics and automation and are able to improve on their productivity. Innovation and technology adoption do not have to be complicated for businesses or workers. We must do more to ensure that job redesign and technology adoption remain user-friendly and intuitive for our workers, both the young and old. A more conducive work environment through job redesign will attract a younger talent pipeline to enter the industry while enabling experienced older workers to expand on their job roles. Second, companies must provide better training for older workers to upskill or reskill to leverage technology. For example, PSA has been testing and adopting many automation technologies, including unmanned automated guided vehicles (AGVs) as well as automated and remotely-controlled yard cranes. To ensure that their drivers and crane operators remain relevant and employable, PSA worked with the unions to train them for higher-skilled roles. The result is new skills, better pay and greater fulfilment for its workers and, of course, enhanced productivity for PSA. Training and reskilling are key to ensure that our older workers remain employed and employable. In 2018, more than 40% of clients served at NTUC's e2i Career Centre were aged 50 and above, and approximately 30% of this group were professionals, managers and executives (PMEs).[+2 sentences] PMEs are, therefore, also at risk of displacement and must continually upgrade to seize emerging job roles. NTUC has been working with the Government and industry partners on the PCPs, Place-and-Train Programmes and Professional Development Programmes to upskill and reskill older workers. These programmes have been successful in helping many mature PMEs enter new and exciting job roles. We, therefore, welcome the Government’s move to expand PCPs into new growth areas, such as blockchain, prefabrication and the development of embedded software, to support mid-career professionals entering these sectors.[+18 sentences] We will continue to work with the Government and employers to strengthen the employability of our older workers through our network of unions, social enterprises and our U Associate partners. There are other funding levers that NTUC can work with the Government to better incentivise and support companies to upskill and reskill older workers. We will work with the Government on implementing the changes to the EDG and PSG to ensure workers' outcome will be one of the key endpoints of ITMs. Government grants for transformation must partner the Labour Movement and result in better outcomes for our workers. We need to continue helping Singaporean workers keep pace with economic transformation so that they can continue to have better wages, better career prospects, progression, protection and privileges. Since we launched the ITMs, much has been done and we are starting to see early successes across many sectors. However, the ultimate beneficiary of our ITM initiatives must be the Singaporean worker. Transformation and ITMs need to be made real, with real tangible benefits for our Singaporean workers. And I will be sharing more about this at MTI's Committee of Supply debate. Mr Speaker, Sir, training is, therefore, an important aspect of ensuring our workers, young or old, remain relevant to the transforming industry landscape. Only by helping our workers meaningfully and effectively use technology can we unleash the full potential of technology as a multiplier to the capabilities of our companies to be globally competitive. In my many conversations with our workers and employers, two issues stand out. First, workers and companies are unsure of where to go and get started on training. Workers who are keen to undergo training are confused by the myriad of courses available by different course providers and are unsure of what exactly is the most suitable course that they should go for. Some companies also find it difficult to navigate the training space and find the right partners to train their workers. Second, workers are often not involved in the change management process in the company's transformation and wondered if they will be able to meet the needs of the company or get displaced by automation and robotics. Some companies have embarked on transformation but have yet to translate increased productivity into tangible benefits for their workers. This has all led to a sense of unease among some of our workers on what industry transformation holds for them. To address these issues and make industry transformation "real" for our workers, the NTUC Training Council and the Training Executive Committee (Training Exco) were formed last year. The Training Exco, which I chair, comprises unionists and senior Government officials to coordinate the implementation of training efforts.[+4 sentences] To address the two issues which I highlighted, the Training Exco will focus our initial efforts in these two areas. Firstly, to help companies and workers navigate the training space, a key priority for the Training Exco this year is for NTUC to become a viewfinder for workers' training. NTUC will work with unions, industry partners, Government agencies as well as IHLs to curate courses and simplify the training space for businesses and workers. NTUC's e2i will be rolling out some enhancements to U Leap, a mobile app that can be a useful tool for workers to upskill, reskill and acquire knowledge in bite-sized formats. Over 200 topics and modules will be reclustered to align to the 23 ITMs to help workers in each of the sector navigate through the courses.[+5 sentences] There will also be quicker registration and on-boarding process for learners to intuitively navigate U Leap for a better user experience. We plan to introduce more certifiable modules in collaboration with educational institutes and professional organisations. NTUC will also work with agencies like the Economic Development Board (EDB) and ESG to bring more SMEs onboard U Leap Enterprise version. To date, we have 15 companies, including SMEs, such as Feinmetall and Fong Engineering, who have reaped the benefits of customised content for their workers' training to learn on-the-go. This has allowed workers to acquire useful knowledge without the need to be away from work, helping SMEs to better manage their manpower while, at the same time, upskilling their workforce. To build a healthy ecosystem that supports transformation efforts, U Leap, together with Human Capital Singapore, will launch a community network for SME bosses in March this year.[+4 sentences] This is the start of various U Leap communities to enable users to network and participate in crowd-sourced learning as well as be attuned with trending topics on U Leap itself. Secondly, to ensure that workers are co-drivers in the change and transformation process, the Labour Movement will be working with companies on the setting up of Company Training Committees, especially in our unionised companies. Both management and workers must work together to engender continual training as an important ingredient for business transformation and increased productivity. Workers must be a co-driver in this change process. The Training Exco, through the promulgation of Company Training Committees in the companies, will enable the Labour Movement, employers and the Government to work together more closely to operationalise the ITMs and, in particular, support future skills development and job placement strategies under the various ITMs.[+6 sentences] We must ensure that industry transformation leads to real outcomes for our workers, be it wage growth or retention of older workers and upskilling of our workers. In conclusion, Mr Speaker, this year's Budget has presented a clear focus on supporting the needs of both businesses and workers so that they can take the necessary steps to transform and adapt to the future economy. This is a Budget that is both pro-enterprise and pro-worker. It sends a strong signal that Industry 4.0 and Worker 4.0 must continue to go hand-in-hand for us to succeed in the competitive global environment. With close partnership amongst the Government, businesses and workers, with our strong tripartite relationship, I am confident that we can overcome challenges and achieve win-win-win outcomes for all. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)1226 words
[+8 sentences]Mr Speaker, thank you for allowing me to join the debate. This Budget is a pro-worker Budget. By revising national enterprise schemes to focus on worker outcomes places workers' interests at the core of Government policies. I would like to discuss further on two particular themes touched on in the Budget: helping youths succeed and prioritising lifelong learning for all workers. Our younger Singaporean workers, unlike generations before theirs, face more disruptions in their work lives. In fact, they are almost certain to need multiple career and skill trampolines. Job facilitation for fresh graduates, many of whom are 26 years and below, is crucial as it sets their direction in life early. This is especially so for the students of Private Education Institutes (PEIs). The latest PEI Graduate Employment Survey found that only 47.4% of private school fresh graduates secured full-time jobs six months after graduation. This was a steep decline from 60.1% for the previous batch. They also earned less, drawing a median gross monthly salary of S$2,650, compared to graduates from the local Autonomous Universities (AUs) who earned S$3,400.[+37 sentences] We must continually review the PEIs to either enhance the skills and job value of these qualifications or to increase the students' awareness of alternative options. NTUC is prepared to assist with career navigation via its Youth Career Network platforms. The Association of Southeast Asian Nations' (ASEAN's) growth will turn it into one of the top economic regions in the world. There are significant entrepreneurial and employment opportunities for our Singaporean workers. ASEAN can be the important second wing of growth for our economy. How do we make it easier for people to move out of Singapore, explore the world, and open more gateways for themselves and fellow Singaporeans? Our young people must seek regional working experience. Many major companies already require their senior executives to understand overseas markets. Without that, they cannot progress to become head of the companies. While programmes like the National University of Singapore (NUS) Overseas Colleges (NOCs) and the GRTP allow for meaningful internships, we need our youths to pursue full-time job overseas. I hope that we can harness the strength of our overseas trade offices and larger Singaporean companies with regional presence to build employment networks. The latter can jumpstart growing our ASEAN-ready talent. This Budget is also about addressing the needs and challenges of businesses and workers in the face of growing structural changes globally. To achieve this, we must prioritise and master lifelong learning. Minister Heng Swee Keat aptly mentioned that Singaporeans need to "reconceptualise" what learning is about, adding that they need to be prepared to learn from "anywhere from anyone at any time". While this applies to all workers, we need to pay special attention to those who started off with lower qualifications. How do we extend more comprehensive learning support beyond SkillsFuture Credit for workers who want to return to school or to upgrade themselves? Our workers and unionists are well aware of the need to continually retrain. It is vital to their livelihoods. It is made more urgent now with disruption. Most workers would not have a single linear career trajectory. They would need to be nimble and switch careers or job functions as seamlessly as possible. In fact, the majority would need to obtain additional skills or qualifications to progress within their specific industry or to switch to another industry. Yet, this process is not easy, as my fellow Labour Member of Parliament Mr Melvin Yong had shared. Many workers have significant financial and family commitments. Retraining incurs costs and loss of income. Therefore, many workers choose to put off picking up another skill or qualification for as long as they can. The PCPs and CSPs have helped to provide these bridges. The combination of course subsidies and training allowances have lowered the barriers to career conversion. Yet, the limited number of PCP and Earn and Learn Programme (ELP) places meant that many workers would have to pay full unsubsidised fees, and some workers might not qualify for the PCPs and might need a longer time for them to qualify or succeed. Recently, a 33-year-old resident staying in Tampines sought assistance from me. He has been working since graduating with a diploma in business in 2007. In his own words, he wrote to me, he said, "I had no idea what I wanted to do after my GCE "O" level. Thus, I embarked on something very corporate. So, I did a diploma in business." He worked in a corporate function, and his job was in a polyclinic where he was inspired to become a nurse. After trying for two years, he finally obtained a place in Ngee Ann Polytechnic. Yet, he is unable to secure a tuition grant because he has already obtained a previous diploma in 2007. His school fees will amount to $21,000 per year which he cannot pay.[+13 sentences] He said, "I do have some savings, but it is not enough for three years." Yet, he still has a burning desire to serve the community. He also said, "It took me a long time to finally get a placement at Ngee Ann Polytechnic to study nursing. But unfortunately, I do not come from a well-to-do family. My father is semi-retired and my mother is a homemaker. I do not behold high hopes in life. I will be gratified enough to be a nurse. But the cost of $60,000, I believe, is too difficult for me to manage. At the end, I do have some savings to tide myself through, but it is not enough for three years. However, I ain't giving up. Thus, I am seeking all forms of assistance which I can possibly conquer. This is possibly my last chance, and I am thoroughly sincere in becoming a qualified nurse." While this is one appeal, there might be many other people in similar circumstances in different fields. We hope that more can be done for them. It entails expanding the number of PCP places by helping our Singaporean workers, especially younger ones, to obtain a second National ITE Certificate (Nitec), a diploma or degree that will help them better adjust to structural economic changes.[+3 sentences] It will also allow workers to discover new career choices instead of those predetermined in the earlier years. Returning to school for career switch can be socialised as a mainstream norm. Workers require more support when they leave their jobs to expand their options on reskilling. Similar training allowances, such as those for PCPs, can be provided to them while they pick up their second qualification. Perhaps, along the lines of Workfare Incentive Scheme, we can think about it as a Reskilling Incentive Scheme. Our polytechnics are also introducing more Common Entry Programmes in Business, and Information and Digital Technologies (IDT) clusters.[+2 sentences] This streamlining of courses allows for over-specificity early in life. Perhaps, we can also offer these to workers looking for career resilience and changes in modular fashion. Creating a culture of reskilling is not just a government's duty but the duty of unions, employers and the Government.[+4 sentences] Learning agility is the key to building a modern workforce capable of navigating and leveraging opportunities arising from disruptions. Every Worker Matters in Singapore. And the Labour Movement will continue to do its part to make it real for workers. Mr Speaker, I support the Budget.
Mr Speaker45 words
[+5 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 4.20 pm. Sitting accordingly suspended at 4.00 pm until 4.20 pm. Sitting resumed at 4.20 pm
Mr Speaker4 words
[+1 sentence]Mr Seah Kian Peng.
Mr Seah Kian Peng (Marine Parade)1892 words
[+18 sentences]Mr Speaker, Sir, first, may I congratulate you on your photo exhibition, which is aptly called "Our Place in the World". Whether 700 years, or 200, Singapore's place in the world remains geographically small. But with careful development and husbandry, we have seen our little place become more prosperous and more secure. We often think that our dream of peace and safety can be secured by technology. And, indeed, in our armed forces, in the way we have harnessed technology to our service in infrastructure, housing, and even parking, we have seen how things can be cheaper, easier and better. But technology carries with it not just a chance at greater comfort and ease, but also a risk of great evil. Science or Technology. Sir, I would like to clarify briefly the difference between science and technology, two terms which we use interchangeably but, as the historian of science Thomas Kuhn has said, they are "profoundly different". Technology is about process; it is an instrument which helps us to make things better and is valuable for that reason. Science works to a different purpose – it is the pursuit of knowledge and truth – working towards an accumulation of not just how we do things, but in understanding the true nature of the universe – physical and human – that we work and live in. In this sense, science can be "hard" or "physical sciences", or "the human, social sciences". One can, therefore, be a very good scientist, but a poor technologist and vice versa. I make this distinction only to say that the pursuit of technological advances cannot be a blind one but must contribute to a useful end. For example, we would all agree that Parking.sg is a very useful technological product. It replaces paper coupons, makes it easy, quick and secure to pay for parking. You pay for what you use, and you get a refund for what you do not. That is an example where we used technology in a cost-effective manner to get us a service which we find useful. Technology needs a master, and we ought to be always careful of the purpose to which it is employed. As a Labour Member of Parliament, I know that there are a lot of workers' concerns on Industrial Relations 4.0.[+5 sentences] It covers issues, such as the infringement of personal privacy, because smart technologies can determine an employee's whereabouts. Working life is also becoming more precarious for workers with no laws to protect them. It affects the way workers process information, their working time and workplace relationships. The regulatory regime of our working life harks from the industrialisation era. This includes many practices within HR. For example, I hear of how an HR officer tried to convince her boss to install Global Positioning System (GPS) tracking for drivers, so as to monitor whether a driver is working or not.[+9 sentences] I am not sure whether this is the sort of working life we want. Meanwhile, in the F&B sector, in the past, we had inhouse delivery riders, say, in fastfood chains. These are permanent employees hired by the fastfood chains with rights and protection given to all full-time employees. However, when online food delivery platforms are up, fastfood chains increasingly do not need the same number of inhouse delivery riders. At the same time, riders themselves may opt to join delivery companies because they see their earnings improve. They do not see the important considerations in the short term – a career plan, stability, insurance and training. NTUC FairPrice, in our transformation journey, is building automated distribution centres, online platforms and at the stores, adopting technology to help improve processes. Our HR side, working together with our union, has had to retrain our staff to take on new jobs and work with new machines and technology. This is important so that our staff, especially the older ones, are not left behind. In terms of staff demographics, more than 50% of FairPrice's workforce is above 50 years old.[+15 sentences] For sure, this is not a walk in the park. But we are committed to this journey. In an age of technological advance, the HR divisions need to rise to the call, to remember that we are dealing with humans, and to ensure that our regulatory regime keeps up with very human needs and wants. People First; Technology Second. There has been a lot of technological innovations in the payment ecosystem. With technology and the drive towards a cashless society, and with cashless payments becoming more widely accepted, a rising social issue could arise. The obvious question that comes to mind is: will the poor be left out? We have moved from drawing cash from banks, counting cash, issuing cash to workers on pay day to getting everyone to have bank accounts. When the banks imposed a "fall below fee", it was the lower income who are likely to pay the cost. With cashless payments, like using quick response (QR) codes or mobile pay, the poor may become excluded. And yes, they may yet pay the cost of going cashless. So, we need to guard against being technology-centric over being people-centric. Let me cite another example from FairPrice to make this clearer. In our move towards self-checkouts, we started with having self-checkouts that accepted only credit cards. There was, indeed, a very good take-up. But after a while, the level of usage stagnated.[+1 sentence] So, we talked to our customers. We realised that not everyone had a credit card and then there were also some who, even though they had one, preferred to use cash and so we started to work on the next generation of self-checkouts which also accepted cash in addition to credit cards. Not surprisingly, with this new generation of self-checkouts that accepted cash as well as credit cards, we saw another huge jump in customer transactions at these self-checkouts.[+17 sentences] Smart Nation; User Problems. Sir, we have put quite a large budget towards our move to being a Smart Nation. But should we pause to reconsider that even as machines become more powerful, people remain equally frail? Technological changes allow us greater power. But the case of the leaked human immunodeficiency virus (HIV) identities and the MOH data leaks show us that user problems are as present as ever. Sir, we will always have the careless, the malicious and the spiteful amongst us. We will always have unfriendly states, underhanded attacks, subversions. The difference is that technology gives us all greater power. Therefore, I say, while we should not stop in our journey towards a smart nation, we ought always to remember “user problems” and give pause. Remember Parking.sg? It is a great app if everything works. If it does not, well, you ought to know that the following pieces of information have been given by you – your credit, your debit card details, the location you were at at that point in time, your vehicle number and so on and so forth. I think it is a risk many of us are willing to take, and I certainly do not want to paint alarmist hypotheticals. My concern is a separate one. We can try and ringfence technological gaps. But how do we guard against the bitter, the disaffected, the maladjusted or the pathological? The greater the power, the greater the evil that men can do. One thing we can and should do is to invest more in humans, even as we invest in technology. For each course in information technology (IT), data analytics and cybersecurity, we need one on psychology, sociology, human relations; for each new resource in the IT department, a similar one in the HR department.[+19 sentences] We talk about industrial revolution but the quieter yet more violent one lies in the companion revolution in the way we work and relate to one another. Technology allows us to do more. The humanities allow us to know why and how we ought to deploy our new powers. This calls for a way we think and invest in education, but also, what we can do, in Government. Beyond good and evil. Finally, Sir, I want to make one specific suggestion. We have long vaunted our ability to tell “hard truths”, to value “doing the right thing” over doing the popular one. But with increasing use of AI and machines, our ability to tell what is the right thing we ought to do may be severely compromised. Our ability to incorporate technology in our lives has far outstripped our ability to reason morally about the choices that we will be forced to make as a technological society. This is no longer a choice between the right and the popular, the short and the long term, but the choice on how to programme machines to make choices that are not just about efficiency and speed, but about values – good, bad, right, wrong. We know of the accident with the autonomous vehicle at one-north where, thankfully, no one was hurt. If there was, to whom do we attribute the blame? There is recently a rendition of the classic "trolley problem", where people all over the world voted on how they would resolve moral dilemmas. Would they save one or many? Would they save the young or the old? Would they kill their friends or strangers? Answers differ all over the world. Sir, as Singapore develops into a smart nation, we need a collection of people – from the Government, ordinary men and women, policy scholars and moral philosophers, as well as scientists and private corporations, to think about ethical issues and how they ought to be tackled. There are different ethics committees now, embedded in different Ministries and agencies, for example, in biomedical studies and research. Given the complexity and interlinkages, I think there is a case, and I would argue for a National Committee for Ethics in Science and Technology giving inputs on hard cases at the frontiers of new decisions relating to science and technology.[+5 sentences] I must clarify that the frontiers are not those of technological progress alone, but on how they affect humans and human relationships. And what, whether and how technology should be deployed. Sir, this Budget has invested heavily in technology. It has made important provisions to keep us safe in the online space. The Ministry of Home Affairs' (MHA's) Home Team Science and Technology Agency is one. Putting Digital Defence as our sixth pillar is another.[+4 sentences] Sir, we should make a small additional provision to keep us not just safe, but strong, by allowing members of the public, as well as experts from the various humanities and social sciences, to debate, consider and crystallise our key ideas and feelings about what is right or wrong for us to do, using all the technological means we have at our disposal. Mr Speaker, Sir, our "Place in the World" for the past 200 years had been secured in large part because we know how to exploit and work with technology. In the next 200 years, changes will be even faster and more severe. We need to not just understand science to take advantage of these changes, but also what it means to be human. Our investment, therefore, cannot be lopsided in favour of technology.[+2 sentences] Only then can we have a Strong and United Singapore. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Arasu Duraisamy.
Mr Arasu Duraisamy (Nominated Member)901 words
[+13 sentences]Mr Speaker, Sir, data from MOM indicated that our labour force, also known as the economically active population, was 67.7% in 2017 and 2018. Given the changes that have been made to our manpower policies and resources, perhaps it is time that the Ministry conduct an in-depth study of the data and find ways to increase the labour force participation rate. If more Singaporeans are gainfully employed, we will also be able to reduce the corresponding resources needed from the Government and channel it for other uses. Simplistically speaking, one more Singaporean worker joining the workforce equals to the same Singaporean depending less on Government resources. Sir, I will speak on two issues: retirement and re-employment, and skills upgrading and training. First, on retirement and re-employment. It is heartening that this year’s Budget will provide more support towards the older workers, with increased annual payouts from the WIS scheme, by topping up SEC to support employers in hiring older workers, and other initiatives that will help them save more for retirement. While these are helpful to older workers, the best support is ensuring that they have a good job. Many of the older workers have told us they are not ready to retire for good. Some need to continue working, as they are the sole breadwinners of their families. Some need to support their children’s education in universities, and others hope to build up the family's medical and retirement funds which, at 67 years old, many of them still felt were inadequate. But most importantly, many of them expressed the fact that they are still physically able, relatively healthy and want to continue to be gainfully employed. One area to look at is to help our older workers to continue working for as long as they wish to and are able to. One way to do it is to raise the retirement age from 62 to 65, and the re-employment age from 67 to 70.[+2 sentences] I am glad a Tripartite Workgroup has been set up to look into this. Let us do more to help them. In fact, there are already more than 20 unionised companies which are at the forefront of this.[+4 sentences] Examples of such companies are ComfortDelgro, Gardens by the Bay, Hewlett Packard Singapore, among others. These companies have chosen to move the retirement age to 65 and beyond, with some of them having no contractual retirement age. From time to time, the Labour Movement also receives appeals from workers seeking assistance to extend their re-employment contracts. And I urge the Civil Service and other Government-linked companies to quickly take the lead. As the SEC is further extended to end 2020, it is perhaps timely to raise re-employment age so that both workers and employers can benefit.[+13 sentences] The extension of retirement and re-employment ages provides certainty to our workers who want to continue working and allows a longer runway for employers to plan for training and upskilling, as well as adapt to digital transformation holistically. Secondly, I will touch on skills upgrading and training. No worker should be left behind on our road to the development of a Smart Nation for Singapore. As such, I urge MOE to look into enabling continual education for our mature workers. Currently, companies are engaging IHLs to develop programmes for their workers. This approach only reaches out to a small number of workers. If MOE could step in, it can be further scaled up. It has been particularly challenging training workers in the SME sector. A large number of Singaporeans work for SMEs. Due to their workforce size, many SME companies are often unable to send workers for training due to shortage of staff. At the same time, the other challenge is that SME workers are reluctant to go for training as it might affect their gross income and overtime. We have also heard feedback from workers in their mid-50s who felt that it is not necessary to go for training as their career runway is shorter and training might not provide more opportunities for career advancement. We need to change their mindset and help educate them that training and skills upgrading are necessary for them to remain relevant. In view of digital transformation and the ageing workforce, ensuring that both SMEs and their workers are pro-training is especially important. Hence, I urge the Government to recognise companies which are willing to send workers for training and willing to upgrade and automate job processes, to positively differentiate them by allowing them to easily tap on Government funding versus companies which do not do so.[+2 sentences] To facilitate and accelerate training, I hope that training can be brought nearer to the doorsteps of companies and their workers, especially for companies that are situated at industrial areas. This will help to reduce travelling time for workers when attending training. For the more enlightened employers who grant workers paid time-off to upskill, the Government should provide further subsidies to companies in the form of grants or outright absentee payroll.[+3 sentences] Singapore as a Smart Nation will position us well in the competitive global economy and, hence, we need to push everyone to step up the pace of industry transformation and push for productivity growth through automation and developing a skilled workforce. If our workers are gainfully employed, it will benefit employers, the Government and the nation overall as Every Worker Matters. Mr Speaker, Sir, I support this Budget.
Mr Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan (West Coast)1393 words
[+4 sentences]Mr Speaker, Sir, I rise in support of this year's Budget. Today, we are facing the headwinds of stiff global competition and a rapidly changing economy. Protectionism is on the rise and globalisation is giving way to "slowbalisation". As a small and open economy, these geopolitical forces impact Singapore. Last year, our economy expanded 3.2% while growth is forecast to be in the range of 1.5% to 3.5% in 2019.[+7 sentences] While there are challenges, we must maintain our sights on the bright spots. Businesses are turning to ASEAN to diversify risks and Singapore can play a pivotal role as a regional hub. Technology and innovation can unearth new opportunities for our growth. Singapore must continue to sharpen our strengths as a trusted brand and a skilled workforce, and I am glad that this Budget provides a strategic plan to help Singapore and Singaporeans to do so. Key to this plan is our workers. Our labour market is tight with lower birth rates, an ageing population and tightening foreign labour inflows. Work will be disrupted. A study says 44% of work activities in Singapore today can be automated with current technologies, with a third of the skillsets required to perform today’s jobs wholly new by 2020. Rapid skills churn will require workers to swiftly adapt and cope with frequent career transitions.[+1 sentence] We must not leave our workers behind. I am heartened that come April 2020, all transformation efforts supported by ESG’s EDG must include positive outcomes for workers, such as wage increases. I am also glad that NTUC's call for the extension of the CSP and SEC have been heeded.[+17 sentences] This Budget is pro-worker and has put workers at the heart of it. I strongly believe that Every Worker Matters and this Budget can do more for PMEs because every PME matters. In 2018, professionals, managers, executives and technicians (PMETs) continued to be more affected by retrenchments with higher skilled, mature PMETs the hardest hit. Older PMETs also face greater difficulty in the job market with the long-term unemployment rate for resident PMETs aged above 50 higher than younger age groups. With technologies, such as AI, middle-income jobs can potentially be hollowed out, at the risk of workers' downward labour mobility. These are real concerns I have heard from PMEs I have met and spoken to. Our skilled workforce is our competitive advantage and Every Worker Matters. Investing in our workforce enables us to grow the pie collectively and reap the fruits of labour together. I propose three key thrusts to do so. First, enhancing protection in the future workplace; second, enabling progression in the future of work; and third, expanding potential for our future workers. The future workplace must take pre-emptive steps to redesign jobs and future-proof workers' skillsets. Stakeholders must strengthen information flow, overcome information asymmetry and collaborate on transformation. At the recent NTUC Future Jobs, Skills and Training Forum, industry and union leaders, employers and workers shared actionable keys for industry transformation based on early successes. For example, in the financial services industry, the Tripartite Advisory on Human Capital Practices for Banking, adopted by 160 banks, calls on banks to proactively identify impacted jobs and redeploy workers into areas of job growth through PCPs. Our unions are also evolving in tandem. Last month, the Singapore Bank Officer's Association, now renamed the Banking and Financial Services Union, repositioned its mission to serve more workers to cope with disruption. The Labour Movement also welcomed the Singapore FinTech Association, which helps workers to reskill to take up financial technology (FinTech) roles, as an affiliated U Associate partner. As work evolves, the line between the rank and file and PMETs is increasingly blurred, the share of PMETs among employed residents has also increased to 57% in 2018.[+12 sentences] Under the Employment Act and other labour legislation, there remains distinctions between our rank and file and PMEs, and "manual" and "non-manual" work. These distinctions influence the treatment and protection of these workers. It is particularly challenging today to make these distinctions as many jobs involve a mix of both manual and non-manual work. There are also workers who have been wrongly classified as "managers and executives", excluding them from protection under Part IV of the Employment Act. Some employers have also tried to exclude workers from union protection under the pretext that the worker is in a conflicted position as he wields "managerial" powers. The relevance of these dichotomies needs to be examined to ensure that our workers continue to be adequately protected. The Future of Work is fast-paced and the half-life of skills is shortening. Much like our Formula 1 drivers, we must have quick and effective pitstops to retool and get back in the race. Training providers must have speed-to-market and move away from traditional certifications to peer network approval systems and industry crowdsourced on-the-go learning. An example of such a "pitstop" is the Healthcare Academy, set up by the Healthcare Services Employees' Union and NTUC Learning Hub, which upskills workers through industry co-created programmes, delivered through varied modes of learning. Such concerted efforts are needed to ensure that our workers upskill in tandem with transformation efforts. While PWM is associated with low-wage, rank and file workers, PMETs, too, can benefit from PWM, especially PMETs earning between $2,500 and $3,500 per month in highly impacted jobs. Beyond the mandatory PWM, our unions have been implementing structured wage and skills ladders benefiting all workers, including PMETs. It is timely to scale these efforts on a national level and extend PWM to lower-wage PMETs to provide for their progression and upward labour mobility.[+2 sentences] Our Future Workers will increasingly participate in new ways of work and employment models. With flexible and digital-enabled work, we can tap on sources of untapped labour supply to expand our workforce. To expand the potential of our ageing workforce, I have called for the SEC, CSP and WorkPro to be extended and enhanced to maximise our workforce's productive longevity and am glad that the Budget this year has responded positively.[+2 sentences] I want to also call for more pre-emptive and proactive training, and we can only do this with strong support from our tripartite partners. To enable workers to take charge and expand their potential, workers can tap on their SkillsFuture Credits to upskill. Utilisation has increased and it is the time for a top-up of another $500 so that workers can go further in their personal growth through individual, initiated training.[+7 sentences] These credits have helped to seed and catalyse lifelong learning. Our unions have also been working with employers to set aside time for workers' upskilling. Some companies have even voluntarily provided a top-up of employees' SkillsFuture Credits to fund their training, and more companies are encouraged to do so. All stakeholders have a part to play in co-creating our future. We need to create wealth rather than focus on spending more. More wealth means more to spend. We are generating wealth by transforming our economy to higher value activities and constantly attracting such investments. Most importantly, we have to make sure our workers have the skills to do these jobs. We should be bolder in spending money on upgrading and retraining.[+6 sentences] Help our workers earn more, in better jobs. Regulate the training providers, not the trainees. What obstacles are there to prevent our workers from going for continuous training and education? We need to tackle those. If we argue about how to share a stagnant pie, we are fighting a losing battle. We should be working together to grow the pie. The Labour Movement is committed to serve as the workers' viewfinder in navigating the work landscape, by bringing stakeholders together to collectively make better skills, jobs and pay real for workers – I repeat, real for workers.[+7 sentences] Mr Speaker, in Mandarin. (In Mandarin): I would like to propose a "five-core" strategy when we implement the Budget. First, the Singapore Core ‒ build a workforce with a Singaporean Core. Second, of one heart and mind ‒ the tripartite partners must work together with one heart and mind and adopt a worker-centric approach. Third, determination ‒ our workers must be determined to learn new skills, pick up a second skill and develop a lifelong learning mindset. Fourth, confidence – face the future challenges with full confidence. Fifth, ambition – we must have the ambition to fulfil greater objectives.
Mr Speaker4 words
[+1 sentence]Minister Ng Chee Meng.
The Minister, Prime Minister's Office (Mr Ng Chee Meng)1269 words
[+18 sentences]Mr Speaker, the Minister for Finance has announced a Budget of $80 billion that is both pro-business and pro-worker. In particular, Minister Heng Swee Keat paid close attention to workers, not just workers in the generic sense, but workers as real people – the elderly, the unemployed, lower-income workers, even our youths, who represent the future workforce. Feedback from our workers on the Budget has been positive. The MGP, WIS enhancements and other forms of support reflect a more "caring and inclusive" society. They appreciate what the Government is doing for them. However, some middle-class workers pointed out that they did not feel the benefits as strongly. Some also noted that notwithstanding the disbursements, structural rises in costs of living – water, diesel tax, carbon tax and the eventual Goods and Services Tax (GST) rise – would ultimately be passed on to the end users. Some of our workers also wanted to clarify that disbursements, such as the MGP, would not burden future Governments or the workforce. I thought these were very insightful feedback from our workers. In short, the Labour Movement appreciates the direction of our Government and, as Secretary-General of NTUC, I urge the Government to continue to put workers at the heart of all we do. NTUC Labour Members and many other colleagues in the Chamber today have placed workers at the heart of our debate speeches. They have each addressed the various segments of our workforce and the issues they face, whether it is the elderly workers, low-income workers, workplace safety issues, balancing family with work, training and progression, all segments of the workforce, including freelancers and PMEs. Our vision and purpose in NTUC are a simple one. It is about doing the best we can for every worker. Mr Speaker, this is both the necessary thing to do for our economy, and the right thing to do for our society. Our changing demographics mean a tighter labour force in the future and, with limited manpower growth, Every Worker Matters. Each worker's skills, knowledge, experience, contribute to our human capital. Our economy can only be at its best when all our workers are performing to their potential and are rewarded fairly for their productivity. Having said that, the Minister for Finance has shared an encouraging statistic – productivity has increased 3.6% in the past three years.[+13 sentences] This is testament to the efforts of the tripartite stakeholders – the Government, businesses and our workers. But even as we have done well, the Labour Movement cannot rest and must look ahead. At these moments of rapid economic change and disruption, I am glad that there are also many new opportunities for Singapore and Singaporeans. NTUC will partner our tripartite partners to enable our businesses to seize new opportunities and create wealth, so that our workers can aspire to what we, in the Labour Movement call, the 3Ws: better wages, better welfare and better work prospects. At the same time, the Labour Movement is cognisant that some workers in Singapore will feel dislocated by the rapid changes. NTUC will and must always and will do our best to support these workers to keep up. Let me elaborate on how we will manage and balance these multiple objectives. The heart of the Labour Movement's purpose is for our workers to earn and secure a fair wage. This allows them and their families to keep up with the cost of living, save and flourish. We have no illusions that workers can do well if businesses do not do well. Thriving businesses are good for workers. In this regard, I agree with the Minister for Finance that a company's leadership is key. So, when the boss of a company is ready to seize new opportunities through technology, NTUC wants to partner you and wants to facilitate with the necessary worker training and upskilling. With the economy transforming rapidly, if we are to help our workers upskill effectively, NTUC and our unions must now move upstream to participate in Government and industry-led transformation. This is why NTUC strongly welcomes the impending changes to the terms of ESG's EDG. For funding to be approved, a company must demonstrate how such initiatives not only benefit the business, but also provide positive worker outcomes.[+9 sentences] NTUC and our union leaders are eager to share our experience and expertise with our tripartite partners in ensuring that these outcomes are achieved. I will cite a simple example of what we have done for almost 10 years. NTUC's e2i launched the Inclusive Growth Programme (IGP) in 2010 as NTUC's advocacy for low-wage workers. The programme provides funding for companies' productivity initiatives that translate into actual workers' wage increments. Brother Norizal bin Zainal, a security supervisor at Temasek Polytechnic, benefited from this. He took part in a project that was looking to allow officers to update information to supervisors through their handphones. This gives security supervisors more mobility and they were able to up their productivity. As a consequence, he enjoyed a $100 increment to his basic salary as a result. Some may think that $100 a month is not so significant an amount, but to many of our workers, this matters a lot. As of December 2018, the IGP has benefited more than 91,000 workers from 2,000 companies across various sectors: security guards, cleaners, F&B service staff, and hotel service staff. In the past five years, the average wage increase per project was around 13%.[+2 sentences] The successful demonstration of sustainable, productivity-driven wage increases also facilitated the eventual legislation of PWM for lower-income sectors. These successes were possible because union leaders and our industrial relations officers acted as critical catalysts. They worked the ground, company by company, to understand specific business needs and operational process details. They persuaded management that innovation and worker training would be good for business and encouraged their fellow workers also to participate in this upstream work to support the successes of their bosses so that, in turn, they can get better pay.[+3 sentences] The Labour Movement looks forward to a productive partnership with MTI and ESG on the EDG. Mr Deputy Speaker, I will now talk about how we can best help workers in securing good employment prospects in our rapidly transforming economy. The Labour Movement must act on the advent of the Fourth Industrial Revolution, or Industry 4.0, as mentioned by Minister Heng Swee Keat. For Industry 4.0 to be actualised, we need our workers to transform in parallel with their companies and industries because there can be no Industry 4.0 without the workers.[+5 sentences] These workers, what we have called and termed "Worker 4.0", go hand in hand with Industry 4.0. Many workers in countries overseas reject technology. They fear it, they do not understand it, and they are worried that technology will take away their rice bowl. Some of our very own workers in Singapore also feel threatened by the unknown and some of the fear mongering online. But we, in Singapore, cannot reject technology. Technology allows us, especially in our context, to overcome many of our labour shortage constraints and, if applied intelligently, businesses can be more productive and able to seize many emerging opportunities and create wealth. In the past few months, we worked with companies and sector agencies on a study to produce archetypes of Worker 4.0 in different industries.[+1 sentence] Why? We want workers to be able to benefit from this transformation and be assured that this is, indeed, the best for them.[+1 sentence] Mr Deputy Speaker, with your permission, may I ask the Clerks to distribute a handout to illustrate this Worker 4.0?
Mr Deputy Speaker9 words
[+1 sentence]Please proceed.
Mr Ng Chee Meng1496 words
[+2 sentences]When Members get their hands on the pamphlet, you will see that this is a simplified example of what the archetype for Port Engineering Professional 4.0 looks like – the current version, what is the 4.0 version, the skills gap, and the necessary and required training for them to upgrade. Our intention is to help our workers visualise the potential of Industry 4.0, for the companies and for themselves, for their careers. As part of this study, PSA officers worked with the Port Officers' Union to develop training programmes for Port Engineering Professional 4.0.[+9 sentences] When Minister Heng Swee Keat visited PSA over the Lunar New Year period, he may have noticed some automation projects which were on trial. Automation is an important area of productivity growth for PSA in the intense arena of competition for Ports. One of our Union members and a Senior Mechanical Engineer at PSA, Brother Ng Hwee Sheng, has completed a one-year Systems Engineering course at the Singapore Institute of Technology (SIT). With his newly acquired skillsets, he now takes on a larger role managing various automated and intelligent systems. This is part of PSA's scheme in upskilling and multiskilling their PMEs to be more agile and adaptive to keep value-adding in the long run. With a better vision of Worker 4.0, and examples of fellow workers that have achieved it, we want our workers to make it real for themselves, to know that it is doable that they must take personal responsibility for it. Many colleagues in the Chamber today have called for workers' upskilling and upgrading. As the Secretary General, I am very grateful for the support this Chamber has for the workers, including Mr Liang Eng Hwa and Ms Foo Mee Har, for standing in support of workers' training. NTUC will act to scale this effort. To do so, the Labour Movement will work to set up Training Committees with our partnering companies.[+2 sentences] These committees, made up of management and union leaders, will work together to articulate what Worker 4.0 looks like for the company, and partner management in the transformation towards Industry 4.0. Some of our companies have already started. PSA, of course, is amongst a group of around 10 companies in various sectors working with our unions on their Training Committees.[+13 sentences] For example, in the aviation and aerospace cluster, we have SIA Engineering Company, ST Aerospace, SATS; in energy, we have the Singapore Power (SP) Group; in transport, we have the Singapore Bus Services Transit (SBST), Singapore Mass Rapid Transit (SMRT) and so on. In the past, we also have companies that work with unions on training and wage increments to support the implementation of PWM. This provides a ready infrastructure for us to push Industry 4.0 and Worker 4.0 outcomes within these companies as well. These Training Committees may have different sounding names and structures. But more importantly, I am concerned about the outcomes and not the form. Whichever the form they may come in, what they have in common is that management and union must sit down together to discuss, plan and execute these very important training programmes for workers. They must share information in a way that facilitates this mutually beneficial initiative. Training Committees harness workers’ expertise to support companies’ business development and investments. Union leaders, by the nature of their work, have a deep understanding of the factory floor and intimate knowledge of ground worker readiness and realities. By harnessing both management and labour expertise, the Training Committee can chart out skills and competency requirements, put in place training programmes, such as PSA’s one-year Systems Engineering Course at SIT, schedule workers' training to minimise downtime in ongoing operations. This may seem simple in a speech, but it is no trivial matter in our companies' manpower shortage with shift work. And, when we do all these, it facilitates good outcomes for the workers and the companies. In addition, we can also map out, through the training committees, prospects for career progression, incorporating possible jobs of the future and, where possible, even tagged to wage increments of these future jobs. With these initial pilot programmes and pilot companies, we can already reach out to about 64,000 workers in our unionised companies.[+10 sentences] Hence, in the next phase, we want to scale up further to all our unionised companies. Importantly, we must know that these Training Committees will benefit the businesses and they will benefit our workers. This may sound easy but, in actuality, will not be so simple to execute. Nevertheless, it is a needed initiative. The Labour Movement, with our reach to partner unionised companies, can play our part in the Industry Transformation. It is important to start now, to put many good ideas discussed in this Chamber into practical action and, even if we may not get it 100% right at the first go, well, we will get it right. And let us get to the transformation process. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): Union leaders and workers told me they are heartened that the Government is pro-worker. Besides supporting companies to deepen capabilities and increase competitiveness, the Government is also helping workers to enjoy better wages, welfare and career prospects in the new age of industrial transformation and digitalisation. More importantly, companies should share their successes with workers through gainsharing. Therefore, they were very happy when they heard Minister Heng Swee Keat's announcement that, from next year April onwards, companies which tap on the EDG to transform must ensure that their employees also benefit, such as in the form of wage increases. NTUC’s e2i IGP, since was launched in 2010, has benefited more than 90,000 workers. In the past five years, the average wage increase per project was about 13%.[+8 sentences] NTUC looks forward to partnering MTI and ESG for EDG to be both pro-business and pro-worker. It has always been NTUC's belief that the best welfare for our workers is a good job. With the rapid development of technology, we are entering the era of Industry 4.0. But there can be no Industry 4.0 without Worker 4.0. Besides helping companies to stay competitive by leveraging smart technologies, it is also important to help workers accept and harness technology to realise their potential in Industry 4.0. But what are the skillsets and attributes of Worker 4.0? What types of training should they undergo to become Worker 4.0? Over the last few months, NTUC has been in discussions with companies and relevant partners across industries to develop archetypes of Worker 4.0. To actualise the archetypes, the next step is setting up Training Committees in companies to help workers undergo training and upskilling to become Worker 4.0.[+5 sentences] In this rapidly changing world, it is critical that companies innovate and transform in tandem. Likewise, workers must also quickly adapt and seize opportunities. The theme of this year's Budget is building a strong and united Singapore. I believe that if we put workers at the heart of everything we do and with concerted efforts, we will be able to create a better future for all. (In English): Mr Deputy Speaker, I will conclude. In 1969, NTUC organised the "Trade Union Seminar on Modernisation of the Labour Movement" in the midst of an employment crisis when the British announced that they were pulling out of Singapore. This "Modernisation Seminar" generated Singapore's unique brand of collaborative tripartism.[+5 sentences] As a result, the trust and mutual respect between the Government and NTUC enabled the setting up of various co-operatives, such as NTUC FairPrice, to help workers manage the cost of living and serve workers. The Labour Movement has since then played a crucial role in Singapore’s success. As Mr Lee Kuan Yew said back in 1979, "The close cooperation between the political and the union leadership made modern Singapore. It is both history and today’s reality". Mr Lee's statement remains true in the way forward for us. Twenty-nineteen is the 50th anniversary of the Modernisation Seminar.[+8 sentences] Singapore is at a transition point, where our economy is taking on a major transformation, where our society is an ageing one, and our political leadership is also undergoing renewal. NTUC has enjoyed the strong support of MOM in labour issues. Moving forward, from all the different speeches, we know that there is a need for NTUC to engage other agencies upstream, particularly MTI for transformation and MOE for lifelong learning for our workers. In these and other aspects, the political and union leadership must continue the close collaboration that made modern Singapore. It must be today’s reality; it must be the future reality. At the heart of what our 4th Generation (4G) leaders do, be it in the Government or in the Labour Movement, workers must be at the centre. With this close political and union cooperation, we can chart Singapore’s success together so that when Singapore succeeds, all Singaporeans can have a share in that success. Mr Deputy Speaker, I stand in support of the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)3309 words
[+8 sentences]Mr Deputy Speaker, Sir, the MGP appears to be the highlight of this Budget. I was born in 1973. I am not sure what the government of the day 20 years down the road will call my generation. My generation was raised by Singaporeans of the MG. My parents are from PG and they both worked. Many of my childhood caregivers and teachers were Merdekas. If there was one value the Merdekas taught me, it was to grow up to be an independent Singaporean, proud and defensive of our Independent Singapore, and to think and act independently, beholden to no one but to my country and conscience. This generation truly deserves to be named MG, not because they happened to be born in the 1950s, just as Singapore fought and got its Independence, but because this generation was imbued with the spirit of independence and imparted the spirit of independence to future generations such as mine. Today the Merdekas are aged 60 to 69 years old. This stretches across the landmarks of ageing in Singapore, from applying for the senior citizen concession card for public transport at 60 to getting the CPF auto-payout at 70 if they had not opted for earlier payouts.[+14 sentences] It is my sincere hope that a generation who embodied and imparted the spirit of independence will be able to age with independence. What I mean by ageing with independence is the ability of our seniors to retire on their own, with as little financial dependence as possible on their children, siblings and other family members, and also on the Government and welfare organisations. Except for incidents of serious illness and accidents, seniors ageing with independence will be able to care for themselves or pay for the care that they require to lead purposeful golden years. I believe the best way to honour the Merdekas is for the MGP and other Government policies to facilitate their ageing with independence. I shall discuss this now in five aspects, in terms of our Merdekas' physical well-being, socio-economic well-being, financial well-being, psychological well-being and the special concern for the well-being of women. One, primary care. The first aspect of ageing with independence is physical well-being. The healthcare system secures our physical well-being, and our investment in preventive health services is paying off. In recent years, the Government has been investing in long-term care to prepare for the ageing society. In an ageing society, primary care is the critical frontline service to keep our seniors in tip-top health. Preventive care is a subset of primary care. Primary care is essential for the early detection and good management of chronic diseases, which are the leading causes of disabilities and deaths worldwide. Our seniors are particularly vulnerable to chronic conditions. Our seniors also need immediate remedies for colds and other common ailments, lest these snowball into major illnesses. This recognition is built into the PGP in the form of subsidies for outpatient services. This recognition is continued into the MGP with the auto-enrolment of Merdekas into the CHAS scheme and further subsidies at polyclinics and public specialist outpatient clinics, as has benefited the Pioneers.[+7 sentences] However, this has created a precedent. There is now an expectation that future generations will be auto-enrolled into CHAS and receive outpatient subsidies when they hit their 60s. Future governments will be hard-pressed into denying future generations of this benefit, not just because of the political cost, but also the sheer logic of the justification. If the Pioneers had worked hard to make Singapore what it is today, if the Merdekas had worked hard so that Singapore stands tall and proud today, who is going to deny that subsequent generations also worked hard to contribute to building a Singapore for future generations? Did the generation born in the 1960s not work hard in the 1980s and 1990s during the first major economic restructuring and reskilling of the workforce? Did the generation born in the 1970s not work hard in the 1990s and 2000s to bring Singapore through the Asian Financial Crisis, the tech bubble recession, and the Severe Acute Respiratory Syndrome (SARS) crisis? I do not think this is a bad precedent. In fact, it can and should be turned into something good. I, therefore, call on the Government to commit to providing primary care subsidies for all subsequent generations of seniors, that everyone who turns 60 would be auto-enrolled in CHAS and receive additional outpatient subsidies.[+5 sentences] Again, the MG is setting the foundation for subsequent generations. In the last few years, the Government has socialised hospitalisation and disability insurance, making it universal and compulsory. With MediShield Life and CareShield Life, we are now dedicated to supporting one another as we age, shoring up our interdependence to secure our ageing with independence. Making it compulsory for all Singaporeans to help one another to pay for hospitalisation and disability has helped the Government save in healthcare expenditure. Singaporeans paying for one another has allowed the Government to focus its investment on the healthcare system and long-term care. In return, the Government should make it compulsory that it provides for primary care subsidies for all future generations of seniors, so that we can all age with independence like the Pioneers and the Merdekas.[+20 sentences] I believe the Government should do this, not because of the political pressure, but because, with MediShield Life and CareShield Life in operation, making primary care affordable for all seniors will plug the remaining big gap to make public healthcare in Singapore truly universal and accessible to all. Two, working as long as one desires. The second aspect of ageing with independence is socio-economic well-being. Singaporeans are renowned worldwide as a people who work hard and play hard. As a hardworking people, socio-economic well-being is a very important aspect of our overall well-being. Socio-economic well-being refers to the fulfilment one gets from being economically active. This fulfilment is both physical and mental. It is also social, as work brings people together to interact and collaborate to achieve specific objectives. Thus, many of our colleagues are also our friends. Human beings are creative animals. What makes us distinct in the animal kingdom is our desire to be creative, to work to create things that become part of our social identity. Work is, therefore, filled with meaning and purpose. It underpins our dignity as human beings. Life expectancy has increased so much to give us decades of extra time to age with meaning, purpose and dignity. In the post-industrial economy, our workers are skilled knowledge-based workers who are continuously learning new skills. To allow our older workers to work as long as they desire, as long as they are able to, is to allow our workers to age with independence. This is because work provides for meaning, purpose and dignity. Our older workers should be respected for their experience gathered in a lifetime, and not forcibly retired when they still have so much to contribute in meaningful ways. Our seniors should be allowed to continue to use their skills developed in a lifetime so that they find their lives to be filled with purpose. Our seniors should also be treated with dignity, not subjected to an ageist mindset or have their wages docked mechanically by formula just for crossing some threshold making them "old" when they can be just as productive. In this regard, I would like to call on the Government to, one, remove the retirement age entirely; two, move the redefined re-employment age to 70 when employers would place able workers on rolling re-employment contracts; and three, restore the CPF contribution of older workers.[+1 sentence] This will allow our workers to strengthen their socio-economic well-being and age with independence. Doing this now that the MG is reaching the current retirement and re-employment ages of 62 and 67 is very appropriate.[+19 sentences] From the perspective of the economy and society, it is also a waste of human capital for workers to retire prematurely when their skills and experience are still invaluable. It is a win-win solution. Nevertheless, our workers should also be empowered to retire in their 60s if they want to retire. Retirement, for many, is not the end of work, but the pursuit of creative activities that could be unpaid work, for example, providing childcare for their grandchildren, or part-time work in fields that they could not pursue previously. To enable our workers to work if they can and want to work by removing the retirement age does not mean, I repeat, does not mean to get Singaporeans to work till they die. It is to reform the system so that Singaporeans do not have to worry about their finances and can retire in their 60s if they want to, but they can also continue to work if they want to. The ideal would be that, from today, no Merdeka-Generation Singaporean, no Merdeka, would be compelled to retire or forced to work by necessity. Three, CPF as safety net. The third aspect of ageing with independence is, therefore, financial well-being. Once we change our mindset about retirement and allow our workers to work as long as they can work and want to work, and to retire if they want, our approach towards CPF should also change. CPF has already been delinked from the retirement age and re-employment age. The question that remains is: what role should CPF play in the new ageing society we are facing? In our maturing society, and especially from the MG onwards, our would-be seniors will increasingly not be dependent on one single source of income to meet their needs. This is a good thing, as it provides the financial basis for ageing with independence. Some will have enough savings that can be used to purchase private annuities. Many will be owners of a housing asset that can be monetised. Others will want to continue to work and they can continue to work to maintain a steady stream of income. In such a context, CPF becomes an avenue of supplementary income. But CPF is more than supplementary income. CPF is a store of a worker's savings and is akin to a fixed deposit account. We have to be unequivocal in stating that the monies in a CPF member's account belong to the CPF member, no fudging around this principle just because there is an employer contribution component and there are occasional Government top-ups. Our CPF savings are the fruits of our labour, period.[+7 sentences] Our CPF monies are our savings secured by the Government as a fixed deposit account with attractive interest rates. In this respect, CPF can be a crucial safety net in two ways. First, we need to recognise that there will be ageing Singaporeans, whether now among the Merdekas or in subsequent generations, who will not have enough savings and who do not own housing assets. These Singaporeans will not be working because they want and can, but because they have to in order to survive. For these Singaporeans, WIS is important, and they may also seek ComCare help. But while ComCare assistance is a dignified option for those who are really destitute and cannot work, it is not the same for a senior who can work. Such seniors would rather age with independence and not be dependent on state handouts. If their CPF Life payouts can start earlier for these seniors, their financial well-being will be secured with their own savings. Therefore, I would like to reiterate the Workers' Party's call to lower the CPF Payout Eligibility Age to 60, so that Singaporeans can have the option of meeting their needs with this source of supplementary income.[+37 sentences] Of course, if there is no need for CPF Life payouts to act as supplementary income, seniors should have the option and be encouraged to leave their monies in their CPF account to accumulate interest and get larger payouts later. The youngest of the MG is turning 60 years old this year. It is, therefore, an appropriate time to reconsider this. Second, CPF can function as an insurance against crises. This is not unlike why many put their savings in fixed deposits. Fixed deposits can be withdrawn easily to meet urgent needs, compared to less liquid investments with higher returns. Major illnesses, accidents and other crises can disrupt the normal life course of an older Singaporean and erode his or her quality of life. One of the first things that many people do in such situations is to cut back on expenditure on quality food, which could worsen their health in the long run. Some may even be forced to sell their housing assets to tide over the crisis. CPF members can currently apply to make partial withdrawals on medical grounds, if "they are physically or mentally incapacitated to ever continuing in any employment". The condition "ever continuing in any employment" is very extreme. I would like to call on the Government to allow partial withdrawals of CPF if a member is so physically or mentally incapacitated to continue in employment for a significant period of time. Such withdrawals should be determined on a case-by-case basis, with the objective being for the withdrawal to help a member tide over the crisis with their own savings so that they can return to employment. Four, deepening ageing in place. The fourth aspect of ageing with independence is psychological well-being. The current understanding is that ageing in place is the best option for our seniors because the stability of their community environment will provide for their psychological well-being. Urban planning and public housing policies can also facilitate this by implementing renewal in ageing estates, so that our seniors are embedded in mixed environments that encourage interaction with younger families, especially if their own children's families are living close by. Neighbourhood renewal and home improvement projects have also improved accessibility and safety to encourage active ageing. These initiatives are positive for ageing with independence. But all things being equal, it is a good policy to allow our seniors to live out their lives in the HDB flats and neighbourhoods where they raised their children in and built their community networks on. Place is more than space. Place is a locality made meaningful by memories and relationships. Ageing in place is ageing with independence. The familiarity of the neighbourhood and the neighbours, and the neighbourhood eating places and shops, provide for active seniors who know how to navigate their living spaces to support themselves. The Merdekas are among the first beneficiaries of our HDB policy to house the nation. The majority of the MG would have started their families in HDB flats. Thus, the flats and estates they live in would very likely hold special meaning and memories for them. We should try to ensure that the Merdekas would not need to move from the flats and neighbourhoods they had raised their families and built communities in, so that they can preserve their meaning and memories of home, and age in place and with independence. The Lease Buyback Scheme is a policy that allows Singaporeans to truly age in place and with independence. Many Merdekas will be reaching or have reached the eligibility age of 65 years old for the scheme. The MGP is a good opportunity to promote the scheme to our seniors, as there are still too many seniors who are unaware of the benefits of the scheme. The Government could build further incentives for Merdekas to take up the scheme into the Package. This way, no Merdeka-Generation Singaporean will be forced to downgrade to smaller flats or relocate to an alien neighbourhood because of financial need. They do not have to sell their flats, just the end part of the lease back to HDB. Five, Merdeka women. The fifth aspect of ageing with independence is the need for special consideration for Merdeka women. CPF statistics suggest that women in the MG need extra help. In 2006, for CPF members aged 51-54, male members' Ordinary Account and Special Account balances comprised 63% of the total balances of all members, leaving female members with 37%.[+1 sentence] This is a substantial gender gap that also suggests Merdeka women earned less from paid work in their lifetime and, therefore, have less savings beyond their CPF. While the gender gap is being closed with each generation, there is an urgent need to provide extra help for Merdeka women. We continue to call for gender-equal premiums for CareShield Life. However, since CareShield Life premiums are currently gender differentiated, I would like to call for the participation incentive for female seniors to enrol in CareShield Life to be raised in proportion to the gender gap in CPF savings for their generation. The MediSave top-ups for Merdeka women should also be calibrated to plug the gender gap.[+5 sentences] I would also like to call for more generous provisions for Merdeka women who are still caregivers for their aged parents or siblings. Subsidies for long-term home and centre-based care should be increased for them. Merdeka women should have a special place in our honouring of the MG. The far majority of caregivers who have performed the work of childcare and eldercare for decades have been women. This work has been essential for functioning of our society, but this work has gone unpaid. We should honour these women for their sacrifices. It would be a perverse outcome that if, with the additional participation incentive in the Package, more Merdeka men than Merdeka women sign up for CareShield Life because of the gender gap.[+8 sentences] Merdeka women have given much of their lives caring for their families and others in society. Now that they need care themselves, they may not be able to afford it because they have suffered the opportunity cost of sacrificing full-time work to care for others. Ageing with independence is ageing with dignity. I believe all our seniors want to age with independence. This is not because they are self-centred and individualistic, but it is because we are Asians who care for family and community. Many of us would have heard stories of, or experienced first-hand, seniors telling their children to let them die if they were to become critically ill, so that they would not be a financial or practical burden. Our seniors want to age with independence so that they do not become burdens for the younger generation. This is a natural extension of the spirit of sacrifice they embody, for which we are honouring them with the PGP and MGP. We need and we should calibrate our healthcare, manpower, social pension, housing and gender policies to make sure our seniors age with independence. I have made the case that: one, CHAS auto-enrollment and outpatient subsidies should kick in for all Singaporeans who turn 60 years old to plug the primary care gap in our universal healthcare system; two, the retirement age be removed, the redefined re-employment age raised to 70 years old and the CPF contribution for older workers restored so that our seniors can continue working as long as they can and want; three, CPF be transformed into a safety net for seniors, that payout eligibility age be lowered to 60 years old and members be allowed to make partial withdrawals if incapacitated to work for a period of time; four, ageing in place be deepened by promoting the Lease Buyback Scheme to the Merdekas; and five, close the gender gap in CPF and other savings for our senior women by increasing the MediSave top-ups for them and the participation incentive for them to enrol in CareShield Life.[+1 sentence] Mr Deputy Speaker, Sir, ageing with independence is ageing with dignity for our seniors. If we have missed our chances with the Pioneers, we should not miss this opportunity with the Merdekas. The MG represents the very spirit, idea and realisation of independence. We owe it to the Merdekas that they age with independence.
Mr Deputy Speaker3 words
[+1 sentence]Mr Murali Pillai.
Mr Murali Pillai (Bukit Batok)2061 words
[+7 sentences]Mr Deputy Speaker, Sir, I wish to speak on three areas. First, the strategic direction of the Budget; second, an assessment on the schemes currently in place to help enterprises transform; and last, the implication of the increased social expenditure. On the strategic direction of the Budget, the hon Member, Mr Pritam Singh, in his speech shared some ground feedback that he had obtained, suggesting this Budget Statement is tied with the election cycle, rather than being a strategic Budget. Respectfully, I feel that it is important for Members of this House to deal emphatically with such soundings as they may give rise to cynicism. If left unchecked, it may well undermine the stated objectives of this year's Budget, which is to build a strong and united Singapore. To understand the strategic direction of this year's Budget, I found it useful to juxtapose this year's Budget Statement against the backdrop of previous Budget Statements, especially from the first year of the current term of Government, so that we, as Members of this House, can better appreciate where the Government intends to take our country to, to overcome the challenges we face as a country. Members may recall the slogans for the past three years' Budgets. Budget 2016 was "Partnering for the Future"; 2017 was "Moving Forward Together"; 2018 was "Together a Better Future".[+13 sentences] The broad themes for each year, including this year, are similar. On the economic front, there is an emphasis on the need to transform our economy to a lean technology-based and innovation-driven economy that will ensure our enterprises will continue to capture their fair share of opportunities here and overseas. A lot of support is given for such transformation efforts. On our people front, focus falls on training, deepening our capabilities, ensuring we are productive, possess skills that make us relevant to the world and earn a decent living. On the social front, the focus remains on dealing with social inequality, social mobility and access to critical needs, be it healthcare, education and so on, and also to build, ultimately, a caring and united society. In addition, while we spend more on the social front, financial prudence is maintained always. So, as I see, there is no change in the general direction of strategies employed over these years. Those who described this year's Budget as a pre-elections sweetener Budget make reference to the Bicentennial Bonus and the MGP. I have considered these viewpoints. My view is that such a characterisation does not take into account what happened in the previous years, as well as the entirety of what Minister Heng Swee Keat announced this year. Every year, there has always been a slew of short-term measures announced in the Budget Statements together with long-term measures. For example, in 2016 and 2017, the Minister announced a one-off GST Voucher (GSTV) – Cash Special Payment; and last year, we had the SG Bonus. There are also pain points introduced this year, running contrary to the suggestion that this is an artificial feel-good Budget. For example, the doubling of the diesel tax, introduced much to the chagrin of my colleague, Mr Ang Hin Kee, to ensure a sustainable environment; and reducing foreign-worker dependence to encourage higher productivity On the $8-billion MGP, there seems to be a misunderstanding on the purpose behind it.[+8 sentences] As I heard Minister Heng Swee Keat, the MGP is not for the purpose of plugging the healthcare or affordability need gaps. The existing systems and Budget allocation have already done that and, as I understand, we are spending more and more on healthcare, year on year. Such gaps have to be dealt with across the board, irrespective of the age of fellow Singaporeans. I understand that the objective behind the MGP is to acknowledge the contributions of the generation that contributed much to the economic development of Singapore. And in the words of Assoc Prof Daniel Goh, the MG taught him independence. So, there is much to be recognised. It is analogous to PGP, or rather, the PG, who are credited for the very existence of Singapore. No one in this House can hardly argue against the fact that the MG Singaporeans – defined not just by age, but the depth of their roots in Singapore – did, indeed, strengthen the economic foundations of Singapore against the prevailing odds then. So, the case for acknowledging their contributions is, therefore, strong.[+1 sentence] Importantly, it is funded by current Reserves. Now, it seems to me that we are in a fortunate situation to be able to fund MGP through the current Reserves because we have higher than expected contributions from stamp duty, as well as from the Monetary Authority of Singapore (MAS).[+6 sentences] Members of this House sometimes forget that whatever we budget for in this House does not define what will happen for the financial year. The spiritual amongst us may say, "Man proposes; God disposes". But really, it is the market circumstances that would dictate whether or not we would have sufficient resources for these packages. So, to ascribe a political motive to say that MGP is timed for the elections, really kind of elevates the Government to the position of being a fortune-teller. I am not sure if that is an accurate way of describing the timing and, indeed, the position of the Government. From the feedback that I have received, generally, the MGP is well-received by both by the MG as well as their children. It is well designed to promote an active lifestyle, in addition to providing for further healthcare subsidies. I do have a query on the funding quantum, though: $6.1 billion is being set aside for an expected $8-billion expenditure. As a comparison, for the PGP, $8 billion was set aside for an expected $9-billion expenditure.[+4 sentences] I would like to ask the hon Minister how did he arrive at the $6.1 billion figure and how he will ensure that future governments will not inherit the task of funding the MGP. I did note the next generation, those born in the 1960s, seem to have an expectation that they should be beneficiaries of a package, too, and I think Assoc Prof Daniel Goh made a call along these lines. I am a member of the 1960s generation, but I am not raising this out of personal interest. There are some bets going on outside this House as to how we would be labelled – the strongest horse seems to be "Majulah Generation". I do not have a suggestion for Assoc Prof Goh's generation, however. It is important that while we honour the MG's contributions through the MGP, we in this House also take the opportunity to disabuse the notion that each succeeding generation would be automatically entitled to a package, over and above the needs that have to be taken care of by the Budget.[+10 sentences] Much depends on the extent and outcome of the generation's contributions. This is where the strategic direction that the Government intends to steer Singapore, too, becomes relevant. This is where the call to unity to deliver sound economic and social outcomes becomes key. And hon Minister Heng Swee Keat candidly acknowledged in his Statement that "financial resources alone do not get us there". I also think that any acknowledgement should be done by the succeeding generation, just like how the MGP is formulated by the 4G Leaders and the details provided in this House by Minister Heng Swee Keat on behalf of the 4G Leaders. Finally, like the PGP and MGP, there should not be any financial burden placed on future generations nor any drawdowns on past Reserves. Otherwise, it would not be right. As I have said before, the package is not meant to plug a needs gap. Next, on the efforts to transform enterprises. Year on year, much resources have been devoted to transform businesses of our 200,000-plus enterprises and skilling up our people. As advisor to the Port Officers' Union (POU), I am personally aware of the great strides made by the Port officers to be ready for the automated mega ports by upskilling themselves. I note that the hon Minister intends to provide more support and, in some instances, refinements to current programmes, such as the SME Go Digital programme and the Enterprise Financing Scheme.[+2 sentences] May I please ask: what is the Minister's assessment of the current schemes to date? Is he satisfied with the progress that has been made? At the same time, the hon Minister announced adjusting downwards of the workforce quota for the services sector which generates about 70% of our GDP.[+18 sentences] It is meant to deal with sluggish productivity growth in this sector, which is admittedly uneven. Would the hon Minister, however, not agree that the services sector is a kind of a "broad church" which includes industries where it is not easy to automate and digitise for the purpose of increasing productivity? For example, the logistics business, they would still need human drivers – the framework for autonomous vehicles will only be in place by 2030, if at all. Could there not be a more granular assessment of industries to see if, indeed, they have been laggards on the productivity front before placing a foreign manpower quota on them? Next, we need to be mindful that in the drive for enterprises to become cost-efficient and productive, we do not create a situation where full-time jobs are cut down in favour of engaging freelancers whose pay is variable. What strategy do we have to ensure that this would not happen as SMEs tap on Government grants and programmes? I would like to make a call for financial resources to be channelled to build a strong Singapore brand that enterprises can leverage. Deputy Prime Minister Mr Tharman Shanmugaratnam recently mentioned this outside this House that Singapore has gained a strong international reputation for trust. Minister Heng Swee Keat as well as hon Member Mr Liang Eng Hwa referred to Switzerland in their speeches. The Swiss have successfully carved a well-earned reputation for quality, punctuality and reliability. We would have heard the phrase "Swiss precision" where "Swiss" is used as an adjective. This is as a result of a national marketing effort. Much has been written on this. Would the hon Minister agree that more can be done to strengthen the Singapore brand so that enterprises here can also leverage this? This particularly dovetails with the Minister’s call that enterprises build deeper partnerships across the world. What steps can he identify to support these brand-building efforts? Hopefully, one day, the word "Singaporean" will be become synonymous all over the world with "dependability". On social spending and prudence, I note that social expenditure is up. The hon Minister mentioned that the social Ministries' spending has doubled to $30 billion within a nine-year period.[+9 sentences] As in previous Government terms, when our economy grows, we also have an obligation to contribute to the Reserves to be used for the uncertainties of the future. It is a big part of our responsibility to ensure a bright future for our children and our progeny. Does the Minister anticipate that the Government will be able to follow the same practice in this term, notwithstanding his decision to set aside big sums for the various programmes, which were helpfully identified by hon Member Ms Foo Mee Har in her speech? Finally, I would like to applaud the initiatives to strengthen the involvement of the community corporations, as well as the better-off amongst us to help less fortunate families to level up. To me, this captures the essence of what the hon Minister meant when he referred to building a united Singapore. The potential multiplier effect that will arise by facilitating involvement of private individuals and corporations in helping less-advantaged families is very significant. This effort should not be the sole responsibility of our Government. This also ensures that through this, we will prudently manage our social expenditure. I fully support the strengthening of the SG Cares movement. The steps to enhance the spirit of volunteerism in our youths, seniors and public officers, as well as the setting up of the Bicentennial Community Fund providing dollar-for-dollar matching and tax incentives. These efforts will help to address issues of social mobility and inequality that Members in this House debated passionately on not too long ago.[+1 sentence] In conclusion, I express my support for Budget 2019.
Mr Deputy Speaker3 words
[+1 sentence]Mr Douglas Foo.
Mr Douglas Foo (Nominated Member)1635 words
[+8 sentences]Mr Deputy Speaker, Sir, I would first like to declare my interest as the President of the Singapore Manufacturing Federation (SMF), Vice-Chairman of the Singapore Business Federation (SBF) and the Vice-President of the Singapore National Employers Federation (SNEF). I rise to affirm my support for the recently delivered Singapore Budget 2019 and to provide a response from the business community. On behalf of the manufacturing community in Singapore, I applaud the Government's recognition of the contributions of the manufacturing sector to our economy. In addition, the three TACs that I represent are also pleased that the Government has also recognised the important role played by TACs. I wish to affirm that TACs, as partners in nation-building, remain committed to the cause of enhancing the business community’s capabilities and look forward to continuing its stellar collaborative relationships with our members, government agencies both local and overseas, as well as our Labour Movement, NTUC. Minister Heng Swee Keat's speech on enterprise and workforce transformation lends Government support to the beliefs that TACs have been advancing to our members and to the work we do over the last few years. For example, SMF has programmes to actively assist the manufacturing community in the three thrusts defined in the Budget for moving the Singapore economy forward. Some of these programmes are: Deep Enterprise Capabilities. Our SMECentres@SMF have proven to be an effective partner to SMEs seeking customised advice and guidance on the latest Government grants, to give our SMEs better opportunities of success. We, therefore, eagerly await the additional $200 million in funding for SMEs expected to be brought in by the SME Co-Investment Fund III.[+1 sentence] Deep Worker Capabilities. SMF currently administers two types of PCPs – PCP Broad-based manufacturing and PCP-Overseas. I am pleased to report that under these two programmes, SMF has assisted close to 1,200 workers on their professional conversion journey as at January 2019.[+3 sentences] SMF is, therefore, excited with the announcement of two further PCP programmes and stand ready to collaborate with Government agencies on them. Practising Management Consultants (PMCs). As the leading certification body for PMCs, SMF provides a certification process to train and enable workers, especially PMETs undergoing a career change, to be professionally certified as consultants. The total number of PMCs certified by the SMF Singapore PMC Certification (SPMCC) currently stands at over 500.[+5 sentences] Following certification, these consultants are then better enabled to assist SMEs identify issues in business processes and the right type of support they can receive from the Government as well as to bring them on the internationalisation efforts. SMF has signed more than 180 memorandums of understanding (MOUs) with local and overseas TACs and government agencies for better collaboration on commercial development. The Enterprise Europe Network (EEN) representative office in Singapore, tasked with bringing local companies closer to doing business with EU companies, has between 2016 and 2018 organised 56 brokerage events and signed 25 EEN partnership agreements. It currently has 200 active businesses on the network. SMF regularly leads member delegations to local and overseas trade exhibitions. In 2018, SMF led more than 600 enterprises to participate in 41 trade exhibitions, securing trade sales of over $222.3 million.[+13 sentences] We welcome the support that the Government is pledging to transform the industry further under Budget 2019 towards Industry 4.0 standards. In this regard, SMF has taken the initiative to develop a Manufacturing Digital Plan to assist SMEs on their transformation journey. In 2019, we will continue our focus on assisting companies to digitalise and sooner realise Industry 4.0. We have since launched the Go Digital Project Management Services to help SMEs that want to go digital take their first step to digitalisation. Under the programme, SMEs can tap on "mentors" to help them deploy technology. The support announced by Minister Heng Swee Keat will go a long way towards facilitating the process. These are just some examples of how TACs can contribute effectively to bringing the business community in line with the Government’s vision, and thereby creating a united Singapore. SMF, SBF and SNEF have a very healthy collaborative relationship and supports one another in our respective efforts and stand strong ready to work with NTUC and the Labour Movement. TACs are not in competition with one another and, like businesses, more can be done when acting in concert where there are greater resources to draw from. I would, therefore, like to call on TACs to further break down individual walls and work with one another to accelerate our common national interests. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): At a regional level, myself as one of the three Singapore Appointed Representatives to the ASEAN Business Advisory Council (ASEAN-BAC), together with the business community, we are in strong agreement that the Government has, in this Budget, rightfully identified opportunities in ASEAN to be an area that our local businesses should consider expanding to. As the strategies from the ASEAN Economic Community (AEC) Blueprint 2025 take shape, Singapore businesses need to better define our competitive space and to leverage the potential of ASEAN as an economic block. ASEAN is currently the fifth largest economy in the world by GDP, overtaking the UK in 2017.[+6 sentences] With the AEC Blueprint in place, ASEAN is, indeed, well-poised to be the fourth largest economy in the world by GDP in 2030. Many factors converge in ASEAN's economic favour. Firstly, the median age of the ASEAN population as at 2015 is 28.9 years. This is a relatively youthful workforce when compared to the median age of more advanced nations, for example, 40.8 years for the US and 36 years for China. Secondly, increases in urbanisation rates drive economic growth. The urbanisation rate in ASEAN is expected to hit 55.8% in 2030, about 12 percentage points up from 44.5% in 2010. Thirdly, according to estimates from the Asian Development Bank, by the year 2030, about 65% of the ASEAN population will be classified as middle-income class, up from 29% in 2010.[+6 sentences] As income rises, so will standards of living. ASEAN will, therefore, become an important market for businesses. That these would take place within a short span of slightly over a decade presents our Singapore businesses with many opportunities at our doorstep. It is, therefore, increasingly imperative that our businesses are enabled to move up the value chain to generate higher value output and, more importantly, position ourselves as a gateway to the rest of ASEAN. Digitalisation and Industry 4.0 are the way forward and, with the different financial packages and assistance schemes, the Government is, indeed, helping our businesses along the journey. (In English): Mr Speaker Sir, my speech today would be incomplete if I do not talk about the main concern that the business community has in relation to Budget 2019. The Foreign Workforce Policy to reduce the DRC in the services sector is definitely something that businesses are very concerned about.[+1 sentence] Businesses can appreciate the policy reasons for such cuts, for example, with the declining birth rate in Singapore, having a continued inflow of foreign manpower at the current or increased rate may eventually result in a Singapore with more foreigners than locals. Businesses also note that the reduction is being rolled out progressively over two years to cushion the harshness of such a reduction.[+6 sentences] However, the fears and the difficulties for businesses have already begun. Firstly, businesses already have to deal with global trading uncertainty, rapid changes in technology and business model changes, as well as changes in legislation. For example, last year, changes made to the Employment Act provided more protection and welfare for employees but incurred additional costs for businesses. Secondly, the services industry, such as the F&B industry, relies on unique and familiar experiences to attract new customers and retain old ones. Building a relationship with customers takes time, as does training. Being able to attract new local workers with more welfare demands and higher costs is yet another aspect which these businesses have to deal with. For these businesses, no matter how technology may alleviate operational demands, a lack of readily available human resources, which will invariably in turn drive up already increasing labour costs, will work in tandem to drive businesses out of Singapore or out of business altogether.[+4 sentences] It is in this context that I would like to caution against an over-reliance on legislation for more and more rules. Members have, in recent debates before this House, lobbied for mandatory PWMs, eldercare leave and FWAs. While all of these are, indeed, legitimate interests which enterprises are also concerned about, legislating them may not necessarily be the best way forward. I would like to humbly urge this House to better support the efforts of the Tripartite collaboration and MOM's efforts to promote a strong culture of shared responsibility, rather than to adopt a legalistic and prescriptive approach. On the part of TACs, we will continue to urge companies to move towards their digitalisation journey with greater alacrity to adapt to staffing realities. However, as labour demands vary with each industry across different time periods, I would urge the Ministry to consider adopting a flexible policy of review, closer to when the cuts are to be made effective, or to allow flexibility to consider on a case-by-case basis, the labour needs of individual businesses.[+4 sentences] Mr Deputy Speaker, Sir, in conclusion, the business community is of the opinion that this Budget is a forward-looking Budget, preparing and galvanising Singapore businesses for the challenges and opportunities ahead. It is encouraging that there is increased focus at the micro level, with support to accelerate the adoption of innovative solutions, building of global partnerships, upscaling of the workforce and business transformation. It is pro-business, pro-worker, and we look forward to a strong united Singapore. With that, I affirm my support for the Budget Statement 2019.
Mr Deputy Speaker4 words
[+1 sentence]Mr Chong Kee Hiong.
Mr Chong Kee Hiong (Bishan-Toa Payoh)1484 words
[+19 sentences]Deputy Speaker, Sir, I rise in support of Budget 2019 with its focus on "Building A Strong, United Singapore". We are a small country in an uncertain world. Developments in the US, China and Europe had contributed to high levels of uncertainty in the past and will continue to do so in the foreseeable future. These will not go away. In the face of such headwinds, Singaporeans would have to stay strong and united. We must be committed to solving our own problems and helping our own communities, something which this Budget aims to achieve. We must rally behind our leaders who will take us into a new Singapore era, one that our children and grandchildren will be proud of. Many plans and schemes had already been put in place. The oft-heard ones include those relating to AI, Intelligent Automation (IA), Technology, Manpower, Digitalisation, Innovation and Globalisation. The wheels had been set in motion. To many Singaporeans though, these schemes appeared to be piecemeal. More can be done to highlight the vision for Singapore and strengthen the connections so that we can understand how all these schemes can, together, shape a new future and set us a common goal. Driven by the rapid pace of technological advances which radically change processes and operations, many sectors are undergoing developments and changes of seismic proportions. These are critical for companies' survival, to catch up with their peers or seize opportunities to be market leaders. To automate and digitise is also to overcome the manpower challenges arising from the reduction in DRC which is expected to put an upward pressure on labour costs for companies in the services-related industry. We still hear businesses from the services sectors feedback that many of their processes cannot be automated. The challenge is how we can successfully harness AI and IA to help these companies. Would the Minister elaborate on how successful the ITMs and the Lean Enterprise Development (LED) schemes have been in assisting companies redesign jobs and reduce reliance on manpower? Some businesses find these restructuring steps troublesome, even counter-productive, as the time and resources required may temporarily distract them from their day-to-day operations. While they appreciate the short-term sacrifices they have to make for long-term gains, and they see the need to redesign and upgrade the types of jobs to cater to a more educated ageing workforce who want to work longer in more meaningful work, they need all possible assistance to effect these changes. Hence, I fully support the Government’s decision to expand the Industry Digital Plans (IDPs) for SMEs and to extend the Automation Support Package (ASP) by two years.[+1 sentence] I would like to call for IDPs to be expanded to more sectors expeditiously. Does the Government have a timeline for the implementation of IDPs for the remaining sectors? For the seven industries where IDPs had already been rolled out, would the Minister share an update on the adoption rate of each industry so far?[+5 sentences] For companies which have yet to implement digital plans, what are the main obstacles? What measures do we have in place to help them surmount these challenges? The seven industries were prioritised as their expected productivity gains would be the highest. May I ask if their actual gains had matched expectations? If not, what are the issues involved? As for ASP, I would like to ask if the amount budgeted to assist companies to scale up their automation projects had been fully utilised each year since it was launched in 2016. How many SMEs has ASP helped and in which sectors?[+24 sentences] Do our SMEs have enough awareness about this scheme and the necessary talents and specialists to implement the transformations? Would the Ministry share with us some of the successful cases and those which had not turned out as well? What are the lessons from those which had performed below expectations? These are important questions as we need to know how to better help these SMEs leverage technology to move ahead. Deputy Speaker, Sir, in Mandarin. (In Mandarin): Next, I would like to speak about the occasional unintended consequences of well-intentioned Government policies. Take the example of the employment of older workers. They are commonly seen in our hawker centres, food courts and shopping malls clearing tables and mopping floors. These seniors are mostly unskilled workers with little education. Hence, there is a limitation to the type of jobs they can take on. As the Government provides WIS to encourage companies to employ older workers, companies are fine with hiring them since they are paying less for their services. In addition, employing these Singapore citizens also entitle the companies to employ more foreign workers based on DRC. With the tightening of DRC, companies are likely to employ more of these old workers, letting them do simple cleaning jobs, in order to employ more and better skilled foreign workers. We should note that this would also reduce their incentive to automate. On one hand, WIS may boost elder employment; on the other hand, there are some concerns about these seniors in menial jobs. The sight of these seniors, as they shuffle around hunched over, tugs at our heartstrings. The work may not appear to be heavy but some of the older workers are frail and visibly tired. These are the scenarios which led to many Singaporeans and tourists asking why our Government is not taking care of these poor senior citizens. There are comments that poor Singaporeans have to work to their deaths and so forth. Although these comments do not reflect Singapore’s reality, they are out there. While there might be some seniors who said that they worked to pass their time, due to the nature of these menial jobs, most people have concerns and reservations. We must also ask ourselves what is the perception our young children have of us as a society when they see frail senior citizens picking up after them, clearing tables and mopping toilets? Perhaps, it is timely for us to re-examine the implications arising from these policies. (In English): I move on to assistance for workers with low CPF balances. In line with the Government's targeted mode to help the most vulnerable, I would like to reiterate my call for more help for Singaporeans with low CPF balances, such as the group with balances below the Basic Retirement Sum, through higher tiered CPF interest rates. This is in addition to the current Budget top-up of $300-$1,000 for older Singaporeans with low CPF balances and, from time to time, when we have surpluses.[+2 sentences] The consistent returns from the higher interest rates will be of greater help to this group of Singaporeans, many of whom are likely to be freelancers, self-employed or low-wage workers. Allow me to elaborate. On the first $60,000 of a CPF member's combined balances, with up to $20,000 from the Ordinary Account (OA), an extra 1% interest is paid. Since January 2016, CPF members aged 55 and above will also earn an additional 1% extra interest on the first $30,000 of their combined balances, including up to $20,000 from the OA. These extra interests apply on the first $60,000 and first $30,000 respectively, regardless of whether one has a combined CPF savings of $60,000 or $600,000. I hope the Government will consider increasing the additional interest for those who have low combined CPF balances, for example, below the Basic Retirement Sum, to help them earn more in their accounts.[+11 sentences] If the funding for this means that we have to reduce or even remove the extra interests on the first $60,000 or $30,000 respectively for those with much higher CPF balances, I believe that financially secure Singaporeans will be willing to support this assistance measure. Finally, I would like to appeal for greater efforts to boost Singapore’s food resilience. We should step up priority and urgency to scale up food production through both the lease or acquisition of farmland overseas and the adoption of innovative processes. Besides requiring support and investments from both the public and private sectors, we have to encourage Singaporeans and residents to join in our "Buy Singapore" movement and help to buy local produce. Initially, buying local may mean paying a higher price. But we must continue to support local suppliers and vendors so that when volume picks up, prices would drop correspondingly. "Buy Singapore" will not only help ensure the sustainability of producing local food but also reduce our carbon footprint, contributing to environmental sustainability. By supporting our Singapore food producers and companies, eventually, they will be able to scale up and go regional or global. With the global pivot to Asia, now the fastest growing region in the world, the time is ripe for Singapore companies to tap into new opportunities and new markets. We need to work together to achieve that. I would like to conclude with my support for the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Dr Teo Ho Pin.
Dr Teo Ho Pin (Bukit Panjang)1482 words
[+14 sentences]Mr Deputy Speaker, I rise in support of the Budget. Sir, globalisation has caused fundamental transformations in our economy and has necessitated certain paradigm shifts. Just as Singapore has welcomed firms from all over the world to partake in our economy, many of our firms have taken a leap of faith and ventured overseas. Through this, Singapore has become strongly embedded in the global economic order. Sir, globalisation is not simply marked by the movement of goods and services. Ideas and paradigms are transported beyond borders. Economic growth driven by globalisation has enriched our lives. We enjoy ever-improving technologies that we would have never deigned to imagine. You can now have a face-to-face video conversation with someone residing overseas. This was unthinkable 20 years ago. Yet, against the backdrop of these benefits, the need for sustainability is clear. The world's appetite for consumption far exceeds the rate at which resources can be replenished. Sir, it is on this note that I wish to speak about how Singapore may position itself to become a sustainable global economic hub of tomorrow. I shall speak on three areas. First, the continuation of our economic prosperity through the uplifting of our SMEs.[+13 sentences] Second, the development of a sustainable built-environment. Third, the perpetuation of Singapore's position as a global city. Sir, the Government has been supportive of our SMEs. In the Budget speech delivered by the Finance Minister, it is clear that many of our policies are aimed to help SMEs in expanding and thriving. However, I have received feedback on two issues faced by SMEs. First, their ability to compete effectively against large-scale enterprises, due to being unable to match their economies of scale. Second, their abilities to attract and retain talent. Sir, I believe that the first concern may be addressed through the nurturing of a culture which places more emphasis on the quality of goods and services, as opposed to seeing price as the sole determining factor. SMEs have the distinct advantage of being more flexible and adaptable to the needs of customers. By encouraging them to find gaps in the market and providing the right goods and services to fill these gaps, our SMEs can find respite in competing against their larger counterparts, while developing capabilities in these niche sectors. A case in point is a cider company known as Orchard Pig. Orchard Pig penetrated the UK cider market in 2007 at a time when the market was highly saturated and dominated by large corporations. Orchard Pig provided a product which was more expensive but was more artisan, mischievous and just generally fun. Orchard Pig’s success led to a £6 million turnover in 2018.[+14 sentences] Sir, I believe that with the right motivation, our entrepreneurs can find similar success. Sir, regarding the second concern, the Government's support is evident in the multitude of schemes aimed at helping SMEs employ local talent, such as PCP and CSP. In addition, initiatives, such as SkillsFuture, encourage Singaporeans to equip themselves with skills to cope with a changing economy. Sir, I believe that the next step forward should involve effecting a change in mentality. There are industries which are rife with opportunities. Yet, these industries have negative stigmas attached to them which have prevented employment of Singaporeans. Sir, I believe that these perceptions can be changed. We can learn from Germany which spares no effort in training its people for blue-collar jobs. In fact, they are so respected that a German political scientist has coined this phenomenon as "blue-collar aristocracy". This has allowed the German economy to thrive in terms of quality and has allowed them to compete in the global market on their own terms, not one of lowest cost, but of highest quality. Sir, by learning from them, we can effect a change wherein Singaporeans are happy to work in once-shunned industries, no longer being subject to ridicule or low salaries, allowing us to develop Singapore talent in these fields, increase employment, and the number of good jobs, while our goods and services become more attractive by merit of their qualities. Sir, in pursuit of economic success, we must not forget the need for sustainability. We have an obligation to meet our needs of today without compromising the ability of Singaporeans of tomorrow to meet theirs. One avenue that we can achieve sustainability in, is the built environment. There are frameworks that assess the eco-friendliness of buildings, such as the Building and Construction Authority (BCA) Green Mark Scheme. I believe eco-friendliness can be promoted by introducing tax rebates for compliance with eco-friendly building standards, use of eco-friendly building materials, and efficient consumption of utilities.[+5 sentences] Other cities around the world have introduced policies to incentivise the creation of sustainable built environments. Sir, Mexico City has introduced tax reductions, discounts to utility bills, greater access to financing and expedited permitting procedures when green building standards are met. Interested participants are subjected to third-party independent audits. They then execute the recommendations outlined in the audit report. Upon the implementation of these recommendations, a Sustainable Building Certificate of varying levels of achievement is issued and successful participants become eligible for the aforementioned benefits and can obtain up to a 20% reduction in property taxes. The results are impressive: seven years since its inception, 40 buildings certified under this scheme contributed to reduced electricity consumption of 20.1 million kilowatt-hours (kWh), and reduced carbon dioxide (CO2) emissions of 66,120 tonnes.[+2 sentences] Sir, I wish to declare my interest as a board member and Vice-Chairman of the Singapore Environment Council (SEC), which is a non-government, non-profit organisation. I urge the Government to adopt the SEC's Green Labelling Scheme and engage independent third-party auditors to assess the BCA's Green Mark Building certification. The SEC’s green labelling scheme is internationally recognised under the International Organization for Standardization (ISO) 17065 and ISO 14024 for certifying products which meet stringent environmental standards and is accepted in 43 countries.[+13 sentences] Sir, to promote a sustainable built environment, all stakeholders must adopt a common set of standards pertaining to sustainable development. This can be further reinforced by introducing pro-sustainability legislation. Sir, I support the use of Building Information Modelling (BIM) and Integrated Digital Delivery for construction projects. I understand that BIM is not seamlessly integrated among developers, consultants, contractors, suppliers and the authorities. This has resulted in the benefits of BIM not being fully reaped, resulting in stakeholders of construction projects suffering from redundancy. Furthermore, SMEs face difficulties in adopting BIM due to cost and manpower barriers. I urge BCA to consider shared integrated BIM services to support the industry. Sir, my final point is in regard to the perpetuation of our status as a global city. Singapore enjoys her current levels of success due to us positioning ourselves as a global city and acting as a node by which the world may become more connected. To remain a global city, it is imperative that we pay attention to both our hardware and software. Singapore must continue to upgrade its hardware through ensuring a world-class infrastructure, high levels of security and a beautiful green environment. Concurrently, we must ensure that our software, our people, become international, so as to be the means by which we reach out to the world and vice versa. To maintain our position as a global city, we can learn from fellow global city, Tokyo. The Tokyo Government formulated a plan in 2014 with the explicit aim of making Tokyo the world's best city known as "The Tokyo Vision". One of their strategies involves the use of the Olympics as the platform by which Tokyo may become world-renowned for arts and culture, which, in turn, set Tokyo on the path to becoming a world-leading cultural city.[+6 sentences] They intend to use the entire city as a stage showcasing Japanese culture. Sir, part of being a global city involves having a developed cultural scene, ready to be exported to the world. The recent Chingay parade is testament to our cultural strength and legacy. We have a rich culture that can, and should be, showcased to the world. We should learn from Tokyo and utilise international events as platforms by which we promote our culture, and cement our position as a global city. Another area in which we can learn from Tokyo is extensive and in-depth collaboration with other cities. As part of The Tokyo Vision, the Tokyo government will develop relations with 30 foreign cities.[+1 sentence] Sir, Singapore is unique in that it is a city-state. This has resulted in the blurring of lines between federal and city governance. We have strong ties with other federal Governments, and learnt and shared much with them. We should expand our networks with city and municipal governments so that our 3P sectors can learn and share their respective experiences.[+1 sentence] Sir, I would like to reiterate my call to the House to support Singapore in transforming into a sustainable global economic hub of tomorrow.
Mr Deputy Speaker3 words
[+1 sentence]Mr Henry Kwek.
Mr Kwek Hian Chuan Henry (Nee Soon)1793 words
[+8 sentences]Mr Deputy Speaker, on 15 February 1942, General Percival met his fellow generals at Fort Canning. Bukit Timah had fallen, along with crucial military supplies. The water supply was on the verge of collapse. Thousands of soldiers wandered aimlessly through the city, dazed and confused. Collectively, the generals decided that counterattack was impossible. They went against their orders, to fight to the last man. They decided to surrender. The surrender marked one of the biggest military defeats in British history and a big military mystery. How could the British, after 20 years of planning for Singapore's defence, with an army of 130,000 troops, be defeated by a Japanese army of roughly one third its size?[+15 sentences] As we commemorate our Bicentennial, it is a good time to reflect on history. A close reading of history showed that Singapore was lost not on the defence in the battles of 1941. Singapore was lost on the planning tables since 1921. After World War One (WWI), the British Empire was stretched financially. The British returned to the gold standard at a high exchange rate, which triggered deflationary monetary and fiscal policies. Wage did not adjust downwards due to union pressure, and British exports became expensive. For most of the 1920s, the British suffered a depression. The British military defence budget was cut very deeply until 1935, and her military failed to modernise. And after WWI, America and Japan competed for dominance in Asia. In 1922, America forced the British to choose a side. Britain chose to side with America over Japan, its former ally. With that, Britain faced a dangerous Japan with a formidable navy. Despite her military weakness, the British must convince Australia and India, then part of the British Empire, that the Far East can be secured, especially so since Australian and Indian troops were needed to protect their Empire's interest in Europe and the Middle East. Yet, the British could not afford a Far East navy to counter Japan. To make the impossible possible, the British came up with the "Singapore Strategy". In the event of a future world war, Britain will concentrate its entire navy to defeat its European enemies, and then sail the main fleet down to Singapore to counter the Japanese. Therefore, in 1921, the British cabinet approved the building of a new naval base out of Singapore to host its main fleet.[+4 sentences] And Singapore must be defended until the arrival of that fleet. The idea was sound. But the implementation of the Singapore Strategy over the next two decades can only be described as fundamentally unsound, as a 20-year sleepwalk towards disaster. First, according to historian Brian Farrell, the British never found the money to build a big naval base. The British knew they need most, if not all, of their fleet to contend with the Japanese. But surprisingly, the naval base in Singapore was never designed to hold more than 20% of its fleet.[+6 sentences] Secondly, knowing no fleet in the Far East, and knowing that they needed to defend Malaya and Singapore from a land invasion from the north in 1936, the British turned to their air force. Unfortunately, the British air defence plan was fundamentally unsound as well. The British air force built a string of airbases to the north without consulting their army. While these air bases were close to the South China Sea and the Thai border – areas that they expected the Japanese to invade from – they were situated in indefensible terrain. And after all this hassle, the British incredibly never found the money to deploy an air force large or sophisticated enough. All these meant that the under-strength British Army now had to defend not just the empty naval base in Singapore in the south, but also the under-equipped airbases in the north. In short, the Singapore Strategy was nothing more than a "Strategic Illusion", a plan that could never work against a determined enemy, a plan one hopes will never be tested.[+9 sentences] But hope is not a strategy. After the attack on Pearl Harbour, the British stood alone in Malaya and Singapore. In the final years before the Japanese invasion, the British did build up the Malayan army to almost three times the size of the invading Japanese army. But decades are needed to build and sustain a strong defence. Many historians, including Frank Pike, concluded that the large British Malayan army was only capable of fighting fixed-piece battles of WWI, and while there were some good units, even the British official historian Woodburn Kirby concluded that most of these units were raw and unfamiliar with how to fight in the tropics. Lastly, the British army lacked comprehensive intelligence on the Japanese and, therefore, were complacent. In December 1941, when the Japanese swept down from the north, they destroyed the small obsolete British air force in the north within 100 hours and sank the only two major British ships in the Far East. They then proceeded to destroy the British Army dispersed throughout Malaya, piecemeal. They defeated the British at Jitra to win Northern Malaya, overran and dispersed the British at Slim River, outmaneuvered the British at Muar to win the crucial fight for Johor, and reached the gates of Singapore, all within 55 days. After a seven-day fight for Singapore, the divided and demoralised British army, still 100,000 men strong, chose to surrender.[+8 sentences] So, what can we learn from the Fall of Singapore? The obvious answer is that we can only count on ourselves to defend Singapore, regardless of security arrangements with others. But there are at least three other lessons. The first lesson is sustained and sufficient defence spending is necessary. In the case of the British Empire after WWI, they faced a rapidly changing world order with the rise of Japan and Germany. The rise of air power, use of combined arms, shift from battleships to carriers, all required major investments. When the British woke up to the reality in the mid-1930s, it was too late to reverse two decades of military neglect. The situation for Singapore today is vastly different, but some lessons are still worth noting. The most advanced militaries today grapple with major challenges, such as adapting to fifth generation aerial warfare, contending with cyber and hybrid warfare, dealing with disruptive innovations from drones to AI.[+1 sentence] These reserves require major and sustained investments. Therefore, I am heartened that 30% of our Budget this year goes to defence, security and diplomacy, because history shows there is no substitute to deterrence.[+13 sentences] The second lesson is that a nation's security depends on a strong economy and ample fiscal resources to deal with the changing world. In the case of the British Empire, while it thrived in the First Industrial Revolution of steam engines and weaving looms, it failed to transform its economy and fell behind America and Germany in the Second Industrial Revolution of chemicals and cars. Its misguided monetary and fiscal policy led to deflation and depression. It accumulated significant debts because of WWI. For an empire where the sun never sets, it never built a diverse and sustainable tax base to pay for its defence. In short, the world changed dramatically for the British Empire, but it ran out of money to adapt to the changing world. That was then. How about our world today? Henry Kissinger recently said, "We are in a very, very grave period for the world", and the current times can only be marked as an "end of an era". I am more optimistic. While there are major global uncertainties ahead, there are ample opportunities for a nimble Singapore. But this requires us to sustain our economy and maintain our fiscal discipline. We are in good shape today. The past year's GDP growth is strong, unemployment and inflation are both low, and median wage increases are high.[+3 sentences] But what about our economy in 10 years' time? No one can guarantee that our companies can continue to thrive in the face of technology disruption and global competition. Therefore, our companies and people must tap on various programmes and grants, and press on relentlessly to transform. On maintaining our fiscal discipline, there are many voices asking for more Government spending, and to dig deeper into our Reserve income.[+1 sentence] Many of them are for deserving causes. But our Reserves must anchor our economy through turbulent times.[+1 sentence] If we fail to grow our savings over time, when a major storm hits Singapore a decade or two down the road, we may find our financial anchor insufficient to stabilise our economy, which would have grown larger by then. At the same time, in this House, we frequently say that we are not done building Singapore. But as non-discretionary spending forms a larger percentage of our Budget, there is less room for major shifts to respond to a changing world, less room to build a better Singapore across generations.[+18 sentences] The third and final lesson is that a successful society requires its people to have shared beliefs rooted firmly in reality. The British Empire had an unworkable defence plan. Over two decades, her electorate and leaders failed to robustly debate on whether it was realistic and whether there were sufficient resources to backstop the plan. Singapore's success to date depends on our people's consensus on what it takes for Singapore to succeed. But the world is increasingly diverse and our people's views mirror this increasing diversity. To meet tomorrow's challenges, we need to strengthen our shared beliefs in many areas. For example, how can we balance giving our youths with the best we can afford, while ensuring that they remain hungry and curious for new opportunities? How can we persuade our people that keeping Singapore open to the world is to our best collective interest? How can we continue the unfinished business of tackling inequality while maintaining the core promise of meritocracy? How can we best represent the causes and values of some, while enlarging the common space for all? The answer lies in more robust conversations not just between the Government and the people, but also among people of differing viewpoints. I hope our Government can foster more conversations for our people to air their views, listen to differing opinions, understand the realities that constrain Singapore and achieve a nuanced and shared understanding of our common future. Mr Deputy Speaker, to conclude, the commemoration of our Bicentennial allows us to reflect on the Fall of Singapore in 1942. Singapore today is safe and prosperous. Nevertheless, there is a Chinese saying "居安思危". Even in peace and prosperity, it is essential to plan for and act on, the turbulence and uncertainty ahead. Budget 2019 is best described by the same phrase, "居安思危". With that, I stand in support of the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)512 words
[+10 sentences]Sir, I will deliver my speech in Malay. (In Malay): Sir, the MGP has become one of the focal points of this year's Budget. This generation is certainly deserving of being called the MG, not only because they were born in the 1950s, which was the time when Singapore fought for and achieved Merdeka, followed by self-rule in 1959, but it was because this generation was imbued with the values and spirit of Merdeka. These values and spirit then cascaded down and were inherited by the generations after them. As a generation shaped by the values and spirit of Merdeka, this generation should have been prepared to enjoy their golden years, the Merdeka way. In other words, independently and not having many dependencies. The process of ageing independently happens when our seniors can retire without depending too much on financial support from their children, siblings and other relatives, and also without depending on assistance from Government bodies and welfare organisations. Apart from seniors who face difficulties because they are burdened by serious diseases and misfortunes, seniors who undergo ageing independently should be able to take care of themselves or be able to support their own daily expenses in order to live their golden years meaningfully. We must make changes and adaptations to aspects of healthcare, manpower, social pension, housing policies and policies that are based on gender in order to ensure that our seniors can undergo ageing independently. Sir, the Workers' Party has five proposals to enable our seniors to achieve this objective. First, automatic registration for CHAS subsidies and also outpatient treatment for all Singaporeans once they reach 60 years old.[+1 sentence] This is an effort to further address the present gaps in our universal healthcare system. Second, abolish the retirement age, increase the re-employment age to 70 and restore the CPF contributions for older workers so that our seniors can continue to work as long as they wish to and are able to. Third, transform the CPF into a safety net for seniors whereby the eligible withdrawal age, or the age when they are eligible to receive payouts, is lowered to 60 and members are allowed to make partial withdrawals from the available sum if they are unable to work for a certain period of time due to health issues. Fourth, strengthen ageing further by promoting HDB's Lease Buyback Scheme to the Merdeka Generation. Fifth and finally, address the gender gap for CPF and other savings for our female seniors by increasing the amount of MediSave top-ups for this group and also provide incentives for participation so that they will register for CareShield Life.[+4 sentences] Sir, ageing independently is all about ageing with dignity and meaningfully for our seniors. If we missed the chance to do so for PG, let us not lose this opportunity to do so for MG. The MG possesses the values, spirit, concept and realisation of Merdeka. We can still do something better for MG so that they can be more independent, instead of having many dependencies while living out their golden years.
Mr Deputy Speaker4 words
[+1 sentence]Prof Lim Sun Sun.
Prof Lim Sun Sun (Nominated Member)1189 words
[+6 sentences]Mr Deputy Speaker, the hon Minister for Finance has announced a Budget that charts strategic paths for Singapore in the face of formidable headwinds. In particular, this Budget will help us to confront and harness the forces of digital disruption as they interact with demographic shifts, Asia's growing ascendancy in the world economy and subsiding support for globalisation. Indeed, even as the Budget takes into account the critical needs of lower-income households, it also seeks to boost the capabilities of our people and the companies that power our economic transformation. Hence, different schemes for companies, such as Innovation Agents, SMEs Go Digital and the Automation Support Package are especially welcome. Minister Heng Swee Keat also spoke of the need for our people to have the skills, knowledge and aptitude to flourish in our fast-changing and technologising world. In this regard, I would like to highlight three critical literacies we must seek to nurture in our people, to help us all better adapt to our rapidly evolving environment. If the Annual Budget starts with A and B, I would like to speak today about literacies beginning with C, D and E. These are cross-cultural literacy, digital literacy and ethical literacy.[+2 sentences] The Minister had, in fact, raised the need to cultivate cross-cultural literacy among our young so as to broaden our regional and international connections. Allow me, therefore, to unpack the concept of cross-cultural literacy and how it is more crucial today than ever before. Cross-cultural literacy is the ability to understand and interact across different cultures in a manner that is sensitive to differences, yet respectful of diversity.[+15 sentences] To fortify our rich multicultural heritage, we must create more spaces and opportunities for meaningful cross-cultural understanding. Rather than simply trading in essentialist and simplistic caricatures of different cultures, we need to create forums where people are unafraid to ask tough questions of one another, confront their unconscious biases and dispel long-held misconceptions. Cross-cultural interactions should be well developed, organised and supported by facilitators, failing which these encounters may create confusion, trigger misunderstandings and, at worst, reinforce stereotypes and prejudices. Greater cross-cultural literacy can help to forge a more inclusive society where diversity is valued rather than frowned upon. Efforts to enhance cross-cultural literacy should be introduced not only in schools, but also in community and corporate events so that working adults can benefit as well. Ultimately, social ties that are undergirded by greater cross-cultural literacy will be more enduring and resilient. They can serve as a bulwark against threats, such as online disinformation campaigns, that seek to foment inter-ethnic discord. Beyond Singapore, our people must also inculcate a deeper understanding of our neighbours. Our region boasts of a rich cultural heritage and tremendous growth potential. And yet, many young Singaporeans view our regional neighbours as nothing more than holiday destinations. Many industry leaders I meet increasingly lament that Singaporeans are averse to job postings in the region as they view them as being less glamourous and rewarding than those further afield. And yet our region is home to fast-growing markets where there are many inroads to make significant impact. To better develop Singapore into a node both within Asia and globally and ensure that our citizens are well placed to tap on such opportunities, our schools from primary through to tertiary levels should make greater efforts to strengthen and deepen our students' appreciation of the region. Moving on to D for digital literacy. Singapore has done well in terms of providing access to digital devices and services. Schemes, such as the National Education University (NEU) Personal Computer (PC) Plus and Home Access programmes for low-income households, and Enable information technology (IT) for persons with disabilities, have helped to make sure that all Singaporeans have basic access to digital technology.[+1 sentence] Fortunately, we do not face a significant issue of a digital access divide. However, we must be vigilant about any emerging digital skills divides that may find certain segments of our population less advantaged and less able to benefit from our digitalisation push. I, therefore, welcome the Ministry of Communications and Information's Digital Readiness Blueprint and its recommendation that all citizens be equipped with a foundational set of digital skills.[+1 sentence] These pertain to managing information, communicating, transacting and maintaining cyber safety. Going beyond the Basic Digital Skills Curriculum, however, we need to pay particular attention to providing support for specific demographic groups that may require more targeted assistance.[+7 sentences] For instance, how do we ensure that emerging adults from across the socio-economic spectrum are prepared for the job market in terms of knowing how to profile their competencies, utilise job portals, seek online career mentoring and access skills upgrading programmes? At the same time, we may wish to offer digital roadmaps for critical issues that everyone has to deal with. For example, how can individuals seek reliable health information online and how can families obtain sound advice on managing household finances? In my research on parents with school-going children, I found that some parents were daunted by the online homework their children were given and felt deeply insecure about their inability to help their children. Indeed, our digitally-connected world is constantly expanding in complex ways, with an ever-proliferating range of apps, portals, platforms and content. As far as possible, we must offer signposts to help people navigate their way online and make sense of the deluge of information they encounter. The final literacy I wish to speak on is ethical literacy. Because our society is becoming more digitalised, with a growing embrace of the Internet of Things, Big Data, AI, machine learning and automation, we must enhance the ethical literacy of our workforce to ensure that these technologies are deployed in the best interests of our society.[+1 sentence] Whether the solutions to our wicked problems are technologically or socially engineered, they must accord with our values and align with the ethical principles we collectively subscribe to. In this regard, we must vest our workforce with the competencies to recognise ethical issues where and when they present themselves, understand different ethical perspectives and to apply these perspectives to help resolve ethical conundrums.[+3 sentences] Who should be given access to information about whom and for what purpose? How do we draw the line between customer-orientation and surveillance? When should automated decision-making yield to human judgement? Controversies in Big Tech have shown how inattention to ethical considerations can lead to issues, such as Facebook's Cambridge Analytica debacle and Uber using its technology to track users’ locations against their will. In this regard, the Proposed Model AI Governance Framework launched in January is both farsighted and commendable.[+3 sentences] I look forward to it being disseminated across the relevant industry and education sectors. I would like to further suggest that ethical literacy be systematically phased into young Singaporeans’ educational journeys, where we could consider refreshing and updating our civics and moral education curriculum to take into account emerging ethical dilemmas that are fast arising in Industry 4.0. In conclusion, Mr Deputy Speaker, I believe the proposed Budget will advance our Smart Nation drive, but we should also complement it by inculcating in our people cross-cultural literacy, digital literacy and ethical literacy.
Mr Deputy Speaker3 words
[+1 sentence]Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh)2704 words
[+16 sentences]Mr Deputy Speaker, Budget 2019 is a broadly inclusive, caring and positive Budget for all. There is generous healthcare support for Singaporeans with chronic illnesses. MG gets additional healthcare benefits among other perks. Low-income salary workers have an increased income cap and enhanced workfare bonus. The Bicentennial Bonus brings additional monetary perks for the different groups of Singaporeans, and there are tax rebates for all. It is also a Budget to chart a steady course in uncertain times and prepare for the future. Indeed, restructuring is the key to doing well in the future economy, and this Budget builds on the principles and key features of past Budgets to improve the lives of all Singaporeans. Mr Deputy Speaker, Sir, a short speech in Malay, in response to what Mr Faisal Manap mentioned about ageing. (In Malay): On the issue of ageing in Singapore, with reference to MG, apart from the proposals mentioned by Mr Faisal Manap, our Budget for 2019 has also provided various packages for senior citizens as well as MG and the families of these seniors. These include PAssion card top-ups that were provided in the Budget. So, there are already various packages in this Budget for those who have reached their golden years, other than those proposed by Mr Faisal Manap. So, for this Budget, besides the MGP that we have put forward, there are also active ageing activities for seniors that have been established by the Government for the long term. (In English): In English, please, Mr Deputy Speaker. In the last decade, our expenditure has grown correspondingly to the population's needs and it will only keep growing. We will have to fund our needs in a fiscally sustainable way to achieve all our objectives. Otherwise, future generations of Singaporeans will suffer. The best way to go about this is to continue growing the economy, keep a broad-based tax, have a diverse source of revenue and maintain fiscal prudence. I note that for this year's Budget, the Government has taken a counter-cyclical approach by introducing multifaceted measures to boost competitiveness, productivity and to upskill and reskill and rightskill workers, despite going from a surplus of $2.1 billion, or 0.4% of GDP in FY2018, to a deficit of $3.5 billion, or 0.7% of GDP in FY2019. It is, indeed, a generous and ambitious Budget, in my opinion, with special transfers rising to $15.3 billion, up from $9 billion in FY2018. This is the highest special transfer on record above the $12.4 billion in Budget FY2014 when the PG package was unveiled.[+5 sentences] Certainly, we have to be ambitious in the face of many challenges. Arguably, the most ambitious dimension that this Budget, and many to follow, has to address pertains to the daunting socio-economic challenges derived from rapidly greying demographics and inequality. Of the two, inequality is a multidimensional and complex problem that needs to be examined more closely. The Finance Minister's allusion to social mobility is a critical precondition to tackling this problem. To be sure, by definition, one of the main purposes of the Budget is clearly redistribution. This means that in recognising the economic realities of uneven distribution of resources, fiscal policy is meant to facilitate a slightly more equitable redistribution of resources across the economy. So, we are seeing further enhancements to fiscal transfer packages, such as the ComCare Long-term Assistance, and WIS, alongside longer-term commitments, such as the $6.1 billion MGP and $5.1 billion in long-term care support initiatives, to form a vital safety net.[+9 sentences] But we must go beyond to address the true underlying causes of inequality. Short-term redistribution of wealth is not only unhelpful for the future generations, but it inadvertently increases social tensions when it devolves into a zero-sum game tug-of-war between the haves and have-nots. Already, some people are asking, "Can you do more for the middle-income group?" "What about those who don't have jobs? They can't even benefit from WIS." These are perfectly valid concerns, but there are other long-term measures to address these. After all, the ultimate goal of inclusive fiscal policies is not merely some variant of Robin Hood-type of social transfers. Instead, a holistic approach to inequality is incomplete without an ecosystem of measures and programmes to improve social mobility, which is a far more potent catalyst of socio-economic progress than welfare. To this end, there is a repletion of programmes to serve every need, from individuals to businesses, children to elderly. KidSTART, Global Ready Infrastructure Talent, SkillsFuture, Adapt and Grow, PCPs, career guidance and counselling are just a few of the available programmes one can tap on.[+11 sentences] Built upon the pre-existing system of high-quality, heavily subsidised public education, these will improve one's chances of climbing up the career or economic ladder. But these schemes are merely the start of a long journey on battling inequality, a pervasive problem across many developed countries. One can reasonably expect that further enhancements in coming Budgets will be inevitable. Most of the time, focus has been on the vertical dimension of inequality – between the rich and the poor – and the Budget is one good example where we tax the better off ones and we distribute to the needy segments, hopefully, well-distributed. But there are important horizontal dimensions as well. In the Gini coefficient or the top 1% income share, people appear anonymously, but we may be concerned with how unequal income is across various groups, such as by gender, location or even ethnicity. This Budget and previous Budgets have aimed to address these horizontal dimensions in various ways. But I feel more can be done to address some of these horizontal dimensions – earlier, in terms of generational, but now, in terms of social and educational dimensions to narrow gaps as much as we can. One way to narrow gaps in terms of social and educational dimensions is to increase spending on the ITE segment of the student population. We already have a very established system for the conventional post-secondary route consisting of junior colleges and polytechnics. Enhancements in the ITE education programme is something more recent. So, we will have to focus more to continue enhancing it. This segment constitutes 25%-30% of the post-secondary cohort each year and is a significant future labour force with key skillsets for us to be future-ready.[+11 sentences] I note that despite the myriad of financial assistance programmes available for ITE students, poor time management and prioritising of resources are one reason for some students to fall behind in their studies. For example, I know of a young boy who worked two jobs while studying because of financial woes in the family. He does not blame his lack of finances, but he regrets his poor time management which has effectively rendered his two years in ITE a waste of time because he skipped classes. Last I am aware, he was working hard on his internship, hoping to do well enough to improve his Grade Point Average and qualify for entry into the polytechnic. I think there are many such students who, at their young age, feel lost, and entered ITE as a last resort and squandered away their time and resources. By the time they recognise the opportunities and potential provided by the school, it is a bit late. I hope a proactive approach can be taken to counsel students, particularly new admissions. Teach them how to manage their resources, help them to apply for the necessary financial help, and follow up on their progress. This hands-on approach would need extra manpower resources and skilled ones at that. I have also heard anecdotally that a rising number of special needs students are admitted to IHLs, in particular ITEs, to further their education and obtain gainful employment upon graduation. This is a good sign and trend. But can we allocate more resources to the ITE to help enhance the Special Educational Needs (SEN) support office? These students account for about 4% of ITE's enrolment. On average, over the last three decades, about 2,500 students with SEN were enrolled in IHLs.[+9 sentences] How many of these students were able to graduate and take on fulfilling work on their own terms? Can we do more to increase SEN student enrolment in IHLs, particularly in ITEs, as some have demonstrated potential for vocational studies? Every student matters in a country where labour force growth is low. In Malay, Mr Deputy Speaker. (In Malay): Singapore is a small nation with a small market. But we are well-positioned for research, innovation and enterprise opportunities on a regional and global level. We have many global and regional partnerships, and we also have a good reputation for efficient and reliable services. It makes sense for Singaporeans to venture overseas to find success. In doing so, they may also create more jobs and opportunities for other Singaporeans. I am also pleased to note that the Minister has promised that more will be done to prepare and develop Singaporeans to seize opportunities for international collaboration and to provide more opportunities for Singaporeans to gain overseas working experience. There is the Global-Ready Infrastructure Talent Programme (GRIT) under the PCP, which seeks to reskill local mid-career switchers and displaced professionals to embark on job functions required for global infrastructure projects in areas like Transaction Advisory, Project Financing, Legal Advisory and Infrastructure Engineering. The Minister has revealed plans for more funding for students at IHLs who plan to intern overseas with Singaporean firms through the new Global Ready Talent Programme (GRTP).[+19 sentences] This also benefits the high-growth Singapore firms which will receive support to send their local employees for overseas postings. Hence, this Global Ready programme has a good premise, and I hope that it can be expanded to include regional placements in a wider variety of sectors and to include mid-career switchers who may not want to leave their industry entirely but would like to try a different market. By encouraging Singaporeans to seize opportunities to explore, especially in the ASEAN region, this will also help facilitate collaborations within ASEAN which are beneficial for the economy. With great pleasure, I would like to share about some of our Malay/Muslim businesses which have found success in the region. Positano Risto came up with the unique proposition for a halal Italian restaurant in Singapore in 2017, and they have since opened an additional outlet in Kuala Lumpur, Malaysia. Adrianna Yariqa has been selling modest attire fused with modern and traditional elements for Malay men and women since 2014, and they have expanded to Kuala Lumpur, Malaysia. Another firm, Enercon Engineering Pte Ltd, which specialises in power control solutions, has offices in Singapore and the Philippines, and supports businesses in Malaysia and Taiwan. There are many others. For instance, JumainSataysfaction has spread its wings to Japan in halal food manufacturing, as did Versafleet in the technological transport management solutions sector in the region. Malaysia, as Members can see, is a popular choice for expansion, because not only are they close by and have a large population of Muslims, but also because when local businesses make headway in one country, they pave the way for other Singaporean businesses. Through networking and sharing of experiences among businesses expanding to the same countries, they can help one another to grow. (In English): Mr Deputy Speaker, next, I want to talk about helping small savers to grow their income. The debate about distribution of wealth and inequality tends to focus on large fortunes at the top. But the redistribution of wealth is as much about encouragement of small savings at the bottom as it is about the restriction of the excesses at the top. So, it is just as important to encourage small savings at the bottom, rather than harping on restriction of excesses at the top. The rich get richer because they have ample funds to invest, benefit from high interest rates and grow their portfolios and assets. The low-income has less money to risk, and some also lack the financial savviness. One suggestion is to address the current low interest rate environment. CPF offers relatively high interest rates for members, but not all have sufficient money in their accounts to take advantage of it. Moreover, this money is not to be freely withdrawn, so hesitation to deposit more money in the accounts is to be expected. I hope the Government will in future consider offering a national savings bond, with a guaranteed positive real rate of interest on savings, with a maximum holding per person. The Government could consider allocating a minimum $500 allocation of the existing Singapore Savings Bond to every Singaporean adult.[+2 sentences] The high interest rates would motivate people to save up, without restricting the use of the funds in times of need. This could also raise the awareness about the positive characteristics of the Singapore Savings Bond to the general public. Even as we discuss the possible enhancements for the various schemes and future Budgets, we cannot avoid the increasingly urgent question of how to sustainably fund all these efforts. I note that the Minister has plans for huge infrastructure projects and other infrastructure investments to be partly funded through borrowing and embedded Government guarantees.[+6 sentences] I applaud this approach as I have expressed my suggestions on this in my previous Budget response last year, to ensure intergenerational equity. It is important to make sure that intergenerational burden is allocated properly to the generation benefiting from the large infrastructure projects. However, when planning a long-term project, be it infrastructure or social, it is important to follow individual lifetimes. The future is unpredictable, and there may be significant inequality between generations. Just because the real incomes are rising over time does not necessarily mean that those born later enjoy higher lifetime incomes. Inflation, increased costs of living and so on could have a major impact on livelihoods. In fact, researchers from the National Bureau of Economic Research (NBER), along with economists from Stanford University, Harvard University and the University of California at Berkeley, presented financial reports and comparisons indicating that millennials are doing worse off than their parents.[+13 sentences] In the UK and the US, there is growing observation of millennials living with their parents because they cannot afford their own homes. This appears to be a trend in developed economies. Thankfully, we do not have such issues here in Singapore. Governments have the tendency to apply a social discount rate to long-term projects. Part of it reflects the expectation that future generations will be better off, and so a lower valuation is attached to the better off when measuring inequality at a point in time. So, as the economic situation in various developed economies has reflected, this is a dangerous mindset we have to steer clear of. We risk increasing income inequality for the future generations otherwise. The matter of taxes is also something to contemplate while on the topic of intergenerational equity. As an ageing population that is gearing towards automation, the amount of income taxes collected is expected to decrease along with the number of people in the workforce. What happens if the taxable population remains low? Do we keep increasing the taxes? That is a huge burden for future generations to bear, especially if they are not doing so well. So, it is important that we examine whether these additional taxes will enhance or deteriorate the progressivity of the overall tax framework, especially for the lowest income households. Some sort of wealth-based tax may be more pertinent, and we could have different tiers of taxes.[+5 sentences] For example, impose a 10% tax on purchase of goods in the luxury tier or fine dining at a restaurant, and a much lower tax like 3% on basic necessities like rice. So, increase tax rebates for social causes, and instead of paying taxes, the wealthy may choose to donate to causes they care about. To sum up, Mr Deputy Speaker, Budget 2019 manages the tough and delicate balancing act of being sufficiently counter-cyclical, appropriately strategic and unwaveringly committed to tackling structural challenges posed by ageing and economic transformation. Looking forward, we should continue focusing on increasing social mobility and measured tax solutions to resolve the inequality problem. Mr Deputy Speaker, I support the Budget.
Mr Dennis Tan Lip Fong (Non-Constituency Member)2329 words
[+1 sentence]Mr Deputy Speaker, in these uncertain times, we need to build resilience in many ways. Does the Budget this year help to build that resiliency?[+2 sentences] I would like to touch on a few points in the Budget where it seems our resilience is being tested as we speak. Mr Deputy Speaker, environmental resiliency is a big concern in a world where climate change is increasingly front and centre of policy agendas everywhere. We see elements of this in Budget 2019 where Minister Heng Swee Keat announced that the excise duty on diesel fuel has been increased from $0.10 to $0.20 per litre with immediate effect.[+3 sentences] While there were positive results, my concerns have remained unchanged from 2017 when the diesel excise tax was introduced. Indeed, my concern is that while we care about environmental resiliency, we may be doing this at the expense of economic resiliency. Diesel is the common fuel for most taxis, public and private buses, delivery vans, pickups, lorries and many other different types of heavy vehicles. The announced road tax rebates for commercial diesel vehicles are not going to completely offset the excise tax payable according to usage.[+16 sentences] Taxi drivers are already complaining about this. Moreover, such rebates are really short-term measures and, ultimately, operators and owners will face the full effect of the price increase for their businesses. They will have to pass the increases to their customers downstream sooner or later. In short, this diesel tax increase will mean an increase in transportation expenses, which will translate to higher costs for all kinds of businesses in Singapore requiring directly or indirectly transportation. Until all public buses are converted to electric ones, diesel tax increase will raise the operating costs of our Public Transport Operators (PTOs). Is this really necessary? Will that lead to fare increase again at some point? Why penalise taxi drivers who do not own the taxis they drive? How soon can the taxi fleet be converted to hybrids or even to the use of fully electric cars for taxis? While environmental concerns are understandable, and while the Minister can talk about some car owners and taxi companies switching to hybrids, the vast majority of existing vehicles using diesel have no other options for an immediate switch at the moment. If the message that the Government wants to send is that diesel is bad for our environment, what are the hybrid or fully electric options that the Government is providing at this moment for users to switch to non-diesel vehicles, especially beyond cars and taxis? If electric or hybrid options are not realistically available en masse now, the tax will just perpetuate the continuing operation of diesel vehicles with the owners paying more into the state coffers. And that does not really help the environment either. The increase in diesel tax will only increase the cost for businesses, especially our SMEs, in an economic climate that is not rosy at all. Whether we are talking about commuters taking public buses, workers or students taking chartered buses to work or school, delivery vehicles sending goods and food, and so on, ultimately, the diesel tax raise will just increase our cost of living, diminishing our economic resiliency at a time where we may ill-afford to. Another part where our resiliency is being tested is in our aerospace industry. In his Budget speech last week, Minister Heng Swee Keat mentioned that for the development of Changi East, where the new Terminal 5 (T5) will be built, the Changi Airport Group will be taking loans to fund its share of the infrastructure and the Government will provide a guarantee for the Changi East borrowings in order to reduce the cost of borrowing.[+7 sentences] In last year’s Ministry of Transport's (MOT’s) Committee of Supply (COS) speech, the then Second Minister for Transport Ng Chee Meng shared with this House exciting plans for the proposed building of Changi Airport T5 and the development of Changi East. The Minister spoke of it being, I quote, "a bold move to cement Changi Airport’s position as a premier air hub for the future" and that "it is critical our aviation sector can continue to grow and support the growing needs of our economy". We are told that the scale and complexity of the project are unprecedented: new runways, new terminals, network of tunnels and systems, in short, "a game changer" and "a mega terminal with satellite terminals". The Government even decided that it would foot the majority of the costs of building which will be expected to cost tens of billions of dollars. As of last year, $9 billion has been spent. I cannot agree more that these are exciting developments for our Changi Airport, for Singapore as an international as well as regional air hub, and with good prospects. However, I am concerned whether recent announcements from Malaysia will affect our plans and, more importantly, the future of our air hub. On 4 December 2018, Malaysia announced its intentions to take back its delegated airspace in southern Johor.[+1 sentence] This means that it will take back its air traffic control service arrangements over Southern Johor. Currently, Singapore has been providing air traffic control services over southern Johor through the Operational Letter of Agreement Between Kuala Lumpur and Singapore Area Control Centres Concerning Singapore Arrivals, Departures and Overflight since 1974.[+15 sentences] Over our southern border, there has also been media reports of Indonesia demanding to take back its delegated airspace over the Riau Islands Flight Information Region. I am certainly concerned with the possible effects of our neighbours taking back their delegated airspaces on: one, Singapore as a major air hub; two, Singapore’s aerospace industry; and three, the development and future viability of Changi T5 and Changi East. Are our aerospace ambitions sufficiently resilient against such uncertainties and potential shocks? The tests of resilience also extend to our port and maritime sectors. Minister Heng Swee Keat mentioned in his speech that the British decision to declare Singapore a free port plugged us into an emerging network of global trade. Indeed, this is also the bicentennial of the modern port of Singapore. In this bicentennial year, it is noteworthy that over the last 200 years, as different businesses and industries rose and fell, our port has remained one constant key to Singapore's survival and prosperity. It has, in fact, grown from strength to strength, thanks to our strategic location and those who have worked hard over 200 years to keep Singapore port in its position today. Last year, in my Budget Debate speech, I spoke of the challenges to our port and asked how long we can continue to enjoy our advantages. I mentioned of challenges from the Arctic or Northern Sea Route and the Malacca Port. There are other challenges, too. At MOT's COS Debate last year, the long talked about possibility of a canal across the Kra Isthmus in Thailand was brought up briefly. Indeed, this will be another threat, too. In face of changing leadership in Thailand and the new Asian political landscape, it is uncertain whether the long talked about project can be resisted indefinitely. Besides monitoring developments, are we doing any forward scenario planning and how are we going to deal with such a possibility? In November last year, Malaysia unilaterally attempted to draw a new port limit boundary off Tuas, encroaching on the waters which have long been under the jurisdiction and control of Singapore. The standoff has continued since November 2018, and the Malaysian government vessels have remained in our port waters since.[+1 sentence] We have not attempted to dislodge them. There was even a collision in those waters between a Malaysian government vessel and a tanker, bringing with it awkward issues of jurisdiction exercised by both port authorities for the investigation of liability. Our port waters, being filled with so many visiting and passing vessels, are already bursting at its seams and being sandwiched between the Malaysian and Indonesian waters. I am concerned how the latest developments may affect our port or ancillary maritime businesses, whether in the short or longer run, if this is not managed and resolved appropriately by our Government in our negotiations with Malaysia. In January this year, Mr Andreas Sohmen-Pao, Chairman, Singapore Maritime Foundation, said at the Singapore Maritime Foundation (SMF) New Year Cocktail Reception that "just as shipping fundamentals are starting to look a little better, we see new issues around geopolitics, trade policies, energy and equity market volatility which have us wondering whether the long-awaited improvements will materialise after all." In my Budget Debate speech last year, I said that while I support the push for digitalisation and innovation under the Sea Transport ITM, we must not forget those who may not be able to benefit from this development.[+30 sentences] Similarly, I asked how many of our SMEs are in a position to compete in the liquified natural gas and offshore renewables identified in the ITM for marine and offshore engineering? Besides these areas, what are the future options they should be prepared for? In these still difficult market conditions, how are our ITMS helping our maritime SMEs beyond the categories which have already been talked about? I hope we can receive an update on these either here or at the COS debate later. There is a saying in Mandarin, "有国才有家". Overcoming tests of economic resiliency may not ultimately help our citizenry if there is no country to begin with. This underlines the importance of our security resiliency. Minister Heng Swee Keat stressed in his speech the importance of keeping safe and secure and justifying that our spending is significant but indispensable. He mentioned that a strong Singapore Armed Forces (SAF) remains a bulwark against threats to our way of life. While our spending on SAF's military equipment and hardware may be important to keep our potential adversaries at bay, our SAF, though led at the highest levels by full-time regulars, is largely a conscript force. While equipment, hardware and spending may be important, for SAF to succeed in its defence objectives, the buy-in from our Full-time National Servicemen (NSFs) and NSmen is absolutely critical. The Minister has said that National Service has forged a deep understanding in our people that each and every one of us has the duty to defend our nation. This ought to be the case, but it is something we can ill afford to assume or take for granted. It is something we must always continue to strive to achieve and maintain. In my view, it is a constant work-in-progress. If we expect our NSFs and NSmen to take their NS training and call-ups seriously and do their utmost, they will need to be convinced that the training they do is necessary and that both the SAF as well as their commanders, especially senior commanders, not just their NSmen commanders, must be able to command their confidence and respect. Equally, our NSFs and NSmen and, indeed, their families, too, must have absolute confidence in both the SAF and their commanders taking responsibility for their men's welfare and training safety while balancing the equally important objective of operational readiness. This buy-in may be easier said than done and we need to enhance our current efforts. As we are at our Bicentennial, I look to our forefathers over the last 200 years who have displayed tremendous resilience to recover from adversity and build Singapore to what it is today. The hope is that we can continue to ace the tests of resiliency that come our way as a people. Mr Deputy Speaker, may I end my speech in Mandarin. (In Mandarin): Mr Deputy Speaker, Sir, the MGP appears to be the highlight of this Budget. The generation being honoured truly deserves to be named MG. Not because they happened to be born in the 1950s, just as Singapore fought and got its Independence, beginning with self-rule in 1959, but because this generation was imbued with the spirit of independence and imparted the spirit of independence to future generations. As a generation who embodied and imparted the spirit of independence, the Merdekas should be enabled to age with independence. Ageing with independence is the ability of our seniors to retire on their own, with as little financial dependence as possible on their children, siblings and other family members, and also on the Government and welfare organisations. Except for incidents of serious illness and accidents, seniors ageing with independence will be able to care for themselves or pay for the care that they require to lead purposeful golden years. Indeed, we should work towards this goal for all our seniors, both now and in future. We need and we should calibrate our healthcare, manpower, social pension, housing and gender policies to make sure all our seniors, both now and in future, age with independence. The Workers’ Party has five proposals to enable our seniors to age with independence. First, CHAS auto-enrolment and outpatient subsidies should kick in for all Singaporeans who turn 60 years old to plug the primary care gap in our universal healthcare system. Second, the retirement age be removed, re-employment age raised to 70 and CPF contribution for older workers restored so that our seniors can continue working as long as they can and want to. Third, CPF be transformed into a safety net for seniors, that payout eligibility age be lowered to 60 and members be allowed to make partial withdrawals if incapacitated to work for a period of time. Fourth, ageing in place be deepened by promoting the Lease Buyback Scheme to the Merdekas. Fifth, close the gender gap in CPF and other savings for our senior women by increasing the MediSave top-ups for them and the participation incentive for them to enrol in CareShield Life.[+2 sentences] Ageing with independence is ageing with dignity for our seniors. If we have missed our chances with the Pioneers, we should not miss this opportunity with the Merdekas and all future generations of seniors.
Mr Deputy Speaker7 words
[+1 sentence]Senior Minister of State Chee Hong Tat.
The Senior Minister of State for Education and Trade and Industry (Mr Chee Hong Tat)1395 words
[+3 sentences]Mr Deputy Speaker, I thank Members for their speeches on the economy, workers and jobs. It is important that we focus on economic growth as this is linked to our ability to create good jobs for Singaporeans, generate resources for our social and security needs, and provide opportunities for future generations. The Ministry of Trade and Industry (MTI) and MOM will address these issues more fully during our COS debates. Today, I will explain why the Government had to make the difficult decision of tightening the Dependency Ratio Ceiling (DRC) and the S Pass sub-DRC for the Services sector in 2020 and 2021.[+4 sentences] This will impact industries like accommodation, information and communications, food services, retail and professional services. I will also discuss how the Government, employers and workers can jointly tackle the challenges going forward. Let me start by commending our mainstream media for their insightful and balanced pieces on the DRC issue. In particular, I want to highlight a well-written editorial by Zaobao on 22 February, which presented the tradeoffs clearly and explained why the tightening is necessary. The number of S Pass and Work Permit holders in the Services sector has increased by 34,000 in the last three years.[+13 sentences] In fact, the S Pass numbers are the highest we have seen in the last five years. The editorial hit the nail on the head by observing that if the total number of foreign workers rises too quickly, it will affect the employment outcomes of local workers and lead to sociopolitical problems in Singapore. We have seen this happen in other countries. Indeed, this is the key reason why the Government proceeded with the DRC tightening. We knew it would be painful for the affected companies, and we agonised over this difficult decision during our many rounds of inter-Ministry discussions. On balance, we decided that it was better to make a move now to moderate the overall number of foreign workers in Singapore before the problem gets out of hand. As the Zaobao editorial said, the DRC tightening is necessary bitter medicine, "治本的苦口良药". We are aware that many companies in the Services sector are facing labour constraints, and some have started to invest in productivity improvements by adopting technology and re-engineering their processes. Ms Denise Phua and Mr Douglas Foo spoke about this. Our economic agencies like ESG and the Singapore Tourism Board have been working closely with the companies and industry associations. I attend regular dialogues with our companies, including sessions organised by NTUC in my capacity as Adviser to U-SME. My colleagues and I also visit Services sector companies and witness first-hand how they have been working hard to implement productivity measures and upskill their workers through SkillsFuture training. The hard work is starting to bear fruit and we need to keep it up. If we look at the real value-added per actual hour worked from 2013 to 2018, which is one measure of productivity, it has increased by 4.4% per annum for the accommodation industry, 3.2% per annum for retail trade and 1.4% per annum for food services.[+15 sentences] In the accommodation industry, for example, total manpower declined by about 1% between 2013 to 2018, even though total room stock increased by 4% during the same period. These positive results were due to our companies’ efforts to innovate, upskill their workers and adopt progressive work practices. What I shared above are the average numbers for each industry. We can expect some companies to be above and some companies to be below these averages. But the outcomes show that our productivity measures are producing results. The key now is how to spread these efforts and benefit more companies, and for the more successful ones to eventually scale up and expand overseas. I agree with business leaders and Members like Mr Seah Kian Peng and Ms Jessica Tan who cautioned that technology is not a silver bullet and cannot completely replace the need for human workers, especially in customer service roles. Technology is a tool and an enabler, and what results we achieve ultimately depends on how well we use the tool. But we also know that in the current operating environment, it is important for all companies – big or small, traditional or modern – to have a good understanding of technology and what it can do to improve their products, reduce costs and enhance service quality. Otherwise, you risk being overtaken by your competitors. To paraphrase a Chinese saying, "科技不是万能，但不懂得用科技就万万不能". Technology is not everything, but if you do not make good use of technology, there are many things you cannot achieve. Sir, the Government will continue to help our companies and we will increase our efforts in these areas. I thank Mr Douglas Foo and our TACs for their partnership. We will work with industry associations to reach out to their members and enhance the support we provide to companies that want to transform their operations. For example, we will be enhancing the Productivity Solutions Grant (PSG) to include a new subsidy of up to $10,000 for employer-led training.[+4 sentences] We will also extend enhanced support under the PSG and EDG, keeping the maximum co-funding by the Government at 70% to support enterprise transformation. Under MTI’s Pro-Enterprise Panel, we work with industry associations and companies to review Government rules and regulations, to support new business ideas and look for ways to reduce licensing costs. Using this approach, we made several rule changes over the past months which have been welcomed by our enterprises. There are more changes in the pipeline, including a project to simplify the licensing requirements for food services companies. We will be launching the pilot system for beta-testing in May. So far, we have managed to consolidate the number of forms that businesses need to submit from 14 to 1, reduced the number of data fields required from 845 to 130, slashed licensing fees by up to $500, and shortened the processing time by two weeks. My colleagues and I are working hard on rules review because we believe it supports entrepreneurship and innovation, which are critical elements to achieve our economic transformation goals.[+12 sentences] We understand that the transformation journey for our companies can be a daunting and difficult challenge. Government agencies and industry associations will walk this journey together with you – this is our commitment to our companies. If you want to transform and you are willing to put in the effort to do so, we will help you. Let us work together to have a pro-enterprise, pro-worker economy, where we can continue to achieve economic growth to provide good jobs for our workers and a good life for our people. Mr Deputy Speaker, please allow me to say a few words in Mandarin. (In Mandarin): I am heartened that business owners and workers across various sectors have been working hard to raise productivity and transform their enterprises. Take our homegrown F&B company Jumbo Group as an example. Last year, I went on a tour of Jumbo's new central kitchen facility and saw how the company has automated its production of sauces and soup bases. Besides reducing Jumbo's labour requirements, this has allowed for better quality control in the production process. Jumbo also developed a mobile app to facilitate short-term job placements, which has helped to alleviate manpower shortages during peak periods. Heartland shops can also adopt technology solutions with support from ESG. Ngee Soon Jewellery is an example of a company that has managed to do so successfully. In 2014, Ngee Soon implemented a Radio-Frequency Identification (RFID) system, which allowed them to reduce the amount of time taken for daily stocktaking by more than 50%.[+2 sentences] The system also minimises human error and improves the accuracy of stocktaking. Ngee Soon’s staff can, therefore, devote more time and attention to serving customers and generating sales. All companies, no matter big or small, modern or traditional, have to transform to increase their competitiveness. The Government and industry associations will walk this journey together with our companies.[+2 sentences] This is our commitment to the business community. Let us stand united, press on in the face of any challenges and work together to build a pro-enterprise, pro-worker Singapore. (In English): Sir, I would now like to respond to some of the points from the Workers' Party Members of Parliament.[+1 sentence] I may need a little bit more time, Sir.
[+1 sentence]Senior Minister of State, please proceed.
The Senior Minister of State for Trade and Industry (Mr Chee Hong Tat)766 words
[+6 sentences]Thank you, Sir. Sir, Mr Pritam Singh and several of the Workers' Party Members of Parliament spoke about universal healthcare subsidies for all seniors. I would like to share with the House that today, we already have quite a number of healthcare subsidies that are structural. So, it is not cohort-based. In fact, polyclinic subsidies are universal. Seniors who go to polyclinics get additional subsidies compared to other patients. This is part of the primary care network that Mr Pritam Singh and Assoc Prof Daniel Goh spoke about.[+1 sentence] MediShield Life – for all, for life. This is a universal healthcare insurance that protects Singaporeans against large hospital bills, with premium subsidies and additional premium support from Government to help low-income Singaporeans and middle-income Singaporeans pay for their premiums.[+9 sentences] So, it is not quite accurate for Assoc Prof Daniel Goh to describe it as Singaporeans pay for one another, Government saves money. Actually, Government pays quite a bit of the premiums through premium subsidies and additional premium support. This is part of the sharing. The same principle is applied for CareShield Life. There are premium subsidies, there is also additional premium support, and these are part of the design of the scheme. It is not cohort-based. It is structural. The Community Health Assist Scheme (CHAS). We will be enhancing the coverage of CHAS to benefit even more Singaporeans, especially for chronic care. In 2017 – and this is before the enhancement – more than 650,000 Singaporeans benefited from $154 million of CHAS subsidies. And we will enhance the coverage, we will enhance the help that Singaporeans can get, the benefits that Singaporeans can get under CHAS, as part of enhancing primary care, and giving Singaporeans greater peace of mind.[+9 sentences] In our hospitals, in our Specialist Outpatient Clinics (SOCs), in our nursing homes, there are also structural subsidies. These are means-tested because we want to give more help to lower- and middle-income Singaporeans. When we introduce packages that are cohort-based, like the PGP and MGP, these are on top of the structural subsidies that are already provided in the system for all Singaporeans. Mr Pritam Singh claimed that the MGP gives off a pungent odour of an unfair advantage for the electoral prospects of the People's Action Party. I hope I heard him correctly. Now, I wonder why the Workers' Party chose to use such an unpleasant description and to focus on politicising this tribute to our MGs. The Opposition calls for the Government to give more, and yet when the Government gives more to help Singaporeans, the Workers' Party criticises the move as an election tactic. You cannot have it both ways. Please make up your mind and decide where you stand. As previously explained, we are setting aside funds from current Budget surpluses to give our MGs greater peace of mind and encourage them to stay active and stay healthy.[+4 sentences] It is also to show our heartfelt appreciation to our MGs for their sacrifices and contributions to Singapore during the early years of our nation-building. So, let us not diminish the significance of the PGP and MGP. It is misleading to link these packages to election cycles. We have explained this point before in the House, but let me say it again, because Mr Pritam Singh brought it up. The way we derive the surpluses is that you have to earn these surpluses during the term of Government.[+9 sentences] And then you set them aside, the surpluses that you have accumulated, to fund the PGP and MGP. You cannot do this at the start of the term because you do not know at that point how much surpluses you are going to have and how much surpluses you can set aside to fund these packages. These have been explained before. It is part of the design of our system for financial prudence and sustainability. To look after our current generation as well as future generations, we must plan for the long term. And this is what a responsible Government needs to do, to ensure that our policies and programmes are financially sustainable for the current and future generations. What is the size of the bill, where are the funds coming from, how do we achieve maximum value for money, these are important questions. What we can provide for future cohorts of Singaporeans and how much resources we have to invest in our people and to continue to rejuvenate our communities, our infrastructure, these will depend on whether Singapore continues to have constructive politics, good Government, strong economy and a cohesive society. Sir, I support the Budget.
[+18 sentences]Mr Speaker, Sir, I stand in support of Budget 2019. I support the broad principles highlighted by the Finance Minister which Budget 2019 was formulated upon. I would like to discuss three topics. First, universal support and cohort-based support schemes like the Pioneer Generation Package (PGP) and Merdeka Generation Package (MGP); second, investing in our future; and third, why we should have a Climate Change Bill. First, like many of us in this House, my parents belong to the Pioneer Generation (PG). I have many relatives and friends who belong to the Merdeka Generation (MG). Both the PG and MG lived through turbulent times of our nation-building. They have worked hard and built this nation so that the subsequent generations that follow will have a much better future. I was born in 1968. So, I belong to the next cohort, which Mr Murali Pillai had referred to as the Majulah Generation. But we were coined the Post-Independence Generation when we first came into this House. The next cohort consists of those born in 1960 to 1969, which includes Mr Speaker yourself, too. I would like to call this cohort "the Independence Generation", because we are born plus and minus five years from Independence. I do agree with Assoc Prof Daniel Goh that the MG and PG have taught us independence. That is the reason why I think Independence Generation is a much better name than the Majulah Generation. We all are here because of them. We all want our PG and MG seniors to enjoy their golden years and age graciously and peacefully. I support the PGP and MGP. Some in this House have asked whether cohort-based schemes like the PGP and MGP can be replaced by a more permanent universal system, a permanent system that automatically gives subsidy based on a certain age, like our transport concession for seniors.[+1 sentence] All seniors aged 60 and above can apply for a senior citizen concession card. In principle, if resources are available for the long haul, I can support a universal scheme that automatically distributes the benefits of the package to all above 60.[+7 sentences] But is it practical and realistic for the Government or for this House to propose and implement such a health scheme? Is it sustainable, given our ageing population and the growing numbers of people in this age group over the next few years? Cohort-based schemes like PGP and MGP are targeted at the needs of these cohorts. As explained during the launch of PGP, this cohort has contributed to our nation-building during difficult and challenging times. Many did not have proper education and good job opportunities. They worked hard to support their families and did not have sufficient savings for retirement and healthcare because Central Provident Fund (CPF) and MediSave schemes were not implemented yet. The package was tailored to their needs and targeted at the concerns they have. A universal scheme will be more blunt, broad-based and less targeted.[+19 sentences] We are not starting from zero. As it is today, we do have a universal health scheme. One may go to the Ministry of Health (MOH) website to enquire about the subsidies they can enjoy. If you key in 60 years old, which means your year of birth was 1959, and key in that you are Singaporean, the website will show 15 health schemes that you may get subsidy. These 15 schemes are MediShield Life, CareShield Life, MediSave, Community Health Assist Scheme (CHAS), ElderShield, MediFund, subsidies for services and drugs at Public Healthcare Institutions, Enhanced Screen for Life, Interim Disability Assistance Programme for the Elderly, Foreign Domestic Worker (FWD) levy concession for persons with disabilities, Seniors' Mobility and Enabling Fund, Caregivers Training Grant, Elder Fund, Foreign Domestic Work Grant, and Subsidies for Government-funded intermediate and long-term care services. These are the 15 schemes there. Primary healthcare in polyclinics is heavily subsidised and they are not means-tested. Any Singaporean can enjoy subsidy there. Likewise, subsidised healthcare at public hospitals is also affordable to all Singaporeans. For those who are not able to afford, medical social workers are there to assist and there is always MediFund. So, no Singaporean will be deprived of the medical care they need. There are also some who asked whether the next generation that follows, that is, those who are currently 50 to 59 years old, will get a similar package when we reach 60, which is in 10 years' time. Many of us and I in this House belong to this generation, the Independence Generation. Our generation, in fact, has already received a much bigger and better package than the previous two generations. Those in our generation were given better education, better job opportunities, better housing, better healthcare, better transport and a better Singapore by PG and MG. Like the previous two generations, our generation have worked hard and contributed. We grew up in a more stable and prosperous Singapore, were able to save more for our retirement and medical needs compared to the preceding two generations. Our needs are different. There is an important difference between a cohort-based scheme and a permanent scheme, that is, sustainability. A cohort-based scheme is financed by the current Government and does not burden our future generations. A permanent scheme will need additional recurrent funding which future governments may not be able to cope.[+6 sentences] In another five to 10 years, the new future government, if it is prudent and capable, may see an Independence Generation Package that will cater to our needs at that point in time. Next, investing for our future. Human resource is the only and most important resource Singapore has. Development of human resources through education and upskilling is the key. Currently, formal education – primary and secondary school education – is heavily subsidised. Hence, parents only pay monthly standard miscellaneous fees of $6.50 and $5 monthly school fees for secondary school. In contrast, a four-hour Ministry of Education (MOE) Kindergarten programme will cost parents $160 per month.[+3 sentences] The difference in fees is quite stark. Preschool education is currently not compulsory. Hence, it does not have the support given. All educators know the importance of early childhood education as it sets the foundation for the child. I hope the Government or the future government will make preschool or early childhood education compulsory and provide more resources so the school fees can be free, just like for primary school.[+1 sentence] Upskilling and upgrading all Singaporeans for the future is important. Will the Government consider putting more resources into SkillsFuture and top-up the accounts of Singaporeans who have utilised or exhausted their credits?[+13 sentences] After education and upskilling, it is important that wages have to be increased to improve their lives. Mr Speaker, I would also like to ask what is the difference in goals between a Progressive Wage, Minimum Wage or a Living Wage system, versus the Workfare Income Supplement (WIS). Neither encourages one to be unemployed. So, is the outcome not the same? There are many countries with a Minimum Wage but few countries with WIS. Why is that so? How comprehensive is WIS? Are there low-wage workers who did not benefit from WIS? My last topic will be on climate change. Mr Speaker, much has been said about our commitment to climate change. We have been educating our population on the greenhouse effect, carried out various campaigns, engaged transport operators, businesses and corporations and factories to get their buy-in. But we do not have a Climate Change Bill. In the United Kingdom (UK), before the Climate Change Act became law, the UK was struggling to meet its very unambitious emission reduction targets. The Act set a scientifically informed, long-term target of an 80% cut in emissions by 2050, which is legally binding.[+10 sentences] In other words, it aimed to increase ambition and to ensure that ambition was met. There are many countries, for example, Sweden, where the Climate Change Act contains provisions on the government's climate policy, what the work will be aimed at and how it should be conducted; Norway where the Climate Change Act offers a framework to promote the implementation of Norway’s climate targets as part of the transition to a low carbon society in Norway in 2050. In Asia, closer to home, Japan's Climate Change Adaptation Act aims at enhancing adaptation efforts in Japan. It enshrines into law the 2015 National Adaptation Plan and sets updated obligations. Even Malaysia has announced in December last year that they are drafting a Climate Change Act which will contain adaptation and mitigation plans to climate change. It would develop a list of comprehensive risk analytic simulating scenarios in the face of a rise in global temperatures of 2oC. Meanwhile, Scotland, too, acknowledged the warning of rising global temperatures and, last year, they sought advice to further enhance it. In fact, in Scotland, their ministers are legally required to seek expert advice on the earliest achievable date for a net-zero target at least every five years. But what about Singapore? Why do we not have a Climate Change Act? To show and enshrine our commitment to mitigate Climate Change, I propose we enact a Climate Change Act.[+14 sentences] Can the Government share what percentage of our energy used can be harnessed from renewable sources? Will the Government consider giving incentives to private property owners to install solar panels like many other countries do? Also, what percentage of recyclable waste that was collected for recycling actually get recycled? I noticed from a documentary recently that it was a dismal 50%, which means that the other 50% was disposed of as waste. How can we improve this percentage? Will the National Environment Agency (NEA) do more public education on this and teach residents to separate the different recyclable wastes rather than to treat the recycling bins as dustbins? Perhaps, we may have to review the current design of the recycling bin at the Housing and Development Board (HDB) estates, which has just one large opening, and looks almost like a normal trash bin. Why not have them designed with separate small openings for each type of recyclables, like the ones along Orchard Road? Lastly, what is our plan to adopt the use of hybrid electric cars? I would like to encourage more drivers to use electric cars, but unfortunately, there are simply no charging points around. Will the Government take the lead to install more charging points around different parts of Singapore? Will the Building and Construction Authority (BCA) consider hardcoding this requirement in all buildings, including new HDB estates? Mr Speaker, Sir, young Singaporeans are getting more environmentally-conscious as it concerns their future. So, I hope the Government can develop more concrete measures to create a culture of environmental-consciousness in our country.
Mr Speaker3 words
[+1 sentence]Miss Cheryl Chan.
Miss Cheryl Chan Wei Ling (Fengshan)1823 words
[+19 sentences]Mr Speaker, the Budget is an important annual process that defines the focus for the country in each fiscal year, outlines the plans to be implemented and also sets the tone of how the nation’s fiscal health may be like in the years ahead. But, how many Singaporeans take a strong interest in what the Budget is and discuss how each Budget impacts the future state of the country? A few days ago, I overheard a conversation between two individuals about Budget 2019. Mr X asked Mr Y, "Have you checked out the Budget calculator and see what benefits you get?" Mr Y replied, "Not yet, I roughly heard some things about it, but seems there are no benefits for me or my family." Such a conversation may sound familiar to some. It indicates a lack of interest about the Budget or the only association they can have with the Budget is a measure of one-off monetary benefits. The underlying message is worrisome, that the Budget is nothing more than a bag of benefits that serves some people in one year or the other. As we chart our way forward and work towards an inclusive society, this is an increasingly pertinent topic to address. I believe it is time for us to define who we are, what we can do as one country and what we hope the future Singapore to be. While some issues can be addressed with short-term fixes, the future state of the country requires longer-term strategies. And this big picture, the end state, must be defined and built together with the citizens and the Government. We need participants, not bystanders, in the process. Singapore has a growing ageing population, the external environment is more dynamic and disruptive and future scenarios are more unpredictable; these are all facts and norms of the new age. For Singapore to rise above the challenges and ensure every citizen has a place in this country, we should take a hard look at what it takes to be inclusive. How can we be inclusive unless it is consciously built into our policies, ingrained as a culture and as individuals, we think and walk them like a way of life. To me, building social capital and civic participation is key. In this process, the concept of sharing is fundamental – sharing of wealth, sharing of people and available resources. Let us begin by looking at what areas we need to improve on to achieve a more equitable distribution of resources. Looking at where Singapore is, one can say that Singapore should be considered having done well as our system is built on principles of meritocracy, has a fair and progressive tax system and the redistribution of wealth has a focus on social outcomes. But over the last decade, there is evidence that indicates that the increase in wealth inequality has become greater than income inequality.[+4 sentences] Those with the wealth are not only on a better footing to accumulate more but they have even better access to resources that help preserve their wealth. To reduce the wealth inequality gap in Singapore, we tax through personal income, property and consumption. This way, the top earners and those with more assets contribute. To further encourage those who have more to give, the tax-deductible donation scheme was implemented. I believe many donate as they believe in the causes and not because of the tax deductibles. But it is also true that since the estate duty was scrapped in 2008, the number of charitable foundations and trust funds set up has since increased three folds.[+6 sentences] Compared globally, Singapore has a low personal income tax rate. But with a shrinking and ageing workforce, it is impractical to consider further taxes on income. After all, the ability of an average income worker to build wealth is dependent on sheer labour. Also, the consumption tax, in one way or another, does impact the lower-income group to meet their basic living expenses. The Goods and Services Tax (GST) and transport vouchers, Silver Support Scheme and other subsidies given to the lower-income group do help to defray some of their costs but, overall, consumption taxes indirectly do raise the general cost of living. In order to maintain fiscal prudence, we need new revenue sources to sustain the many programmes that may have a long tail in the years ahead. While we look ahead and review the current tax system in its entirety, should we consider the possibility of a net wealth tax and inheritance tax for the ultra-high net worth individuals who make up 1%-2% of our society?[+7 sentences] In the spirit of giving and sharing, will the ultra-high net worth individuals be willing to share more of their wealth to uplift the vulnerable and less privileged communities? Another case in point is the wages of the low-income workers. Many of these workers are hired in domestically focused industries like cleaning, security and landscaping. I have come across my own residents in these sectors, and they work very long hours to ensure their income can meet the family’s expenses. For these individuals, we cannot expect they would have the luxury of time to upkeep and have upgrading of their skills, or even to further define their career path for the long run. Over time, they are the ones who are disadvantaged by us. Us, the consumers of their services. While the current Progressive Wage Model (PWM) and Workfare Income Supplement (WIS) scheme are designed to help raise their wages, the question still remains whether this is sufficient in today’s context to support and meet the basic needs of the low-income workers and their families.[+2 sentences] The Government has implemented multiple targeted schemes in larger quantum like ComCare, GST rebate, transport vouchers, education funds and so on to continue assisting this low-income group. There are also donations of cash in kind from the public and the voluntary welfare organisations (VWOs) to them. Clearly, all donations will help them in one way or the other, but are these safety nets the answer to their basic needs?[+1 sentence] I feel that to effectively make a difference that impacts and uplifts the lower-percentile group, in particular, those younger families, giving them access to resources, especially a decent living wage, so that each worker at the end of the month would have more to spare, is actually more critical. Not having time only to live hand to mouth will also allow them to have some quality time with their children or grandchildren that can foster the growth of the next generation and instil family bonding that many average families enjoy. This brings us to the crux of the issue – how much more are consumers and employers willing to pay them to meet the living wage?[+11 sentences] We cannot continue this path of racing to the last dollar for the value of contracts, asking for more productivity from these workers without paying for tools or environment that aid their productivity improvement, assigning more tasks to them when we can do some on our own, something even as simple as clearing our own plates and trays after a meal. Employers, too, have a fair share to play in this as they balance their profits, reinvest in the workers and give the workers a decent wage to begin with. It is not how large or small the action is, but what we are willing to do and to what extent to effect the change. This comes back to the basic question of sharing. The top and middle tiers of the economy, whilst they have more opportunities and pathways to elevate, they can certainly do more for the lower-income group, starting with a willingness to pay more for their services. Our mindset and actions around this issue ultimately reflect the values of this country and its people. Another area that I wish to highlight is the need for knowledge transfer between the inter-generations and within the working class. Knowledge sharing is a very important resource in any organisation. When we exchange information, skills and expertise, it not only creates awareness of expectations. It also serves to update the workforce of changes within the workplace and, consequently, trains the people. Any organisation, and a country for that matter, which has a culture of sharing, will achieve better results of faster response time, better coordination and diversity in solutions to their problems. In the next two decades, we will see the retirement of a large cohort of Baby Boomers, and the millennials will eventually make up most of the workforce. This drain of expertise and knowledge will have its repercussions if there are no early channels for inter-generation or inter-workplace transfer.[+3 sentences] I do not doubt that millennials are learning and will develop the different new skillsets to meet the future workplace demands. But in all businesses, there are some fundamentals in people and business management that will always be relevant across time. These are the key aspects of operating a business beyond data analytics, automation and a technology app. For young startups and small and medium enterprises (SMEs) to scale up or internationalise, they require some of this knowledge and stepping stones that can reduce their learning curve. Consultation and guidance from the working group in their 40s to 50s today will be useful for these companies.[+1 sentence] The same applies for employers. They must be willing to conduct inhouse development training for their workers and bridge the generational gap and workplace knowledge through job rotations and have a healthy mix in the retention of seniors.[+8 sentences] As we put focus on the structural aspects of the industry transformation maps (ITMs), let us not forget the need to step up on our mentorship guidance and the cross-industry functional knowledge exchange. Mr Speaker, the conversation about the inequality gap, who are the intended beneficiaries and how much or who should give, is not a talk that will end. Countries with longer histories than Singapore are facing the same issue. But all these will only continue to be chatters unless we, as a country, as the people of this little red dot, begin to acknowledge that we must all play a part and take actions in our daily lives to make Singapore an inclusive country. If we cannot convince ourselves to demonstrate the intrinsic values of this country, our future Budget debates and conversation with the public will be nothing more than package subsidies, Net Investment Return Contributions (NIRC) and incremental shifts in our economy and trade. Not that these are unimportant, but they will not move the needle nor set the long-term direction of our country. And without building our social capital now, defining the values and roles of this country with active civic participation, each Budget will only fall on the ears of citizens like a lecture in class and endless debate of whose rightful duty it is to care for the ageing population and the future generations. I support the Motion.
Mr Speaker4 words
[+1 sentence]Miss Cheng Li Hui.
Miss Cheng Li Hui (Tampines)1378 words
[+5 sentences]Mr Speaker, I rise to support the Motion. Sir, when I was a little girl, I witnessed my grandmother's displeasure for the first time in 1984. It was polling day. My cousin had told her not to go to the polling centre since she walks slowly, with a limp. She jumped and said, "You have no idea how important Government is. This is the best Government in the world.[+15 sentences] They have taken care of us. I am going to vote." Needless to say, she got her way. My grandmother and her generation of Pioneers as well as subsequent generations of Singaporeans witnessed what the Government had done for the country and the people, and they trusted our leaders. They had faith in what the country can achieve together – people and Government hand-in-hand. Sir, I believe most people trust that the Government is doing a good job and they continue to look to the Government to make a difference in their lives, so that they and their children can get ahead and stay ahead. This trust has been built up over the last 50, 60 years by successive People's Action Party (PAP) governments. This is what made my grandmother's generation feel grateful for a good government. Sir, this faith in the Government is something very precious. In this day and age when trust in governments worldwide has been declining, we have to continuously strive to ensure that trust in our Government is not and will not be eroded. I know we have heard this before. But I still want to repeat it because it is important. Once lost, it is difficult to bring back. Unfortunately, in the last few months, a spate of accidents and incidents have grabbed the headlines and shaken this confidence in our Government. I do not need to repeat them all but there are two I wish to mention as they are of concern to my residents. First, the case of MediShield Life paying out only $4.50 of a senior citizen’s post-subsidy bill which amounted to nearly $4,500.[+5 sentences] Mr Speaker, Singaporeans were told that MediShield Life was introduced to provide them with peace of mind when they face huge medical bills. When it was reported that MediShield Life only paid $4.50 out of a $4,500 bill, it was quite a shock. Some of my residents thought that there had been a big mistake. Worse still, that the Government was trying to cover up or sweep the matter under the carpet. I am glad that MOH and the Government Parliamentary Committee (GPC) members have come out quickly to explain. MOH has also promised to review the MediShield Life insurance claim limits, and this is how the matter should be handled.[+7 sentences] If it was a mistake, just make things right again. If it was a misunderstanding or a special case, let us lay out the facts to the people. At the end of the day, if we provide a proper explanation to the people, they will understand, and they can be reassured that MediShield Life does work as intended. If we do not do that, there would be lingering doubts on what the Government had said about MediShield Life, and this is not good for the Government because trust and confidence will be gradually eroded. Mr Speaker, I had a discussion with my activists after the Budget speech and most felt that the Government does not explain matters clearly enough. But the fact is that our people also tend not to pay attention to things that concern them. For example, when I asked them what is the price of water and how much it costs if you drink two litres of water for 365 days, no one got it right. This is despite the Government’s efforts to communicate this over the past many years.[+1 sentence] By the way, the answer is $2. It costs us $2 per year to drink two litres of water – clean safe drinking water that flows out of our taps 365 days a year.[+1 sentence] Therefore, it is understandable that when social media circulated that the Government shifted the payout age for the CPF Retirement Sum Scheme to 70, people thought they had missed some announcement. Today, the payout eligibility age for the Retirement Sum Scheme is still 65 for those born from 1954 onwards.[+1 sentence] This has been the case since 2007. But for people to think that the Government can secretly change the age shows that some people, and I hope is a minority, do not follow the news or tend to think the worst of our Government. I am glad my Parliamentary colleagues filed many questions on this, and Minister Josephine Teo has clarified.[+25 sentences] But it does show that we should work harder at our communication and make it more easily understood. Some Government agencies no longer have counter services or, perhaps, they are inadequate. Some seniors and even blue-collar persons aged 40 and above, who are not so comfortable with the Internet, still require face-to-face explanations. For example, give people an option to book an appointment at age 65 to meet a CPF officer. It is like buying an insurance annuity, the customer service should explain the details to the citizens. We cannot afford to have our people confused, then their trust and confidence in our Government would be affected. Mr Speaker, this year, the mood is reflective as we commemorate our Bicentennial. We must create opportunities and encourage our schools, families, grandparents to share stories to remember our past and not to take our current peace and prosperity for granted. Last year, when I chaired the River Hongbao Organising Committee, I was showing my Parliamentary colleagues around and a man in his 40s came up and said "I saw the exhibition in the news. I thought what's the big deal. After looking at the old 3-room flat mockup and remembering my past, I came out and looked around at the skyscrapers and I am grateful. We have come so far". Pointing to his primary school daughter next to him, he said, "She does not know how I am feeling. She is fortunate". This year, the exhibition was taken to greater heights with an informative exhibition of our history. As this is only the beginning of our celebrations, I hope that down the road, we will have more and better opportunities to encourage interactions between our seniors and family and to nurture our Singapore Identity. In Mandarin, Sir. (In Mandarin): Mr Speaker, this year, we commemorate Singapore's Bicentennial. As we reflect our history, we must create opportunities and encourage our schools, families and grandparents to share stories of the past 200 years. Last year, when I chaired the River Hongbao Organising Committee, I was showing my Parliamentary colleagues around the exhibition, "My Home, My New Year". A man in his 40s came up to me and one of them said that before he came to that exhibition, he thought it was no big deal. But after looking at the mockup of an old 3-room flat and remembering his past, he walked out of the exhibition and felt emotional at the sight of the skyscrapers around him. He told us that this feeling was something that his daughter could not understand. He said we should be feeling grateful for the peace, prosperity and stability that we enjoy today. This year's River Hongbao was more colourful and exciting by using an exhibition to narrate Singapore's history and its development. (In English): Mr Speaker, there is simply no shortcut to earning the people's trust and confidence. The key ingredients are delivering for the people, having accountability and transparency, as well as being consistent in our communication across the board. I started my speech by recounting what my grandmother said many years ago, "You have no idea how important government is.[+1 sentence] This is the best Government in the world. They have taken care of us." I hope, and I am optimistic, that what she said then will continue to resonate with younger Singaporeans. With this Budget, let us persist and continue to work together for our people and our country, and do our part in co-creating the future we want for ourselves and our children.[+1 sentence] I support this Budget.
Mr Speaker4 words
[+1 sentence]Mr Ang Wei Neng.
Mr Ang Wei Neng (Jurong)2435 words
[+12 sentences]Mr Speaker, Sir, Winston Churchill famously said, "If you make 10,000 regulations, you destroy all respect for the law". In Singapore, I have received a lot of feedback that people are getting increasingly frustrated by a host of seemingly unnecessary and irrelevant regulations that are putting the brakes on their work or their lives. In an increasingly complex society where change is happening more and more quickly, the tendency is to come up with more regulations to protect the interests of many diverse groups. Of course, some regulations are necessary and are good for the society. When more people started using Personal Mobility Devices (PMDS), for instance, we had to come up with rules to protect the safety of others. Or Workfare regulations, which have been protecting older lower-income Singaporean workers. But in other areas, the amount and nature of regulations might be adding more red tape and making our lives miserable for businesses. Before I elaborate, I would like to declare my interest as the Chief Executive Officer (CEO) of ComfortDelGro Taxi business. My architect friends have been complaining to me about their less than pleasant experience with the Building and Construction Authority (BCA) and the Fire Safety and Shelter Department (FSSD). I face the same issues when I need to construct a new building, either as part of my community work or in the course of my work in my company. They have shared many stories with us. But I will cite one that is the most painful to the architects. On 13 March 2014, BCA issued a circular to inform building industry players that they would have to obtain approval of building plans before commencing non-structural building works. Non-structural building works include building of walls and partitions so that contractors can install pipes and wires early. Prior to 2014, contractors could start non-structural work with a good preliminary building plan and a Qualified Person's (QP's) undertaking to comply with the building codes. The new requirement to obtain approval of the full building plan which has to incorporate approvals from various authorities like the National Environment Agency (NEA), the Land Transport Authority (LTA), the National Parks Board (NParks), typically would delay the project for months.[+4 sentences] Appeals by architects to BCA have fallen on deaf ears, for reasons best known to BCA. Next, I would like to turn to a Statutory Board that is closer to my heart, LTA. Every new car model has to go through a homologation process – a mouthful – by LTA to verify whether the car model is safe to be driven on Singapore roads. The homologation process is relatively manual, tedious and lengthy. For example, LTA requires motor traders to input 52 safety items into LTA's system while our closest competitor, Hong Kong needs only 26 items.[+31 sentences] There are also many rounds of clarifications by LTA which has slowed down the approval process. As a result, even current models with minor improvements or facelift also takes about eight weeks to homologate instead of two to three weeks previously. Industry players have given feedback to LTA on many occasions to simplify the homologation process, which can be stretched for months. However, LTA is quite happy to keep the process lengthy. Perhaps this is the way LTA is trying to make Singapore car-lite? More importantly, these are the difficulties arising from bureaucratic red tape which many people have been complaining about. Another example is getting approval to install a Direct Charger (DC) to charge full electric vehicles in double quick time. ABB, a large company, had been trying for six months to seek approval from the Energy Market Authority (EMA) without success to install a 50 kilowatt-hours DC to fully charge an electric car in 30 minutes. In this case, the CEO of EMA personally intervened and the DCs are now installed island-wide by the Singapore Power (SP) Group. But not many regulatory authorities are as progressive as EMA. Maybe that is one of the reasons why a few former EMA CEOs have now become Ministers. To be objective, many industry players do not like to be regulated. Very often, private companies feel that competition will drive quality and there is no need for the regulators to impose many rules. They feel that Singapore should be as laissez-faire as Hong Kong. However, competition is often not perfect and some form of regulation is important, necessary and, at times, essential. On the other hand, over-regulation can stifle creativity, slow down processes and add compliance costs without obvious benefits. A total removal of regulations could lead to many other problems like unfair competition or hurting the interests of consumers, like the Hokkien saying, 树倒猴子耍, it means that when the tree serving as a pillar falls, all hell breaks loose. No private company likes to be regulated, no matter how altruistic one is. Thus, it is often considered as biased, not objective and self-serving when the parties being regulated complain that the regulator is enforcing unnecessary rules. This includes myself when my industry is being regulated by LTA. However, my views changed when I was preparing for River Hongbao 2019 which has just ended. As Chairman of River Hongbao, I was a volunteer, not paid, and I had nothing to gain financially. Nonetheless, I also encountered some issues with the regulators. First of all, I would like to thank the 1.35 million people who visited River Hongbao between 3 and 10 February 2019 for their support. Many visitors, comprising mainly local residents of all races, told me they enjoyed the larger-than-life lanterns, food street, stage performances and, particularly, the spectacular international fireworks display. I would like to thank the organising committee, the partners and the volunteers for their hard work to make River Hongbao one of the most successful in the recent years. Very importantly, I have to thank the sponsors for their generous support for the fireworks. However, I would like to share that the beloved fireworks display almost could not happen. This year, we appointed an experienced fireworks vendor to arrange for the fireworks display at River Hongbao. This fireworks vendor has been the company behind the fireworks display for the National Day parades for the past decade. It has years of experience in applying for all of the necessary fireworks permits, including getting approval from the Public Utilities Board (PUB), which is the custodian of the Marina Bay reservoir. For some reasons, this year, a PUB executive refused to issue the permit for the fireworks as late as a fortnight before the opening ceremony of the River Hongbao at which the Prime Minster was the Guest-of-Honour.[+2 sentences] They asked the vendor many questions. I was, of course, very worried. By that time, the interest in the River Hongbao fireworks was so strong that we had already issued 100,000 fireworks tickets.[+4 sentences] Thus, the prospect of the fireworks show being cancelled was imminent and preposterous. The 100,000 ticket holders would be very disappointed. More importantly, the approval for the River Hongbao fireworks had been sought months before, with no positive reply from PUB. Fireworks shows have routinely been put up in Marina Bay, with approvals granted, with no issues before. Fortunately, I had someone in the House that I could appeal to and we received approval from PUB within a day of the appeal.[+1 sentence] I do not know what actually happened, but I am grateful that the fireworks display could take place during the eighth day of River Hongbao. As a result, we had record attendance at the River Hongbao this year.[+32 sentences] I would like to say a big "thank you" to PUB and the higher authority that I would not name, who helped me. But Mr Speaker, Sir, I could keep quiet and move on. My concern is, what if I had no recourse? What if the fireworks were cancelled? What if I was not able to appeal to the authorities? It appears that we need the intervention by a higher authority in the case of the River Hongbao fireworks and the installation of DCs for “exceptions” to be made and before things can move ahead. The above industrial examples and recent episode with PUB have highlighted the frustration of many ordinary people with various Government regulatory bodies. We need to strike a balance between laws that are so general and simplistic that they become ambiguous, and regulations which go into such nitty-gritty that it becomes a nightmare to observe and abide by. We need to review regulations and strike them off when it becomes more of a hindrance than a help. The best way to get a sense of what may be obsolete is to rely on feedback. We should listen to the people who have to comply with the regulations and their reasons for why they find some legal requirements very onerous. However, my concern with direct feedback is that many private companies are afraid to speak up against their regulators for fear of repercussions. Many companies have told me that they experience additional hindrance when they voice out too strongly against their regulators. In fact, over lunch just now, a company said, they do not just voice out against regulations at all. They just comply. Some companies told me they refrain from giving genuine feedback as they do not want to bite the hand that feeds them, especially when they have to bid for contracts from their regulators. In fact, all the companies that have provided me with feedback to the cases cited above have asked me not to name their organisations. How then could the Government obtain genuine, objective and timely feedback from the parties most affected by the regulations? Some say they should feedback to Members of Parliament and let Members be their mouthpiece, which is precisely what I am doing today. This is useful but definitely not enough. We need more systematic ways to obtain regular, timely and objective feedback from the industry players. To overcome the fear of repercussion, perhaps the Government can establish a neutral channel, similar to the whistleblower policy, to encourage feedback. Will such channel attract only frivolous complaints? I do not think so. Another way for us to develop and finetune our regulations is to have a deeper understanding between the Public Service which enforces those regulations, and the private sector, through work exchange programmes. As someone who has work experience in both the public and private sectors, I have spoken on the need for this work exchange programme in the past. Since then, I have observed, and I know for a fact, that there are small but sporadic efforts to do so. Some Government agencies have started to send and pay for their staff to work at the private sector organisations that they regulate. There are many benefits for such work exchange programmes. By "walking in the other person's shoes", the public servant who returns to his organisation are likely to have a deeper understanding on how the private company works; what kind of regulations are necessary and effective; what kind of regulations are difficult to comply and do not serve the policy intent. The public servants with immersion experience in the private sector can also better help to design incentive schemes to encourage companies to upgrade, adopt new technology, embrace digital transformation and rely less on foreign labour. In addition, they can also better anticipate and detect the loopholes private companies can exploit and abuse Government incentive schemes. Had this been done earlier, schemes like the Productivity and Innovation Credit (PIC) scheme launched in 2010 to encourage businesses to invest in productivity and innovation, might not have been abused to such a large extent. In 2018, the Inland Revenue Authority of Singapore (IRAS) said it prosecuted 13 cases involving 37 claims amounting to $804,756 of PIC cash payouts and this could be just the tip of the iceberg.[+3 sentences] The penalties and fines totalled $2.8 million. These are the cases where regulation is absolutely necessary but has to be developed and enforced with a deep understanding of how it would be interpreted on the ground. Private companies can also send their staff for work stints in the Public Service. The private sector workers can better appreciate the need for regulations, understand the complexity of taking into account the interests of various parties and help the Government to better design incentives to shape the behaviour of the private companies in the industry transformation journey. These work exchanges could last for one to two years, and the staff who are selected should be promising staff at the middle management level.[+1 sentence] On a more personal note, as the President of the Volleyball Association of Singapore, I have seen the benefits of such exchanges first-hand. Last year, a staff from Sport Singapore, which oversees the National Sports Associations (NSAs), was posted to work as a General Manager in the Volleyball Association, not to clean up the mess, just to be sure, but to develop the sport in the volleyball fraternity.[+5 sentences] This proves to be a hit. She has helped Sport Singapore to better understand the challenges face by the NSAs. At the same time, she can tap on her experience in managing the NSAs and her networks in Sport Singapore to help in nurturing the volleyball players, volleyball coaches, securing training and competition venues for volleyball and more. Her posting has been mutually beneficial, very good and rewarding. The staff exchange efforts between the public and private sectors have so far been ad hoc. Perhaps, the Head of the Civil Service can consider a more structured, scalable and sustainable programme for such work exchanges between the public and private sectors.[+2 sentences] In the larger scheme of things, such exchanges not only help to develop more relevant regulations, better enforcement policies and better incentive schemes for the private sector, the private and public sectors can also exploit the mutual learning between the two sectors for the better good of Singapore. I hope that my suggestions can spark some discussion, more ideas and more channels where industry feedback can be solicited, evaluated and acted upon as well as deepen the understanding between the public and private sectors. For that matter, I am pleased that Senior Minister of State Chee Hong Tat had indicated yesterday that he would be leading efforts to simplify the regulations in the food industry.[+4 sentences] This is good news. I hope Senior Minister of State Chee Hong Tat can review the same in other sectors as well. For Singapore to thrive in this uncertain world with constant technological and geopolitical disruptions, the Government has to keep listening. Mr Speaker, Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Dr Intan Mokhtar.
Dr Intan Azura Mokhtar (Ang Mo Kio)1484 words
[+3 sentences]Thank you, Mr Speaker, for the opportunity to speak on the Budget. This year's Budget is generous and provides something for almost everyone – from the employees, to business owners, the less privileged, students, Singaporeans 50 years old and above, and seniors belonging to MG. I am particularly heartened by the focus on uplifting Singaporeans in this year's Budget. The Enhanced WIS will go some way in helping even more lower-wage income earners with a higher annual payout. In addition, the Special Employment Credit (SEC) and Additional SEC will continue to help business owners employ older Singaporeans until end of 2020.[+4 sentences] We have to continue to help lower-wage as well as older Singaporeans in ensuring their incomes remain competitive and sufficient, and that they will always have opportunities to be financially independent. Here, I would like to urge the Government to extend similar assistance to other vulnerable groups who are looking to retain their self-dignity and self-worth, where they can enjoy equal opportunities to be employed, be financially independent and also contribute to our community and economy. One such group would be those with special needs and those with mental health challenges. These two groups of individuals continue to face stigmatisation and challenges in their effort to be like everyone else and in leading a life as normal as possible. The SEC and Additional SEC should also be extended in helping business owners employ those with special needs and those with mental health challenges who may need time and space to adjust to their work environments and work commitments.[+6 sentences] Hence, the support or assistance that can also be rendered to business owners or employers can be in the form of tax reliefs or wage support to allow for flexiwork arrangements. Flexiwork arrangements can provide for better employment opportunities for those with special needs and those with mental health challenges to work from home or to gradually adjust to their work environments and work commitments at a pace they are comfortable with. Being gainfully employed is a start in helping those with special needs or with mental health challenges live independently like many others, and it accords sufficient opportunities to develop that much-needed self-belief and self-dignity. However, beyond SECs or incentives for employers to hire those with special needs or with mental health challenges, as a society, we need to be more accepting of different abilities, whether as employers, co-workers or neighbours. Our personal acceptance paves the way for more of those among us who are considered vulnerable individuals to have a place in our society, be independent and have that opportunity to lead a life that is as normal as possible. Still on employment and workers, the Professionals, Managers and Executives (PMEs) is another group of employees I would like to urge the Government to continue to monitor and extend assistance to. While I support the funding for the enhanced Professional Conversion Programme (PCP) and Career Support Programme (CSP) to continue, I would like to find out how effective have our PCP, Career Trial, CSP, and Adapt and Grow Programme been in helping PMEs secure employment?[+8 sentences] Can these programmes continue beyond the next two to three years? Can they be made permanent programmes? Are there plans to introduce other programmes to further assist PMEs, and older PMEs in particular, in their employment search and careers? Another portion of this year’s Budget in uplifting Singaporeans is to help students from less privileged families, mainly through the Uplifting Pupils in Life and Inspiring Families Taskforce (UPLIFT) initiative in schools. I support the plan to strengthen after-school care for disadvantaged students in school-based student care centres. This provision will help such students have better social support after school, whether it is in the form of help in their school work or in socio-emotional matters. However, beyond the provision of after-school care and support to these students from less privileged or disadvantaged families, are there plans to uplift each of their families as well? For instance, these could be in the form of employment assistance or employability coaching for the parents, financial planning workshops for the parents, parenting workshops to enhance parent-child bonding, and educational enrichment programmes for the children to promote personal and character development as well as the development of lifeskills. I also fully support the Budget’s focus on Ensuring a Sustainable Environment, particularly in reducing taxes for diesel cars and taxis, and providing higher rebates for diesel vehicles. However, are there plans to lower road taxes for electric vehicles and providing similar rebates for owners of electric vehicles which are much more environmentally friendly with zero carbon emissions?[+9 sentences] Countries or economies, such as Norway, Hong Kong and Iceland, are leading in the adoption of electric vehicles onto their roads, with generous incentives, such as waivers of import tax and value-added tax, reduced road tax and free parking in the city. Are there plans to increase the import and use of electric vehicles on our roads with similar incentives, particularly when Dyson will be setting up its electric car plants in Singapore? One final segment of this year’s Budget I wish to speak on is in building a community of care and contribution, mainly through SG Cares. I strongly support the focus on nurturing students in Institutes of Higher Learning (IHLs) to give back to the community, do volunteer work and service learning, and to develop community leadership qualities. These are necessary skills and values that our youths must possess as there is a need to feel, think and act beyond the self or based on personal aspirations only. The community is ours to shape and develop, and each of us has a role to make our community one that cares for and loves all. I hope that community projects or programmes which demonstrate values-in-action will not merely be items to be ticked off on a checklist for our youths. I hope that our youths will take ownership and leadership in planning and implementing meaningful and impactful community projects that can help uplift the different segments of our community, not merely because it is an assessment or graduation requirement, but because it is something they truly believe in and want to do. At this juncture, Mr Speaker, please allow me to speak in Malay. (In Malay): This year's Budget includes assistance for various groups and different segments of society, be it workers, employers, those who are disadvantaged, students, elderly Singaporeans and those who belong to MG. First, this year's Budget allocates funds and incentives that are rather generous to support entrepreneurs who are expanding their enterprise or businesses across the border, whether in Southeast Asia or globally.[+1 sentence] I hope that our entrepreneurs will seize this opportunity to explore new borders and opportunities and bring further glory to our nation. At the same time, through schemes like the "Global-Ready Talent Programme", I also hope that our young Malays will seize the opportunity to experience working overseas even though it involves some personal sacrifice by being far away from their families for a period of time.[+2 sentences] However, the experience of working overseas and the opportunity to learn about and understand foreign cultures and markets is invaluable to our young Malays who are interested in broadening their experience, viewpoints and minds. As the Malay saying goes, "If you are afraid to get your oars wet, your sampan will never make it across". Second, I welcome the extension of assistance programmes and schemes like the enhanced WIS and SEC that will help lower-wage workers as well as elderly workers. At the same time, I would also like to call on the Government to extend these assistance programmes or employment schemes to employers to encourage them to employ special needs individuals, for instance, those who have physical disabilities, autism or Down's Syndrome, as well as those who have mental health challenges.[+7 sentences] In the effort by the Government and employers to help vulnerable groups, such as those with special needs as well as those with mental health challenges, each of us has an important contribution. As a society, each of us plays a role in ensuring that the vulnerable amongst us are not left behind. Our attitudes towards them, whether as employers, colleagues or neighbours, will determine the extent of their acceptance by society, how independent they can be and whether they will continue to have a chance to lead a normal life. (In English): In conclusion, Mr Speaker, this year's Budget is more than just dollars, incentives or programmes. It is about coming together and helping one another in ways beyond the immediate or the individual. If I may end with a quote by Cesar Chavez: "We cannot seek achievement for ourselves and forget about progress and prosperity for our community... ...Our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own." I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)2011 words
[+16 sentences]Sir, I stand in support of the Budget. Inequality has been a buzzword in recent years and it is a positive sign. It shows that, as a society, we are not just concerned about ourselves but we are also concerned about those who have fallen behind, those who need our help. What is the best way to reduce inequality? The answer is ensuring social mobility and social mixing. In this respect, I agree with what Prime Minister Lee said in October last year: "We must not allow social stratification to harden in Singapore." We have done well to ensure that there is less social stratification where we live. The Prime Minister gave the example of our HDB towns, which mix rental blocks with owned blocks, and have flats of all sizes within the same building. The Prime Minister said, "We want high- and low-income families to live together side by side, get along with one another, interact with one together. Not live apart and treat one another as aliens from a different world." But what about social stratification where we study, especially in our secondary schools? Students spend perhaps half or even more of their time in schools. In these environments, it is surely just as important that high- and low-income children learn together, play together and mix with one another. Sir, we have a very well-respected education system that many countries aspire to emulate. The recent Organisation for Economic Cooperation and Development (OECD) report titled “Excellence and Equity in Education” similarly shared many positive aspects of our education system and about how disadvantaged students here do well compared with their peers around the world. But as MOE has acknowledged that the report also showed that more work needs to be done to ensure good social diversity and mixing in schools. One of the things that might prevent social mixing and harden social stratification in our secondary schools is the practice of streaming.[+4 sentences] We introduced streaming in 1980, and I understand the rationale. It caters to the different learning needs and pace of our students and it has helped to lower our attrition rate, which is now at less than 1%, compared to 30%-40% at the start of our education journey. Dr Intan Mokhtar also said in 2017 that streaming "helps teachers in being more focused in their teaching so that they are able to pitch their teaching content and pedagogy that are suitable for the students they teach." But the problem is that we are not just streaming our students based on their academic results. As Minister Ong Ye Kung has stated, "Social economic status has become significantly correlated with Primary School Leaving Examination (PSLE) results." The reality is that students in the Normal stream tend to have a lower socio-economic status, as compared to those from the Express stream. We know that from 2014 to 2018, 69% of secondary school students who received assistance from the MOE Financial Assistance Scheme were from the Normal stream.[+12 sentences] We also know that the percentage of students living in public rental flats is higher in the Normal streams than those in the Express stream. We all know that we hang out with our classmates much more than with our schoolmates. What streaming has possibly done is to reduce social mixing and, again, harden social stratification. I spent the last year researching for this speech, filing questions in Parliament and I spoke with parents, students and teachers. Everyone understood why we started streaming. But quite a number of them gave pause and raised concerns when I suggested that streaming could be stratifying our schools and preventing our students from mixing across socio-economic backgrounds. I am sure streaming was not meant to divide our nation by socio-economic status, but we now see that streaming does contribute to it. We have tried so hard to prevent social stratification in our homes; we must try just as hard to do so in our schools. The next logical question is whether students move between streams. After all, if a Normal (Technical) student can move easily to the Express stream, we could all afford to be less worried about social stratification. Unfortunately, we cannot. Each year, 530 Normal (Technical) students transfer to the Normal (Academic) stream. Of these students, only 10 to 20 of them eventually move on to the Express stream.[+2 sentences] Here is what it means: if you are a student from the Normal (Technical) stream, you have less than 1% chance to move to the Express stream. What is worse, the stratification continues further up the education ladder. Over the past three years, Normal (Technical) graduates have made up only 5% of those who graduated from our public polytechnics and only 1% of those who graduated from our autonomous universities.[+44 sentences] Most finish their studies in the Institute of Technical Education (ITE). Data provided by MOE shows that ITE graduates earned a starting salary of $1,900 in the private sector in 2017. By contrast, public university graduates earned a starting salary of $3,300. Why do students from the Normal stream struggle to move to the Express stream? One reason could be the psychological barriers that streaming imposes on Normal stream students. Minister Ng Chee Meng last year acknowledged concerns that streaming could inadvertently discourage students. Dr Intan Mokhtar also said, "Academic streaming tends to pigeon-hole students and inadvertently places expectations about their intelligence or abilities according to the stream they are in." Indeed, for some students, there is a strong stigma associated with being in the Normal stream. One 2006 research paper, titled "Building Teacher Capacity in Curriculum and Pedagogical Design in Normal Technical Classrooms," provided this summary: "Perhaps the most common and injurious perception associated with Normal (Technical) or English and Mother Tongue (EM3) students is stupidity. Other negative perceptions of people interviewed on the streets are: "attitude not good", "Ah Beng type", "hopeless", "can't do anything, can't go anywhere", "unmotivated", "lazy" and "ill-disciplined". Some students may have even internalised such negativities. It is not unusual for students in the Normal stream to blame themselves, leading to the worry that such students suffer from low self-esteem." The impact of this stigma was already raised in this House by Mdm Cynthia Phua nine years ago. She said, "The present streaming of students in secondary schools has much psychological impact on the youths. The Normal stream is not normal, according to how the students and parents feel. They feel that they are inferior to their academic-better fellow schoolmates. And why do we have a system that makes our youths feel inferior at a young tender age?" There are, of course, students from the Normal (Technical) stream who have done well, and we have featured them regularly. I met David Hoe and am so inspired by his story. David is the poster child of a successful student from the Normal (Technical) stream who has made it. He scored 110 for his PSLE. Today, he is an economics teacher at a Junior College. David's success was almost not to be. His parents divorced when he was young, and he lived with his mother who was visually impaired. He went around selling tissue paper together with his mother to make ends meet. His mother passed on when David was 12. He did not do well for his PSLE and went into the Normal (Technical) stream. He fell into bad company and took up drinking and smoking. As he shared with the media, "I hung out with these people for a few months before I met the right ones." His new group of friends often hung out in the canteen to do their homework. They also helped to coach him in his studies. He had a dream of becoming a teacher and worked hard for it for his GCE "N" level, in hopes of eventually doing his GCE "O" level. He did well and was one of the top scorers for the Normal (Technical) "N" level. But he was still not allowed to do his "O" level. Desperate, this 16-year-old wrote an email to then Minister for Education, Mr Tharman Shanmugaratnam, who intervened on his behalf. It was only through this intervention that he was able to get past the system and eventually did his "O" level. David is a success story, and he worked hard to succeed. But, as he shared with me, his story is also about how social mixing made a difference for him. While we share the success stories, we also need to remember that David is not representative of the majority of Normal (Technical) students. In fact, he is, unfortunately, a minority. While we celebrate the successes, we need to remember those who have been left behind. Sir, it is time to eliminate streaming in secondary schools in favour of Subject-Based Banding. I believe the debate we need to have has already happened. The concerns I raise today are the same ones students, teachers, parents and Members of this House have previously raised about primary school streaming. In 2008, MOE listened to these concerns and replaced primary school streaming with Subject-Based Banding. Subject-Based Banding kept the good parts of streaming while cutting out the bad parts.[+4 sentences] As Minister Ong Ye Kung shared this month about the replacement of streaming with Subject-Based Banding in primary schools, "We believe that this has helped raise the confidence and motivation of students while customising education to their aptitudes and pace of learning." He also added, "there are also more opportunities for interaction among students across the different subject combinations, as a form class can have students of several subject combinations. Concerns about labelling and stigmatisation have diminished." Both teachers and parents have also expressed support for Subject-Based Banding. It would seem strange that we did away with streaming and adopted Subject-Based Banding in primary schools for very good reasons but somehow these reasons do not apply to secondary schools. We have already expanded Subject-Based Banding to all secondary schools to benefit more students.[+5 sentences] So, what is stopping us from abolishing streaming in secondary schools? What is stopping us from preventing this kind of social stratification? Sir, there are schools that have made progress on this and I hope that MOE studies what Boon Lay Secondary School is doing, for example. Students there are grouped not based on their streams, but by co-curricular activities (CCA) groups. This means that students of different socio-economic backgrounds are more likely to mix with one another. In 2018, the school reported that the new system has led to an increase in attendance rates and was met with a positive response by the students, and I hope that MOE can study what this school has done.[+12 sentences] Sir, MOE has worked hard to make changes in the right direction over the last few years, trying to steer the focus to aptitude instead of academic achievements and removing ranking. As a parent of young children, I am thankful for these changes and hope that we can do more. We have to do more. Sir, there is a quote which reads, "Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid." There will be inequality in our education system. The fact is that not everybody is the same. But our students are not stupid and should not feel that they are or face that kind of stigma. We need to make sure their future is not decided by one major examination. We need to make sure that, like where we live, we do not have social stratification in where we study. Every school is a good school. Now, let us make every class a good class. Like our primary schools, let us completely replace streaming with Subject-Based Banding in our secondary schools.[+1 sentence] Sir, I know that streaming is a sacred cow and this practice has existed for many decades. Members of this House will know that I do not like to cull animals but, Sir, it is time to slain this sacred cow.
Mr Speaker3 words
[+1 sentence]Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)1597 words
[+3 sentences]Mr Speaker, in his speech, the Minister for Finance was right to point out the decline in support for globalisation. This decline in support is not an irrational one. There is evidence that globalisation has so far produced winners as well as losers. World Bank economist Branko Milanovic studied the distribution of incomes across the world as globalisation took root over a 20-year period from 1988 to 2008. He concludes that, for individuals, globalisation has brought about divergent changes in real income. The "winners" included the bottom third of income earners, the middle classes of the emerging market economies in China, India and Indonesia, and the global top 1%. The "losers" were the middle class of the old OECD countries, and the poorest 5%.[+24 sentences] This could offer a partial explanation for Britain voting to leave the European Union, and for the triumph of the United States (US) Presidential candidate Trump's election slogan: "America First". Most analyses show that Asia is doing relatively well with the growth of the middle class, but Asia faces the challenge of growing domestic inequality. Thus, it is good to see the Minister for Finance acknowledging that Singapore's long-term challenges include social mobility and inequality, which will be stressors of our social unity. Much literature has been published about what governments should do to manage globalisation for their citizens. Some have argued that living standards of citizens should be equalised as much as possible, with particular attention paid to vulnerable groups, that financial markets and labour protection need to be regulated, and welfare policies implemented. It is suggested that taxation policies need to be progressive, with clampdowns on tax avoidance. On the fiscal front, there should be increased spending on health, education and social safety nets. Labour markets should be reformed to boost labour's share of income. Coming back to Singapore, the direction of the Government in economic transformation and workforce reskilling for relevant industries is necessary. The other pillar that is equally necessary is to have compensatory policies in the form of social safety nets to cushion citizens who face disruption and are unable to fit into different industries immediately, or perhaps unable to catch up at all. The theme of Budget 2019 is to "Build a Strong, United Singapore". To this end, I wish to speak on the issue of disruptions to employment, under-employment and the vulnerable workforce. First, disruptions to employment. We have heard a lot during this debate about the "Fourth Industrial Revolution". Across the world, the impact of Industry 4.0 on jobs has generated intense interest. Many predict major job losses due to automation. For instance, in a 2013 Oxford University study of the impact of computerisation on employment, authors Frey and Osborne predicted that almost half of US workers would face risks of their jobs being automated by 2030. Economist Tyler Cowen has argued that automation could produce profound inequality as a majority of people will find their jobs taken by robots and will be forced into low-paying service work. Only a minority – those highly skilled, creative and lucky – will have lucrative jobs, and be wildly better paid than the rest. Others are less pessimistic, with Massachusetts Institute of Technology (MIT) economist Erik Brynjolfsson noting that automation will eventually create jobs. Singapore, being one of the most open and connected economies, is readily open to job disruption. To this end, there have been significant efforts by the Government and the private sector to respond to disruption, as seen in the massive digitisation efforts, automation initiatives and PSPs. The message that workers need to adapt is clear. The question is how well such initiatives are serving to give economic security to workers. For instance, we are told that from 2016 to 2018, the Adapt and Grow Initiative has enabled more than 76,000 jobseekers to find employment.[+10 sentences] While the number seems impressive, it would be useful to know whether these jobseekers who switched industry had comparable remuneration or had pay cuts, and how many of them could not find new employment even though they tried to sign up for the initiative. Next, I move on to underemployment. Underemployment arises, basically, when a person is working but below his or her capacity. This is referred to by the International Labour Organisation as "labour under-utilisation". Today's labour market is much more diverse than when MG came out to work in the 1970s. In those days, it was common to hear of employees spending their entire working lives with one employer, and "job hopping" was frowned upon. Today, employees move more often, take on contract assignments and do gig economy work, including some university graduates. As far as underemployment is concerned, there was a recent interesting survey, published in 2017 by the Ong Teng Cheong Institute. The study discussed the issue of how to measure underemployment properly and recognised that underemployment was too complex to measure with any single indicator. It decided to adopt a multifactor definition of underemployment, namely, persons who were degree holders and above, in full-time work and earning less than $2,000 per month. The survey yielded an underemployment rate of 4.3%, which was higher than the Ministry of Manpower's (MOM's) rate of 3.3% based solely on time criteria.[+4 sentences] In the survey, the profile of the underemployed showed that they tended to be female, have no children and stay in HDB flats. They were employed at businesses serving mainly the domestic market, with a median age of 35, and with 10 to 15 years of work experience. As to the effects of underemployment, the study found that the underemployed reported facing challenges, such as having lower status than what they deserve, being underpaid, feeling insecure about their income and job, and lacking finances for daily expenses. This group indicated that they were in their current predicament involuntarily, as they were found to want to better their prospects by reskilling and upskilling, although they were unsure of what skills may be in demand and how to take the next step. Turning now to MOM's figures, as at June 2018, the underemployed rate was 3.3%.[+1 sentence] The rate was derived on a time-based definition of underemployment, that is, persons working part-time and would like to work full-time. Even by MOM’s measure, the 3.3% translates into nearly 73,000 workers. The MOM statistics also suggest that underemployment affects those with less education more: while underemployment for university graduates is at 2.3%, for those with secondary education, this rises to nearly 4%, and for those with below secondary education, the underemployment rate is 5%.[+7 sentences] This may suggest that if there may be a class dimension to this as well, with the less educated more prone to underemployment. Sir, it is food for thought to try to reconcile the results of the survey by the Ong Teng Cheong Institute and the MOM data. In order to get a better handle on how underemployment is affecting our society, I ask the Government to continue to improve its measures of underemployment and to monitor the effects of underemployment on the well-being of different segments of society. I plan to talk more about this at the MOM Committee of Supply (COS) debate. Finally, Sir, I wish to make a few observations about the vulnerable workforce. Over the years, I have noticed that at the Meet-the-People Sessions (MPS), residents of lower income commonly report doing gig economy jobs, such as furniture movers and in food delivery. Some have told me that they have few options and need the flexibility of time to attend to family issues which crop up often. They do not have paid help or family support and find it difficult to take time off regular work to attend to personal matters. It is well-known that gig economy jobs come with hardly any employee benefits, such as paid leave or bonuses, and do not attract CPF contributions, though I am aware that the Government is looking into improving terms and conditions for gig workers.[+9 sentences] The vulnerable workforce also has less ability to withstand the vicissitudes of life. I recently encountered a young single mother who had three children. She received no support from the children’s father whom she divorced. Due to her need to work and care for her young children, she took on a gig job, delivering food on a motorcycle. In a moment of inattention, she beat a red light and was duly notified by the Traffic Police to pay a composition fine of $200. As she did not have the funds to make the payment, she came to the MPS for help. I do not know whether the law enforcement agencies have ever allowed payment of composition fines by instalments, but I know that the clock is ticking to the deadline for payment. Failure to pay will result in the case going to Court and attracting higher fines. So, I did not write in to the agency but instead found funds to assist her to pay. Time and again, I have seen residents who do not attend Court being subject to Warrants of Arrest over regulatory matters, such as parking and smoking fines. I believe more compassion can be shown in this area, such as to allow instalment payments for composition fines.[+3 sentences] Sir, finally, in conclusion, the Government has recognised that Singapore faces long-term challenges, including inequality and social mobility. I acknowledge that significant efforts have been made towards economic transformation and upskilling our workforce. What we need to watch closely are the many stress points on our social solidarity, and address them, if we are to be a Strong and United Singapore.
Mr Speaker3 words
[+1 sentence]Mr Terence Ho.
Mr Terence Ho Wee San (Nominated Member)1261 words
[+10 sentences]Mr Speaker, Sir, I would like to declare my interest as the Executive Director of the Singapore Chinese Orchestra and Vice President of the Singapore Chinese Music Federation. Innovation in arts and culture, sounding the horn for digital arts. It is heartening to note that one of the key thrusts in this year’s Budget is to foster a caring and inclusive society and this is done by, "securing our home and growing our economy and to improve the lives of our current and future generations of Singaporeans". In fostering a caring and inclusive society for all Singaporeans, this is where the role of the arts and culture can come in. The arts and culture are an important platform which contributes to the maturity of the populace. Allowing us to reflect on our shared heritage and common identity while at the same time to understand our differences and to celebrate our diversity. This is especially relevant and important in our Bicentennial year. In an ever-changing socio-economic landscape we live in, digitisation has become our way of life. We see it on the streets, hear it at the supermarkets. There have been campaigns encouraging Singaporeans to adopt digitisation as a way of life. Similar for the arts and culture, to allow it to continue to be relevant to audience needs and preferences and becoming an integral part of Singaporeans' lives and to enrich the soul of the nation, harnessing technology and innovation is the key and way forward for the arts and culture. It is interesting to note that The National Museum of Singapore has been utilising digital technology to innovate and enhance visitor experience to the museum under their Digimuse initiative. In January 2018, there was an open call for partners to submit digital art and innovation concepts that can benefit and elevate visitor experience at the museum. It eventually turned into an exhibition titled Digimuse Presents, which featured a diverse range of seven digitally led prototype projects to enhance the journey of cultural discovery for museum goers, allowing visitors to explore fresh perspectives of culture and heritage via a series of immersive virtual and augmented reality exhibits, dynamic conversations enabled by artificial intelligence (AI) and more. To date, Digimuse-related exhibitions and programmes have welcomed 92,000 visitors to the museum. Over at the Singapore Chinese Orchestra, we started our Digital Concerts in 2017, streaming our concerts live to audiences in the comfort of their homes as well as for the international community.[+7 sentences] There is also the MeshMinds Foundation which recently collaborated with students from LaSalle College of the Arts to present an exhibition on using art and tech for good. These are just a few of the many examples of how arts groups and organisations in Singapore are innovating and using digital technology to enhance the sustainability and relevance of arts to the greater audience, serving them well and wise. Launching an exhibition at the ArtsScience Museum last year titled "All Possible Paths: Richard Feynman's Curious Life", Minister Heng Swee Keat said this, and I quote, "The best ideas emerge from the intersection of technology with the arts, when people from different disciplines collaborate to learn from one another". Indeed, as we have also heard in the Budget, partnering to win is also an important dimension in ensuring a skilled workforce and a vibrant economy. We can build more partnerships amongst the art and culture groups, technology companies and even within academia. This would allow the arts and culture to innovate and create programmes, cutting down boundaries, enhancing audience and visitor experiences as we create new entry points for audiences. I look forward to more research and development (R&D) efforts resulting in the above-mentioned partnerships which would both sustain the arts and culture by making it more accessible and inclusive in Singapore for the disadvantaged communities. Over in the UK, the National Theatre employ the use of smart captioning glasses, which allows people with hearing loss to enjoy performances; users will see a transcript of the dialogue and descriptions of the sound from a performance displayed on the lenses of glasses.[+15 sentences] In fact, from 5 to 17 March, our local theatre company, The Finger Players, will be presenting an inclusive theatre performance, which caters to the needs of audiences with disabilities, through usage of closed captioning and audio description. I welcome Members of the House to support The Finger Players. More can and should be done through R&D efforts to promote inclusive arts. Lastly, while the Government has invested significantly in cultural infrastructure, more funds could be allocated to improving and upgrading the existing hardware of the arts, allowing our arts and culture groups to stay relevant and enable them to truly execute digital arts, allowing us then to be able to grow our "heartware" of the arts. In Mandarin. (In Mandarin): Mr Speaker, sounding the horn for digital arts. In his 2019 Budget Statement, the Finance Minister talked about how Singapore should strive to become a Global-Asia node of technology. To lead in the future, Singapore must innovate, develop and cultivate more tech talent so that we can face the challenges of this fast-changing digital world. The Government will also equip small and medium enterprises (SMEs) with capabilities to stay relevant and go towards digitalisation and automation. As Singapore moves towards high-end technology development, arts and culture can play an important role in showcasing our inner world and are closely tied to our social life. Various digital arts developments will not only provide people with rich mental nourishment but also allow arts and culture to captivate the public through more advanced technology and multiple channels. This can be an effective tool to popularise and elevate arts and culture. Digital technology has also spurred many artists to achieve breakthroughs into a new world, allowing them to create more influential works of art. In this era of technology innovation, local arts groups are sparing no efforts to create surprises using digital technology. The use of digital technology has made their shows and performances more attractive. The National Museum has introduced the Digimuse initiative to enhance visitor experience by combining technology with arts and has attracted close to 90,000 visitors. The Singapore Chinese Orchestra and Zaobao.sg launched the first digital Chinese orchestra concert in the world in 2017 so that audiences around the world can all enjoy the music from the Singapore Chinese Orchestra. The 2019 International Arts Festival incorporated new technology elements into the stage setting which has not only increased the interactions between performers and audiences but also created a new narrative. Local arts group Finger Players will be presenting in March this year an inclusive performance to audiences with disabilities through the usage of close captioning and audio description.[+3 sentences] I firmly believe that the use of technology can not only improve efficiency in commercial field but also serve communities from different backgrounds better. We can do more for the vulnerable by the use of technology. This will bring arts and culture closer to people and allow people with different backgrounds to have a chance to come into contact with the arts. Lastly, I hope the Government, arts groups, IHLs, tech companies and researchers can work together or even start a research foundation to promote digital innovation in the arts and culture scene.[+3 sentences] The concurrent development of the arts and culture in the digital age can enrich the soul of the nation and make Singapore more efficient. Budget 2019 will lead us into the future and build a strong and united Singapore together. I support Budget 2019.
Mr Speaker3 words
[+1 sentence]Prof Fatimah Lateef.
Prof Fatimah Lateef (Marine Parade)1856 words
[+25 sentences]Mr Speaker, in Malay, please. (In Malay): Mindset and progress of the Malay community. Mindset determines everything. It is the engine that drives our motivations. Mindset can determine the ebb and flow, the ups and downs in someone's life. Mindset is related to how we shape our lives, our journey and our family with a vision. A mindset change can transform our lives. This year, Singapore commemorates 200 years since Sir Stamford Raffles set foot on this island and 54 years since we achieved Independence. What are the status and performance of our Malay/Muslim community? What is the level of our achievement so far? Over the years, various programmes had been implemented, new policies were crafted, and progressive and competitive schemes had been rolled out by the Government, self-help groups and other organisations. In doing so, with this background, the principles of meritocracy, diligence and cooperation among the different races and religions have always been emphasised. All these are stepping stones and opportunities for us to improve and enhance ourselves and our families. Although we are a minority group, our desire to achieve progress and excellence is strong. The expectations of our younger generation, millennials and our descendants will continue to grow. That is uniquely Singapore. Each generation gets better, more successful, better educated and trained, more successful and more global, and we must not turn back again. In order to determine the thrust of this future, we, and the next generation, must continue to strive, share a common vision, collaborate, possess a broad and progressive mind, and look ahead while exploring a new world order and a new economic landscape with new strategies. In education, we must continue to inculcate the love for learning at every level, in every individual. This includes lifelong learning. For workers, this kind of learning includes the upgrading of skills, capabilities and qualifications. We must never get tired of seeking knowledge, broadening our minds and improving ourselves. We have now begun to move away from a single-minded focus on academic qualifications and expanded capabilities in other fields. This provides a good platform for our Malay/Muslim community to close the gap and level up with the other communities. This also means that the criteria for educational assistance and the criteria that solely use academic benchmarks should be reviewed and revised. On average, the Government provides a subsidy of almost 90% for every primary and secondary school student. For those from lower-income families, the subsidy will be more than 90%.[+16 sentences] This demonstrates an emphasis on education, because we know that education is the only factor that enables us to raise the standing and status of our family. As they say, education is the greatest equaliser. In healthcare, during Singapore's early years, we faced the challenges of malnutrition and infectious diseases. At the moment, our Malay/Muslim community is battling chronic diseases, such as diabetes and high blood pressure, and the rates of complications and risks are also high. Now, the issue of ageing has gained prominence. How do we plan ageing successfully and comfortably for ourselves and our families? Certainly, culture and personality have something to do with one’s perception of ageing. A survey in Singapore found that factors seen as important in old age are good health, financial means, healthy lifestyle and strong social support. Religion is also an important factor. However, the most essential thing is that our preparations and plans for our golden years begin while we are still young. Most importantly, we must have a roof over our heads, adequate funds for expenses, health insurance, a family that supports and cares for us, peace of mind and the ability to comfortably lead our lives and practise our faith. On to our youths. The number of youths studying up to post-secondary level and those reaching university has risen. The number of workers in the professionals, managers, executives and technicians (PMET) category has also grown. The number of entrepreneurs spreading their wings globally has also increased. For our SME owners, there are many types of assistance and schemes available for business expansion and automation. In this Budget, $100 million has been allocated for business upgrading and enhancement.[+5 sentences] For our asatizahs, they are getting better qualifications and many are graduating from illustrious Islamic institutions, such Al Azhar. We now have access to global developments and can gain a positive impact from this. We live in a secular nation with religious diversity. We lead our lives freely and we are not oppressed in Singapore. We can pursue our religious activities with ease. In Singapore, we have around 70 grand beautiful mosques with modern facilities.[+1 sentence] The Islamic Religious Council of Singapore (MUIS) is also always available to issue advisories and rulings for us to follow. If we look at the situation in European countries, for instance, recently, in the 2015 European Islamophobia Report, the number of hate crimes against Muslims has risen.[+12 sentences] In the US, 10 states have legislated Bills that are anti-Islam and promote Muslim-free businesses. This is an unhealthy, worrying and very grim situation. In Singapore, we, the Malay/Muslim community, are fortunate that our rights are protected as a minority group. So, please do not squander the opportunities given to us, which are the same as the other communities. Finally, although we have not reached the same level as the other communities, our Malay/Muslim community has achieved greater excellence. But what about the next stage of our journey? It is up to us whether we can adapt to the modern world, the application of information technology (IT), e-learning and gain new skills in a fast-paced world. I end my speech with a pantun: Values and principles of Singapore, Between the Government and the people Working together, hand-in-hand A community of excellence, a stable nation. (In English): Mr Speaker, they say a stable world order is a rare thing. Governing nations will require skillful statecraft because we will have to wake up to something new every day. Governance must be robust and, at the same time, nimble, subjected to frequent changes and disruptions, which we have to adapt to. The 21st century is a different world we live in. China holds more than $1 trillion in hard currency reserves. India's high-tech sector is growing by leaps and bounds. They have nuclear power and are developing blue water navies.[+21 sentences] It is a complex, multi-polar era in world politics that we live in with all these tectonic shifts. Singapore is vigilant, well-placed and can adapt, if we keep on this trajectory that we are on. Any instability, any major shifts in the way we work, our little red dot will get left behind. We must surmount the challenges of the day together and retain our core values and principles for a cohesive and stable Singapore. Thus, my focus on "Partnerships to Prosper", or P to P. Old partnerships, existing partnerships, new partnerships and yet-to-be-formed partnerships. We are all in these together. Only through deepening our partnerships, understanding and collaborations can we have a better grasp of issues, things and phenomena. I always say that partnerships are about "building bridges and managing our egos". It is about respect, honesty and cross-cultural understanding. These include partnerships and collaborations at the global level, with foreign affairs. How we collaborate and befriend other nations is critical, some more than others, but it must all work in a rules-based world order. Our principles must prevail and Singapore's interest must prevail. The same goes for our regional partnerships. For example, at the Association of Southeast Asian Nations (ASEAN) level, Singapore is looked to as a model Asian society and we must strive to demonstrate and model this. Singapore relies also on foreign workforce and new immigrants. These partnerships with them must be two ways: for them to understand us and for us, them. Our own global platform for deepening our learning process is also deepened through our interaction and work with these people. On diplomacy and defence, as mentioned by the Finance Minister, this, too, needs formation of partnerships. Our interaction and relationships with nations and neighbours are just as crucial as building up our Singapore Armed Forces (SAF). Ask any business person and it will be evident that good partnerships and communications are the basic fundamentals of joint ventures, business networks and economic collaborations. At the community level, with ground-up initiatives, partnerships can make the difference as well. In my constituency, under the framework of WeCare@Geylang Serai, with over a hundred partners focused on a variety of areas of help, be it education, support in kind, friendships and befriending collaborations, healthcare and so on, the partnerships are deepened over the years.[+17 sentences] We see the growth and the nurturing. We see the positive corporate social responsibility (CSR) by many organisations and companies. We also see their help and support evolve and change according to the needs of the times. These are all examples of useful and meaningful partnerships and they are also customised partnerships. They have to stay relevant and they have to be relevant in the world of not just today but also moving forward to tomorrow. Thus, there is also one more partnership that I just want to mention, which is the disruption in partnerships. Partnerships are, indeed, an invitation to engage, and engaged ones are critical in the formation of meaningful networks. With disruption and transformation in our partnerships, the impact is certainly wider, greater and deeper. Disruption is already affecting our local and global relations. Every business and society entity now has greater potential to expand their mission and work. The outreach through disruption and transformation can be tremendous. There are even funds provided by the Government to support this. Digital disruption has coloured our partnerships and relationships. Even our VWOs and non-government organisations (NGOs) are forming partnerships with clients, supporters and sponsors through disruption and disruptive techniques. For example, counselling can even now be done through videoconferencing and through electronic partnership portals. Of course, a word of caution is on the maintenance of confidentiality on such platforms. Sir, Budget 2019, follows on as a continuity plan from the last few Budgets. Genuine and deep partnerships will help us as we execute the proposals of Budget 2019.[+7 sentences] My views are that national Budgets do not just represent the governments handing out to the population unilaterally. It is about the partnership between the people and the Government. It is about how people understand the Budget and tap on the schemes and programmes, and that is where we come in as well where we have to do simplified explanation because there is really a lot of sophistication in simplicity. It is also about how specific groups utilise the resources made available through the Budget. It is thus important to have a proper and deep understanding of why each scheme and each subsidy is proposed and not be swayed by superficial, emotional interpretations of the Budget. Finally, Sir, if everyone is working and moving forward together, we can do so much more and we can succeed together and then success will take place itself and things will all fall in place. I support Budget 2019.
Mr Speaker5 words
[+1 sentence]Minister of State Zaqy Mohamad.
The Minister of State for Manpower (Mr Zaqy Mohamad)2708 words
[+6 sentences]Mr Speaker, I am heartened by the many speeches yesterday by several Members of Parliament on worker-related issues. I would also like to thank the National Trades Union Congress (NTUC) and lend my support for their strong commitment to Worker 4.0, to do our best for every worker, including freelancers, older workers and low-wage workers, which is both the necessary thing to do for Singapore's economy and the right thing to do for society. I would also like to recognise Member Ms Sylvia Lim's acknowledgement of the Government's efforts to help our workers adapt and grow literally for the future economy and also her concerns over the vulnerable segment. My colleagues and I will speak more on these areas in MOM's COS segment next week. Yesterday, Members, including Mr Liang Eng Hwa, Ms Jessica Tan, Ms Denise Phua and Mr Chong Kee Hiong, have spoken of their support as well as their concerns with the high S Pass growth, the unsustainability of foreign worker growth, and the need to push on with economic restructuring. I am glad that they have also recognised the Government's efforts to smoothen the transition through various initiatives and schemes with the industry, trade associations and the Labour Movement. The announcements on the reduction in Services DRC and S Pass sub-DRC have generated many views, and I thought I should also elaborate on the workforce considerations that informed this move.[+17 sentences] Our foreign workforce policies are an integral part of our broader workforce strategy to improve the quality of jobs and employment outcomes for Singaporeans. We want Singaporeans to be able to participate in Singapore's economic growth and prosperity. Therefore, we want to give our workers the opportunity to access quality jobs, as long as they are prepared to work hard, be productive and gain the necessary skills required to become competitive. These are contingent on a vibrant economy and strong job creation as well as a sufficiently tight labour market. Our foreign workforce policies are, therefore, calibrated to support economic growth and enhance complementarity between the local and foreign workforce. The profile of our local workforce is changing. Our population is increasingly educated and well-trained. So, we need to keep improving the quality of our jobs to meet the highest aspirations of our people. Having come from the commercial sector, I also recognise that companies, large and small, also want access to human capital with relevant skills to grow their business. And for companies that use Singapore as an international hub, I recognise that access to international manpower is also crucial to be able to address the regional and global markets. As we restructure, it is important to assure companies that Singapore remains open to foreign professionals or specialists with experience in emerging growth areas or skills that are in demand globally and in short supply in Singapore. This allows employers to assemble the best possible international teams in Singapore in order to compete globally which, in turn, create more quality jobs for Singaporeans. However, our short-term needs must not become our long-term dependency, lest we become over-reliant on foreign manpower and risk hurting local employment outcomes. That is why we have made a series of adjustments at the Employment Pass (EP) level which many PMETs have also asked about. In 2017, we increased the EP qualifying salary to keep pace with rising local wages. This ensures that foreign professionals do not compete with local PMETs by undercutting wages. This has led to a moderation of the number of EP holders, with the exit of lower-quality EPs. The number of EP holders has declined by 3% or 6,400 since the tightening. As some effects of the adjustment in 2017 will continue to be felt in 2019, we have not made any changes to the EP policy this year.[+2 sentences] We will continue to monitor this closely. As local wages rise, we will have to adjust the EP criteria from time to time. To support fair hiring of local PMETs, we have also strengthened the Fair Consideration Framework (FCF).[+8 sentences] For employers suspected of unfair hiring practices, we place them on the FCF Watchlist. Beyond PMETs, we aim to uplift all segments of our local workforce. As Singaporeans live longer, we want to do more to support our older workers. We want to help those who still want to work so that they have the opportunity to enjoy good employment outcomes. We also want to help low-wage workers upgrade their skills and uplift their wages as well. And we also want to foster an inclusive society, one that enables all workers, including ex-offenders, persons with special needs, to thrive and find meaningful employment, and for women to be able to fulfil both career and family aspirations. The reality is that many ITE and polytechnic graduates also work in the Services sector, alongside S Pass and Work Permit holders. We want our ITE and polytechnic graduates to be able to access opportunities in these sectors, too. Calibrating the inflow of foreign workers in the Services sector is necessary to sustain the impetus for restructuring.[+15 sentences] In particular, by keeping the labour market tight, employers will have the incentive to develop the local workforce and to redesign and transform jobs to attract locals and to invest in training. Ms Denise Phua raised concerns about the manpower shortage in the Services sector yesterday, where locals may not be willing to take up Services jobs. However, this does not mean that firms will never be able to attract locals into these jobs. We must put in the effort to redesign jobs. I have met employers who have gone out of their way to redesign jobs and create more flexible working arrangements (FWAs) for mature workers, persons who are disabled and others. Certainly, there is scope to make this happen for many of our common jobs, too, if we put our minds to it. We should recognise that there are already many Singaporeans working in the Services sector, alongside S Pass holders and Work Permit holders. In fact, the majority of locals are employed in the Services sector, including in food services and retail jobs. We should avoid reinforcing the view that these are jobs that only foreigners want to take up. There are good jobs for our Singaporean workers, and we should and can do more. We will spare no effort to help businesses transform and transit. To help companies grow and achieve sustained productivity improvements, we will work closely with the industry to support businesses in developing more efficient techniques and service models so that they can grow and transform in a tight labour market. Mr Douglas Foo shared his concerns that some Services sub-sectors will not be able to cope. Firms will also take time for workers to be trained before they can contribute meaningfully to the company. I recognise some of these challenges that firms are facing, particularly SMEs, which may be too bogged down with day-to-day operations to think about change, especially deep systemic changes that would really allow firms to reduce reliance on foreign manpower. However, we must start somewhere to build deep enterprise and human capabilities so that businesses can remain competitive regionally and globally. This is why we chose to reduce the DRC as opposed to simply raising levies.[+1 sentence] We did not want a situation where firms continue using existing operating models and simply pay higher levy costs. With a lower DRC, firms will have to either hire more locals or transform their businesses to become more manpower-lean.[+1 sentence] Restructuring will not be easy and I acknowledge that. To help firms manage the changes, we are phasing in the DRC cuts, in two steps over two years, to give firms some more time to prepare.[+5 sentences] We are also enhancing our enterprise support by subsidising qualifying project costs, training costs, among other measures, as the Ministry of Trade and Industry (MTI) mentioned yesterday. For those who are looking to grow their local workforce, I encourage employers to participate in the Earn-and-Learn programmes under the SkillsFuture movement to bring in fresh polytechnic and ITE graduates and take up Adapt and Grow programmes through Workforce Singapore (WSG) and its partners to recruit suitable mid-career workers. We provide generous funding for employers to hire and train Singaporeans through our Place-and-Train Programme, CSP and Career Trial. In particular, Career Trial will be useful for employers who have redesigned jobs and want to engage local workers to try them out. I encourage businesses to pay more attention to the work environment, remuneration and skills upgrading, and even consider FWAs to be able to attract, develop and retain local workers. For firms that require more time to grow the local pipeline or transit into new manpower-lean models, firms can access transitional manpower flexibilities under the Lean Enterprise Development (LED) scheme.[+4 sentences] This is to help firms which are serious about growing sustainably within the new DRCs. I hope this gives assurance to Mr Douglas Foo who advocated for a more flexible labour policy to meet the needs of individual businesses. Depending on the transformation plan of businesses, we can calibrate the extent of transitional manpower support to firms. The Government recognises that essential sectors, such as healthcare, will need to ensure day-to-day operations are not affected as firms adjust. While the DRC cuts apply across the Services sector, we will continue to work with MOH to provide manpower flexibilities to healthcare providers so that their day-to-day operations are not affected.[+18 sentences] Mr Speaker, we want this journey to be one where we can bring about better outcomes for both our companies and our workers. We want our companies to transform so that they can grow in a sustainable manner and create quality jobs. We want our workers, on the other hand, to be able to access these opportunities – quality jobs, good salaries – and participate in Singapore’s economic growth. The Government is here to support both. We cannot have an outcome where workers win and employers lose, or employers win and workers lose. We want a win-win for both workers and employers, supported by the Government and the Labour Movement. Mr Speaker, please allow me to continue my speech in Malay. (In Malay): The essence of this year's Budget clearly centres on the commitment to build a stronger and more united Singapore. But at the same time, it focuses on the well-being and welfare of Singaporeans. This Budget is comprehensive and takes into account current and future needs. Not many countries have the luxury of presenting a budget that prioritises future needs, year after year. For the Malay community, I urge that they take full advantage of the opportunities and available schemes for upgrading, especially in skills training, so that they are not left behind in our economic transformation. Our workers may already be affected by the economic transformation. In fact, those who have undergone skills training must continue to increase their knowledge in order to fulfil the needs of the current and the future economies. Education and lifelong learning are the best avenue for upgrading. However, the recipe for success will still depend on the attitude of our people and their desire to want to succeed. As the saying goes: when there is a will, there is a way. The Government's move to further reduce employers' DRC for S-Pass and Work Permit holders should be seen as a good opportunity for our ITE and polytechnic graduates because their contributions and skills are much needed in this sector. Singapore's approach is to develop a sustainable workforce, prevent wages from being depressed, and we also want Singaporeans to be the core of our workforce.[+6 sentences] Our foreign manpower policies are designed to spur better employment outcomes for our people. This can be done by creating a balance whereby employers are allowed to take in foreign workers so that their companies can stay competitive and continue to grow, but at the same time, ensuring that the number of foreign workers does not compromise our objectives. We must manage the inflow of foreign manpower in the service sector in order to encourage our firms and businesses to innovate and improve their operations. At the same time, we also focus on improving our local workforce through education and skills upgrading. It is hoped that this will encourage employers to redesign and transform their work processes and invest in training so that the job opportunities and the career prospects are more attractive to Singaporeans. This also provides better job opportunities for mature workers or those who are seniors, as well as women who wish to return to the workforce. The Malay community can make use of the available schemes, including the Adapt and Grow Scheme. These programmes have helped 30,000 Singaporeans last year, or 76,000 people since 2016, to undergo training for new jobs and acquire new skills for new sectors, apart from facilitating job matching. We also provide funding assistance for employers to hire and train Singaporeans in programmes like the PCP, CSP as well as the Career Trial programme.[+17 sentences] For instance, Career Trial is very useful for employers who have redesigned their jobs and wish to take Singaporeans who want to try out those jobs. I would like to cite a few examples from our community who have benefited from these programmes. After spending eight years building a career in the banking sector and the Public Service, Ms Norfazillah Shariff, 32 years old, made the courageous move to try a new career outside her comfort zone by becoming a social worker. Ms Norfazillah seized the opportunity to join the PCP for Social Workers in July 2017. She has a Post-Graduate Diploma in Social Work from the Singapore University of Social Sciences (SUSS). Mr Muhammad Rusydi Md Norr, 31 years old, was previously a convenience store manager. He is now a nurse, after joining the PCP for Registered Nurses (Degree). He entered the 2-year Bachelor of Science (Nursing) programme at the Alice Lee Centre for Nursing Studies at the National University of Singapore (NUS). Their efforts have borne fruit. This is because, as we transform our economy and help businesses become more resilient, we also do not wish to see Malay/Muslim workers and students get left behind. The same goes for businesses affected by the economic transformation. Their worries and concerns are understandable, especially in the context of today's fast-changing and unpredictable economic and global situation. Workers are worried about their future, whether their jobs and their income can be maintained. Businesses are also worried about their future with regard to business costs, competition and other factors. They certainly feel quite worried and anxious about their future. For firms and businessmen, we understand the challenges they face, especially Malay/Muslim entrepreneurs from SMEs. We are committed to helping companies and businesses undergo transformation and implement new and effective operations. We want to see them succeed and become competitive. Therefore, they must take full advantage of the available schemes and funds like the Enterprise Development Grant (EDG) or the Productivity Solutions Grant (PSG) to implement their transformation projects.[+3 sentences] If more time is needed, these companies can make use of the transitional manpower support under the Lean Enterprise Development (LED) scheme.All these programmes and support are readily available to help every group, including workers, businessmen and employers, to progress together with Singapore now and in the future. The overall thrust of this Budget is comprehensive enough to assure all Singaporeans that their future in Singapore is the Government's priority. On the whole, while the Government invests in these programmes, Singaporeans, all of us, businesses, must make use of all the opportunities available. (In English): Mr Speaker, in conclusion, the Government has laid out our considerations in the DRC changes to bring out a more sustainable economy, more productive companies and also better quality jobs for our workers.[+5 sentences] It was not an easy decision, a tough one which I have laid out the considerations. But it is a measured one that will be good for Singapore in the long term. Before I end, I have a question. I know that the Workers' Party has been quiet on where it stands on our DRC announcement this Budget. Does the Workers' Party support the Government's policy on the DRC changes?
Mr Speaker4 words
[+1 sentence]Mr Lim Biow Chuan.
Mr Lim Biow Chuan (Mountbatten)1051 words
[+7 sentences]Mr Speaker, I have a large proportion of senior residents staying in public housing within Mountbatten. Over the years that I serve as their Member of Parliament, I see more and more of them using wheelchairs and relying on walking sticks to aid their mobility. As they age, they also require more medical care. The PGP introduced in 2014 provided great financial relief for many of these senior citizens as it helped reduce their healthcare costs. Over these past years, I have met Singaporeans who have expressed appreciation for the healthcare-related subsidies which they received due to their PG status. Some of them may not realise it when they receive the PG card. However, when they are hospitalised, the benefits of being a PG is much clearer. For that reason, I strongly support the MGP announced in this Budget. I acknowledge that it is not on the same scale as the PGP. But it does cost $6.1 billion and is financed from the past savings of this Government and does not impose a burden on the future Government. It will certainly help the next generation of seniors cope with healthcare costs. I am also glad to note that the benefits of the MGP is extended to all citizens born within the 1950s regardless of their home type.[+17 sentences] Healthcare costs will always be a concern for our citizens regardless of home types, and the MGP would provide greater assurance to our citizens. It also shows the appreciation of this Government for the generation of Singaporeans who have helped build Singapore up. As with every Budget, we would never be able to please everyone. There will always be economists, academics and other well-meaning Singaporeans who will call for the Government to spend more on other things. The challenge is who will pay for all these extras? Are we prepared for much higher taxes? And will all these extras be sustainable in the long term? Will Singapore end up like some other countries which are struggling to balance their budget or are on the brink of bankruptcy? What should be the core business of the Government? To me, it must be to provide all Singaporeans a safe living environment; to ensure that healthcare remains affordable, that every Singaporean has access to good quality education, that we continue to grow the economy and create good jobs for Singaporeans; that our public transport system allows our citizens to travel within the country in a convenient and reliable manner and that public housing is accessible and affordable; that every Singaporean, regardless of our starting point, should have equal opportunities to do well in life. Although there are areas where we can improve upon, I support the efforts of this Government to ensure that the basic needs of all citizens are met. This includes the need to spend more on defence and security as we need to be able to stand up to unfriendly forces. In fact, a strong defence force will be the main deterrent to any hostile activities. I also support the increase in spending to deal with different security threats. The state-sponsored cyberattack on the SingHealth IT system is a strong reminder to all of us on the need to strengthen our IT security measures against those who wish Singapore to fail. Even countries like Germany and Australia were recently subject to attacks on their IT network system. I have three points for the Government's consideration. In my previous speeches, I advocated that the "Government should have policies which would help those in need and at the same time, be fair to citizens who have contributed to build Singapore." So, I urge the Government to do away with the distribution of Budget benefits based on home type, but instead base it on income.[+9 sentences] If a citizen is a retiree with no income but staying in a private property, why should he get less GST Vouchers than someone who earns a lot more but stays in a 3- or 4-room HDB flat? Why should someone without any income not enjoy the benefits of the Bicentennial Bonus simply because his home has an annual value of more than $21,000? This is unfair to the Singaporeans who had contributed to Singapore but had pursued their dreams of staying in a better home when they were younger. I also call on the Government to consider a change in its policies to allow elderly singles to rent a flat alone. During my MPS, I regularly receive requests from elderly seniors who, for some reason, cannot get along with their family members or their children. They quarrel frequently and want to shift out so that they can preserve their dignity and not stay in an unhappy home. However, they have nowhere to move to. Much as we wish to encourage the families to look after their seniors, the reality is that relationship issues are not easily resolved. I am of the view that we should not compel an elderly person to stay with the family when he or she is clearly estranged from the family. Can the Government consider better support for our seniors by allowing them to rent a 1-room flat on a case-by-case basis?[+9 sentences] This would allow some of them to live in dignity in their retirement years instead of living in a hostile environment. Finally, I urge the Government to consider changes in the policy on seller's stamp duties. Last month, I filed a question to ask whether the Government can waive stamp duty for sellers in an en bloc sale if they did not agree to the sale of the property. The Government declined to do so, and, with respect, I feel that this is unfair. The Government should not impose a tax on owners of properties when they are unwilling sellers of their property during an en bloc sale. They are forced to sell their property due to the nature of the en bloc sale. Why should they be penalised? A review of this policy should be considered. In the Budget, the Government plans for the future of Singapore, and I am grateful for the many considered decisions of the Government. Our Government must also set out policies which are seen to be fair and kinder to our citizens.[+1 sentence] Mr Speaker, Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Ong Teng Koon.
Mr Ong Teng Koon (Marsiling-Yew Tee)1320 words
[+12 sentences]Mr Speaker, I rise in support of the Budget. We frequently hear residents complain about the cost of living. And although official data does not show high inflation, I am sure many of us here in the House have our residents telling us that the cost of living keeps going up but their income cannot keep up. I have met residents who are struggling to cope. And these are young couples who are just trying to start a family, the elderly or needy families and they are squeezed because basic costs, such as food, healthcare and education, keep rising. I feel it is not fair to dismiss their concerns as purely the result of unrealistic expectations because they are certainly not benchmarking themselves to the Economist Intelligence Unit (EIU) survey, which is mostly crafted for expatriates. On the contrary, they visit Johor Bahru and often wonder how come prices in Singapore are so high. I have also met residents who are able to cope but they are unhappy because they are running harder than ever just to stand still. They feel they cannot even achieve what their parents had. They lament, "We are university graduates, but our standard of living does not seem to be better than our non-graduate parents who could afford bigger houses and more luxuries when we were growing up". For them, every generation doing better than the previous generation is not happening. "一代好过一代" is not happening for them, but "一代好过一代" must be the objective of every government. The Minister for Finance has assured us in his Budget speech that he is keeping a close watch on the cost of living, that he is alleviating cost pressures in healthcare and education. He is keeping the Singapore dollar strong to maintain import prices and he is providing support for the needy and the low-income households. But I feel the most important thing that he might have done for Singaporeans is to keep our taxes low.[+19 sentences] This allows us to keep money in our pockets and decide how to spend it rather than him deciding how to spend it for us. When I was working in Japan, in an ironic way, I was unhappy. Every month, when I got my paycheck, it was painful because 50% of it would automatically be deducted for taxes. It was the same in the US when I first started working. More than 40% of it went to taxes and paying rent and keeping the lights on, and I had little to show for it. Singapore must not be like that. Mr Speaker, for many years now, we have talked about our ageing population and low total fertility rate (TFR) being existential issues for the survival of Singapore. Today, I would like to focus specifically on young families starting out. First, their costs are going up; and second, their income is getting very volatile. On the cost side, they face intense pressure at this stage of their lives. They have to cope with wedding expenses, paying for the house, planning for kids, trying very hard to afford a car, but on the income side, there seem to be fewer stable jobs as more companies move towards contract and freelance work. Retrenchment is also no longer rare. Many workers in the private sector not only compete against Singaporeans in what we know as meritocracy. They also compete against nationalism as practised in some foreign-owned or foreign-run companies and they are fighting forces beyond their control and they might not be doing well not because they are not trying hard enough. We must put ourselves in the shoes of such workers and not just simply dismiss their concerns. So, in such a situation, to delay or avoid having children would be altogether a very rational response. Children are expensive, they raise the minimum income any household needs each month. And from my conversations with residents in Marsiling-Yew Tee, this is the main contributing factor towards our low TFR. There have been countries that have been successful in reversing a low TFR. Sweden was 1.5 in the 1990s and they have gone back to 1.8.[+13 sentences] Their experience suggests that addressing the cost of living issues, particularly the cost of raising children, is important. Policies in Sweden and Norway make it easier for mothers to both work and have children. Research shows that Swedish mothers are the least conflicted and the most contented. Childcare is affordable and of an acceptable quality, and lower income inequality puts parents under less pressure to spend on enrichment and tuition to push their kids to succeed. In Singapore, awareness of income inequality has risen and this has given recent attention to this topic. Ms Teo Yeo Yenn pointed that out in her book "This is What Inequality Looks Like", and this topic has become coffee shop talk. Parents are forced to spend on tuition and enrichment in an arms race to bring up the ultimate student. While we cannot fix inequality and TFR with a magic wand, we need to help parents to stop feeling like they are not being good parents just because they are not spending thousands of dollars every month. So, Mr Speaker, I would like to make several suggestions in this debate for the Government to consider. First, preschool fees. Residents complain that the current structure is too complicated. Instead of a working mother’s subsidy, they would rather pay less upfront. So, instead of paying the gross and then claiming a subsidy, can they just pay net? Would it be possible to charge just $10 a month for preschool without means-testing, like what we are doing in primary school right now?[+5 sentences] The Government has said that different providers of preschool services is essential to safeguard consumer choice. But many cynics would also point out that the only provider of primary school services is MOE. There is not much choice although there are many schools. There is a growing awareness that preschool affects our future performance and, hence, is important. So, let us put our money where our mouth is and make this truly affordable. Second, childcare and babycare options are currently expensive, and that is assuming you can even find a vacancy.[+3 sentences] There are cheaper alternatives, but quality is often not up to expectations. Some couples are lucky and may have able grandparents to help them out. But for those who do not, it is very difficult to have kids. Government subsidy needs to be increased in this segment.[+5 sentences] Third, provide subsidised school bus. Even the little things add up. It is amazing to me that we are able to read a story in The Straits Times about exorbitant bus fares, and highlighting the need for better regulation. While some might say that this is a small amount, I would say that each straw adds up until the camel’s back breaks. Fourth, make it easier for mothers to choose between work and motherhood. As Sweden, Norway and others have shown, work-life balance for mothers can boost TFR.[+2 sentences] At a minimum, mothers would benefit from being allowed to work remotely and to have flexible hours. But how many employers are enlightened, or do they need a bit of Government nudging in the right direction to do so? A more direct solution is paid maternity leave, including a portion that is being funded by the Government. Norway has up to 35 weeks of government-funded maternity and paternity leave.[+7 sentences] We have to ask ourselves: what is the value of each additional child to Singapore? Would we consider this to be a worthwhile investment for our national resources? Mr Speaker, in conclusion, good government is about balancing priorities. If low fertility is an existential threat to the nation, then it should be given the highest priority. Singapore has thrown everything but the kitchen sink at this problem. Perhaps, it is time to throw the kitchen sink! Mr Speaker, I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Yee Chia Hsing.
Mr Yee Chia Hsing (Chua Chu Kang)290 words
[+1 sentence]Mr Speaker, I rise in support of Budget 2019. Among all the measures announced by Finance Minister Heng Swee Keat, I am especially happy that we are enhancing WIS to help more low-wage workers as well as increasing the amount of WIS that they can receive.[+1 sentence] In terms of Government subsidy, it is only fair that the less well-off receive more and the more well-off receive less. Unfortunately, means-testing on a nationwide basis is not easy. So, for ease of administration, the amount of service and conservancy charges (S&CC) rebates, U-Save rebates, GST Voucher in cash and other Government assistance which we give out is thus dependent on the housing type or the annual value of the home being used as a proxy for means-testing. Unfortunately, this often allows a certain portion of relatively well-off individuals who are staying in a smaller flat to receive a higher amount of grants than is fair. As Members of Parliament, we often hear stories from residents that a certain family has a Mercedes but is staying in a 3-room flat to take advantage of such rebates and assistance.[+1 sentence] Mr Speaker, I would like to suggest adding car ownership as a criterion for means-testing, so the maximum amount any car-owning household would get would be similar to that of a 5-room flat, or a home with an annual value of between $13,000 and $21,000. Any household which owns more than one car would not be entitled to any rebates or vouchers regardless of the housing type.[+1 sentence] Mr Speaker, I hope that the Ministry of Finance will take my suggestion into consideration for future Budgets, so that the amount that we save can be used to help families that really are in need of assistance.
Mr Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Pritam Singh (Aljunied)18 words
[+1 sentence]Mr Speaker, I had informed the Ministry of Finance's officeholders that Mr Leon Perera will not be speaking.
Mr Speaker3 words
[+1 sentence]Ms Irene Quay.
Ms Irene Quay Siew Ching (Nominated Member)1384 words
[+6 sentences]Mr Speaker, Sir, I thank the Minister for the progressive and strategic Budget. For this debate, I would like to focus on the healthcare budget. Rising healthcare cost and expenditure on the elderly are critical issues affecting our overall healthcare system and are highlighted in the recent Budget speech by Minister Heng Swee Keat last week. As a healthcare professional working in the public sector for the last 20 years, I can see the transformational change in our healthcare system, especially in the last eight years. From a previous healthcare system designed to tackle acute medical condition for a much younger population to new models of care and financial assistance schemes implemented to cater for the ageing tsunami, we have seen many changes. I will highlight some I consider to be especially significant to acknowledge the hard work and foresightedness put in by MOH and the various health and community partners. (a) Introduction of CHAS to allow Singaporeans to enjoy subsidies at private general practitioner (GP) and dental clinics for treatment and screening; (b) Introduction of the PGP and now the $ 6.1 billion MGP, and the upcoming Elderfund scheme, to support Singaporeans who are severely disabled; (c) Substantial increase in subsidies offered to lower- and middle-income patients for long-term care services, specialist care and medications; (d) MediShield Life and the new CareShield Life as universal healthcare insurance to ensure lifetime coverage and higher monthly payouts; (e) Expansion of aged care services, such as home care services, eldercare centres and nursing homes, to cater for the needs of our ageing population; (f) Ramping up of healthcare facilities and infrastructure with at least one hospital built every two years, and strengthening of healthcare worker numbers and capabilities; (g) Implementing the MOH's Community Network for Seniors scheme that links seniors who live alone with befrienders and volunteers, and help them with social problems and early referral of complex needs to MOH.[+1 sentence] At this juncture, I would like to salute MOH for taking on the nation’s future health challenges but, at the same time, would like to share my grave concerns for the escalating healthcare cost. Before I go on, I would like to declare my interest as the President of the Pharmaceutical Society of Singapore, and the Assistant Director, Allied Health Office at KK Women’s and Children’s Hospital (KKH). Aon, an insurance survey group, quoted hospitalisation, physician services and clinical investigations as the top three leading causes of inflation for spending in healthcare.[+7 sentences] With the increasing burden of an ageing population, and the steep and continuous increase in incidence of chronic diseases, coupled with increasing complexity in the management of chronic diseases, more can be done to promote a team-based model of care. This model encourages healthcare professionals – doctors, pharmacists, nurses, allied health professionals – to work in synergy to provide cost-effective but holistic care to achieve positive health outcomes. This is in line with MOH's Beyond 2020 master plan. We have to focus our resources to upskill and empower our allied health professionals and pharmacists in the community to take on greater roles to provide value-based care at a sustainable cost. In my current role, I see a huge potential for allied health professionals to be engaged in the team-based collaborative practice framework where practitioners can practise at the top of their licence to be the first touchpoint for the management of certain physical, psychological, podiatry or speech-related disorders. One example is paediatric patients with only speech delay but without other medical conditions are seen and evaluated by doctors in polyclinics. However, they have to be seen by another doctor in KKH before they can be referred to our speech therapy department. Under the current financial structure, patients will need to be evaluated by another doctor in KKH before they can be accorded subsidised treatment.[+5 sentences] I am concerned that this leads to additional consultation costs as well as delay in seeking proper speech intervention. Similar examples are in adult restructured hospitals as well as patients who need outpatient rehabilitation. Is it not possible to streamline the process even for doctors who work within the same healthcare cluster? Empowering allied health professionals as the first contact point under a defined criterion of a collaborative framework, coupled with the right financial subsidy framework, can free up our doctors to focus on more complex medical conditions. This will allow our healthcare system to extend their reach to a greater population and improve accessibility to appropriate care in a more financially sustainable manner. Overseas studies have demonstrated that patients with musculoskeletal conditions, such as non-severe back or neck pain as well as hand injuries, benefited from early access to physiotherapy and occupational therapy at the primary care or emergency department.[+3 sentences] Take, for example, in the Queensland Health system in Australia, physiotherapists treating patients from Emergency Department (ED) triage Categories 3, 4 and 5 with a range of agreed musculoskeletal presentations. These roles typically involve assessment, intervention, referral for further treatment and assessment, and discharge when appropriate. Allied health first-contact ED services assist the Hospital and Health Services to meet their National Emergency Access Targets (NEAT). Another example involves the advancement of community pharmacists' roles through the extension of Government subsidy schemes for drugs, provision of vaccination to the public to bolster national flu vaccination rates as well as clinical pharmacy services, such as medication review or reconciliation services, in the community.[+3 sentences] This will, in turn, improve accessibility and affordability of medications in the community, enhance the provision of health information, improve health literacy in the community, and reduce overall healthcare expenditure. A 2017 systematic review published in the Journal of Epidemiology and Community Health looked at studies that calculated the return on investment for public health interventions. The researchers identified 52 studies that looked at interventions at a local and national level. Health protection interventions, which include vaccinations that match for the actual influenza type, have saved $34 for every $1 spent on them, according to the review.[+1 sentence] Hence, prevention is cheaper than cure. With the issues shared above, I hope that the following proposals can be considered to make our healthcare more efficient.[+1 sentence] Firstly, we can acknowledge the expertise of allied health professionals and pharmacists in a national subsidy framework, perhaps, in the following ways: (a) A first contact consultation service for allied health and pharmacy services in the community; (b) A Government subsidy scheme that encourages medication dispensing in community pharmacies; (c) Incentivise community partners to work with pharmacists and allied health through collaborative prescribing and practices, and extension of CHAS scheme to allied health services in the community. This way, GPs can refer CHAS patients to private or VWO therapy clinics for allied health professionals' follow-up management at a subsidised rate for predefined conditions.[+3 sentences] We need a holistic system to keep patients in the community. Secondly, in line with the Government's strategy to support a skilled workforce, Minister Heng Swee Keat mentioned in his speech on the need to reskill and upskill Singaporeans. One example I can relate to is to provide training support to upskill our allied health professionals and pharmacists in the community setting, focusing on communication skills with the geriatric population and other health literacy skills. Thirdly, we have to empower allied health professionals and pharmacists in the community to take on greater roles in preventive care and health screening for chronic disease management, through the collaboration with MOH, Health Promotion Board (HPB) and community healthcare partners, as this is one of the most effective ways to curb escalating healthcare costs.[+3 sentences] Residents screened under the CHAS programme can also be referred to the community pharmacist for continued follow-up and reinforcement of a healthy and active lifestyle. I hope that the above proposals can be considered and resources be allocated to support this new model of care through mainstream funding. These proposals will reduce inefficiencies, make our access and processes in healthcare leaner and reduce healthcare costs. As shared in the Minister's Budget speech, FY2019 will run into a $3.5 billion deficit largely due to the additional funding support for healthcare.[+2 sentences] For now, we have FY2018 surplus to draw on, but we need to remain prudent and constantly look for ways to remove waste in our healthcare system so as to ensure long-term sustainability. Notwithstanding the above, I stand to support the Budget.
Mr Speaker49 words
[+5 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 3.55 pm. Sitting accordingly suspended at 3.31 pm until 3.55 pm. Sitting resumed at 3.55 pm
Mr Deputy Speaker3 words
[+1 sentence]Ms Anthea Ong.
Ms Anthea Ong (Nominated Member)2348 words
[+24 sentences]Mr Deputy Speaker, I would like to first thank the Finance Minister and his team for their hard work with Budget 2019, especially with the additional consideration of the Bicentennial commemoration. Minister Heng Swee Keat had me at, quote, "Building a Strong, United Singapore" because it is a confident narrative that acknowledges our resources and strengths, alongside our challenges, as a nation. He also had me at, quote, "We are using our financial resources to help realise our strategies for a strong, united Singapore. But financial resources alone do not get us there." And if I may state the obvious, neither should financial well-being alone be our aim. Indeed, "Building a Strong, United Singapore" can only be possible with a people that is mentally resilient across all ages and segments of our society. Minister Heng Swee Keat mentioned "resilience" and "confidence" repeatedly throughout his Budget Statement. Resilience and confidence are a result of a mentally healthy society. Therefore, mental well-being must be an ongoing national and whole-of-Government priority with the recognition that our quality of life is defined not only by markers of economic growth and our material well-being but also our subjective well-being. We must constantly question if our national policies and spending empower, beyond just enabling, our people to be ready for challenges ahead and confident of our future. Given that, should mental health be one of the longer-term domestic challenges alongside those highlighted in the Budget speech, namely, ageing, social mobility, inequality, economic transformation and climate change? Mr Deputy Speaker, I would argue that it should. Please allow me to share my personal experience and ground observations with the different communities I am involved with to substantiate my claim. My incredibly bright nephew was first diagnosed with anxiety disorder in 2017 at just 15, and later with depression last year. He is currently out of the school system at the promising age of 17. In fact, today is his birthday. Happy Birthday, John. The young man who works with me at one of my community projects called "A Good Space" also almost jumped off from the 15th floor of an HDB block a few years ago when he was just 19, even whilst he was on treatment for depression. There is also the old uncle living in my block at Marine Crescent who was depressed from the death of his wife and started sleeping on the bench in the void deck at night. Just the other day, a young taxi driver shared with me about his 87-year-old grandfather jumping to his death by climbing up the flowerpot racks along his HDB corridor after his breakfast. His whole family was still having their breakfast inside the flat when they heard the loud thud. Then, there is my own close shave with depression over 12 years ago when my world collapsed at the height of professional and economic success. Mr Deputy Speaker, in case Members of this House think that I am the epicentre of mental health issues, let me absolve myself – not with any delight at all – by sharing some sobering numbers. My nephew, unfortunately, is not alone in his struggle. The Institute of Mental Health (IMH) recently reported that the number of young Singaporeans between the ages of 16 and 30 who sought help from its Community Health Assessment Team (CHAT) over 2015 to 2018 has jumped by an alarming 190%. A more troubling reality is that children aged five to nine calling the SOS hotline increased by more than 500% in less than three years. Suicide is the leading cause of death for those aged 10 to 29.[+14 sentences] As our young progress to adulthood, they continue to be most at risk of suffering from mental disorders, according to the latest Singapore Mental Health Study just published in December 2018. My cousin is not an odd statistic either with his experience at the workplace that resulted in the deterioration of his mental health. The mental well-being of working adults in Singapore is 13% lower than the general population according to HPB. Further, 90% of psychological conditions with adults in Singapore have their root cause in workplace stress. Yet, studies have shown that an overwhelming 86.5% of those employed do not seek help for their mental health difficulties. My elderly neighbour and the taxi driver's grandfather are also sadly not alone in their plight. One in five elderly persons in Singapore aged 75 and above show signs of depression. The number of elderly aged 60 and above who took their own lives peaked in 2017, the highest since suicide tracking started in 1991. An estimated one in 10 people aged 60 and above has dementia, whilst half of those aged 85 and older have it. Mr Deputy Speaker, let us not forget the vulnerable and underserved communities in our midst who are exposed to a host of adverse conditions which determine health and mental health, including poverty and access to support infrastructure. One in five elderly caregivers in Singapore suffer from depression. Six in 10 migrant workers with an injury or salary claim are likely to suffer from a serious mental illness. Single-person-headed households struggle to seek state support, and it is generally accepted that individuals with physical and learning disabilities are at higher risk of suffering from mental health conditions although no study has been made. Mr Deputy Speaker, the challenge of mental health is clearly wide-ranging and reach across the lifespan of Singaporeans. The latest IMH study, also released in 2018, showed that one in seven persons in Singapore experience a mental health condition in their lifetime, an increase from one in eight just eight years ago.[+3 sentences] Globally, this number is one in four persons. By way of comparison, the US is one in five and the UK is one in four. Will we head there? Two-thirds of those with mental health conditions in Singapore do not seek help because of stigma, discrimination and neglect.[+4 sentences] At this juncture, I would like to remind the House that the prevalence of diabetes, which we have waged a war against, is one in nine people in 2017, versus one in seven for people with mental health conditions. Ageing has been rightly prominent in our national policymaking narrative and was cited as the first longer-term domestic challenge in the Budget Statement because by 2030, one in four Singaporeans will be aged 65 and above. Yet, there is clear and present danger that the invisible yet mounting challenge of mental health could be headed that way with the escalating prevalence. We must, therefore, make mental health a deafening priority now rather than languishing it in the shadows because mental health affects the lives of Singaporeans across all ages and all segments. MOE informed me in their reply to my recent Parliamentary Question that they recorded 10 in 1,000 students receiving counselling for stress and anxiety. Yet, the IMH study showed one in seven adults experience a mental health condition.[+7 sentences] While a direct causative link cannot be drawn so simplistically, the question nonetheless stands: how does 10 out of 1,000 or one in 100 students receiving counselling become one in seven adults experiencing a mental health condition in their lifetime? What have we missed in our policies? What more must we do? Mr Deputy Speaker, there is no health without mental health. We must normalise mental health and bring it out to the open. The Government and community have to learn to value mental health as a basic need, and to then reduce stigma and improve help-seeking and recovery. We have made much progress moving from a predominantly medical approach of the past on mental health to one that is aspiring to involve every member of society. The Community Health Action Masterplan was launched in 2017.[+1 sentence] Primary care providers like polyclinics and GPs are being trained to support mental health services in non-stigmatising environments. A national campaign “Beyond the Label” was launched in 2018 to break the stigma surrounding mental health by the National Council of Social Service (NCSS).[+10 sentences] This year, the President’s Challenge is focusing on mental health. I am greatly inspired by these efforts. Yet, mental health is not and must not be the responsibility of MOH and the social sector alone. All Ministries should recognise their role in protecting Singapore’s mental health. The impact on the mental health of any group of stakeholders, whether it be citizens, service users, staff or other, should be considered consistently and robustly in all key Government decisions. Cross-Ministerial policymaking will be required to address the burden of mental health in our society, from interventions in education, reforms in employment practices and community initiatives. Despite the escalating prevalence among our children and youths, mental health condition programmes, such as the Holistic Health Framework by HPB, are still optional, placing the onus on schools to adopt and implement these programmes. Peer support programmes in schools and IHLs are also optional. Mandating mental health education in our schools and IHLs is the surest signal to normalise mental health, together with providing support structures for parents and families to be equipped with emotional management skills, coping mechanisms and problem-solving skills to help our children and youths better navigate stress. IMH studies have clearly demonstrated that mental disorders have significant consequences on the workforce in terms of lost work productivity in Singapore. Seventy-two percent of employers in Singapore say that work has been affected by mental health issues, yet only half have psychosocial support programmes in place.[+18 sentences] We must update our employment policies to recognise and promote employee well-being by enacting clear and deliberate provisions that are upstream and preventive in nature. Our employment laws, including the Workplace Health and Safety Act, must also explicitly include and provide for psychosocial health and safety, beyond physical health and safety. Our social policies must place mental health as a priority for the underserved and vulnerable communities alongside basic needs. The Quality of Life Standards by NCSS is a great start. Yet, we can and must do more in partnering these communities to design solutions that take into account their mental well-being and dignity, beyond merely fixing problems or providing services for them. The community must come in, too. There are many ground efforts in mental health and support services, including VWOs, informal groups and social enterprises. A group of 25 C-suite leaders and I came together to form the WorkWell Leaders Workgroup last year as a national ground-up leaders' initiative to share, discuss and co-create inclusive practices for workplace well-being. The first-ever mental health insurance product was also launched early this year by one commercial insurer which augurs well for the surging destigmatisation efforts and also providing much needed support for those with mental health conditions. Mr Deputy Speaker, mental health disorders are on the rise in every country in the world and could cost the global economy up to US$16 trillion between 2010 and 2030, according to the Lancet Commission Report in 2018. How much Singapore shares in this, we are not sure because no study has been done by the Government to date. We could, however, surmise, with the wide-ranging impact mental health disorders have on innovation, productivity, economy and social cohesion as well as rising medical services and infrastructure needs, it might not be too far from the $2.5 billion that we expect diabetes to cost Singapore by 2050. "No other health condition in humankind has been neglected as much as mental health has", said the same Lancet Commission Report. The way we look at mental health reminds me of climate change, Mr Deputy Speaker. It is invisible and so it gets parked mindlessly and incorrectly in the "important but not urgent" quadrant of our awareness. Yet, like climate change, it is our future, our young ones, that we are jeopardising most if we continue with a transactional approach in addressing this challenge. The clarion call made by Budget 2019 to build a Strong, United Singapore is, as I read it, to bring our attention back to our biggest asset – our people. Because "strong" and "united" are finite in concept if we merely rely on our financial resources, economic growth and pre-existing institutions. Poor mental health will cost Singapore our future if our children cannot reach their full potential, especially when their lives end prematurely. The impact of poor mental health on our productivity and innovation is indisputable.[+4 sentences] Our social cohesion cannot be taken for granted; resilient communities follow from resilient citizens. The Government must ensure its policies are underpinned by a drive to help our people thrive mentally and confidently as empowered citizens. I strongly doubt one-off and indiscriminate bonus payouts will yield this outcome. Neither do they engender a caring and inclusive societal attitude. Could we not instead put the whole-of-society rhetoric for increased citizen well-being into action by establishing a national coordinating body for this purpose to work with all stakeholders, Government, employers, communities, schools and so on, including mental health literacy training for every citizen? This can also be the inter-ministerial agency to integrate citizens' subjective well-being in policymaking. Its mandate of improving and sustaining our quality of life must be as important as the other agencies’ on improving our quality of living.[+1 sentence] Mr Deputy Speaker, I urge the Government to enshrine mental health as a longer-term challenge in Budget 2019 which Minister Heng Swee Keat has presented as a strategic plan and to allocate the necessary resources to address this challenge. It is time for the Government to recognise, acknowledge and understand the complexity of mental health, and to create opportunities and solutions to improve the lives of our people, especially our children and youths.[+4 sentences] It is time to redefine our values as a nation as we cherish every individual’s subjective well-being, dreams and aspirations beyond just their material and economic achievements. It can be done and it must be done because mental health is what makes us human. And this, surely, is what a strong, united Singapore must first and foremost always be. Mr Deputy Speaker, notwithstanding my requests and clarifications above, I support Budget 2019.
Mr Deputy Speaker3 words
[+1 sentence]Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)1436 words
[+4 sentences]Mr Deputy Speaker, Sir, I would like to express my support for Budget 2019, in particular, the MGP, which will reach about half a million Singaporeans. I am heartened by this move to show our gratitude and care for these seniors’ contributions to our nation in their silver years. The feedback from the seniors have been very positive. They appreciate the benefits which provide them with greater peace of mind. At the same time, however, I am less certain about the decision to reduce the services sector's DRC.[+6 sentences] The reasons to reduce our reliance on foreign manpower and to accelerate adoption of automation to boost productivity are well understood. However, we must take note that there are categories of the services sector where innovative transformation is not yet ready. For all the excitement over robotics and automation, the stage of technological development in the care sector is not yet so advanced that we can replace human caregivers and nursing aides with CP30s and R2D2s. We are not there yet. Caregiving is still very labour intensive. The six basic Activities of Daily Living (ADLs) take on various levels of complexity for the elderly at different stages of health decline. To get through the day, they need help, that is, manpower, in fact, more often than not, womanpower. These manpower reductions will have a major impact on our elderly, the very group of PG and MG seniors whom we want to help age with dignity.[+3 sentences] Not all seniors have family members and foreign domestic workers (FDWs) to care for them full-time. For those who do, caregivers need to work, study and upgrade their skills, look after children and take regular occasional breaks to avoid burnout. Foreign manpower in the care sector, mostly Work Permit and S Pass holders, help to fill the gaps for full-time and part-time care, complementing family members and local workers. The impact of the foreign manpower restriction on the healthcare sector will be significant, hitting VWOs, community and nursing homes and hospitals.[+18 sentences] While I agree with the Minister that we should not be too dependent on foreign workers, in this particular case, we have limited options. On the one hand, it would be ideal to attract more Singaporeans and Permanent Residents (PRs) to this sector. However, we just have to match care provision fees. If we have a higher proportion of Singaporeans in the care sector, overall fees for therapies, long- and short-term care need to increase. Families will have to pay more. The Government will have to subsidise more. So, higher cost will be an issue. On the other hand, will we be able to get enough Singaporeans to join this sector? We face a double whammy – a fast-ageing population and low fertility rates. On top of this, the younger generations are better educated and drawn to new opportunities, many in high-tech sectors, in our restructured economy. Presently, we have access to affordable foreign workers to assist us with the care of an increasing number of elderly. We should tap on this valuable manpower resource until the tech revolution reaches a stage where we can realistically start the transition to robotic assistants. In their capacities as nursing assistants and aids, nurses, therapists and caregivers, they make immense contributions to our care sector, enabling family members of our seniors to contribute to other areas of our economy and nation building. Singaporeans are keenly aware of these foreigners' role in our care sector and do welcome their assistance. Going forward, we will face competition for this pool of workers and professionals in the care sector. It is hard to say how long we can continue to attract them at our current rates of remuneration. Japan adopted new measures last December to attract foreign workers. The largest job category is nursing care. The Japanese government aims to bring in up to 60,000 foreigners to fill nursing jobs in the first five years.[+1 sentence] Other countries, such as Australia, are also beckoning. If we want our senior citizens to age in place and with a good quality of life, could we review this manpower policy and its impact on our seniors and their caregivers?[+19 sentences] The other issue which I am deeply concerned about is the mental health of our elderly. Mental well-being is very important and, as part of preventive mental health, we need to help them stay active and engaged in the community through volunteering, arts and sports participation. The Government and private sector support and the community have to come together to make the effort to involve and integrate our elderly in our events, programmes and activities. The interaction will also help us with early detection, whether a senior is absent, not looking well or behaving differently than usual. Such observations are not possible if they are isolated or detached from their communities. When a senior shows signs of weakening mental health, including depression, dementia, Obsessive-Compulsive Disorders (OCD) and Alzheimer's, getting help for him can be very challenging. The senior himself and the family may be in denial and resist medical assessments. With more seniors living longer, the number of cases is expected to increase significantly. Do we have enough qualified professionals for assessments and treatment? And where treatments do not work and seniors start to have behavourial problems, cause disturbances or pose a danger to themselves and others, what systems do we have in place to cope? Would MOH consider assigning a suitable VWO in each constituency to address this pressing need? This VWO should already be involved in this field. If there is no VWO involved in this area, the Government may wish to consider collaborating with an existing VWO to provide this service. Once these seniors are identified, we can refer them to this VWO which should be within walking distance of their flats instead of requiring them to go to IMH or waiting for officers to visit these seniors to render help. With such an infrastructure in each estate, seniors with or at risk of mental health issues will be able to age in place with support from family members, volunteers and mental health professionals. Only when their conditions deteriorate further or pose a hazard to their communities would they need to be enrolled in institutional care. Mr Deputy Speaker, the mental health of our elderly is one of the most pressing issues for our Government and our families. I look forward to addressing this issue together with the Government. Sir, in Mandarin. (In Mandarin): I support the Budget, but am worried about the impact of the reduction of the DRC on the nursing and caregiving sector.[+9 sentences] Although technology is advancing by leaps and bounds, this sector’s technological advancement has not reached such an advanced stage that robots can replace nurses and caregivers. Nursing and caregiving remain a very labour-intensive sector. Due to the less attractive job nature and remuneration, Singapore has always relied on foreign workers. Most of them are Work Permit and S Pass holders. With a rapidly ageing population, the number of elderly who need care will only increase. If we want to attract more Singaporeans to this sector, the salary must be increased, and seniors and their families will have to pay correspondingly higher care fees. As Members can see, fee increase will become a problem. To date, foreign caregiving workers are willing to work in Singapore. Their wages are also affordable to us. In view of our limited options, in order to let our seniors age with peace and dignity, why do we not continue to hire this group of workers and not reduce the DRC for this sector, until the technological revolution reaches a stage where we can turn to robots? Singaporeans are very clear about the contributions of foreign nursing assistants and therapists, nurses and caregivers to our country, and welcome their help. Therefore, I request the Minister to reconsider his decision to reduce the DRC for the care sector.[+3 sentences] Another topic which I am very concerned about is the mental health of the elderly. To maintain physical and mental health, seniors need to participate in community activities. This way, friends from the social clubs and neighbours can help monitor their physical and mental conditions. If an elderly has any discomfort, those around him will be able to detect and extend assistance quickly. Therefore, I hope that the Government will increase the support to community events for our seniors. I also request that MOH consider assigning a VWO with experience in elderly mental health to assess the mental health conditions of seniors in every estate and provide mental healthcare.
Mr Deputy Speaker4 words
[+1 sentence]Prof Dr Yaacob Ibrahim.
Prof Dr Yaacob Ibrahim (Jalan Besar)2676 words
[+11 sentences]Mr Deputy Speaker, thank you for allowing me to join this debate. Sir, I am in support of the Budget as outlined by the Minister for Finance Mr Heng Swee Keat. There is support for almost every segment of our society, from families to workers and our elderly. Of interest to me and my generation is the MGP. I am thankful that the Government recognises a generation that grew up in relative poverty but who had put in so much hard work to build this new nation. Support has also been given our SMEs to help them flourish in a changing economy. Sir, I will not touch on these topics as my more esteemed colleagues in this Chamber will invariably present their views on them. Today, with your indulgence, I would like to share my views on two issues, namely, on growing the economy and on the Bicentennial commemoration. Sir, of concern to me is the transformation of the economy. This is important as it will mean the continued survival of our nation and I do not pretend it is an easy thing to do, something which Minister Heng Swee Keat acknowledged in his speech. Having been involved in this process in my previous incarnation, I can see the necessity of transformation. Nevertheless, I also share the concerns of our business community, especially our SMEs. I am currently advising the Infocomm Media Development Authority (IMDA) on the digital transformation of the Kampong Glam district involving some 200 SMEs.[+6 sentences] I have been meeting these businesses to share with them the benefits of the digital revolution. Our SMEs can grasp that the world is changing and that their businesses must change, too. Nevertheless, our SMEs face a myriad of challenges. For some, it is a matter of survival, making just enough sales to get by, while others hesitate to spend resources on something they are not sure will benefit their businesses. To me, transforming an economy is not just about economics. It is also about transforming our society, from business owners to workers, so that all levels of society embrace the spirit of change. At stake are the livelihoods of business owners and workers, the hopes and dreams of our families, and the future of our children. That is why my colleagues at IMDA and I will continue to undertake outreach and engagement so that we can help as many of our SMEs to adopt digital solutions.[+16 sentences] My hope, Sir, is that Government agencies will continue to listen and problem-solve with us, so that we can remove roadblocks to progress and remove misconceptions that prevent businesses from embarking on change. Sir, there is another dimension to the economic transformation which I would like to speak on, and this is regarding building up an entrepreneurial culture among our young. The startup scene in Singapore is vibrant. I am actively involved with several startups as advisor. I am also involved with several networking sessions involving Malay/Muslim startups and entrepreneurs. I meet many new entrepreneurs regularly, some young, some not so young. It is heartening to meet mid-career professionals who have decided to give entrepreneurship a go. And I hope that some, if not all, will succeed in making it big, thereby bringing some sense of achievement for our country as a whole. My concern, however, Sir, is whether such a vibrancy is felt in our heartlands. I support the Ministry of National Development (MND) and HDB's efforts to refresh our towns, inject new businesses, and introduce new ways of encouraging interaction. In this regard, I would like to suggest a fresh approach to instilling innovation and entrepreneurship. Many Singaporeans may remember replicating the exploits of Maradona or Ronaldo at the void decks, though they will also remember, too, how many at a time they incurred the anger of the immediate neighbours staying on the second floor or of the Town Council officials. Many also may recall seeing Malay boys stripping their motorcycles to clean and make minor repairs at the void decks. These days, we see groups of professionals offering free repair services in the heartlands who are continuing that tradition of tinkering. Calling themselves Repair Kopitiam, they encourage home owners to bring the broken appliances to the void decks for them to help home owners learn how to repair the appliances. Our ability to repair things when they are broken is an important skillset that can help to reduce waste. More importantly, Sir, it would help to reduce excessive consumption.[+1 sentence] Sir, our void decks offer a wonderful opportunity for the creative energies in our heartlands to be unlocked. I am proposing that we convert as many void deck spaces as feasible into Smart Void Decks. I am not suggesting that we just wire up the spaces for connectivity purposes only. I am proposing that we convert these spaces into maker spaces for our heartlanders, a comfortable place where anyone can go to tinker and fix things, to create, meet and discuss new ideas and solutions for the community.[+2 sentences] Sir, there are many parallels to this idea. It is not unique. Consider, for example, the number of community gardens that have flourished in our heartlands. I have 13 of such gardens in my own constituency and we are now planning our 14th garden.[+11 sentences] These gardens have attracted residents whom we may not otherwise see in some of our grassroots events. Some have used the produce of the gardens to raise funds for their welfare committee, while others have used the gardens as venues to conduct healthy cooking classes with HPB. Another example I can compare this to, Sir, is the Active, Beautiful and Clean (ABC Waters) programme which I initiated as Minister for the Environment and Water Resources. Before the ABC Waters programme came about, there used to be many signs across our reservoirs warning the public not to do a variety of things near or in the reservoir. But to the credit of PUB, they accepted my idea and created new recreational spaces out of our drains and reservoirs. That, Sir, is creativity. More importantly, our reservoirs and water bodies are now full of life and activities. So, I am hopeful that if we do this right, we can turn our void decks into places of energy, life and creativity. It requires, of course, our authorities to move away from an attitude of so strictly regulating these spaces that they have become sterile, void of life. We want to strike a balance so that some messiness is possible, but, in return, the neighbourhoods of our heartlands can become the birthplaces of mutual support, practical ingenuity and great ideas. Sir, my final point today is on the Bicentennial commemoration. The Minister for Finance announced two initiatives – the Bicentennial Community Fund and the Bicentennial Bonus – to support the commemoration.[+24 sentences] Interestingly enough, these measures are parked under the pillar of building a caring and inclusive society. Sir, as I understand it, this commemoration is a ground-up effort in which different groups are encouraged to talk about their history, contributions and other aspects that can help our current and succeeding generations understand our history better. The Prime Minister in his 2018 New Year's Day message called for us to use the Bicentennial "to reflect on how our nation came into being, how we have come this far since, and how we can go forward together". Since then, there have been several exhibitions, events, talks and opinion pieces about this occasion. Sir, I am struck by the responses in our newspapers, on social media and in my conversations with residents and volunteers. While there is broad-based support for the commemoration, there are also voices of concern and unease. One particular response struck me deeply. A certain Mr Osman Sidek wrote to the Straits Times and his letter was published in the 4 February 2019 issue. In it, he raised the insightful point that colonialism cannot just be presented from one community's perspective. The impact of colonialism on the indigenous population and their sense of loss and justice need also to be acknowledged. But he cautioned that the unhappiness is not directed at history, but at the very idea of colonialism or, specifically, how one could lose one’s own country to colonisers. He appealed for us to reflect on how such a historical event could have happened and that Singaporeans must endeavour never again to lose our own country to another. And he ended by asking us, having experienced colonial rule, to empathise with those societies "whose lands are occupied against their will, even in this day and age". Sir, I cannot agree more with him on this issue. If we are to build an inclusive society, as mentioned by the Minister for Finance, then we need to ensure that inclusivity applies not just to how we view the here and now, but also how we view our history as a people. We need to acknowledge that different communities have different historical experiences and memories. We need to recognise both the good and the bad. The coming of the British and the start of colonial rule in this region is an important event for all of us to reflect upon. After all, the very language we use today in education, commerce and many other facets of our life is a colonial heritage. But we need also to be cognisant that there are winners and losers in history. And history is written by the winners for the winners. Eighteen nineteen is marked as a turning point in our history. And yet the sacking of a once-vibrant Malacca Sultanate in 1511 by the Portuguese has also been highlighted by some historians as a turning point for this region. Some have speculated that it marked the death of the indigenous mercantile class, leaving the region more vulnerable to conquest by succeeding waves of European colonisers. It has led some to wonder what would have happened if this region had not experienced colonialism.[+1 sentence] What shape would indigenous politics have taken? So, the first point I would like to make is that we need to acknowledge the varying impact of colonialism on the indigenous population and other populations.[+1 sentence] Sir, I welcome the opportunity to use the Bicentennial as an occasion to reflect on who we are. And I share Minister Heng Swee Keat's call to build a caring and inclusive society. Hence, this commemoration should aim to strengthen our ties as a nation by helping us better appreciate and understand the various communities' historical experiences and memories, as well as banish forever myths and misperceptions of our history that do damage to our communities.[+1 sentence] The first myth is that Singapore was a fishing village waiting to be discovered and transformed into a modern metropolis. In fact, historians have uncovered concrete evidence to suggest that Singapore was once a vibrant economic hub and not a fishing village waiting to be discovered by enlightened British imperialists.[+13 sentences] And I quote here from the historian Peter Borschberg from his article "Singapore as a Port City, 1290-1819: Evidence, Frameworks and Challenges". I quote, "There is an enduring perception in our historical consciousness that before the arrival of Raffles, Singapore remained unrecognised and underappreciated fallow land. However, as we dig deeper into the past, the mirror of history unabashedly refutes the belief that Singapore was a sleepy backwater kampung, forgotten or neglected by the powers that trawled these waters for centuries. Similarly, it is also a misguided notion that no one had envisaged the presence of a port in Singapore before 1819. The impetus here is a larger one, not only for the history of the port but also for Singapore's history as a whole – one cannot remain obstinate in only thinking about Singapore in terms of an East India Company (EIC) settlement. While the transformative hand of the EIC and the British on Singapore is beyond doubt, there is a history of a port, settlement and island that runs far deeper than historians had surmised until about the beginning of the third millennium. Singapore was also far more intimately connected to its historical predecessors as well as its locational context." Sir, this is an important point. It is right that we acknowledge every event for what it is worth. The coming of the colonialists changed the region forever. As it turns out, Singapore today is a thriving metropolis. But to overly ascribe this success to the coming of the British is to ignore larger forces at work well before the arrival of the British. Sir, this commemoration should also lead us to a better appreciation of our communities' history and our place in the region. Out of the colonial experience emerged many disturbing myths about this region, including the most toxic myth of the lazy native.[+5 sentences] This myth has been studied and debunked extensively, for instance, by the late Prof Syed Hussein Alatas in his famous book entitled "The Myth of the Lazy Native", which tore apart the colonial ideology behind labelling the indigenous population as lazy for not wanting to work in the mines and plantations. Nevertheless, that still lingers in the minds of some people. When I was growing up in modern Singapore, my own teachers dismissed my community as being lazy and unable to study hard. Sir, this is the burden of history that my community carries. It is unjust and unfair. If we are to commemorate the Bicentennial, we must also recognise the less savoury aspects of it – practices and ideas designed to meet the needs and maximise the profits of the empire at the expense of the indigenous population. In view of our long history, some historians have asked why not celebrate 700 years of our history?[+1 sentence] Why only focus on the 200 years? I support this idea as it would help us to better understand 1819 as one milestone among many.[+10 sentences] I would also add that our history is intertwined with the history of the region. Our history points to certain truths about this region and Singapore. That I think is a point that needs to be stressed more by this commemoration. In this way, more, especially our young, will understand how Singapore has been and will continue to be a part of the larger region, tapping on its good location and the talent of our diverse peoples to provide a peaceful hub for mutually beneficial trade and commerce. The diversity that we see here in Singapore reflects the diversity of the region and beyond. When I walk the corridors of the HDB flats in my constituency, I can hear different voices, dialects and languages. My friends who hail from Bugis or Minang ancestry are proud of their heritage. Sir, we are sons and daughters of Singapore and children of Nusantara. We should use this commemoration to celebrate the diversity that defines who we are and to promote a better understanding and appreciation for the long and rich history of Singapore and this region. Hence, I hope that this will not just be a one-off commemoration. Arising from this, we could consider looking at our history curriculum in schools to ensure that students are well-versed in precolonial history as well as a deeper understanding of the region.[+3 sentences] National education at the higher primary and lower secondary levels can be expanded so that Singaporeans better understand the colonial experiences of our ASEAN neighbours. Talk about both the good and the bad so that we know ourselves better and will never again be divided or colonised. Being part of this region, I strongly believe that we should have a good understanding and appreciation of the region’s history. Our museums can do more to have spaces that touch on the subject of precolonial history and to give people access to the archeological finds.[+2 sentences] At the same time, acknowledging how that history has impinged on our own history and the myriad strands of diversity of ideas, lifestyle, food, religions that have come together to enrich our own experience as both Singaporeans and Southeast Asians. Sir, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Ms Rahayu Mahzam.
Ms Rahayu Mahzam (Jurong)1731 words
[+6 sentences]Mr Deputy Speaker, over the past few years, the world has seen many shifts and changes which fundamentally affect our economies and way of life. It became clear that it could not be business as usual for Singapore and there was a need for the Government to chart out a transformation plan for our economy and our people. This came amidst addressing all the daily challenges of Singaporeans, like increasing cost of living, an ageing population, healthcare costs, concern over social inequality and struggles of the sandwich class. The daily struggles are real, and support needed to be given. But there was also a real need to nudge our people and our businesses to evolve so as to be prepared for the changing times and ensure a sustainable economy for the nation. This year's Budget has built on the past efforts to transform the economy and support Singaporeans through the changes. In a quick sensing exercise by the feedback unit Reaching Everyone for Active Citizenry @ Home (REACH) after the Budget announcement, several people gave feedback that this year's Budget is a compassionate one which makes provisions for those in need.[+7 sentences] There are clearly different views on the Budget, but the general sense was that it was generous in many ways, leading many to ask if it is an Election Budget. I believe that this Budget is a comprehensive one, which seeks to address current concerns that have been raised by Singaporeans but yet stay on track with the economic transformation which Singapore needs to undergo. The approach taken by the Government in giving social support has always been a targeted one, seeking to focus attention where support is really needed and to provide a solution that is sustainable. Often, it is a calibration, and it is sometimes hard to say if the help given is sufficient. Over time, after implementation, upon assessment of whether the support given has achieved its desired outcomes, and upon review of changing circumstances, there may be a need to adjust policies and schemes. It is imperative to ensure that the implementation of the various policies and schemes translates into effective solutions for people and there is always room for improvements. I am, therefore, glad to see the willingness of the Government to make the appropriate changes when necessary. On this point, I laud the announcements on CHAS. I had on previous occasions in this House asked for a review of CHAS.[+29 sentences] Many Members and I have highlighted the challenges faced by the elderly and the concern about recurring healthcare costs. CHAS was one scheme which could alleviate some of these issues. I am happy to note that there will be enhanced subsidies that would benefit more people. For the Budget to completely achieve its desired outcomes, everyone needs to play a part. This sense of responsibility and ownership is necessary if Singapore is to survive. The community needs to come together and do its part. We have many schemes and programmes in place, but there will always be gaps and those who fall through the cracks. The community plays an important role to complete the support network and close the gaps. There are many examples of people who have stepped up and took ownership by being the change that they want to see. Minister Heng Swee Keat spoke about the SG Cares movement, and I am happy to hear that there will be efforts to continue building on this movement. It is common knowledge that there are many examples of everyday heroes who also contribute towards our growth as a community of care and contribution. I would like to share a few stories. One of these heroes is Magdalene Ong, the mother of 14-year-old Chalmers. Chalmers was diagnosed with mild to moderate autism when he was 18 months old. Magdalene was relentless in sending Chalmers for therapies and treatments, with the desire to find out his interests and gifts so that she could support him. Chalmers turned out to be a talented artist. Empowered by this experience, she felt the need to do something for special needs children from underprivileged families. She started organising sessions for many families with special needs children to expose them to art, music and sports. I was introduced to Magdalene by one of my residents, Anita, who told me that the group needed a space. I was more than happy to offer a room at the Bukit Batok East Community Club. The best part of the story is that the group has since formed a choir called the Singapore Special Voices. Since last year, they have been going to places like Alexandra Hospital and Bright Hill Evergreen Home for Dementia to spread cheer to patients and the elderly. Magdalene believes that the children can give back to society in their own way and is taking the effort to make that path for them. Another example of someone who has stepped up is Coco Oan Jia Xuan. Coco is a young environmentalist who is a resident of Bukit Batok East. In 2016, she started Project bECOme which aims to reduce single-use waste by engaging with businesses, organisations and members of the public. One of the programmes under this project is the CNY Container Donation Drive. Coco and her volunteers collected plastic cookie bottles from the public, washed them and donated them to various beneficiaries for reuse. The beneficiaries included bakers, eco-enzyme makers, gardeners, handicraft makers and zero-waste stores. In December 2018, this effort diverted 563 containers from going to waste. I would also like to mention Siti Noor Mastura, the winner of The Straits Times Singaporean of the Year 2018.[+7 sentences] In 2013, she started a non-profit group Back2Basic which delivers free groceries to beneficiaries, such as home-bound elderly. Noor is also a co-founder of Interfaith Youth Circle, which seeks to promote a better understanding of the role that faith can play in an increasingly divided world. Do you see the common thread in the stories I have shared? These community heroes are all women. That is not to say that there are no male heroes, but I would like to take this opportunity to celebrate the efforts made by our women activists and volunteers. There are many out there. They have defied traditional expectations and made great strides to change society’s preconceived notions and habits. We should continue to support them in this journey. I am particularly heartened by the announcement of the CPF top-up of up to S$1,000 for Singaporeans aged 50 to 64 who have less than S$60,000 retirement savings in their CPF accounts. This would greatly benefit many older women who were primarily caregivers who left the workforce early and hence do not have much by way of CPF savings. They worked hard to support the dreams of their children and sharing the Bicentennial Bonus with them is a meaningful way to recognise their contributions.[+2 sentences] On this note, I would like to touch on the status of women in Singapore. While women here have access to education and jobs and we have representation of women in many key positions in leadership, there is still much that we can do. For example, there is some way to go to close the wage gap between men and women, to support women who return to the workforce after having children or when they transit from their caregiving roles by reducing structural barriers and to empower women to take up leadership positions.[+10 sentences] In doing all these, beyond setting numerical goals, it is important to get the whole community, men and women, on board to change cultural mindsets and progress together. Mr Deputy Speaker, Sir, allow me to say a few words in Malay. (In Malay): We have witnessed many changes globally over the past few years. These changes will transform world economies and have an impact on our way of life. The Government is aware of this and has to transform our economy so that we can stay resilient and be able to compete globally and, at the same time, prepare to help our people during this challenging period of transformation. This year's Budget builds on past efforts in order to prepare our country and Singaporeans for the future. Singaporeans count on a Government that is sincere and cares for the people's well-being. This is undoubtedly the responsibility of any government. However, developing the nation and helping Singaporeans are a collective responsibility. Therefore, it is important that we all come together and work hand-in-hand in efforts that can be beneficial to society. Last year, the Minister in-charge of Muslim Affairs Mr Masagos Zulkifli charted a plan for the Malay/Muslim community in Singapore through M3.[+15 sentences] This combination of three important agencies within our community – the Council for the Development of the Singapore Malay/Muslim Community (MENDAKI), the Islamic Religious Council of Singapore (MUIS) and the People’s Association Malay Activity Executive Committees Council (MESRA) – with the support of other Government agencies, local Malay/Muslim bodies, professionals, academics, entrepreneurs and other individuals, it is hoped to produce efforts that can assist and support more members of our community so that they can progress further. I am aware that much is being done. I hope that more information can be shared so that we know more about the M3 efforts and the type of community involvement that is required. (In English): Singaporeans are intelligent and discerning people. Having one Budget with some perks will not necessarily sway people at elections. At the end of the day, the Government will be judged on how it has performed throughout the term and whether it has taken the effort to make life better for Singaporeans. The people want a Government that is responsible, cares, works hard and is transparent. These are reasonable expectations. However, nation-building and making lives better for Singaporeans require a collective effort. For us to breathe life into the various policies and schemes, we all need to take ownership. We can give constructive feedback to improve policies and their implementation. We can take action to close the gaps and be the change we want to see. I thank the Minister for Finance for the Budget Statement and for charting the plan for the nation. I hope for a whole-of-Government, whole-of-community approach in its implementation so as achieve the best for Singaporeans. Mr Deputy Speaker, I stand in support of the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Minister Josephine Teo.
The Minister for Manpower and Second Minister for Home Affairs (Mrs Josephine Teo)1245 words
[+27 sentences]Mr Deputy Speaker, we do not usually in this House apply a gender lens in our Budget Debates. But several announcements this year have particular significance to women which I wish to highlight. It happens that this is our Bicentennial year. Many Members have noted that. When we look back at history, it is clear that women contributed as much as men to building up modern Singapore. Take Mdm Hajjah Fatimah, for example. Not many of us would have heard the name. But Mdm Hajjah was a tradeswoman and philanthropist who came to Singapore in the 1800s. Mdm Hajjah built houses for the poor and donated money and land to build a mosque for her community. Another example is Mdm Hedwig Anuar. Just eight years after starting her career as a librarian in 1952, Mdm Anuar became the first Singaporean to be appointed as the Director of the National Library. Her leadership laid solid foundations for the modern library system that Singaporeans still enjoy and it benefited generations of avid readers. There is also Mdm Mary Quintal, one of the first 10 women in Singapore to begin police training in 1949. She excelled in a field which was traditionally dominated by men. Today, our Criminal Investigation Department (CID) is headed by a woman. Then, there is Mdm Gloria Lim, an expert on fungi, who became the first woman to be named Dean of the Faculty of Science at the University of Singapore, and later on, as the first Foundation Director at the National Institute of Education when it was set up in 1991. Our women Pioneers set solid foundations for the generations after them, so that we can all advance and progress in society. Over the next few months, the Singapore Bicentennial Office will be working with our community partners to breathe these stories and many more to life. Their stories serve to remind us that, we too, should strive to continue laying strong foundations for our children, grandchildren and great-grandchildren, so that when they look back in history in time to come, they will be able to see how women have continued to progress and played a pivotal role in our country's development. During the COS debate, MOM will outline measures to further support women in our workforce. Besides these outstanding women and many others who contributed in the workforce or through their involvement in the social sectors, there is one particular group which is not often mentioned and I would like to talk about them. These are the many housewives and homemakers who toil to care for their families so that their husbands can work, comforted in the knowledge that someone is tending to the needs at home, caring for elderly parents and other relatives and raising the children to be upright citizens. Being a housewife was the default choice for many women long ago. There were few other options until after Independence, when girls were given good access to education and women could also advance in the workplace. However, even today, when women have more choices, many dedicate their lives to their families by staying home to personally care for them. Some of our homemakers left the workforce years ago and are now in their 50s and 60s. We do not say it often enough, but their sacrifices did not just make a difference to their families, they also made a difference to our nation-building. The Bicentennial Bonus CPF top-up is a tribute to these women, as Mdm Rahayu Mahzam also noted.[+1 sentence] It recognises that they had fewer years to build up their retirement savings. Six in 10 of the 300,000 citizens who will benefit from the top-up are women in their 50s and 60s.[+1 sentence] Six in 10. This one-off top-up of up to $1,000 to their CPF Special or Retirement Accounts would go some way in supporting them in their old age.[+5 sentences] This is why I welcome the Bicentennial Bonus. But it is also worth noting that the Government's care and support for older women go well beyond one-time gestures like top-ups. Today, the life expectancy of women in Singapore is 85 years old. It is a fact that we live longer and will possibly outlive our loved ones. Many schemes introduced by the Government do, in fact, benefit women more. For instance, more than 65% of recipients of Silver Support are women who had low earnings throughout their lives.[+13 sentences] Similarly, in time to come, more of the benefits of the PGP will be enjoyed by women. For Budget 2019, further measures, such as the MGP and CareShield Life Incentive, will help to ensure that older women are taken care of. Many initiatives like CHAS enhancements and new nursing homes will help older women as we age – ourselves, our mothers, our sisters and everyone we, as women, very often and are now having to care for. Many programmes in the community, too, benefit older women, such as health screenings organised by the grassroots volunteers in partnership with other VWOs. We do not usually apply the gender lens when debating our Budget, but when we do, it is clear that every Budget benefits women in significant ways. And they all add up to a lot of support for women. Mr Deputy Speaker, with your permission, may I say something in Mandarin? (In Mandarin): As the saying goes, "Women play a very important role as the other pillar of the world". Many women in their 50s and 60s helped their husbands to support their families when they were younger, so that their husbands were able to work with peace of mind. These women made great contributions to our economy and social development during the early post-Independence period. Many of these senior women chose to leave the workforce in order to care for their children and also their elderly parents. As a result, they sacrificed the opportunities to save for their retirement needs and, compared to other citizens, their savings are relatively lower. This one-off Bicentennial Bonus clearly acknowledges the contributions and sacrifices that these women have made for society. More than 300,000 Singaporeans aged between 50 to 64 will benefit from this bonus, and 60% of them are women. The Government is adopting a multi-pronged approach in this Budget to support Singaporeans, especially older women, such as the MGP and CPF top-ups, to pay tribute to these women and to ensure that they enjoy peace of mind in old age.[+8 sentences] Deputy Speaker, Sir, Singapore is commemorating our Bicentennial this year. As we reflect on the modern development of our country, we should also draw on precious lessons from the past so that we can progress to greater heights. During the early years of nation-building, our mothers, grandmothers and mothers-in-law went through a lot of hardship. Most of them were not able to complete their education. Instead, they had to enter the workforce or shouldered the huge responsibilities of looking after their families. The sacrifices and commitments they made laid a solid foundation for Singapore to achieve great success so that we can enjoy the great opportunities that we enjoy now. Moving forward, we need to think about the foundations that we would be laying for our children, our grandchildren and the next generations, so that when they look back in history, they, too, will be able to see that women in Singapore continue to have great opportunities for progress. (In English): Deputy Speaker, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Mohamed Irshad.
Mr Mohamed Irshad (Nominated Member)1626 words
[+15 sentences]Mr Deputy Speaker, in last year's Budget Statement, Minister Heng Swee Keat mentioned three major shifts in global trends, namely, the shift in global economic weight towards Asia, rapid technological advancements, and changing demographic patterns. In this year's Budget, he added a fourth trend – the decline in support for globalisation and rising geopolitical uncertainty. Put together, the world we live in today is much more volatile, uncertain, complex and ambiguous (VUCA) for short. Adapting to a VUCA world, VUCA is a term developed by the US Army War College at the end of the Cold War, but it has been most recently adopted by the millennial generation as a description of the unstable world that we are inheriting. The young are not unaware of the challenges that face us today and in the future. In this VUCA world, we think about how much the nationalist and anti-globalisation trends will affect our economy in Singapore and, in particular, our jobs. We worry about whether we can afford the increasing cost of living and supporting our elders and providing for our children. While we are familiar with technology, we also see how technological progress can overtake us in some of our jobs. And with technology, we also see how countries have taken to cyber warfare, where attacks can come silently and unpredictably. But we young Singaporeans also know that it is in our Singaporean DNA to adapt, overcome and excel. I am confident that we can strengthen our Singapore DNA to weather this VUCA world and prepare ourselves for the future. That is why it is heartening to see this year's Budget address these challenges head on. Allow me to focus on a few themes from this year's Budget. Safeguarding Singapore. For a small state like Singapore, survival and success are two sides of the same coin. As Minister Heng Swee Keat said, "Singapore is vulnerable to the fluctuations in our region and the world." Therefore, we cannot take our peace, prosperity and stability for granted as security threats are evolving and becoming more complex. I commend the move to incorporate Digital Defence as the sixth pillar of Total Defence and to establish the Home Team Science and Technology Agency. Cybersecurity has become as essential as physical security, if not more. I also commend the move to invest about 30% of our total expenditure to support defence, security and diplomacy efforts as it is paramount to safeguard the sovereignty of Singapore and the well-being of Singaporeans.[+3 sentences] Secondly, nurturing innovation through Design Thinking. Innovation is becoming a driving force in our economy and globally. In order to realise the vision of becoming the Global-Asia node of technology, innovation and enterprise, we have to continually reinvent ourselves to stay ahead of the curve. Singapore is ranked 5th in the world by the Global Innovation Index 2018 but we can do more, and we need to do more.[+12 sentences] Speaking at a Ministerial forum at the Singapore University of Technology and Design (SUTD) last year, Prime Minister Lee said that good design thinking was a key reason for Singapore's successful journey from Third World to First, and it will be critical in the country's future transformation for it to remain an outstanding city in the world. He further explained that design is a core element of Singapore's nation-building. Increasingly, organisations in Singapore are seeing the value of design thinking and are starting to adopt it as part of their operational strategy. Global institutions like DesignThinkers Academy are also setting roots in Singapore to develop a fresh pool of design thinkers to cope with the increased demand for design thinking professionals in these dynamic and trying times. The basic building blocks of a vibrant economy are strong, competitive companies that maximise value creation. Design thinking is not just a niche brand. It is critical that all our companies, especially SMEs, adopt this innovation strategy. The question is: how do we make sure design thinking and innovation become mainstream for all our companies? I would like to suggest for the Minister to explore incentivising and incorporating design thinking as a core measure of success as we provide support to our companies across all programmes and platforms. Transforming Learning. I am heartened by this year's Budget focus on investing in our people, including young Singaporeans, to provide them with opportunities to gain working experience abroad. Our youths are ready to venture abroad and to gain valuable work experience and contribute back to our economy. The move to combine the current local and overseas internship programmes into a single Global Ready Talent Programme for students who are currently in IHLs is a step in the right direction.[+12 sentences] However, the Global Ready Talent Programme alone is not enough. We have to also transform our IHLs to prepare our youths to be ready for the future. One such programme that does that is SMU-X. Pioneered at Singapore Management University (SMU) in 2015, the SMU-X is an experiential learning framework where students tackle real-world challenges by taking on projects from corporate, non-profit and Government sector organisations both locally and internationally. SMU-X has been lauded by global accreditation body Association to Advance Collegiate Schools of Business (AACSB) as an "innovation that inspires". I strongly urge the hon Minister to look into expanding such programmes across all IHLs to prepare our youths for the future workforce. Another area I would like to highlight in my speech is the WIS programme, which is a key pillar of our social security system to mitigate inequality in the working years. Mr Deputy Speaker, Budget 2019 sets out to increase the qualifying income cap for the WIS programme from the current $2,000 to $2,300 per month. It is said that low-wage workers receive annual WIS payouts of up to $4,000. Based on Annex D-1 in the Budget Statement, if Members look at the 35-44 age group, the maximum annual WIS payout for employees is only $1,700 and $1,133 for self-employed persons. Furthermore, these individuals receive just 40% in cash, with the remaining 60% going to their CPF. If you work out the monthly cash component, it is a mere $56.70 and $37.80 for employees and the self-employed respectively. Let us take a case of a Singaporean turning 35 years of age and he is earning $2,300. After CPF contribution, he takes home $1,840 and, even with the additional WIS top-up, it will only add up to $1,896.70 monthly.[+4 sentences] Mr Deputy Speaker, given the rising cost of living, the financial burden on such an individual would be very high, especially if he/she has young children or elderly parents to support. Increasingly, I am seeing more young people entering the gig economy just to make ends meet, often taking on two or three jobs and scraping by monthly. Singapore's median wage recently rose to $4,400. I would like to put forth three suggestions for the Minister to consider. First, increasing the WIS qualifying income cap to $2,640 to help our workers, which is 60% of our median wage; second, to lower the qualifying age to 30 to include younger Singaporeans who are trying to settle down but are struggling to get by; third, to increase the cash to CPF ratio to 50:50 or even 60:40.[+3 sentences] I hope the Government considers this proposal and perhaps the inevitable GST hike can help to offset the spending. Having said that, the Bicentennial Budget has clearly signalled its commitment to build a caring and inclusive Singapore. As a youth, I welcome the announcement of MGP that is set to benefit about half a million Singaporeans covering their healthcare subsidies for life. I am sure it will go a long way in alleviating the burden of healthcare cost for our elders and young adults who are taking care of their parents. I request the hon Minister to consider extending the package to all Singapore Citizens between the ages of 60 to 69 this year, irrespective of them having obtained citizenship by 1996.[+15 sentences] At the end of the day, they are Singaporeans and they have contributed to our nation over the years. The other slew of measures aimed at helping Singaporeans is also much appreciated. Tackling climate change. As part of the Government's commitment to address climate change and reduce emissions, and in line with Budget 2017 and Budget 2018 announcements, the Carbon Pricing Act (CPA) and its accompanying Regulations came into operation on 1 January 2019. While the carbon tax will not apply directly to households, the implementation of such a tax on industries will see a cascading effect on end consumers. Although the impact is expected to be minimal in the short term, any subsequent increase in the carbon tax rate may have a more significant impact on end consumers. Can the hon Minister share more on the cost and effects of the carbon tax in the long run? In conclusion, Mr Deputy Speaker, we often forget that Singapore is an artificial construct. It is a result of human effort and imagination. As we mark the Bicentennial year, we have to reflect on what has made Singapore succeed in the past and, more critically, what would be important for its continued survival and success in the years to come. A national Budget is a strategic plan to allocate resources across competing needs – be it defence, economic, human, social or environmental. Some of these needs are current, others involve investing for and securing the future. Minister Heng Swee Keat has struck a fine balance in addressing these varying demands, with an eye on maintaining fiscal prudence. I believe this year's Budget seeks to shape the country's competitiveness and continuing relevance on the world stage in times of increasing uncertainty. Mr Deputy Speaker, with encouragement and optimism, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Assoc Prof Walter Theseira.
Assoc Prof Walter Theseira (Nominated Member)1306 words
[+13 sentences]Mr Deputy Speaker, thank you for allowing me to join this debate. I wish to start by commending the Government for crafting a Budget that is inclusive and which addresses many important challenges facing Singapore. We are devoting considerable resources to economic restructuring, ageing and public infrastructure. But let us consider why are these ongoing MediSave top-ups necessary, why are operating expenditures on healthcare increasing significantly, and why have operating expenditures on transport risen sharply? The obvious answer is all around us. We have a rapidly ageing population and many of our Pioneers do not have substantial retirement savings. We have an ageing public transport system, and we have been catching up on maintenance. We need to fulfill our commitment to the public to deliver the high quality of services they deserve. But the unasked question is: why are operating expenditures needed now when many of these systems were designed to be prefunded? Many problems of government involve lifecycle costs. This Government has always expected and planned for the population to age. So, the question is: to what extent were our lifecycle costs anticipated and prefunded versus unanticipated and, therefore, requiring new expenditure today? Let us consider MediSave, although a similar story exists for rail infrastructure. When introducing MediSave, Emeritus Senior Minister Goh Chok Tong, who was then Second Minister for Health, announced that a 6% contribution rate to MediSave would suffice for, and I quote, "most households to have sufficient savings in their MediSave accounts to cover their expected hospitalisation expenses." The Blue Paper on the National Health Plan published in 1983 based the MediSave contribution rate on detailed computations. The Blue Paper projected that MediSave contributions from a typical three-generation family should cover the entire family’s expected hospitalisation costs, even assuming that the Government would only subsidise 50% of Class C actual costs.[+5 sentences] I note that in 1983, the Government’s operating subsidy was 90% for Class C wards. But MediSave projections were made based on a 50% subsidy only. Thus, MediSave was part of a broader prefunding strategy to not only cover the majority of hospitalisation expenses but also, if finances allow, to gradually rebalance the distribution of medical costs towards prefunding and away from operating subsidies. To what extent and why has MediSave not worked out completely as planned? In hindsight, some factors are obvious. Life expectancy at birth when MediSave was introduced was 72 years; today, it is 83.[+8 sentences] The pace of medical advances, and hence costs, have been rapid. Some of these factors were expected, others were not. More should be done to study this. I say this not to bury MediSave but to praise it. It is the hallmark of a good government to plan ahead. We can certainly disagree about the best way to distribute the burden of medical costs between different segments of society, or even different generations. But planning is not a fault. The broader point I want to make is that given the complex long-term challenges facing Singapore, we should not expect any one institution, including the Government, to have perfect foresight and knowledge. Because of the power that a strong Executive has to formulate and implement policies, a sustainable Singapore depends on strengthening institutions outside the Government and outside the Executive that can question assumptions, review policies and collaborate to find the best way forward.[+21 sentences] I will touch on three institutions that each could be strengthened in specific ways and where each has a role to play in policymaking: Parliament, Civil Society and Academia. Let me start with the institution of Parliament. Parliament must hold the Executive to account and must have the expertise and resources to discharge this function well. However, in all parliamentary systems, including ours, there is a natural imbalance of power. The Executive is supported by our highly qualified and well-resourced Civil Service. But Members of Parliament, in performing their duties, must rely on their own knowledge and networks. Of course, all hon Members make valuable contributions. Hon Members from Law and Medicine are experts in their profession. Hon Members from the Labour Movement have Union support. And all elected Members reflect the views of their constituents. But Members do not enjoy automatic access to the relevant professional expertise to contribute to complex policy debates. Sir, I propose that we strengthen the institution of Parliament to further help Members perform their functions to the expectations of Singaporeans. There are already Parliamentary institutions that play an important role in holding the Executive to account. Under the Standing Orders, Parliament has formed the Public Accounts Committee and the Estimates Committee to provide independent oversight on how the Executive manages public funds and expenditure policies. These Select Committees have been diligent in following up on Government lapses and in examining the implementation of policies enacted in each year’s Budget. But, Sir, our Parliamentary system is largely inquisitorial. It relies on our Parliamentarians asking hard questions of the Executive, and having the Civil Service respond. Hon Members do not shy away from asking critical questions when needed. But there is no formal capacity to assist Parliament in coming up with independent answers to the policy problems that face Singapore. I suggest that we strengthen our Parliamentary Committees by commissioning expert secretariat staff that answer to the Committees and not the Ministries. There are examples elsewhere of professional institutions that support elected representatives in their role of overseeing the Executive. In the US, standing Congressional Committees have expert professional staff selected by both major political parties. There are also non-partisan committees, such as the Joint Committee on Taxation, who play a statutory role in producing independent assessments of the effects of taxation.[+5 sentences] At the level of the individual Member of Parliament, I believe more support for Legislative and Secretarial Assistants could be useful. I understand we want a lean and cost-conscious Parliament. But, Sir, in recognition of the increasing complexities of policymaking, this support should be reviewed and enhanced, particularly for Members serving on Committees. If I may add a point of personal interest, Nominated Members of Parliament also would benefit from engaging Parliamentary Assistants. This would help ensure that personal wealth and career considerations do not stand in the way of being able to serve fully. More controversially, I suggest the Government also consider providing additional Parliamentary assistance to help a responsible Opposition discharge their functions. Westminster provides Short Money for this purpose, that is, government funding directly to the Opposition in partial proportion to their votes.[+11 sentences] Next, let me turn to strengthening civil society. Sir, the Government has made great strides in engaging civil society over the years. Our NGOs and think tanks have shown both policy expertise and, crucially, a passion to make a difference for Singapore. But there is one persistent challenge. For civil society and academia to engage the Government in providing meaningful collaboration and debate on the issues that matter, we must have more access to information outside Government. It is not helpful to talk about the problems of retirement adequacy or the barriers facing women in the labour force unless we have a common understanding on what the facts actually are. While there have been great efforts to publish Government data through sources, such as data.gov.sg, more can be done in key social areas. There are, of course, legitimate concerns that Government has about releasing more information. Information could be exploited to sow sectarian divisions. There are privacy and legal concerns, especially for commercially sensitive data, personal finances, and healthcare. There is the simple problem of limited resources to organise and publish the data, and nearly unlimited wants for information. To solve this, I propose that we adopt a market mechanism of sorts for the release of information, guided by the Parliamentary Question process.[+1 sentence] Mr Deputy Speaker, may I have your permission to display a slide on the screen?
Mr Deputy Speaker11 words
[+1 sentence]Yes, please go ahead.
Assoc Prof Walter Theseira1398 words
[+6 sentences]Thank you. Mr Deputy Speaker, I examined the 698 Parliamentary Questions (PQs) given a Written Answer in 2018. This includes Oral Questions converted to Written. The displayed chart shows the top Ministries with a PQ requesting data. With the help of research assistants, we coded whether a question requests data, and whether that data was provided in the answer. The top five Ministries with data requests are MOM, MND, MOH, the Ministry of Transport and the Ministry of Home Affairs (MHA). Overall, about half of the PQs in 2018 asked for data. The chart shows that three-quarters of such data requests were actually fulfilled in detail.[+5 sentences] Now, we are still studying PQs before 2018, whether the answers given are complete, and what are the reasons for not providing data. I will update hon Members later. Mr Deputy Speaker, the point I am making is that the Government has been very forthcoming in providing data in response to Parliamentary Questions. These answers show that much information held by the Government is of public interest, is readily available, and by releasing them, poses no significant sensitivities. Therefore, I propose that information released in response to PQs be prioritised for permanent regular statistical release. To make this a reality, I suggest we set up a whole-of-Government fund – the Transparency Fund, if you will – to cover the costs associated with such data release and to provide this data through data.gov.sg.[+10 sentences] Since most data today is already collected through administrative and ongoing sources, the marginal costs are low and consist largely of setting up the system to enable release. The Transparency Fund could further provide for research that provides interpretation and guidance on how to use these data. Sir, I am aware that information alone is not a panacea. Indeed, the problem of fake news often is not that the information itself is fake, it is rather that it is taken grossly out of context and used to sow divisions in society. But that is why the Government must take the lead in providing information, in providing guidance and education on how to use and understand it, and to accept that there will be honest disagreements from time to time on what the facts mean. Finally, let me touch on strengthening academia. Sir, let me declare my interest as a faculty member in an autonomous university. The Government has agreed that we must build a strong local core in academia, especially in the areas of social sciences and humanities, which are not only relevant as sources of expertise for Government policy, but also help us understand who we are. Indeed, many of the problems this Budget addresses are topics that academics in Singapore have devoted their careers to studying. However, the data on our local core is more sobering. The Minister for Education noted that Singaporeans are, overall, reasonably well-represented in local universities, at about 50-50.[+32 sentences] However, Singaporean representation is much stronger among teaching staff rather than faculty, and among older staff aged 50 and above. It is weaker among younger faculty. There are several schemes underway to encourage promising young Singaporeans to join academia. But I think it is too early to say what progress will be. Sir, the problem is this. We want and must have Singaporeans in academia and in research, not to protect their jobs, not to allow for lower standards in teaching and research, but because Singaporeans must be in charge of asking the critical questions about who we are, what the problems in society are and how to solve them. We have always said that no one owes us a living. But no one owes us an answer either, about the key questions of our society and economy. We are frankly too small for experts from elsewhere to want to study us thoroughly. In any case, we should never depend on them. So, what are the gaps? Sir, a local academic must be able to build a viable career based on the thorough and expert study of Singapore questions and Singapore problems. This is challenging today for several reasons. The first barrier is that the academic will find it difficult to study Singapore questions without the active cooperation of the Government. Academic credibility depends on being able to publish independent research findings based on high-quality data or observations. Much of this data is held by the Government. Hence, research and publication often depend on Government agreement. The same principles of information disclosure I have outlined earlier for civil society will likewise help local academics contribute and build their careers. But because the Government often works closely with Singapore academics in research, I also urge the Government to be more accepting of research results that may be inconsistent with official narratives or policies. Sir, I am not suggesting that the Government today censor research findings, nor am I saying that the Government cannot rebut research it believes incorrect. Many local academics supported the Government’s rebuttal of the Oxfam study last year which ranks Singapore in the bottom 10 globally on tackling inequality. That study’s methodology was lacking. But the Government must be cognisant that it has much more power than a mere academic has, and there should be room for even disagreeable academics to contribute to Singapore. Second, our autonomous universities must recognise that local research that contributes to policy and our understanding of society is valuable. There is a structural problem with prestige in academia. We all want high quality and internationally renowned research institutions. But university rankings are based on publications and citations in top ranked international journals, and there is simply little international interest in Singapore questions. Therefore, research on Singapore is less likely to be published in the prestigious journals. Much Government work has benefited from the quiet contributions of local academics, through research collaborations, consultancies and advisory panels. But these contributions are quiet, and simply do not count, compared to the loud signals that journal publications provide. To address this, I urge the Government and the autonomous universities to systematically document and acknowledge the contributions of local academics to policy and society. Third, careers in academia are based presently on the prevailing international model that an academic must get on the tenure track as soon as possible and devote their best years to publishing internationally relevant research. Work outside the academy is implicitly or explicitly considered low value and, in fact, is sometimes a "one-way door"; if you leave academia, you risk never returning as a faculty.[+4 sentences] But policy and public work are not just a side line to academic work. Instead, I believe it actually enhances and strengthens research and teaching. Anecdotally, in the early days of Singapore, it seems it was more common for academics to devote time outside the academy to building up Singapore. I believe this practice should be continued today. Can we have the flexibility to have academics seconded to work outside academia, in Government, civil society and the private sector, to contribute their expertise and to return thereafter to the university? One concrete proposal is for the Government to have establishments specifically for rotating academic experts, and to reimburse the autonomous universities for their seconded faculty.[+2 sentences] Sir, let me close by venturing dangerously into political territory to explain why I think the Government should consider these initiatives to strengthen alternate sources of expertise and knowledge outside the Executive. I wish to address my friends in Government directly. Our former Prime Ministers have stated that there is no guarantee that your party will be in power forever.[+7 sentences] Your party may well be in power, but it may be a different party with less integrity and less ability than today. Or it may not be in power at all. I know that hon Members who serve in this Government firmly believe that Singapore's best chance of success lies with the continued governance of their party. Voters agree and that is why this Government has enjoyed an uninterrupted mandate since Independence. But all things must pass. If and when that happens, to set and keep Singapore on the right path, let us invest today to have institutions in place that allow Singaporeans to speak from a position of strength on the issues of the day and challenge any future Government they feel is not acting in the best interests of Singaporeans. Mr Deputy Speaker, I support this Budget.
Mr Deputy Speaker5 words
[+1 sentence]Er Dr Lee Bee Wah.
Er Dr Lee Bee Wah (Nee Soon)2031 words
[+6 sentences]Mr Deputy Speaker, Sir, I thank Minister Heng Swee Keat for engineering a Budget which has to take in so many evolving situations. There are so many factors he has to address to keep our economy vibrant and society inclusive. Out of these factors, one of the trickiest is the transformation of our economy. For the past few years and past few Budgets, we have been tackling it, but there are still many challenges ahead. This year, the companies, especially SMEs, are really feeling the pinch. I will reflect some of their opinions and suggestions. First, the loudest feedback is on diesel tax. Many asked why there is no lead time, no grace period, no warning.[+6 sentences] The increase is with immediate effect. As a result, many service providers have lost money overnight. They have contracts signed with the old price and they are not allowed to claim for material price fluctuation. They are obviously very upset. Some of them even asked me, "Is it because the Government needs money badly?" This tax increase might have a domino effect on other prices. For example, I understand ComfortDelgro increased its diesel price from $1.04 to $1.15 immediately after the announcement.[+6 sentences] This has eaten into the take-home pay of taxi drivers. Comfort has acted within their rights. But since Comfort made over $400 million in profit last year, I feel they missed an opportunity to show some magnanimity. At least, absorb part of the price hike. Taxi drivers already toil day and night, and they earn just enough to support their family. We should not be adding to their burden. In the 2018 Budget, Minister Heng Swee Keat mentioned that Carbon Tax is not meant as income for the Government.[+49 sentences] He was ready to give back the Carbon Tax collection to businesses as grants for companies to implement measures to reduce their carbon footprint. Will he do the same for this collection from diesel price hike? If the Government cannot do this, then I would like to appeal to large corporations not to transfer the full price hike to their workers and customers. This could set off a domino effect of rising prices across the economy. Next, service sector. Many in the service sector are already crying. They are facing problems like higher rental, no local workers and so on. With the tightening of S Pass quotas by one-third over two years, many businesses, especially the smaller ones, feel that their operation will be greatly affected. They have invested a lot in training their current workers and it would be a waste to send them back. Because local workers generally do not want to work on evenings and weekends, businesses might even have to scale down operations. May I have one proposal for our Minister to consider: let businesses keep their existing S Pass holders. The new reduced quota will apply only when they apply for S Pass or when they reduce the local workforce. In this way, the impact on the operations of our businesses, especially the smaller SMEs, will be minimised. They will not lose foreign workers who have already been trained. The quota will also impact service standards. As Lianhe Zaobao reported, in restaurants, people look forward to chatting with the waitress and hearing her off-menu recommendations. These cannot be replaced by an iPad. One resident also wrote to me saying that when she went shopping in Taiwan, the sales lady made recommendations and even took extra care when wrapping. It was the best service she had ever encountered in her life. She said if the foreign worker quota goes down further and Singaporeans will not do such jobs full-time, then the staff turnover rate will be high. Staff will not have time to learn how to provide proper service. Since Singapore is already more expensive to shop in, we need good service to draw locals and tourists to spend in Singapore. I hope the Minister can consider my proposal of letting the businesses retain their current foreign workers. Next, can the Government help to rebrand the service sector to make it more "sexy", more appealing to our local workers, especially the younger ones? We used to have great shortages in local school teachers, nurses, security guards. Now, we have overcome it to a certain extent. I am sure our Government can do it one more time for our service sector. Many agree that we need to catch up on many fronts if we want to be a Smart Nation. One area is the topic of digitisation. The SMEs and Government agencies are opening up their system for exchange of data. Admittedly, the SMEs' systems would never be as robust as those of the Government agencies. I hope these agencies can develop a standard protocol for exchange of data, which will maintain data security while being manageable for the SMEs. For example, IRAS and MOM have established Application Programming Interface (API) platforms which do not require SMEs to test their servers separately. These systems also should not impose exorbitant compliance costs for the SMEs. For example, the Energy Market Authority (EMA) exchanges consumption and household data with open electricity market providers. Singapore Power (SP) has been managing the data for electricity. It demanded that the companies' servers for data transfer must be tested annually and this costs over $10,000 every year! To enter the electricity market, these companies already had to set up a new Accounting System which costs about $100,000 with billing. Some of them thought of asking SP to do the billing, which will be more convenient for residents as SP still bills them for water. SP quoted $200,000, just for billing. I ask the EMA to keep a close eye on this, because if the providers cannot handle the costs and go bust, it will cause great inconvenience to citizens. Enterprise Singapore (ESG) should help with such compliance costs. However, ESG states that if it is Government requirements, no help can be extended. Then, how can SMEs survive and grow? The help to our SMEs has to be more coordinated and focused. In a similar vein, some practices by agencies are very unproductive. This afternoon, my Parliamentary colleague, Mr Ang Wei Neng, had mentioned some. For building contractors, agencies require long processes of applying for service diversion, power, water and so on, and require lots of manpower just to watch other people do work. I will share more details in the COS debate on MND. On the re-employment of senior workers, I have received feedback that some workers were forced to leave the company upon reaching retirement age, even if they are still productive. So, will the Government consider tighter legislation for re-employment?[+6 sentences] Allow me to share one example. I have a 62-year-old resident, after working for 24 years in an international airline company, was asked if he would like to have re-employment up to age 67. As he is still healthy, obviously, he said yes. He was then asked whether he was willing to take on extra job scope from his younger colleagues. Again, he said yes. Later on, the company told him he has to take a 40% pay cut. The company cited the tripartite agreement for re-employment of older workers where they can adjust the salary to the mid-point of the range of the salary. Of course, I understand that re-employment might not be at the same salary. But to suffer a 40% pay cut with additional job scope, that is too much.[+52 sentences] That is exploitation. I hope the Government can relook this issue. This is not the first time I have heard from my residents on such unfair treatment from their employers. I move on to measures that directly impact families. The MGP is very welcome, especially the help on medical expenses. I hope MG Singaporeans will take advantage of the $4,000 incentive to join CareShield Life. It will give them and their family some peace of mind, that they will be taken care of if they unfortunately become severely disabled. Just like when MediShield Life was launched, we should conduct CareShield Life consultations at all CCs, too. This will help middle-aged and senior Singaporeans figure out how much they have to pay for CareShield Life and encourage them to sign up. I was also struck by the CPF top-ups for Singaporeans aged between 50 and 64 who do not have sufficient CPF savings. Many of those who would benefit would be women who have been housewives for most of their lives. This is a great way to help this group achieve retirement adequacy. It is also a way to show our appreciation to all of them for their sacrifices. I urge families to take the chance to top up more for your mums and wives. You will get a tax relief of up to $7,000 for doing this. But more importantly, it is to show her how much you appreciate her sacrifices. On the Bicentennial Bonus, what is interesting about the bonus is that it favours the middle- and lower-income. Although almost everyone gets something, the lower-income get more in the form of GST Cash Vouchers and WIS top-ups. This reflects that our society is, indeed, doing its utmost to help those in need. In Malay, please. (In Malay): The diesel tax imposed was too abrupt and it surprised many SMEs, taxi drivers and delivery workers. Will the Government help those affected so that they can use this assistance to buy fuel that is more environmentally friendly? Assistance provided can be similar to the one for the carbon tax. I would also like to appeal to the bigger companies to avoid taking advantage by transferring this tax to workers and customers. This may cause a domino effect and affect our nation's economy. (In Mandarin): The diesel tax increase announced in the Budget took effect immediately. This has upset many SMEs, taxi drivers and delivery drivers who saw their costs increase overnight. The purpose of diesel tax is to promote more eco-friendly fuels. Would it be like last year's carbon tax, which would be returned to the people in the form of grants so that they can use more eco-friendly fuels? I would like to appeal to large corporations not to pass on the full cost of the diesel tax to workers and customers. This could set off a domino effect of rising prices across the economy. Lastly, I would like to conclude with a story. I have a neighbour called Ah Seng. He has an Ah Gong who loves him very much. Ah Gong scrimps and saves, always mending his clothes over and over, trying to save every penny he could. Every three to five years, Ah Gong would give a sum of money to his grandson. For example, when Ah Seng went to university, Ah Gong would give him some money. When Ah Seng went overseas to attend immersion programmes, Ah Gong would also give him some money. When Ah Seng got married, Ah Gong also gave him some money. When Ah Seng and his friends want to start a business, Ah Gong also gave him some money. One day, Ah Seng asked Ah Gong, "Ah Gong, why do you give me money every three to five years? Why don't you give me money every year?" After Ah Gong heard this, he was very upset and also very angry. Ah Gong burst out in Hokkien, "You terrible child! You prodigal son! You have such a great grandfather and you don't know it. I scrimped and saved all because of you. Are all the other grandfathers as good as I am?" Mr Deputy Speaker, my residents all know we have a very good Government that is very conscientious in taking care of us, taking care of our Reserves. It is because of this that we are able to enjoy a Budget surplus, and therefore, we can have this MGP, we can have the PGP. Not every Government in the world can achieve that. Therefore, on behalf of my Nee Soon South residents, I would like to thank our Finance Minister and our Government.
The Senior Parliamentary Secretary for the Ministers for Culture, Community and Youth and Transport (Mr Baey Yam Keng)1514 words
[+4 sentences]Mr Deputy Speaker, I stand to support the Budget. Budget Statement 2019 outlines the Government's strategic plans to build a strong and united Singapore – a nation that is safe and secure, powered by a vibrant economy and inclusive society, prepared for the future through sound fiscal policies and, above all, a global city we can call home. While the Government takes the lead in creating useful policies, systems and platforms for businesses and individuals to succeed, every one of us can and must do our part to build Singapore together. Budget 2019 is an inclusive Budget that highlights our commitment to ensuring that all Singaporeans, particularly the most vulnerable groups, have universal access to healthcare. In this regard, I am happy to note that the MGP will provide Singaporeans born in the 1950s with special subsidies for common illnesses, chronic conditions and dental procedures under CHAS, in addition to MediSave top-ups and subsidies for MediShield Life premiums. Beyond this, I am pleased to note that this group will also receive a $100 top-up to their Passion Silver cards which they can use for public transport, activities at Community Clubs, and entry to public pools.[+10 sentences] I urge all seniors to continue to take good care of their health, and also keep themselves socially active through sports, arts, volunteerism and lifelong learning. Make good use of your senior concession travel passes to catch up with your relatives and friends, and explore various parts of Singapore. Remember, senior citizens 60 years and above, which include all MG members, can make a journey on the Mass Rapid Transit (MRT) and public bus to anywhere within two hours, which is more than enough time to travel between any two places in Singapore; senior citizens just pay a maximum of 88 cents. Mr Deputy Speaker, another key theme in Budget 2019 is how we can improve the quality of life for all by promoting a greener environment. A greener environment means cleaner air and thus healthier living. Today, the land transport sector is the second largest source of emissions in Singapore. As our land transport sector grows, we have to address emissions. This will be done by promoting public, active and shared mobility and managing the growth and use of vehicles. We also encourage the adoption of cleaner and more carbon-efficient vehicles. The additional diesel tax will help to discourage diesel consumption and create a better and healthier living environment for all Singaporeans. However, I agree with Member, Mr Ang Hin Kee, that for those who drive for a living, in particular, diesel taxi drivers, they will feel the impact of the additional diesel tax. That is why the Government has announced measures to help cushion the impact on businesses and drivers, including a permanent reduction in the annual Special Tax on diesel taxis by $850.[+1 sentence] I am very glad that taxi companies have stepped forward with concrete measures. First, all taxi operators have pledged to pass on the entire savings resulting from the Special Tax reductions to their drivers, in terms of rental reduction and, for some, MediSave top-ups.[+32 sentences] While this may not fully cover the cost increase faced by some drivers, it does go some way in reducing their overheads while nudging drivers to be more conscious of the impact of diesel consumption on the environment. I also note that taxi companies which operate diesel pumps are already offering lower prices than retail pumps. However, I do echo Er Dr Lee Bee Wah's call to taxi companies to do more by absorbing part of the diesel tax. Second, I am happy to note that for cabbies who are driving a diesel taxi which is five years and above, ComfortDelGro is offering a $100 voucher if they convert to a hybrid taxi by end of March this year. The rental rates of such hybrid vehicles may be slightly higher, but they are more environmentally friendly and fuel-efficient, which could lead to savings for taxi drivers overall. About 30% of the entire taxi fleet in Singapore is non-diesel. I urge taxi companies to play their part towards a cleaner environment and add more non-diesel vehicles as they renew their fleet. Learn from ComfortDelGro, offer more incentives to encourage drivers to switch from diesel taxis. Mr Deputy Speaker, Sir, some parents have expressed concern about rising school bus fares. Let me share how the Government is helping school bus operators. First, all diesel buses will receive a new road tax rebate for three years from 1 August 2019. This new rebate will start at 100% for the first year, 75% for the second year, and 50% for the third year. Diesel private hire or excursion buses used to ferry school children can continue to apply for a further 50% rebate on their road tax. Second, all diesel school buses, diesel private hire buses and excursion buses ferrying school children will get an additional cash rebate for a three-year period from 1 August 2019. The additional cash rebate for the first year is $1,600 for school buses, and up to $1,800 for diesel private hire or excursion buses ferrying school children. Third, school buses continue to enjoy Certificates of Entitlement (COE) exemption, on top of the offset measures shared earlier. Taken together, these measures will help school bus operators maintain financial sustainability and keep costs down for parents. Even if it may not be possible for school bus operators to transfer all these savings to every single student or parent, they can look at ways to improve service delivery. I would like to suggest for them to offer perhaps free bus trips for students and their families during school holidays to events, such as the Children's Biennale at National Gallery Singapore. For our public bus industry, the Land Transport Authority (LTA) is already shifting from pure diesel public buses, with the introduction of 50 diesel-hybrid buses and 60 electric buses to our fleet. Some commercial vehicle fleet owners have also expressed their intentions to progressively convert their fleets to electric or hybrid vehicles, as part of their fleet renewal plans. We are encouraged by these industry-led efforts as we make the transition towards cleaner vehicles together. Such efforts cannot be solely achieved by the Government. Everyone must chip in. The costs of adopting and using cleaner technologies may also have to be borne by consumers, too, alongside businesses and the Government. Mr Deputy Speaker, Sir, in Mandarin. (In Mandarin): Singapore's clean and green environment is our source of pride. To ensure that our future generations enjoy a quality living environment, we must continue to do our part for the environment. To encourage more companies to use cleaner technologies, the Government can provide incentives or subsidies and implement measures, such as regulations and taxes, to address environmental pollution. In the process, costs will inevitably increase and must be borne by all stakeholders. Taxi rental and diesel make up the bulk of taxi drivers' operating costs, while their income is determined by the taxi fare structure, all of which are factors beyond their control, and they are caught in the middle. I sympathise with their situation. In this regard, I am heartened to note that all taxi operators have pledged to pass on the entire savings resulting from the Special Tax reductions to their drivers.[+1 sentence] This will go some way in reducing their burden. Nonetheless, as the cost of diesel rises, passengers may need to be prepared to pay higher fares in future.[+4 sentences] Consumers, too, have to play their part in shouldering the cost of cleaner air. Within our communities, all of us can do our part to show care for one another. Even coffee shops can play a significant role. To cite an example: under "Project 215" in Tampines, seniors get to enjoy 50-cent coffee every Tuesday morning. Since the launch of "Project 215", the number of participating coffee shops and drink stalls has grown from nine in 2016, to 20 today.[+1 sentence] The scheme is now into its third year and the promotional price of each cup of coffee remains at 50 cents. In 2018 alone, more than 45,000 discounted cups of coffee were sold.[+6 sentences] The original price of each cup is at least $1, which means the participating stallholders have contributed more than $22,000 to the community. These piping hot cups of coffee warm the hearts of our seniors and allow them to feel the close-knit community spirit of Tampines. Finally, allow me to sum up this year's Budget with this 100-word Chinese poem: "The Pioneer Generation Package surpasses the Merdeka Generation Package because the Merdeka Generation led a better life thanks to our Pioneer Generation. The Finance Minister faced the difficult task of allocating resources but did not forget the Government's responsibility to the people, from meeting our basic needs to following the latest trends from Raffles' arrival to the One Belt, One Road plan. Our population is ageing but agile as we shape a uniquely Singaporean culture and voice and continue to do our part for the environment. A wonderful future awaits us all."
Mr Deputy Speaker4 words
[+1 sentence]Mr Gan Thiam Poh.
Mr Gan Thiam Poh (Ang Mo Kio)1174 words
[+17 sentences]Mr Deputy Speaker, in Mandarin. (In Mandarin): Like Er Dr Lee Bee Wah, I have also come across many people like the Ah Kong that she mentioned. Many parents want their children and future generations to live better lives than their generation. So, they work hard in the hope that their next generation would have a good life, scrimping and saving to leave savings for the next generation. Some say that we already have very good savings and no longer have to work as hard as our forefathers. As these values begin to weaken, we may fall into the situation akin to a boat going upstream whereby it will fall behind so long as it is not moving ahead. There is a saying that one can deplete a mountain’s worth of assets. If we do not cherish what we have and become complacent, fail to improve, we may face the risk of a national decline. Being mindful in times of peace is key to our self-reliance. We cannot relax nor let our guard down. Once we are complacent, we will gradually lose our competitiveness, investors will also hesitate to invest in us. Many parents told me that they were worried that their children would abandon our traditional values. Therefore, it is very important to maintain sustainable and stable economic growth. This will enable Singaporeans to enjoy a better quality of life while a strong Reserve will enable our people to enjoy the benefits of a strong and stable Singapore dollar. We all know that Singapore passports have international prestige and convenient access, due to our country's prudent, healthy finances and abundant Reserves. Therefore, it is necessary for the Government to continue to exercise prudent and sustainable financial management to plan and take care of our long-term interests. They have to be realistic and avoid short-sighted measures. After all, Singapore is facing an ageing population, with the ratio of working people between 20 and 64 years old vis-a-vis those over 65 falling to 4.2.[+2 sentences] We have nothing, but we can "create something out of nothing" and have what others cannot have. The world is a turbulent one. We face stiff competition in science and technology and we need to depend on our people's diligence and mastery of skills to forge ahead. So, it makes sense for the Government, on behalf of the people of the country, to pay tribute to the PG and MG, and to allocate additional funds to cater to their needs.[+11 sentences] This is only right. Many of our MG had to start work at a young age to supplement the family's income and care for their younger siblings. Their contribution is worthy of our respect. Furthermore, many of them did not get to enjoy the comprehensive benefit of CPF, especially after the CPF was amended and enhanced to bring better safeguards for our members. (In English): Mr Deputy Speaker, the measures to assist MG are quite popular and welcomed by many older residents, which leads to the next question: what about subsequent generations? The future is unpredictable and there may be changes beyond our control down the road, leading to certain batches of future seniors facing difficulties in their retirement years. In addition, there are usually some seniors in every cohort who would need some form of Government support. Hence, we must continue to search for more engines of economic growth and revenue resources to finance not just elder expenditures but all necessary expenses. Would the Government continue to encourage investment of private hospitals here and to promote medical tourism? Would the Government ride on our achievement in education to encourage more investments in international schools and established private universities to encourage foreigners to send their children here for further studies? These would help generate income for Singapore. Would the Ministry of Finance (MOF) consider imposing and increasing taxes on gambling, including taxes on winning proceeds, which could provide a sustainable and long-term revenue to support the rising Singaporeans' social expenditure needs, leaving a rise in GST as a last resort?[+2 sentences] Revenue can also be collected from travellers, while no effort is spared to attract tourist arrival and spending in Singapore. We should also consider reviewing our immigration policy to draw ultra-high and high net worth individuals who can invest substantial amounts in Singapore to create quality jobs and income for Singaporeans. Priority for grant of citizenship can be considered for applicants who have paid either significant personal or corporate income tax of at least $5 million in total for the last five years or have spent a good amount in payroll for Singaporean employees through the companies investing in Singapore for a certain period of time under review.[+9 sentences] We have been focusing a lot on restructuring our economy and transforming our industries. I would like to propose that we appoint a task force to look into transforming families in financial difficulties and those with problems. Let us have a concerted effort to uplift families which are struggling to cope. Many of these families need money, quite often after an illness or death tips their finances over the edge. They need befrienders and professional counsellors to help them navigate the various assistance schemes available to them. For families struggling to get by from day to day, seeking help in the maze of many-helping-hands may be a real challenge. How can we improve our present assistance delivery system? Do we have an evaluation framework to assess how productive and efficient we are in getting help to those who need it? For other families with challenges, their problems are compounded by unconstructive family cultures in the way the members behave towards one another or manage their finances and resources. They can be shown and taught better alternative ways of interaction and allocation and use of finances and other assets. I would urge the government to prioritise assistance allocation to families with children.[+1 sentence] Investing time and resources, particularly manpower resources in the form of counsellors/guidance with a hand-holding approach, on such families will help them to break out of poverty cycles and ensure that the children live up to their highest potential. Last but not least, I would like to appeal for an exemption of the diesel tax increase for vehicles and machinery and company's reliance on diesel for production for which there are currently no non-diesel alternatives. The doubling of the duty for diesel from 10 cents to 20 cents a litre is very substantial. For certain heavy machinery and special purpose vehicles, there are no diesel alternatives in the market and this tax increase imposes an unnecessary burden on their owners and operators.[+3 sentences] Going forward, the increase in diesel tax and the implementation of carbon tax will make more hardship in sectors where there are limited energy choices. We should continue to build the infrastructure for businesses to switch to natural gas, electricity or solar and so on and so forth as soon as possible prior to the introduction of such a tax. Notwithstanding, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin (Potong Pasir)993 words
[+15 sentences]Sir, I am an accountant by training and I must confess to an inclination for numbers. Every Budget Statement, I reach first for the Budget numbers for the financial year (FY) and compare them with previous years. I do so, not because Minister Heng Swee Keat’s annual Budget Statements are unimportant – they are always enlightening. But because, like many of my generation and those before me, fiscal sustainability and financial prudence are foremost on my mind. Numbers, I have found, give me the clearest indication of both. Sir, there are trends that emerge from the numbers and the significant decisions taken by the Government as a result. I rise today to speak on these trends and decisions. First, increasing expenditure. Our expenditure has increased significantly over the years. This, in and of itself, is no surprise. Minister Heng Swee Keat raised in his Budget Statement several domestic demographic issues that confront us – an ageing population, social mobility, inequality, economic transformation and climate change. I would add the need for infrastructure expansion and renewal. To address these issues, monies need to be spent. There are no two ways about it. The numbers confirm this. For example, MOH's expenditure increased from approximately $3.8 billion for FY2009 to an estimated $11.7 billion for this FY.[+12 sentences] This is about a three-fold increase in 10 years. This, in part, is due to our ageing population. In my constituency of Potong Pasir, more than 40% of my residents are above 50 years old, one in five above 65. Even as I speak, we are building one nursing home and one senior day care centre within our constituency. There is a genuine need for these healthcare facilities. An ageing population is the reality on the ground. The Government needs to look after our seniors and, therefore, we expect national healthcare expenditure to continue to increase in the future. Sir, I will now speak on paying for this increased expenditure. The trend on expenditure is, therefore, quite clear. Increased spending is also likely required in Defence, Education and Transport, just to name three other sectors. The question is, how do we pay for these expected increases in expenditure? For FY2009, overall expenditure was approximately $57 billion. In 2019, this has increased to an estimated $80.25 billion. Every year, the Net Investment Returns (NIR), which represents returns on our invested Reserves, contribute about 20% of the Budget.[+12 sentences] The fact is that, without the NIR, our Budgets will be substantially in deficit every year. Of the total NIR every year, 50% is used to contribute to the Budget and the other 50% reinvested as part of our Reserves to ensure continued sustainable contribution to Budgets of the future. There are those who advocate for more NIR to be used for the present, but I think the current arrangement is fair. As they say in Hokkein: "jit lang jit pua" (一人一半), half for this generation and half saved for future generations. Sir, having said that, are there any other alternatives? In business, when expenses exceed income, we balance our budgets either by increasing revenue or reducing expenditure. But, Sir, expenditure is unlikely to decrease in the short term. Our domestic demographic dictates this and the need for infrastructure expansion and renewal is a pressing one. There are also no "magic bullets" to significantly increase revenue. Some argue that the projected increase in GST by 2% is about increasing taxes on Singaporeans to return the same to them. What do the numbers say? Sir, estimated GST receipts for FY2019, that is, this financial year, is about $11.7 billion. A further 2% increase in GST is expected to bring in an estimated additional $3.3 billion, at best.[+18 sentences] As stated earlier, our estimated expenditure for 2019 is $80.3 billion. This does not even include Special Transfers, which covers items, such as, CPF and MediSave top-ups, GST Vouchers, S&CC rebates, Wage Credit Scheme and so on, which are estimated at $15.3 billion for FY2019. The projected GST increase is, therefore, simply only one measure to mitigate the trend of rising expenditure but, clearly, is unable to meet it in full. One approach raised by Minister Heng Swee Keat in the Budget Statement is to pay for major infrastructure investments by borrowing. As the Minister explained, this has been done before, for example, in the building of our MRT lines in the 1980s. Other Statutory Boards and Government-owned companies continue to borrow to finance major infrastructure projects. The Changi Airport Group is expected to take up loans to finance the development of Terminal 5. Singapore is in a better position now to dictate favourable borrowing terms than in the past as our Government's credit rating is now amongst the world’s best. If the Government provides a guarantee, presumably with the President's concurrence, we are likely to obtain even better terms. But borrowing is not without risk. We have seen enough examples around the world of countries mired in debt arising from careless borrowings and reckless funding of projects. It is, therefore, imperative that decision makers are prudent and that proper due diligence is carried out. Careful judgement needs to be applied to ascertain the financial sustainability and viability of each major infrastructure project funded by borrowing. How can this be done? Will the Government consider measures, such as an independent panel or body, to provide oversight over major infrastructure projects funded through borrowings? I am supportive of the strategy of borrowing for our major infrastructure projects and agree with the Finance Minister that it will achieve fairer and more equitable outcomes in the allocation of resources on expenditure. I invite the Minister for Finance to elaborate on his Ministry's plans to ensure long-term fiscal sustainability in light of the expected increasing expenditure as well as the measures that MOF intends to take in order to protect our Reserves in the light of the Government's decision to borrow to finance major infrastructure projects. Sir, I support this Budget.
[+16 sentences]Mr Speaker, I rise in support of the Budget. This year, we celebrate our Bicentennial, 200 years from the arrival of Sir Thomas Stamford Raffles, and rather fittingly, the Budget has made provision for this important milestone. Let me start with a snapshot of how the world may have looked from Singapore midway during this period in the 1920s and 1930s. At the time, the British were probably the most powerful nation in the world, overseeing an empire stretching from North America to Australia, covering vast portions in Asia and Africa. The British Empire, at its peak, held sway over 23% of the world’s population and covered 24% of the Earth's total land area. It was called the empire on which the sun never set because the sun would literally be shining on some part of the British Empire at any given point in time. Singapore was part of an immense global empire and was a hub for merchants, traders and workers from around the region to make a home. It was around this time that many immigrants came here, including the Chinese, Indians and Malays from other parts of the archipelago. Many of the founding fathers of independent Singapore were born during this period, including Mr Lee Kuan Yew, as were my grandparents. Singapore was the impregnable fortress of the British Empire in the east. At this time, it would have been unthinkable that the British Empire might end, or that anything might happen to Singapore. Of course, the fall of Singapore in 1942 changed just about every assumption that the people of that era held about the British Empire. The atrocities that followed in the Japanese Occupation left an indelible mark on that generation on what it feels like to be helpless in the face of aggression and our Pioneer Generation (PG) recognised that security was a prerequisite for prosperity and acted accordingly. Today, Singapore is more prosperous than many of our forefathers would have dared imagine. We have a gross domestic product (GDP) per capita that is higher than most developed countries, including the old colonial powers, and our people are well-educated and enjoy amongst the longest life expectancies in the world. Singaporeans have high expectations, of course, but happily, we have a leadership that is ever ready to try and meet this challenge. In this year’s Budget, the Minister identified three megatrends that would shape the coming decade, namely, a shift in global economic weight to Asia, the emergence of new technologies and an ageing population in Singapore. These are important trends that provide both challenges and opportunities, and this year’s Budget is carefully considered to meet the challenges posed by these trends.[+1 sentence] In particular, this Budget focuses on helping people and businesses in a wide variety of targeted areas to better equip our workers and the population for the challenges ahead. For most Singaporeans, the bread-and-butter economic issues remain of primary importance and this Budget addresses them creatively and effectively. I am also grateful that this Budget provides generously for our security and defence needs, though this has received less attention in the course of the debate the last two days.[+6 sentences] As one of the last speakers in this debate, I would like to emphasise that I think it is important for us to remain committed to our security needs and to anticipate and deal with the new threats we face. Multilateralism is under unprecedented challenge and nationalism is on the rise. In the post-World War II era, institutions, such as the United Nations (UN), the World Bank, the International Monetary Fund (IMF) and, subsequently, the World Trade Organization, were set up to facilitate multilateral cooperation on the most important matters for countries, namely, security, trade and financial systems. Regional alliances for security and trade continued to develop during this period and Singapore is involved in many of these alliances. These provided important opportunities for Singaporeans and Singapore businesses to thrive. However, in recent years, multilateralism is starting to lose its support amongst the developed world who set up these institutions. The United States (US) has pulled back from multilateral treaties, such as the Trans-Pacific Partnership (TPP), and is cutting back on its financial support for the UN.[+10 sentences] The European Union (EU) is under threat with Brexit, and the pro-Europe leaders, such as Chancellor Merkel and President Macron, are facing unprecedented threats at home. A corollary of this is rising nationalism, and nationalist parties are getting increasingly popular. In the absence of a strong multilateral threat against the use of force, countries may be more inclined to take unilateral action against one another or against non-state actors in another state’s territory, which is a tinderbox. This is particularly dangerous as more and more nations militarise and even develop nuclear capabilities. One wrong move and damage on an unprecedented scale could be unleashed. Militarised non-state actors are also becoming an increasing threat. The threat of the Islamic State of Iraq and Syria (ISIS) is pervasive, not just in the Middle East where it holds territory, but also in our part of the world where it has terror cells and, most worryingly, online. Many countries, including Singapore, has self-radicalised individuals who may plan or take part in terror activities. The events that have taken place over the past few nights between Pakistan and India – two nuclear powers – show how these dangerous trends may collide. The sequence started when an Indian military base was subject to attack from a terror group Jaish-e-Mohammed operating from within Pakistan and 40 people were killed. India retaliated by carrying out a bombing operation in Pakistan which it claimed was targeted at a Jaish-e-Mohammed training camp. Pakistan denied there was any training camp operating there and has since retaliated. There have been firefights in Kashmir and Indian aeroplanes have also been attacked, with one Indian Air Force (IAF) pilot allegedly captured.[+1 sentence] Matters are clearly escalating quickly. And this is particularly worrying because both are nuclear powers and the consequence of any miscalculation would be dire.[+1 sentence] Closer to home, I am grateful that matters seemed to have cooled down with Malaysia. And I think this has been, thanks to the hard work of our leadership team at multiple levels, including the Ministries of Foreign Affairs, Transport and Defence. However, the fact remains that there are two Malaysian vessels in our territorial waters and, if there is any escalation or threat to our sovereignty or territorial integrity, we have to ask ourselves the uncomfortable question of what we will do.[+7 sentences] There are also more insidious threats to our country lurking beneath the surface. The cyberhacking on SingHealth by a foreign state actor still leaves me with a feeling of unease as it is clear there are sophisticated, well-funded entities out there operating against us. There is also growing evidence of foreign interference in elections, with particularly startling reports that both during the last US presidential election and the United Kingdom's (UK's) Brexit vote may have been influenced by fake news originating from sources outside both those countries. For most Singaporeans, these threats are not foremost on their mind, probably the same way none of our forefathers could have imagined how the world may have changed 100 years ago. Yet, I think it will be important for us to imagine these scenarios and to be able to deal with them, both as a Government and as a people. Without security and preparation for the threats of the future, all our prosperity may end up being meaningless. I am grateful this Budget has provided well for our security needs and I look forward to addressing these matters in more detail during the Committee of Supply (COS).
Mr Speaker4 words
[+1 sentence]Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah)2254 words
[+4 sentences]Sir, fiscal policies are important. But I am glad the Minister for Finance also emphasised Singapore's unique social compact – how the Government is partnering people to build a caring and inclusive society and encouraging people to volunteer and give back to society. Because the social compact of any society impacts how citizens cooperate with one another. Within a pluralistic society, people will have different views about what the social compact should be. Politics and debates in this House, therefore, reflect what those differing views are, and, at the close of the debates, policies impacting society are formalised into law. Therefore, giving voice to different views within a single political party is essential for Singapore.[+26 sentences] Indeed, it can be a major advantage. Why? Because it is important that there continues to be a broad slate of policy options for consideration for Singapore. Why? Because the world is changing. Geopolitics is being shaken up. Disruptive technology is rapidly advancing. What used to work in the past may not work in the future. But change itself is not new. Singapore has had to adapt her economic strategies. According to the book Dynamic Governance, in the 1970s, as change was more gradual and predictable, planning and predetermining what needed to be done was important for Singapore's survival. But when things changed more rapidly because of globalisation and instantaneous communication, Singapore needed to go beyond that to sensing and responding to emerging opportunities. When that happened, the role of the Government shifted from directing and allocating resources to facilitating the exploitation of opportunities. As a small island city-state, Singapore faces unique challenges. What worked in other countries may not be suitable or may need to be adapted before being applied to Singapore. As Mr Lim Siong Guan wrote, "Singapore is unique in its demographics, its small size and its lack of natural resources. We cannot become a first-world economy simply by following what others are doing. As we look at the successes elsewhere, the critical questions we continuously have to ask are not what they are doing, or how they are doing it, but why they are doing it and why they are doing it that way." Because of the rapidly changing world and our unique challenges, it is critical that we be able to draw from a broad slate of policies and avoid strict adherence to theories. Theories can be assistive, but they are just that – theories. Theories have limitations and thus cannot be overly, rigidly adhered to. Dogmatic adherence to theories or rigid ideology also lacks the ability to capture the multifaceted complexities of democracies. The Financial Times article entitled, "Capitalism and Democracy: the strain is showing" pointed out tensions between liberal democracy and global capitalism, citing Harvard University Prof Dani Rodrik as stating, "democracy, national sovereignty and global economic integration are mutually incompatible: we can combine any two of the three but never have all three simultaneously and in full." If he is correct, then balancing the tensions among these concepts – democracy, national sovereignty and global economic integration – cannot be achieved through strict adherence to dogma. Therefore, aiming for theoretical purism is not the goal; rather, aiming to do what is best for Singapore is, drawing from a broad slate of possibilities. I believe that this is what the governing party in Singapore must continue to do. Besides being able to draw from a broad slate of possibilities, there is value in housing different views within a single political party.[+5 sentences] Different perspectives make us reflect on things from a different angle. For example, during the recent debate on the National Parks Board (Amendment) Bill, Er Dr Lee Bee Wah raised concerns of safety and that of a hygienic living environment for her residents, citing multiple unsupervised cat feeding episodes as attracting big rats and the need for relevant authorities to be trained in handling snake sightings near residences. Mr Louis Ng took a different view on the matter, suggesting that the removal of snakes which eat rats contributed to the problem of a rising number of rats. Such an exchange is a real plus; a real advantage. Such an exchange sheds light on the same issue through different perspectives, sparking new ideas and increasing the range of possible solutions to be explored. Coupling the ability to house members of differing views with the need for cooperation among members of a single party, the policies and directions that come out from the deliberative process is not necessarily one characterised by compromise, but one of possibility through persuasion.[+2 sentences] This is a win-win, provided, of course, those involved in the debate want what is best for Singapore. The need to compromise for the sake of political dividend does not necessarily lead to the best policies. For example, in order to get bipartisan support to pass legislation, the US tax code often contains loopholes due to political bargains that needed to be struck between the Democrats that desire higher rates for richer Americans and Republicans who prefer to reduce taxes for the rich.[+24 sentences] The focus, one can argue, is not on the effectiveness or efficiency of the final product but on the political compromise. A New York Times article entitled "A Tax Code of Politics, Not Reason", says that "This compromise has left us with a loophole-riddled code that isn't very good at raising money." Compared to other developed countries, the US does not collect much tax at all. At least that was the state of things in April 2012 – but such is compromise. In my humble view, the better way is to focus on possibilities and persuasion rather than loose compromises. In order to do this, we should not label a person as "right" or "left", "liberal" or "conservative". A person can have different views on different issues and should not be limited to representing the "right" or "left" view. If we label people in this manner, the focus shifts from what is best for Singapore to whether or not a view conforms to a certain ideological view. Because there is no such pressure to fit or not fit a certain label in Singapore, I feel the freedom to decide based on what I think is the best course for Singapore on the issues that came before this House. In some matters, my view could be categorised as more "right". For example, my hard stance against recreational drug use because of its harm to society could be characterised as right-leaning. On a different issue, my view could be characterised as being more "left". For example, advocating for the Prevention of Human Trafficking Bill in order to protect vulnerable workers in Singapore from being exploited in a capitalist market. Therefore, what is important is not whether my views are ideologically right or left, but rather, I have the freedom within the government party to act or voice a view in accordance with what I thought was best for Singapore. This has strengthened my humble belief that, in Singapore, those elected must possess "political ambidexterity" – they must deploy right- or left-leaning policies in accordance with what Singapore needs for the long term based on a defensible and robust system of values and ethics. A person should not be pigeon-holed left or right. In the course of the debates, there will be times when we debate morality and our interpretation of it. That is important and we should not shy away from it. Nevertheless, it is important that politics in Singapore does not move into single-issue politics. Yes, the issues are very important. Yes, the issues have wide-ranging impact on many different sectors. But the running of a country cannot be reduced to a single issue. Worse still, examples from jurisdictions around the world have shown that some of those who push single-issue politics focus on polarising fault lines, exploiting them for a political purpose and deepening divisions in society. For example, some pockets in the political spheres in Germany and the United Kingdom (UK) and other countries have stoked interracial and inter-religious tensions by running on racial supremacy or anti-religion lines. In Germany, in September 2017, the Alternative für Deutschland (AfD) became the first far-right party to enter Germany's national parliament since the 1950s. It won 94 seats to become the third strongest party in the Bundestag, Germany's lower house of Parliament.[+10 sentences] The AfD quite arguably ran elections on an anti-immigration, anti-Islam ticket. In the UK, the Britain First party ran on an anti-immigration and openly nationalist agenda. In 2016, Jayda Fransen, the deputy leader, was convicted for religiously aggravated harassment. Why do I raise this? The answer is this: irreconcilable division breeds an environment of politics of extremes. This inevitably creates conflict. Policies become political bargains that compromise on effectiveness. Politicians engage in brinkmanship. I would not want this to happen in Singapore for the sake of our social compact. In the US, partisan brinkmanship causes shutdowns of government, and it impacts the lives of many. During the 16-day shutdown in 2013, almost $4 billion in tax refunds were delayed, home loans for 8,000 rural families were stalled. According to the Office of Management and Budget, the US lost an estimated $2 billion to $6 billion of economic growth during the 16-day shutdown in 2013.[+14 sentences] An October 2018 article in the Asia News Monitor about Bosnia-Herzegovina, reported that the country faced a collapsing healthcare system, struggling public infrastructure, regressing education, catastrophic and accelerating brain drain. A lot to solve. Instead of meaningfully engaging these issues, the political discourse centred on nationalist brinkmanship and paranoia. Main campaign issues among nationalist parties were "either 'we're going to kill the other side or we're going to keep you from getting killed by the other side.'" In Britain, some think that the fear of a disorderly Brexit might be used to squeeze the deal through in Parliament or to help Britain in its negotiations with the EU. Therefore, Sir, from what the world has shown us, we need, in Singapore, to refrain from the politics of brinkmanship. Further, we need to be able to collect a collage of differing views under the umbrella of a single party, thereby avoiding sole-issue politics. This way, even hard issues and issues touching on morality and ethics can be debated in a respectful and productive way. Such an approach has a further advantage. It avoids the need for politics by referendum, since differing views are already represented in the legislature. The British Broadcasting Corporation (BBC) Radio recently aired an excellent programme just last weekend, entitled "The Real Story: Are Referendums ever a good idea?" In that programme, a quote on Brexit from the expert being interviewed caught my attention. Caroline Vernaillen from Democracy International explained: "I think what is definitely never a good idea... is putting a general programme to a vote if it contains multiple questions... the way Brexit was actually a broad reform programme." As representatives of the constituents we serve, we are entrusted with the mandate to make difficult decisions on policy or morality for our country. Therefore, when we are faced with tough decisions, it is, in my view, much better to debate the ideas respectfully and holistically in Parliament, and decide in Parliament what the path to take for Singapore is, rather than passing the buck back to the good people who entrusted us with the decision-making duties in the first place. So, I come back to this central issue of a social compact, which was a major plank in Minister Heng Swee Keat’s speech on Budget 2019 which I support.[+3 sentences] A valuable ingredient for an effective social compact is to ensure cooperation within society by reflecting and giving voice to differing views in Parliament. This is healthy and avoids the politics of extremes. Undergirding this must be an openness to different views and new evidence, even as one holds strong positions on certain subjects and issues. As an example, Sir, some fellow Members of this House would know my hard stance against drugs and the need to criminalise the trafficking as well as the consumption of drugs. This is because I humbly remain convinced that drugs are harmful, especially to the consumers and the communities around them. However, if objective and "un-agended" data shows that the consuming of illicit drugs is not harmful, then I will review the data and test my conclusions again.[+1 sentence] This is because all of us here in this Chamber owe it to the Singaporeans we serve to form the most accurate conclusion. For the record, as regards drugs, I am still of the view that we need to criminalise consumption.[+8 sentences] Sir, for this year's debate on the Budget Statement, I decided to focus on social compact, which was one of the foundational points in Minister Heng Swee Keat's speech. On that topic, I respectfully seek to persuade this House that politics in Singapore should remain about possibilities and persuasion, always with a view on what is best for Singapore's long term; it should be carried out under a broad umbrella where differing views can flourish and consensus built on a foundation of ethics, stewardship and values. It should never lead to brinkmanship, single issue politics or hollow short-term compromise. This is a place where policy and societal morality is charted. If we can all do it right, then unity will prevail. If we can all do it right, our social compact – as a people – will be robustly defended and protected. Indeed, it is worth protecting. It is worth defending.
Mr Speaker4 words
[+1 sentence]Ms Tin Pei Ling.
Ms Tin Pei Ling (MacPherson)1920 words
[+7 sentences]Speaker, Sir, thank you for the opportunity to speak in this debate. My colleagues have put forth their earnest opinions and excellent ideas covering many aspects of the Budget in the past two days. Hence, as the last backbencher to speak in this debate, I will keep my speech relatively brief, or at least I try to. The Budget is an important business of Parliament. This House must decide not only how we allocate resources to address immediate needs, but also how we can find resources to invest for the future. The Budget is a means to implement the Government’s strategies and realise Singaporeans' collective vision for Singapore. Therefore, what we spend on and how much we spend on are important. One highlight of this year's Budget is the Merdeka Generation Package (MGP). This package is estimated to cost over $8 billion in present value, and help close to half a million senior Singaporeans.[+2 sentences] This significant package will make a tangible difference to the lives of the Merdeka Generation (MG). It shows our gratitude to seniors who had given so much of themselves to build the Singapore we are proud of today. There are many ways the package could have been designed. But the Government chose to focus the benefits on healthcare, which is the right priority.[+9 sentences] The package will clearly address the top-of-mind concern and alleviate the healthcare cost burden on this group of seniors, while encouraging them to age actively. So far, feedback on the package from my residents has been positive. Seniors who missed out on the Pioneer Generation Package (PGP) are happy and appreciative. The younger ones, who are children of the PG and MG, are supportive as well. This is because these packages relieve their parents' medical expenses, indirectly benefiting them. To the others, the fact that there is such a package is an assurance that the Government cares about the more vulnerable and understands what worries our people most. Taken together with the many other schemes and programmes for our seniors, it is apparent that the Government is working hard to enable Singaporeans to age with dignity. In Mandarin. (In Mandarin): Mr Speaker, Sir, one of the highlights of this Budget is the MGP. The MG contributed their youth and efforts and built the Singapore that we are proud of today. This $8 billion package conveys our gratitude and respect for the MG and cannot be considered as welfare.[+33 sentences] It is a concrete manifestation of our sense of gratitude. The package has focused on healthcare, and it shows that the Government empathises with the elderly's concern over healthcare costs. They have, therefore, addressed the problem directly, with the aim of lightening senior citizens' burden in terms of healthcare costs, so that they can enjoy their golden years and have less to worry about. Actually, the Government has always looked after the elderly and the disadvantaged. In recent years, our social and public healthcare expenditure has increased significantly. As the youngest Member of Parliament, I am very grateful that the Government has made these efforts, as policies rolled out by a government that cares for the people would definitely prioritise the long-term interests of the nation. This is a people-centric and compassionate Government. Of course, besides dealing with current problems, a responsible government with foresight must also plan for the future. So, I am glad to see that this Budget continues to prioritise economic transformation and talent development. Faced with ever-changing conditions, Singapore must continue to strive relentlessly and strengthen our capabilities both externally and domestically to maintain our position. I hope that the Government will continue to give strong support to manpower training, urban development, building resilient and cohesive communities, and the aspirations of our youths. (In English): Speaker, Sir, I fully support MGP and the other social initiatives announced in this Budget. But it is also important that we strike a balance between spending to benefit the current generation and directing a good part of our financial muscle towards investing in the future. A significant portion of this year's Budget is dedicated to strengthening our economic competitiveness and building deeper enterprise and people capabilities. These are important investments into the future. But I hope we will also think about the following. First, making our city better. Through the annual Formula One night race, last year's Trump-Kim Summit and the movie Crazy Rich Asians, Singapore showcased our beautiful city to the world. But in 10, 20 years to come, when our infrastructure has aged and as other cities catch up, will we still have anything to show and be excited over? What is the next big attraction after Marina Bay, the new financial district and Gardens by the Bay? What is the next iconic public housing project after the Pinnacle and Kampong Admiralty? It is important that we continually upgrade and rejuvenate our city. It is equally important to find ways to create new "space" where new developments can take place. Of course, we should retain some parts of old Singapore so that our people can remain connected to our heritage. But Singapore should not be an old city. It is important that Singaporeans continue to regard Singapore as a city of possibilities. Our size may be small, but our imagination must be big. Despite our land constraints, we must somehow find ways to reinvent and remake what we have; develop new buildings, new districts and new gardens that delight our citizens and amaze the world. Second, making our communities stronger. A beautiful Singapore must be underpinned by strong and united communities. Singapore's community-building efforts have come a long way since our Independence. We embrace multiracialism and multi-religiosity. We have a harmonious society united for progress. Our experience has been admired and emulated by many around the world. However, our society construct is also exposed to some unique challenges: the advent of social media has the potential to aggravate fractures within our society through fake news and fear mongering – sensational pieces are always more attention-grabbing than run-of-the-mill news pieces; our changing demographics – an ageing society will assert more pressure on the working class; evolving expectations of citizens increase pressure on our Government to deliver better and faster; religious radicalism plants dangerous seeds of antagonism and mistrust which could destroy our social bonds; and, of course, there is a risk of widening wealth and digital gaps.[+1 sentence] The consequences are serious if we do not actively address these challenges. For example, if fake news or radicalism gains momentum, our social fabric, so carefully built and maintained over the past decades, could be torn if people doubt and confront one another over what is true and what they think is true. Therefore, we need to invest more in public education to inoculate our people against the poison of fake news and radicalism; we need to redistribute resources more to reduce the gaps; we need to create opportunities and empower our people to participate in the community more.[+7 sentences] Thirdly, supporting our youths better. Our youths are our future. They will lead Singapore into our next bound. It is important that they see Singapore as the place where they can achieve their dreams, whatever they may be. Our youths want to make Singapore and the world a better place. They have their own idea of what this means and they are taking steps to do this. Many believe in environmental causes and have mobilised and pushed on various projects, for example, promoting renewable energy sources and getting rid of straws and other one-use plastics. Others believe in building a fairer, more equitable society and they contribute their energy and time to help the poor and vulnerable in society.[+1 sentence] These are all commendable efforts. It is important that our Budget set aside enough financial resources annually to go into supporting the priorities and efforts of our youths, as well as in mentoring them and developing their talents so that, in time, they will be able to lead Singapore to a new level.[+6 sentences] We must remember to invest to benefit Singaporeans of tomorrow, just as we have benefited from the investments made by our PG and MG. I believe our constant effort to imagine our future, to find the next big thing in Singapore that will excite our people, to strengthen communities for a strong and united nation and to support our young in their development and endeavours will have far reaching effects. These will require our constant attention and consistent investment by our Government. I would like to end with a reminder that building the future Singapore is the job for all Singaporeans, not just the Government and, certainly, not just the Minister for Finance. To be sure, the Government plays a critical role in improving the lives of our people. It keeps Singapore secure and the economy humming along. On social issues, only the Government has the resources to mount a major move like the MGP.[+23 sentences] But the Government does not have the sole responsibility or the best ideas all the time. Nor can the Government alone solve all the challenges that we face. We operate in an increasingly complex environment. We face macroeconomic uncertainties, geopolitical instability, rapid social change and game-changing technological innovations. Government action alone is inadequate to the task of navigating a safe journey for all Singaporeans into the future. In our daily lives, we see many examples in our community of how different people, different organisations and different parties coming together to support our people, our residents, our seniors. I have a resident called Mdm Aisyah. She is about 66 years old. Recently, her sister passed away and so she is staying alone in a rental flat. But with the help from the Government, monthly financial assistance, as well as support from the Sallim Mattar Mosque where she goes for her Koran studies periodically every week, she is very meaningfully engaged in our community. So, even as she lives alone, there are many helping hands available to help her. The voluntary welfare organisations (VWOs), the mosque, our grassroots leaders, through our programmes, outreach and befriending, she is now a very happy senior living in Macpherson. There are many other examples as well. Sometimes, help need not be in a big way. It could be as simple as a neighbour running to a senior's house to help fix that remote control that he or she failed to operate to switch on their favourite television (TV) show. We have so many people, so much resources within the community. If we are all able to come together to work hand-in-hand, we can multiply our efforts and do so much more to make our community and Singapore a better place for everyone. In fact, I would say that regardless of whether it is just the Government working alone or together as a community, regardless of what role we are playing, at the end of the day, it is about the people we feel for. It is about the bonds that we forge, the hearts we touch and the lives we make a difference to. Therefore, I hope that Singaporeans will see this and Budgets past and future not just as Government or Parliamentary business, but as collective, decisive moves to prepare ourselves for the future. I hope Singaporeans will step up and contribute as well with our ideas, voices and energies. Let us, together, ensure that Singapore continues to thrive and be truly inclusive and caring. With that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Minister for Finance.
The Minister for Finance (Mr Heng Swee Keat)251 words
[+3 sentences]Mr Speaker, Sir, I thank Members of this House for the views shared during the Budget Debate. Over the last two weeks, I have also noted thoughtful views from fellow Singaporeans, academics, journalists and business owners. I am grateful for this feedback. Some challenge our current thinking, while others help us refine our policies over time.[+1 sentence] We all have the same objective. It is to help Singaporeans thrive and build a strong, united Singapore.[+4 sentences] As we celebrate the Bicentennial, let us take a step back to reflect on how we got here today and how we would like to move forward. Some Members have provided good and useful overviews of the Budget and how they benefit various parties, such as Mr Liang Eng Hwa. Some have delivered vivid speeches during the Budget Debate, such as the one about Ah Kong and Ah Seng. My speech will not be as poetic as Senior Parliamentary Secretary Baey Yam Keng's. Listening to over 12 hours of your speeches in the last two days and this morning, I realise that it is not possible for me to address each of the points you have raised. My colleagues will engage you in the specifics of policies within their Ministry's purview.[+3 sentences] And as Members can see, I, too, have two files like on Budget Day. So, this will be a long speech. So, Mr Speaker, Sir, with your permission, may I use some slides so that it is easier for the Chamber to follow my speech, please?
Mr Speaker9 words
[+1 sentence]Yes, please.
Mr Heng Swee Keat11284 words
[+2 sentences]Sir, in rounding up the Debate today, I can value-add by picking up some of the common threads in the Members' speeches, and to reinforce some of the key principles for this Budget and those before, which make up the "Singapore way". So, what is the Singapore way? First, we put people at the centre of our plans, strategies and programmes. Second, we plan long term while taking an adaptive approach to respond to changing circumstances and needs. Third, we do all of this together, working in partnership.[+24 sentences] These principles reinforce one another and have allowed us to do more with less. For instance, in the area of education – I showed this slide at last year's debate – we did not spend the most, but you look at the outcome that our students achieved in this Programme for International Student Assessment (PISA) score. On healthcare, again, we did not spend the most, but we have the second highest life expectancy, next to Japan. And Members can see the Organisation for Economic Cooperation and Development (OECD) countries’ averages on the right-hand side. For policing, good outcomes in policing where, again, with the spending that we have of just slightly above 0.6% of GDP, we are ranked one of the safest in the world. So, these are all very credible outcomes despite spending less than what other countries do. I will now elaborate on each of these principles. The first principle of the Singapore way is putting Singaporeans at the centre of what we do. We empower people through education, create a good environment for families, help Singaporeans to earn and save more for retirement and support ageing with assurance. As Er Dr Lee Bee Wah put it so eloquently, all that we do "完全是为了你", that is, "It is all for you". Many Members, including Mr Louis Ng, Ms Jessica Tan and Mr Gan Thiam Poh, have given suggestions on addressing class divisions, inequality and helping all Singaporeans do well, including the less privileged. The question is, how best to do so? As Mr Saktiandi Supaat put it, it cannot just be through a Robin Hood style of social transfers. We believe that the best way to take care of our people is to build capacity, that is: (a) For our young, we give them a strong foundation in terms of a good education and exposure, so that they have the knowledge, skills and values necessary to chase their dreams. (b) For our workers, we invest in increasing their capacity through upgrading and reskilling. Crucially, we also build an economy that provides them with opportunities. (c) For those who have fallen behind and who need help to access opportunities, we provide stronger support systems. This is with the ultimate objective to give them the confidence and dignity to succeed for themselves as far as possible. (d) For our seniors, we support them in their desire to age successfully. We have been providing significant support and will continue to do so. Let me illustrate. Our young get a high-quality education which provides a solid grounding to chase their dreams. We make sure this is available to all our people, regardless of background. We keep education affordable. Parents pay $13 each month per child for primary school fees.[+17 sentences] This is possible due to the significant subsidies provided to every child. On average, every child entering Primary 1 in 2018 would have received over $130,000 in education subsidies by the time he or she completes secondary school. Those who go on to post-secondary education receive another $15,000 to $22,000 for every year they remain in school. And beyond just making sure that everyone can afford education, we make sure that there is good quality for everyone, not just the top achievers or better off. In 2018, we provided at least 60% more resourcing for primary school students with a weaker foundation in literacy and numeracy through learning support programmes in schools. Our commitment to maximising pathways to success is clear. We have specialised schools catering to the needs of Normal (Technical) students, those with interests in science and technology, or the arts or sports. Most visitors to our country are very impressed with what we have done for our Institutes of Technical Education (ITEs), sometimes better designed and resourced than their universities. Several Members in this House and myself have been bringing visitors to ITE and they have been surprised to see what we have in the ITEs. The Ministry of Education (MOE) will elaborate more on our plans to Uplifting Pupils in Life and Inspiring Families Taskforce (UPLIFT) our students at the COS. What we do is not necessarily the case worldwide. In the United States (US), public funding per student varies widely across states and within states. For example, within the state of New York, one school district can get three times that of another school district, based on how well-off each school district is. I agree with what Prof Lim Sun Sun said about the need to help our students develop cross-cultural, digital and ethical (CDE) competencies. This is on top of the ABCs and 123s we teach them. Prof Fatimah Lateef also called on Singaporeans to develop strong networks to thrive in an age of change and disruption. Our schools provide this holistic education by making available co-curricular activities (CCAs), Applied Learning Programmes and Learning for Life Programmes, all of which are heavily funded by MOE. When I was an Education Minister, I visited many school systems around the world. And what struck me in many of the school systems was that, when I asked, "If your child or your student wants to learn Arts, Music, Dance, Sports, what do they do?" And in many of the school systems, the answer was, "Well, they have to join outside classes." And I asked, "How do you pay for it?" They said, "Well, we as parents pay for it." Whereas in our school system, CCAs to develop our students' interest and to develop them in diverse ways are part of the schools' system and funded by the Government. The Edusave Award for Achievement, Good Leadership and Service (EAGLES) and the Edusave Skills Award are just some of the ways we recognise students who demonstrate excellence for achievements, beyond academic.[+4 sentences] And you never know where the path will lead you. Take the example of Mr Wong Kah Chun whom the Prime Minister spoke about at the National Day Rally last year. He grew up in a Chinese-speaking family but, through his school band, discovered a love for Western classical music and is now the first Singaporean to conduct the New York Philharmonic Orchestra. We also support our young people to build their cross-cultural competencies. In this and the last two Budgets, I set out plans that will help our tertiary students, young workers and aspiring leaders to build friendships with peoples and understand our region better. These include the Global Innovation Alliance, the Leadership Development Initiative, and the Global Ready Talent Programme.[+25 sentences] I was at the groundbreaking ceremony of Razer last week. I was excited that with Razer's expansion, we will be able to have many more opportunities for young Singaporeans, both here and overseas. We will continue to do more for our young. We have been investing more in preschool to make preschool education better, more accessible and affordable, especially for the lower-income. This will help our children build a solid foundation from an even younger age. Let me move on to how we build capacity in our workers to help them pursue their career goals. I agree with the National Trades Union Congress (NTUC) Secretary-General Ng Chee Meng and Mr Seah Kian Peng that for the Fourth Industrial Revolution, or Industry 4.0, to work for us, we need Worker 4.0 as well, meaning, we need our workers to transform and build capacity in tandem. As Mr Desmond Choo mentioned, learning and building capacity do not stop after formal education. Learning takes place anywhere, anytime, from anyone. The workplace is a good place for our workers to learn. As Mr Patrick Tay has mentioned, we provide support for our workers to reskill and upskill, to seize opportunities and do well for themselves. The SkillsFuture movement provides support for our workers to develop skills and pursue lifelong learning. For those who are displaced, we help them find a new job, and reskill where necessary, through programmes, such as Adapt and Grow. The Labour Movement plays a key role in this. I would like to thank the Labour Members of Parliament for all speaking on a common theme of "Every Worker Matters" and sharing their thoughtful views on what we should do to better support our workers. Senior Minister of State Heng Chee How spoke on putting workers at the heart of all we do. And I am glad that they recognise, in Mr Zainal Sapari and Mr Ang Hin Kee's words, that this year's Budget is pro-worker. The Labour Members of Parliament and Ms Sylvia Lim have spoken about various segments of our workforce – young workers, older workers, mid-career professionals, low-income workers, self-employed workers and those with caregiving responsibilities. The Ministry of Manpower (MOM) and MOE will address some of their suggestions in greater detail during the COS. A common thread in the comments, as Mr Arasu Duraisamy has noted, was how employers have a key role to play in helping their workers upgrade. Mr Melvin Yong commented that workers who go for training need to pull "double shifts" – training in the day and working at night. This is not easy to do. As workers put in the effort to train, I urge all employers to give them full support. I would also like to explain how we support our low-wage workers, in line with concerns raised by Dr Intan Mokhtar and others. Where possible, we want them to build capacity through upskilling, so that they can move up the wage ladder. This is why we give Workfare, not welfare. We have the Workfare Training Support scheme to encourage skills upgrading, and the Workfare Income Supplement (WIS), which I announced enhancements to this year.[+11 sentences] Through WIS and the Progressive Wage Model (PWM), we help lower-income workers upskill and reskill, earn more and save more. I am heartened to hear that Singaporeans, both within and outside the House, are concerned about whether families of lower-wage workers can make ends meet. Some, like Mr Mohamed Irshad, have suggested that the way to address this is to allow younger Singaporeans to be given WIS. At this point, I would like to explain the design of WIS and why we provide more support to older lower-income workers. Much as we wish to help those who earn less, how we do it is important. Permanently increasing their capacity to earn more is the most sustainable way to improving their lot in life and helping them support their family members. This is best done by upgrading their skills and improving their chances of getting better paying jobs. What they learn today will be useful for many years down the road, and build a foundation for further learning. In the meantime, we help them take care of their families' needs, such as bursaries for their children or MediFund for their parents' hospitalisation bills. Where there are challenges with accessing skills training, I am confident that NTUC and our unions can come in to support. Education and employment support are part of the comprehensive system of social support which benefit our less well-off. On the whole, our broad-based schemes are designed to provide them with more support. We help our workers save for retirement through the Central Provident Fund (CPF), which provides a risk-free return, with an extra 1% interest on the first $60,000 of CPF balances. Those who are aged 55 and above receive an additional 1% for the first $30,000 of balances.[+8 sentences] This structure tilts the benefits in support of members with lower balances. It is in the spirit of what Mr Saktiandi Supaat mentioned, of helping small savers grow their income. We also help Singaporeans own their homes, with more housing subsidies for the lower-income. There are few countries where young couples buy a home before they get married. In fact, in many cities, there is a huge gulf between those who can own properties and those who do not. We continually rejuvenate our estates and upgrade our flats, so that they remain vibrant and liveable homes for our people. These flats could also provide an additional source of income in retirement. At the same time, we provide other targeted support for those from less advantaged backgrounds, in different forms. Miss Cheryl Chan spoke about the need to uplift these groups. We have put in place schemes, such as KidSTART and the Fresh Start Housing Scheme, which help the lower-income get back on their feet. For those in their old age, Silver Support provides a supplement for those who had low incomes through life and little family support.[+56 sentences] ComCare is available for those with greater needs. There is always room to do even better, as many Members of Parliament have mentioned. But overall, it is a good system which gives Singaporeans a good foundation in life. That we still find the occasional cases which fall through the cracks does not behoove us to knock down the system. It gives us policymakers, public officers, social workers, community volunteers the motivation to do better, through action. Let me now turn to our seniors. Singapore is ageing quickly, quicker than many other developed countries. We made the transition from an ageing to an aged society in an exceptionally short span of 19 years. In comparison, Japan, the world's most aged country, took 26 years. Other countries like France took more than a century or 115 years, and Sweden took 85! Furthermore, by 2025, Singapore will become a super-aged country, with 21% of our citizen population aged 65 and older. But this should not be viewed in a negative light. Singaporeans can redefine ageing. We are already doing so. Our $3 billion Action Plan for Successful Ageing was launched in 2016, taking in feedback from thousands of Singaporeans, both young and old, on what they saw successful ageing to be. Compare the title of this latest action plan with the title of the first committee on ageing we set up in 1982, namely, the Committee on the Problems of the Aged. Things have changed. And learning from the many seniors I have met who inspire me, let me share how they are redefining ageing, by staying active, healthy and connected. If we help all our seniors to make the transition, it will benefit them and also inspire all our younger generations. Our seniors want to stay active, be it through work, volunteering, learning something new, or keeping up with their grandchildren. And we want to support them in doing so. Opportunities to learn, grow and achieve do not stop at the retirement age. In fact, the National Silver Academy, which was part of the Action Plan for Successful Ageing, came about because our seniors told us that they wanted to keep learning and contributing to society. The Academy now provides a range of courses for senior learners, and supports inter-generational learning programmes. I am glad that we have support for this on both sides of the House. Assoc Prof Daniel Goh and Mr Faisal Manap have also made a strong pitch for our seniors to be active and continue to be the best they can be. Our seniors also want to stay healthy. Having the second highest healthy life expectancy in the world, we are in a good place. I recently met Ms Peng Lee Er, one of our MG, at a TV forum. She told me that she appreciated the MGP benefits as they provided assurance that her healthcare expenses would be taken care of. Even better, the benefits would be there but not used or what she called "备而不用", meaning that it was best if she could stay healthy, and do not have to seek treatment in the first instance. I agree very much with her. The intention is for our seniors to focus on staying well. The MGP is there as an added assurance. So, I am glad to hear Ms Joan Pereira and Ms Irene Quay expressing support for this. I am always very happy to see groups of seniors coming together regularly in parks or other public spaces to exercise, like doing line dancing or Zumba Gold together. In fact, I understand that many of our seniors are exercising regularly in over 400 locations across the island. This is a good sign, and I hope there will be even more of such groups in the years to come. And last but not least, our seniors want to stay connected with one another and with those around them. I am encouraged by the progress made through the Community Networks for Seniors, which brings together Government agencies and community partners to help us have the "ABCs" where seniors stay active, befriend and care for one another. Some 1,500 seniors have come forward as volunteers to befriend and help other seniors. Take the example of Mr Bernard Lai, who is a member of our MG. Besides juggling his work commitments, he is an active grassroots leader, a member of various sports clubs and a Silver Generation Ambassador! At the MG tribute event hosted by the Prime Minister early this month, Dick Lee, Jacintha Abisheganaden, Mel Ferdinands and Rahimah Rahim – all MGs – gave a spirited rendition of Merdeka Sayang, I quote, "With our silver hair, we still contribute", and another quote "we work hard, but still young at heart". Indeed, these lyrics reflect the spirit with which we approach ageing. So, "Fried Rice Paradise" just got better with age! Our Pioneers were the first generation of Singaporeans who were living and working in Singapore after we became independent. Our MG is the next younger generation, better educated and healthier. So, we look to you to redefine ageing and forge a new path on what it means to be the independence generation. I have spoken on how we take care of our people. In essence, it is through building capacity in everyone – our young, working adults, seniors – to be the best that they can be, while giving those who need help even more support and help in a targeted way. Members of Parliament have also brought up other important issues. Ms Joan Pereira and Ms Anthea Ong spoke of the importance of support for those with mental health conditions. This will be taken up at the Ministry of Health's (MOH's) COS. Ms Joan Pereira, Assoc Prof Daniel Goh and Ms Rahayu Mahzam have also spoken on how to better support women, especially those who are caregivers. As Minister Josephine Teo shared, many of our existing schemes do benefit women more. In particular, the CPF top-up in this year’s Bicentennial Bonus will support women who did not work and, therefore, had low CPF savings for retirement.[+6 sentences] It is a fitting recognition of their contribution. We build capacity and adopt a long-term orientation in our planning. This is the second principle of the Singapore way. We plan for the long term, because we plan for Singapore to be here in the long term. We look ahead, often tapping on the knowledge of experts here and overseas, so that we can prepare for the future. Ageing, climate change and changing economic trends are just some of the issues that we have been preparing for. [restates an earlier point]As I mentioned earlier, the first committee on ageing was set up in 1982 when the proportion of Singaporeans aged 65 and above was only 5%. We are looking at various infrastructural plans to protect us from rising sea levels due to climate change, the effects of which are projected to hit us sometime between 2050 and 2100.[+20 sentences] Given the long-term horizon, it is difficult to project these spending needs now. Nonetheless, we are planning early, seeing what we can do, and will work out the resourcing accordingly. Our plans span many years, putting in place the right infrastructure, charting the course of our economy and steadily building up our capabilities. Given the long gestation of these projects, such as the airport and port projects, it is inevitable that they are subject to risks and uncertainties in the operating environment. So, I share Mr Dennis Tan's concerns on this issue. However, these uncertainties should not prevent us from making "exciting investments". Rather, they are impetus for bold but deliberate planning. Operating in challenging environments has always been our lot in life, which has taught us to plan carefully. Back in the 1980s, when we were building Changi Terminal 2, we also faced regional and economic uncertainties. But we persevered and overcame these challenges. We do not shy away from making difficult decisions if they are necessary for the long run. That is why we have been pushing hard on economic restructuring and have taken further steps this year to drive deeper restructuring. As Mr Darryl David and Ms Jessica Tan pointed out, there are significant shifts in the global economy, which means that we will be stuck if we stick to business as usual. We are fortunate to be in Asia where the growth is. However, the rapid growth of Asian economies will result in shifting comparative and competitive advantages in the region, which we will need to adapt to in order to benefit from this growth. Supply chains are shifting. This is driven by new technologies, the shift of global demand to emerging markets, and the consolidation of supply chains within manufacturing powerhouses in the region. At the same time, global value chains are becoming more knowledge-intensive, with research and development (R&D), software, design and other intangibles forming a greater share of value created. We are well-placed to ride on these changes. As a regional hub in many areas, such as finance, professional services and logistics, we are well-positioned as a base for businesses to capture the growing regional demand for such services. We also continue to have a strong manufacturing base, despite increasing competition from other economies. We must push ahead to strengthen Singapore’s position as a Global-Asia node of technology, innovation and enterprise.[+4 sentences] We will continue investing in research, innovation and enterprise development, and support our entrepreneurs and businesses to boldly venture into new markets. This will bring new opportunities to our people and firms. However, the window to achieve deeper economic restructuring, to help more of our firms capitalise on this opportunity, is narrow. We have achieved strong macroeconomic fundamentals through policies introduced over the years. What we need now is to double down on improving productivity and innovation at the industry and firm level, in particular, through a targeted, tailored approach to get firms of different types to adapt and transform. We have made the difficult but necessary move of cutting the Dependency Ratio Ceiling (DRC) levels for the services sector.[+15 sentences] Several Members, including Mr Chong Kee Hiong, gave feedback that some firms from the services sector find it difficult to automate their processes. But the reality, as Senior Minister of State Heng Chee How pointed out, is that our resident labour force growth will continue to slow. If we do not move decisively on improving productivity and building up a skilled Singaporean Core in industries which are currently lagging, firms will find it harder to adjust in the future. As Senior Minister of State Chee Hong Tat described it, the DRC cuts are like 苦口良药, bitter medicine that makes us better off in the long run. Even as we cut the DRC levels, we will help our firms in the transition, as Minister of State Zaqy Mohamad has outlined. As we take a long-term view in our planning, we must also consistently review our policies to take into account new trends, new feedback and new evidence. As Mr Christopher de Souza just mentioned, because of the rapidly changing world and our unique challenges, it is critical that we be able to draw from a broad slate of policies and avoid strict adherence to theories. We must be prepared to experiment and take calculated risks. If we do not succeed at first, we learn from our experience and try again. This is how we become better as a people and as a country. I encourage all Ministries to adopt this entrepreneurial mindset, and to continue to keep trying out different solutions for the issues that we face. We must be focused on exploring what works, discard what does not, and execute effectively, so as to achieve better outcomes for Singapore and Singaporeans. Hence, we adjust and calibrate our approach as we go along, to take in feedback and learn from outcomes, to make our schemes more useful and effective for firms and workers. For example, a common feedback from SMEs was that it was difficult to navigate Government schemes and get support for business transformation. To help firms identify the support available to them, we launched one-stop portals like the Business Grants Portal and Startup SG. To reduce the number of schemes for firms to navigate, we rationalised grants that served similar objectives under the Productivity Solutions Grant (PSG), Enterprise Development Grant (EDG) and Partnerships for Capability Transformation (PACT) programme. This year, we will streamline eight financing schemes into a single Enterprise Financing Scheme (EFS).[+3 sentences] Our policies have been gradually adapted to help Singaporeans better prepare for retirement as we live longer. CPF LIFE, Silver Support and the Lease Buyback Scheme were introduced to boost the retirement savings of our seniors. MediShield Life, which started as MediShield, and CareShield Life, which will replace ElderShield for younger cohorts, will provide universal and lifetime coverage for healthcare needs. Later this year, we will expand the Community Health Assist Scheme (CHAS) subsidies to provide universal coverage for chronic illnesses.[+17 sentences] This last move, as Ms Rahayu Mahzam noted, shows the willingness of the Government to make changes when necessary. In fact, as Dr Lim Wee Kiak said, "we do have a universal healthcare system". As a pre-funding scheme, MediSave, too, has to evolve as medical technology advances, as more options become available, and as the population ages. We will remain flexible and adaptive to deliver the best outcomes for our people. There have been questions, in and outside of this House, on whether we will or should have packages like the PGP or MGP for future generations. Some have even suggested names. Some asked in anticipation; others asked because they were worried about who pays. Policymaking in real life does not assume that we start with perfection. My earlier examples show that we do not let the perfect be the enemy of the good. We do what is good, learn by doing, and adapt and improve continually. During Singapore's journey from Third World to First, our MG, and our Pioneers especially, did not benefit from the social safety nets we have today and the investments we can now make. They had fewer or no educational opportunities. They earned less. The CPF contribution rates started out very much lower. So, a cohort-based approach to support them in their silver years is appropriate. You can say that we custom-made the packages to better meet their needs, and to honour them for what they have done for Singapore. For the younger cohorts, they, too, will have needs, but they are not of the same nature as the Pioneers or MGs. Today, more than nine in 10 Singaporean youths can expect to go on to a post-secondary education – nine in 10.[+8 sentences] This is compared to less than two in 10 among our youngest MGs, and about one in 10 for our Pioneers when they were at the same age. The schemes we have put in place over the years – MediSave, MediShield Life, CareShield Life – enjoyed over their full working lives, will make sure that, by the time they reach retirement, they will be in a much better position than the Pioneers or MGs to look after their own healthcare needs. Of course, some among us will still need more help. The Government will look at the needs of each group, and tailor our policies and programmes in the future. Senior Minister of State Chee Hong Tat has summarised this well. The MGP is not linked to the election cycle, nor is it linked to the unexpected surpluses this term. It is a plan that has been carefully studied over a significant period of time. Not many countries in the world had gone through a similarly compressed period of accelerated growth, leading to relatively wide divergences between the older and younger generations. Building on our substantial base of permanent healthcare schemes, a calibrated cohort-based approach is fair to different generations. If we continue to take a responsible and long-term approach to planning, younger Singaporeans need not fear that they will end up with a disproportionate share of the cost. But if we lose this discipline and make rash promises, like universal benefits regardless of circumstances, I would worry for our future generations.[+31 sentences] I have outlined two aspects of the Singapore way – putting people at the centre of what we do and planning long term. The third principle of the Singapore way that I would like to highlight is partnership. We have consistently been advocating this partnership for years. As Mr Murali Pillai pointed out, it is not just this Budget, but also past Budgets which had partnership as a key element. In Budget 2016, our theme was "Partnering for the Future". In 2017, it was "Moving Forward Together", and in 2018, it was "Together a Better Future". Previous Finance Ministers have had different ways of titling their Budget speeches, but partnership – working together – has always been key to our policies. As Prof Fatimah Lateef put it, "Partnerships to Prosper" involves partnerships at all levels – globally, regionally and in Singapore – in our businesses and in the community. Partnerships are also important for the arts community, as Mr Terence Ho shared. We seek to be friends to all and build strong international partnerships for mutually beneficial outcomes and we have been steadily strengthening our partnerships. Free Trade Agreements allow our businessmen access to other markets, and this is particularly important in this period where there are significant trade tensions. Defence agreements allow militaries to build mutual understanding. Collaborations between officials and businesses build goodwill and better people-to-people connections. Examples are Suzhou, Kendal, the Chongqing Connectivity Initiative, Iskandar Malaysia and the new state capital city of Andhra Pradesh. But of all the partnerships that we build, the most foundational ones are the partnerships within Singapore. A strong and united Singapore enables us, both Government and our people, to build strong partnerships elsewhere. A strong and united Singapore assures our partners around the world that we can be taken at our word and will not cycle back on our commitments due to domestic divisions. A strong and united Singapore also sends a clear signal of our will and resolve to defend our sovereignty and safeguard our vital interests. One key partnership within Singapore is our tripartite arrangement, which is a unique strength for Singapore. We must build on this and strengthen partnerships between the Government, firms and unions. Firms must build deeper capabilities together with their workers. The workers benefit from better jobs and better pay. A skilled, committed workforce gives firms a competitive edge, and this is the smart thing to do. We will continue to provide support to firms which more directly link their companies' growth and transformation with capability building for their workers, such as in changes we made to EDG and PSG. I am glad to hear about the Singapore National Employers Federation's (SNEF's) efforts to help employers implement responsible employment practices as a means to enhance competitiveness and sustain business growth. I was pleased to hear NTUC's Secretary-General Ng Chee Meng and Senior Minister of State Koh Poh Koon talk about the NTUC's plans, such as the setting up of training committees and partnering companies to build worker capabilities. Our unions are not just into advocacy. Our unions take concrete and meaningful action which makes a difference to our firms and workers. And we will continue to support our unions in this effort. One example of how the tripartite partnership can lead to positive outcomes is PSA. When I visited PSA earlier this month on the first day of Chinese New Year together with Senior Minister of State Koh Poh Koon, I was glad to see them adopting new technologies, such as the automated crane system. PSA has reskilled and upskilled over 1,300 workers who transitioned from city terminals, to use the new technology at the Pasir Panjang Terminals over the past few years.[+16 sentences] PSA has worked closely with the Singapore Port Workers Union and Port Officers' Union in engaging and facilitating the change for the large pool of staff involved in this transition. Some of the crane operators I met had worked with PSA for over 20 years and commented that the changes led to better working conditions as they could work from a remote air-conditioned office, rather than in the crane cabin, high on top of the crane. Another example is ST Engineering's aerospace sector, which I visited earlier this week. To ride on the wave of Industry 4.0, ST Engineering has been investing in smart maintenance, repair and operations (MRO) initiatives at its hangars to adopt data analytics, additive manufacturing and automation. I was encouraged to hear that its union-management Training Council worked closely with NTUC Learning Hub to customise the SkillsFuture Digital Workplace course for the workers, to familiarise the workers with digital technologies, new work processes and automation. Over 200 staff attended the course in 2018, with another 600 staff expected to attend the course in 2019. So, I am glad to see ST Engineering building enterprise capabilities and deepening worker skillsets in tandem. This is the type of positive outcomes for workers, businesses and the Government, which we all strive to achieve. Our Trade Associations and Chambers (TACs), as representatives of firms, have an important role to play in this effort. So, I am glad to see more stepping up over the last few years. For example, through its networks with the global water community, the Singapore Water Association (SWA) introduced Imagine H2O, a leading water innovation accelerator in San Francisco, to local industry players. And this led to exchanges of ideas on commercialising innovative water technologies between our firms and Imagine H2O's startups. This Association is also working with Enterprise Singapore to immerse Imagine H2O into the local water ecosystem. As an outcome from this exchange, Imagine H2O has assessed Singapore to be a strategic location to set up its presence for the Asian market, and it is in the midst of establishing a presence here. I was glad to hear Mr Douglas Foo's affirmation that the TACs remain committed to enhancing the business community’s capabilities and collaborating with member firms, the Government and the Labour Movement. And I support his call for, I quote, "TACs to further break down individual walls, and work with one another to accelerate our common national interests". The enhancements to the Local Enterprise and Association Development (LEAD) programme which I announced in this Budget will further strengthen the role that TACs play.[+6 sentences] We invest in building an environment to help firms with the capabilities thrive, through steady investments in R&D, and strengthening economic linkages to the region. This builds on our comparative advantages to help us, as an economy, to excel. To do so in a way which works for each sector, we bring relevant stakeholders together to drive transformation through Industry Transformation Maps (ITMs) and ITM cluster strategies. We also take an enterprise-centric approach, which focuses on issues faced by firms at each stage of growth. This tailored and targeted approach allows our economic schemes to yield better results. For firms which are ready to scale up and compete on a global scale, we provide more customised support. This is to help them identify and overcome the unique challenges they face, and scale their businesses quickly. I announced the Scale-up SG programme and the pilot Innovation Agents programme this Budget, which will help in this area.[+13 sentences] Mr Liang Eng Hwa asked if the customised approach of the Scale-up SG programme meant that the Government is picking winners. This is not the case. The customised support that we provide is available to companies that show ambition and are willing to take the effort to transform themselves to scale up quickly. This support comes on top of many schemes which are accessible to firms, small or micro, for example, schemes which help firms adopt digital technology solutions, such as Start Digital Pack under SMEs Go Digital. And where there are market gaps, we provide support, such as through the Enterprise Financing Scheme, to provide financing for younger and smaller firms. These schemes, together with a wide range of schemes under the Startup SG branding, provide a strong base of support for startups, which Ms Denise Phua asked about. As pointed out by Ms Rahayu Mahzam, many Singaporeans and businesses have demonstrated their care and concern for fellow Singaporeans through their good work over the years. TSMP Law Corporation is one such example. In addition to providing pro bono legal services for the disadvantaged, the firm also regularly partners VWOs to contribute time and dollars to a broad range of causes and activities. VWOs, like Ang Mo Kio Family Service Centre (AMK FSC), Society for the Physically Disabled (SPD) and Empower Ageing, have also done an excellent job in serving a broad range of needs in the community. And as Ms Denise Phua said, their reach extends beyond what the Government can do. So, I thank them for their efforts, their hard work, and more importantly, heart work, in reaching out. To help them to continue deepening their capability, and increase the impact of the good work they do, for instance, we started the VWO-Charities Capability Fund (VCF) in 2002 to help VWOs train their staff, expand their reach and serve people better. In 2017, we set aside $100 million for the fourth tranche of VCF. The 250% tax deduction that we offer today on qualifying donations is also one of the most generous tax deduction schemes worldwide.[+38 sentences] Jurisdictions like Hong Kong, the US and Australia provide only 100% tax deductions for corporate and individual donations. Matching grant schemes like the new Bicentennial Community Fund which I announced will also catalyse more funding to our Institutions of Public Character (IPCs). Together with the 250% tax deduction, effectively, every dollar donated can draw a Government contribution of up to $3.50. The Minister for Culture, Community and Youth will elaborate on our efforts to support philanthropy and volunteerism at the COS. We will keep Singapore safe and secure together. That is another important part of our partnership. So, I am heartened that Members of Parliament, like Mr Henry Kwek, Mr Darryl David, Mr Dennis Tan, Mr Mohamed Irshad and Mr Vikram Nair appreciate the geopolitical situation that Singapore is in, and support our commitment to make sustained investments in our security and defence capabilities. We have good men and women in our security forces and diplomatic corps. But they cannot be everywhere, or protect every flank. Every Singaporean has a part to play through national movements like SGSecure. We must stay alert, stay united and stay strong against threats, be it terrorism or cyber warfare. Everyone must play a part in Total Defence. And we will find the best way forward together. But no one – not you, not me, not the Government – has all the answers. Today, we consult, engage and partner relevant stakeholders when formulating policy. So, I am glad Assoc Prof Walter Theseira and Mr Ang Wei Neng have spoken on the importance of feedback for more inclusive policymaking for the better of our society. There is always room for improvement, and Mr Ang Wei Neng has given robust feedback, which our agencies will take seriously. But we must not stop at just making criticism, but reach out to one another, recognise that we may have different views, but we can work together and find the middle ground, find the right way. We will tackle our challenges and construct better solutions, together. And as Mr Christopher de Souza has just reminded us, our political dialogues must not degenerate into political brinkmanship, as we are seeing in many developed countries. I have spoken about the Singapore way – our way – with people at the heart of our policies, planning for the long term while adapting to near-term circumstances, and doing it together, working in partnership. Our Budget reflects these principles, not just in the way we spend, as I had explained, but also in the way we fund our spending. Many Members of Parliament in this House have called for more "M&Ms", not the sweet chocolate candy, but "more and more". I, too, like M&Ms, but our resources are finite, but our needs are growing and diverse. To square the circle, we need to use the right tools for the right needs, with these principles in mind. And we need all of these tools, to balance our Budget in the medium term. Let me talk about each of them in turn. First, taxes. As individuals, we can all accept that we should pay for what we use. Similarly, each generation should pay for their own needs. We had debated this at last year’s Budget, and I am glad that many Members agreed with this. Nevertheless, there have been some reservations raised over the approach and timing of our plans to raise taxes going forward. Ms Foo Mee Har urged the Government to postpone the Goods and Services Tax (GST) hike for as long as possible. She suggested that the funds that we have set aside this term for various future expenditures like the MGP and the use of borrowing for future infrastructure expenditures could provide sufficient fiscal space to postpone the GST increase. I appreciate Ms Foo’s suggestion to delay this. Let me assure her and Members of this House that the decision to raise GST was not made lightly. As the Government, it is our responsibility to anticipate and plan ahead for future needs. While doing so, we also need to distinguish between one-off factors and underlying structural increases. The GST increase is needed to support structural increases in healthcare spending, among other important needs, like preschool education and security.[+4 sentences] Such healthcare spending is of a completely different scale and nature from the cohort-based package set aside for MG or PG. As mentioned earlier, the Government has systematically laid the foundation of a broad-based healthcare system that supports not only seniors, but all Singaporeans, regardless of their age and income. They support not only seniors but all Singaporeans, regardless of their age and income. We now provide significant subsidies in all care settings of up to 80% in our public hospitals and for long-term care services, up to 70% for specialist outpatient services, and up to 75% for polyclinics. MOH expects to spend $6.1 billion in 2019 alone to subsidise patient bills through existing permanent schemes that all Singaporeans enjoy.[+10 sentences] This does not even include spending to enhance our healthcare facilities and to research more effective treatments. As our population ages, spending on permanent healthcare schemes and other parts of the healthcare system will continue to increase structurally. Funding this requires a structural increase in our operating revenues. In other words, the base of our healthcare spending is rising. Over and above this rising base, we have special packages set aside for our PG and MG. Every ageing society faces similar structural spending pressures. A recent OECD paper highlighted that in the median OECD country, public health expenditure is projected to increase by almost five percentage points of GDP between 2018 and 2060. Five percentage points. The OECD’s recommended approach is no different from ours. To address the growing fiscal burden from higher healthcare spending and demographic change without further ballooning of public debt, there is a need for these governments to raise primary revenues. The median OECD government is estimated to require additional revenues of 6.5 percentage points of GDP by 2060; 6.5 percentage point.[+1 sentence] What does 6.5 percentage points of GDP mean? To put it in perspective, we expect to raise about 0.7 percentage points of GDP with the planned 2 percentage point GST increase.[+16 sentences] So, you compare 6.5 percentage points to the 0.7 percentage point of GDP that we have, and you see the scale of the issues in many places. We have yet to decide on the exact timing of the GST increase and we will exercise care when doing so. We will continue to monitor the prevailing economic conditions, trends in expenditure and the buoyancy of our revenues carefully. And as I said in the Budget speech, we have also been preparing a transitional package when this comes in. Next, related to the issue that Ms Foo Mee Har and other Members raised, I should also put into perspective the surpluses accumulated so far in this term of Government. Forecasting is an inherently difficult exercise. Some revenue items are volatile, especially those dependent on sentiment-driven markets, such as Stamp Duty or Vehicle Quota Premiums. For instance, in FY2018, we had estimated that Stamp Duty collections would be lower because of property market cooling measures. But the property market defied our expectations. There can also be surprises on the expenditure side. The two-year suspension of the Kuala Lumpur-Singapore High Speed Rail Project is a case in point. The unexpected surpluses over the last few years are not due to the introduction of Temasek into the Net Investment Returns (NIR) framework, as suggested by Mr Pritam Singh. The volatilities and uncertainties in revenues and expenditures, as I had just explained, account for most of this surplus. While the Government’s approach is to look ahead, plan ahead, and prepare for the unexpected, it seems that Mr Singh would prefer to look backwards to find unexpected revenue surprises, and count on them to keep happening. I am afraid such an approach of hoping for the best is not how we will secure Singapore's future. While there is room for improvement, the accuracy of our revenue and expenditure projections has been reasonable and respectable by international standards. Actual revenue and expenditure figures have generally been within +/- 4% of our original estimates.[+2 sentences] The Ministry of Finance (MOF) is constantly looking for ways to improve our forecasts. But the experience of other countries also shows that this is not easy to do. Japan’s revenue estimates, for example, had a margin of error of about 11% over the past five years. Hong Kong, a small open economy like ours, averaged slightly better, at 8%.[+7 sentences] Nonetheless, we will see how we can continue to improve. Mr Liang Eng Hwa also asked how the Government intends to use the accumulated surplus. First, let me clarify that any surpluses we have do not simply “disappear” at the end of the term. They become part of our Reserves which are invested to generate returns, part of which will form the Net Investment Returns Contribution (NIRC). As Mr Murali Pillai explained, when our economy grows, we have an obligation to contribute to the Reserves to be used for the uncertainties of the future. We should also bear in mind that the business cycle can turn, and having some surpluses on hand can allow us to provide targeted support to segments that need help to tide over the downturn. For a major crisis, we can turn to the past Reserves. During the Global Financial Crisis in 2008, our accumulated savings allowed us to fund $15.6 billion, or three-quarters of the $20.5 billion Resilience Package, with the remainder being funded from past Reserves.[+36 sentences] So, $15.6 billion, out of $20.5 billion, were from current Reserves. In 2017, to support the construction industry to tide over a period of cyclical weakness, the Government brought forward about $1.4 billion of public sector infrastructure projects to start in financial year (FY) 2017 and FY2018. In planning for FY2019, we were also faced with the global economic outlook being downgraded by the International Monetary Fund (IMF), as global trade tensions grew. More fundamentally, we should not have the mentality of trying to spend everything that we have before the end of each term of Government. As part of our long-term approach, we continue to review our plans for the long term and will deploy financial resources where necessary. On this note, let me briefly reiterate the role of our Reserves. Today, NIRC is already the largest single contributor of our revenues, larger than any category of the taxes we collect. If we did not have the NIR framework, we would have had to double our personal income tax collection or our GST collection to raise the same amount of revenues. In fact, we would not even be able to raise the same amount of revenue because it is now the largest category and doubling all the rest does not give you that same amount. Our Reserves are our strategic asset. We are a small country, exposed to global forces beyond our control. Our Reserves will allow us to tide over a crisis, without being reliant on others. We should not underestimate the need for a rainy-day fund. Singapore faces particular vulnerabilities, given our lack of natural resources. With an economy worth nearly $500 billion a year, we should set aside enough to protect it and our people’s livelihoods and future. So, let us stay disciplined. Today, we take up to 50% of the expected returns for spending, and plough back at least 50% to grow the principal and generate more returns. In this way, both the current and future generations benefit from the Reserves, and we can be confident of our future. Mr Pritam Singh referred to a Business Times article and asked for more data on our Reserves so that I quote, "Singaporeans can crunch the numbers themselves, and better understand Budget policy tradeoffs". He has also filed a cut on transparency on the Government of Singapore Investment Corporation's (GIC’s) performance, which will be answered at MOF's COS. But let me explain why the Member is misinformed. Our Reserves comprise assets invested by the Monetary Authority of Singapore (MAS), GIC and Temasek. The size of MAS and Temasek's assets is public information. Only the GIC portion is not disclosed, and that is because with the GIC figure, you get the complete picture of our Reserves. I was running the Monetary Authority of Singapore during the Global Financial Crisis, with Emeritus Senior Minister Goh Chok Tong as our Chairman. Let me tell you that in a crisis where the most powerful central banks in the world, and even some of the biggest financial institutions, were taken completely by surprise by the speed and scale of the turn in the markets and the global economy. Many things could have gone wrong. We not only rode through the crisis well but emerged stronger. Having our Reserves as a strategic asset played a key role in this. So, let us not squander this strategic advantage that we have. Our Reserves also serve as a strategic defence, to deter parties who wish to undermine the interests of Singapore and Singaporeans. Such moves go beyond currency speculation attacks, to other types of threats. As Mr Mohamed Irshad noted, we live in a volatile, uncertain, complex and ambiguous (VUCA) world. Our Reserves, like our investments in defence and security, give us the confidence to plan long term, knowing that we will have the ability to take care of our people and to defend our sovereignty. Lastly, let me talk about borrowing. Over the next decade, we are making significant investments in our infrastructure to enhance connectivity and create new growth opportunities for tomorrow. As I mentioned in the Budget Statement, the Government is studying the option of borrowing carefully as a tool to finance major, long-term infrastructure, and will announce our plans in due course.[+6 sentences] In my round-up speech last year, I mentioned a number of infrastructure projects which our Statutory Boards and Government-owned companies are looking to borrow to finance. This included the Integrated Waste Management Facility by the National Environment Agency (NEA), and the Johor Bahru-Singapore Rapid Transit System Link by the Land Transport Authority (LTA). In this year’s Budget speech, I mentioned our long-term infrastructure needs. And as Ms Tin Pei Ling has noted, we also have to plan ahead for our ageing infrastructure. All these are long-term needs that have to be studied carefully. When ready, we will share more. As these projects have lumpy upfront costs and benefits that span many generations, borrowing can be a fair and efficient tool to finance and spread out these costs, instead of raising taxes sharply to fund them.[+3 sentences] In this regard, there is a simple answer to Mr Pritam Singh’s question about how borrowing will impact revenues available for future recurrent spending. Mr Pritam Singh asked how borrowing would impact revenues available for future recurrent spending. It does not. Borrowing does not create new revenues for recurrent spending. It merely converts a concentrated lump of spending in a few years into a smoother stream of loan repayment with interest.[+38 sentences] And we must have every intention to pay back what we borrow. In fact, it is irresponsible for a government to borrow to spend on recurrent needs, such as healthcare and security. Such borrowing shifts the burden of paying for today’s needs onto future generations. This goes against the same principles of inter-generational equity that Mr Pritam Singh said he stands for. Mr Sitoh Yih Pin has rightfully cautioned against this and has called for further safeguards to prevent excessive borrowing. I share Mr Sitoh Yih Pin's views. If we proceed to use Government debt, we will make sure it is done in a disciplined and prudent manner. Safeguards will be put in place to ensure that the debt, its interest and repayment are sustainable and in line with the Reserves Protection Framework. Borrowing or not, it does not change the fact that all Government projects should be cost-efficient, well-managed and must yield economic or social benefits. What do we have to show in 10, 20 years’ time? An important question raised by Ms Tin Pei Ling. Borrowing is a financing tool. If used sustainably, it allows us to build a better living environment for our people and to make Singapore a dynamic and liveable city. This is not just a question about growth, but also one of sustainability, as emphasised by Dr Teo Ho Pin. Mr Pritam Singh asked if building Singapore will come at the expense of our green spaces. The Member should not take the word "building" so literally, not just in bricks and mortars. We have always incorporated greenery in our urban plans. It is not only part of our climate change resilience efforts; it is part of Singapore’s identity as a City in a Garden. The Ministry of National Development (MND) will share more details on their greening efforts at the COS. As we calibrate our fiscal tools, the ultimate goal is three-fold, that is, to remain pro-growth; ensure that our overall system of taxes and transfers remain fair and equitable; and keep the tax burden on the middle-income low. There have been calls for the Government to do more in redistribution through the tax system, to address income and wealth inequality. Mr Saktiandi Supaat suggested if we could tier GST for different goods to lower the tax burden on the lower-income. This has been raised multiple times in Budget Debates over the years. But let me briefly reiterate the key arguments why a multi-rate GST is a less efficient way to help the lower-income. First, it is difficult to define a "necessity". Take bread, for example. There are the white, and wholemeal loaves that you can find at supermarkets, but there are also loaves sold at artisan bakeries. On top of that, there are so many other types of bread – floss buns, baguettes, kaya toast at your coffee shop. Where do we draw the line? Second, better-off households tend to spend more in absolute terms and thus benefit more from these reduced GST rates. Finally, the experience of many countries and relevant studies also show that a multi-rate GST system raises businesses' compliance and administrative costs significantly, which are then passed on to consumers. Our approach is to have a flat GST rate, while providing structural offsets through the GST Voucher scheme. This is a permanent scheme to provide more help to lower-income households and seniors. It is also more targeted, as those who need help most get it most directly. This is in addition to other schemes and programmes to help the less well-off. Mr Yee Chia Hsing spoke about whether car ownership can be taken into account when means-testing, while Ms Jessica Tan and Mr Lim Biow Chuan asked if the Annual Value (AV) criterion can be removed. No criterion is perfect, but if we put all our different schemes together, we have a system that is progressive and, as Mr Yee Chia Hsing said, fair. If we use vehicle ownership, for example, should we distinguish among the make and model, and what the vehicle is used for? The Government will continue to regularly review the eligibility criteria to ensure our schemes benefit the intended groups, whilst being practical to implement.[+11 sentences] For those who have specific needs, the best approach is to appeal to the relevant authorities which will consider each appeal based on its own merits. Miss Cheryl Chan has argued for a number of other measures to address growing wealth inequality, such as the introduction of a net-wealth tax, or an inheritance tax. I spoke briefly about this during the Budget Debates last year. There are many types of wealth taxes. What works best depends on the country’s overall tax system and broader economic and social circumstances. Our approach has been to tax fixed assets which, as the name suggests, are fixed and less mobile. Indeed, a large portion of total Singapore household wealth is held in the form of housing assets. We have two types of taxes on property, that is, Stamp Duty and Property Tax. We have been making them more progressive over the years. Owner-occupied properties enjoy a concessionary property tax rate, with the rate being higher for higher-end homes. The property tax rates are also higher for non-owner-occupied residential properties, such as those left vacant or rented out. In last year's Budget, I introduced a new tier for the Buyer's Stamp Duty for value of properties in excess of a million dollars.[+8 sentences] We will continue to monitor developments in this space. At this point, let me address the concerns arising from the increase in diesel tax. Mr Dennis Tan acknowledged that the increase in diesel tax makes our environment more resilient, but asked if this is worth the price of potentially higher business costs. We must go beyond framing this as a simple tradeoff, to a broader understanding of the longer-term approach we are taking to address the increasingly urgent issue of vehicular emissions. Diesel exhaust contains substantial amounts of particulate matter and nitrogen oxides which are associated with an increased risk of lung cancer and respiratory infection. The long-term impact of excessive diesel use on the health of our family and children is significant. It is thus necessary to use a price signal to nudge diesel users towards cleaner and more sustainable alternatives. Diesel tax is only one part of a larger roadmap to discourage diesel consumption. In 2013, we introduced the Early Turnover Scheme (ETS) which has helped more than 40,000 commercial goods vehicles switch to cleaner and more fuel-efficient diesel vehicles.[+2 sentences] In 2018, we introduced the Vehicular Emissions Scheme (VES) to further incentivise the purchase of cleaner vehicles and discourage the purchase of pollutive vehicles. It is encouraging to note that there were no new diesel taxis registered in 2018. The number of diesel taxis has also decreased by more than 30% from 23,700 in 2016 to 15,100 in 2018, as taxi companies switch to electric and electric-hybrid taxis.[+22 sentences] Mr Gan Thiam Poh suggested exempting vehicles and machinery from diesel tax if there are currently no non-diesel alternatives. But this works against what we are trying to do. The increase in diesel tax will help nudge businesses which are heavy diesel users towards greater efficiency. For example, companies can consider adopting consolidated logistics and use better routing applications to optimise their deliveries. In the interim, we have provided a transitionary offset package to cushion the cost impact till 2022, as businesses adapt to reduce their diesel consumption. Mr Ang Hin Kee, Er Dr Lee Bee Wah, spoke about the impact of diesel duty on taxi drivers. We recognise the cost impact faced by taxi drivers. As Senior Parliamentary Secretary Baey Yam Keng said, all taxi companies have pledged to step forward to pass the entire savings from the Special Tax reductions to their drivers. There are also incentives being offered to encourage taxi drivers to switch to petrol hybrid taxis, as we strive for lower emissions. This year, I had several good conversations with people about this Budget at various forums. Some asked me, "What about me? There did not seem to be anything in this Budget for me". Even if there is nothing new for you this year, you and your family have certainly benefited from every one of our Budgets. As I said, we must not look at the Budget in isolation. One Budget builds on another. So, let me outline how this Budget benefits different groups. Our young people have benefited from stronger support in education, housing and parenthood. They also benefit from the opportunities that a vibrant economy brings, as I explained earlier. We provide up to $80,000 in grants for new Build-To-Order (BTO) flats, and $120,000 for resale flats, and invest even more later on when estates undergo upgrading. Parents can receive a maximum of between $18,000 and $32,000 in marriage and parenthood benefits for each eligible child, on top of paid maternity and paternity leave, tax benefits and preschool subsidies. Our middle-income families, especially those feeling "sandwiched" supporting retiree parents and school-going children, would benefit from many schemes. For example, their children receive significant education subsidies. Without these subsidies, families would have to pay more than 60 times the current fees for their children in school. University fees would also be four times what Singaporean students currently pay.[+1 sentence] And this is for a world-class education. The PGP and MGP ease healthcare costs for their parents and, in so doing, help with their families’ overall expenses. This year, many will receive a number of top-ups, such as to their children’s Edusave or Post-Secondary Education Accounts (PSEA) and their parents' CPF. All who pay personal income tax will receive a rebate.[+37 sentences] Some middle-income and upper-income families also commented that the tax rebate of $200 is insignificant and of not much benefit to them. But we must not forget that overall, income taxes are kept low, so that they can keep a large part of what they earn. This is, as Mr Ong Teng Koon mentioned, one of the key things that help with keeping expenses manageable. I should share a story of a recent encounter with a Singaporean who came back from a very developed country. And he told me, "Mr Heng, I am very happy to be back in Singapore. First, I am very happy to be back with my parents and family. But I am also very happy that I got a 32% pay rise." I said, "Wow! Your new employer has been most generous." He said, "No. My employer who sent me back from the headquarters kept my salary at the same salary. But when I added up all the taxes that I have paid in that country – at the city level, at the state level, at the federal level – it added up to 32% of my pay." So, I thought that was a very powerful story. You can look up the tax rates of many of the countries that have extremely generous welfare systems but, as some of you shared, the moment you take your paycheck, more than half has gone. So, let us not forget this point. As Miss Cheryl Chan put it, we must not see the Budget as simply a "bag of benefits that serves some people in one year or the other". It is our strategic financial plan for the future. And because we take a long-term approach, we cannot see each year's Budget in isolation. Our Budget builds on the foundation of earlier Budgets. We have a multi-year plan, which tackles the priorities as systemically as we can. We plan ahead by setting out the strategy for mitigating and adapting the impacts of climate change. We look at the needs of different groups of people, as needs evolve and grow. We invest in growing our economy and in our people so that we have the resources to do more for our people and their children, and their children later. So, I am glad that many Members have asked the question, "What is in it for us, for Singapore?", rather than "What is in it for me?" Budget 2019 and our previous Budgets are to build a better Singapore for all of us. All of us benefit from a Singapore which is strong and united. With a strong defence, to protect our way of life; a clean and green environment, a liveable city and endearing home; a vibrant economy, where opportunities abound; and a strong community, where no one is left behind. My colleagues will share more on what the Government will be doing along these lines during the COS. As Prof Yaacob Ibrahim, Mr Darryl David and Miss Cheng Li Hui have mentioned, our Bicentennial is an opportune time for us to reflect on how we have come so far, on what we have built together, and what more we can do, as individuals and in our organisations, to strengthen our society. I look forward to our VWOs, clan associations and religious groups continuing to step forward regardless of race, language or religion to uplift the disadvantaged amongst us. I look forward to more people – academics, professionals and, indeed, all citizens – providing constructive suggestions on how best to tackle critical issues confronting Singapore, as Mr Christopher de Souza mentioned, on strengthening our social compact. The Bicentennial is also a good time to reflect on what being an independent, sovereign state means. It means fiercely protecting the precious freedom that we have to chart our own destiny, even as our relationships with our neighbours and the world change. It means appreciating that we have our own unique way of solving our problems the Singapore way. And, indeed, not to be pressured to conform to theories which sound fashionable but do not work for us. It means committing to give our best, building on what past generations have done. Together, we can advance and make this little red dot shine even more brightly. So, let us work together to build a strong and united Singapore.
Mr Low Thia Khiang (Aljunied)5 words
[+1 sentence]Sir, I have a clarification.
Mr Speaker2 words
[+1 sentence]Carry on.
Mr Low Thia Khiang80 words
[+8 sentences]Thank you, Mr Speaker. I have a clarification for the Minister for Finance. I would like to know how long the Government expects the increase in structural expenditure in healthcare to last. And at what speed will it increase? I understand that the increase is largely due to the ageing population. The biggest ageing generation is my generation, the MG. I would expect that we will diminish in number over time. So, how much exactly is the projection and expenditure?
Mr Heng Swee Keat366 words
[+10 sentences]Mr Speaker, Sir, I thank Mr Low Thia Khiang for his question. I am glad that he is in the MG. And as I said in my speech, I hope that our MG will redefine ageing and that the Member continues to stay healthy, active and connected and live longer. So, as to Mr Low Thia Khiang's question on how long this structural increase in our healthcare expenditure will last, in my speech, I mentioned that what we have been doing, for instance, is studying the OECD's experience. I mentioned about the experience of a number of countries. Last year, I was in Japan to look at what they were doing to deal with the problem of an ageing population. And I must say that there are many variables that go into the long-term care costs and the long-term support that is needed. In fact, the one Minister that I spent a lot of time with is Minister Gan Kim Yong because, each time I see him, he comes up with a higher set of figures. So, if you ask me how long this will last, I would not want to mislead this House. We are continuing to study this very carefully. All I can say is that it is going to last for quite a number of years.[+9 sentences] As I said, there are many variables which are not certain. For instance, how will our lifespan change and what is the extent to which our seniors will continue to be healthy? How will medical advances change? And how would new drugs, new treatment methods change the cost structure and change the life expectancy? There are many doctors in this House. And I think even if you ask all our doctors here, they would not be able to give you a definitive answer because there is a wide range of uncertainties. So, we must plan on the long-term basis. And we are not just having an ageing population, we are also having ageing infrastructure, as Ms Tin Pei Ling reminded us. As I said in my Budget speech, we are also looking at all of these long-term needs very carefully and we will share this when ready.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)249 words
[+4 sentences]Mr Speaker, I would like to thank the Minister for Finance for his round-up speech and addressing some of the issues that were raised in my speech. I want to revisit this idea of, not a cohort-based health benefits scheme for our seniors but something more permanent. My point really comes back to some of the other issues that were raised by Senior Minister of State Chee Hong Tat and some of the other Members. The argument really is, the Government will not know how much its surplus would be through the course of the term before it decides how much it can give out for these packages. So, you have to earn your keep before spending, so to speak. But if you look at one of the Budget annexes on the Analysis of Revenue and Expenditure, based on the NIRC component which includes both the Net Investment Income (NII) and NIR, for the last four years, it has come up to $62 billion. And based on the trending, it would probably to be about $80 billion over the course of one Government's term, provided it runs for its full five years.[+4 sentences] Be that as it may, I would like to make a quick reference to the Singapore Perspectives background paper which was released in 2018. This was an Institute of Policy Studies (IPS) survey that was carried out. I have an extra copy. If I may, Mr Speaker, can I just pass it to the Minister of Finance?
Mr Speaker2 words
[+1 sentence]Yes, please.
Mr Pritam Singh449 words
[+3 sentences]Sir, on page 14 of the paper, which is a Lee Kuan Yew School of Public Policy paper, there are two questions that were asked: first question is: would you be comfortable paying for higher social spending on the elderly through higher taxation instead of tapping on the national Reserves? The second question is: should NIR used to fund social expenditure for the current generation be increased and the amount reserved for future generations likewise decreased? There is a response on page 13. The response is, slightly more than 40% of respondents disagree to paying higher taxes to fund increased social spending on the elderly.[+12 sentences] The survey notes that while there were more neutral responses with the question on using a larger share of the returns from investing national Reserves to finance higher social spending, more respondents agreed to the statement than disagreed with it. To a large extent, it is not surprising, People would react emotionally to issues of taxation, how it is funded and so forth. But I think what was interesting was the final analysis from the IPS researchers which was, for both questions, respondents aged 45 to 64 – and I am assuming Ah Seng and Ah Kong are part of this – respondents aged 45 to 64 were more likely to disagree to pay higher taxes rather than tapping on national Reserves and to agree to using a larger share of the NIR to finance current social spending for the elderly. This is the interesting part: this age group experiences the highest tax burden and may be feeling the greatest uncertainty about financing their own post-retirement living expenses. So, with that as a gauge, I have to put the issue again about NIRC for which NII is a component. If you look at the Merdeka package about $6.1 billion, $8 billion with interest, and other components coming in, it is still a small percentage of the overall NIRC revenue that the Government is constitutionally allocated. In that context, is it possible to still consider moving away from cohort-based packages to something more permanent and universal, but with, of course, the additional MediSave top-ups and other issues which I raised in my speech as optional items, so to speak. That is my first clarification and I apologise if I went too long. My next one is much shorter. Sir, at the last Budget Debate, the Workers' Party made a point that we support the Budget but because of the announcement on the GST, we voted against the Budget. Similarly for this year, we support the Budget, but our position on the GST has not changed. I just want to put that down for the record.
Mr Heng Swee Keat303 words
[+2 sentences]Mr Speaker, Sir, Mr Pritam Singh asked about whether we should have a more permanent scheme. But if Members have heard me carefully during the round-up, MOH already have many, many permanent schemes, many permanent subsidies. The $6.1 billion that it is spending on this alone will give you an idea of that. [restates an earlier point]As I said earlier, we already have many structural subsidies which are already built into our healthcare system. So, the MGP and PGP are built on top of what we already have. This is a subsidy on a subsidised rate.[+3 sentences] Sir, I think it is important for us to appreciate the care that went into designing this very complex system. We spent a lot of time thinking about how best we can do this in a sustainable way. Second, the Member was citing the IPS survey and so on. As Members can see in the IPS survey, respondents vary in their comments whether they should be funding current, whether they should be funding future and so on. We must not confuse the MGP and PGP that have been set aside to fund these long-term care programmes with the use of NIRC.[+6 sentences] The NIRC comes in as a big pot, and that helps us to fund a number of other things. The packages that we have, specifically target that group and the funds come from what we have today in current Reserves. We have not touched the past Reserves. As I said earlier, the Reserves are a strategic asset for Singapore. You do not know how the global situation will develop and it is important for us to have that strategic asset for the long term. That is why my whole Budget round-up speech is about planning for the long term, while you address and adapt for changes for short-term developments.
Mr Speaker38 words
[+1 sentence]Any other further clarifications?
Estimates of Expenditure for the Financial Year 1 April 2019 to 31 March 2020›Budget2 turns · 265w
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Speaker not recorded20 words
[+2 sentences]. (proc text)]
The Chairman245 words
[+1 sentence]Main and Development Estimates of Expenditure of Singapore for the financial year (FY) 1 April 2019 to 31 March 2020, contained in Paper Cmd 19 of 2019. For convenience, I shall take the totals for each Head of Expenditure in the Main and Development Estimates as they appear in the last columns of the schedules of estimated expenditure under the Main and Development Estimate outlays for FY2019 on pages 6 and 7 respectively of the Command Paper. A total of 505 amendments to the Estimates of Expenditure have been submitted this year. The "guillotine times" to the discussion of the Heads of Expenditure under Standing Order 92(7)(a) have taken into consideration the earlier commencement time of a Sitting, the reduction of Question Time and the extension of Sitting times of the Committee of Supply for each allotted day.[+6 sentences] I must remind hon Members that the total time for discussion of each Head of Expenditure includes the replies from the front bench. With the assistance of the digital timer in the Chamber, I trust that hon Members will be able to keep to the speech times indicated against their amendments. I would urge hon Members both from the back and front benches to adhere to their time limits, as I will be very stringent in my time-keeping. I shall deal first with the Heads of Expenditure in respect of which amendments stand on the Order Paper Supplement. Head U – Prime Minister's Office. Mr Patrick Tay.
Committee of Supply − Head U (Prime Minister's Office)›Budget76 turns · 26,131w
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Mr Patrick Tay Teck Guan (West Coast)753 words
Mr Chairman, I beg to move, "That the total sum to be allocated for Head U of the Estimates be reduced by $100." The global operating environment is evolving rapidly. There are many growth opportunities in Asia, but economic competition is also intensifying and technological changes are reshaping competitive advantages across economies. Domestically, we are faced with an ageing local workforce which can pose constraints on our growth.[+21 sentences] But not if we can enable our people to learn, unlearn and relearn to stay employable over a longer career span. Indeed, technology is a potential game changer that can allow us to overcome our resource constraints and embark on a new S curve in our growth trajectory. To stay competitive, we need to be able to innovate and leverage on technology, to do more with less, and to work smart. The same applies to the Public Service. The Public Service must be able, agile and adaptable. Able to stay at the forefront of technological advancement, agile to be able to work with the private and people sectors to build a competitive economy; and adaptable, as we embrace the journey towards being a Smart Nation. This means that the Public Service must be able to use technology to become more productive in its operations. This includes using technology to transform the way it delivers services. Citizens today are used to services like FoodPanda or Grab that crowdsource and bring different providers together to be accessible at the fingertips of customers in a high-tech way. Many companies, such as those in the retail sector, are also using artificial intelligence (AI) and data analytics to analyse and, in fact, anticipate customers' needs. How is the public sector using technology to similarly transform the way it functions – from performing regulatory functions to enforcement, to delivering services to citizens? How can it bring related services together to help citizens or businesses, rather than have citizens or businesses go to different Government agencies to get what they need? How is the Public Service using technology to make service delivery more efficient and save time and effort on the part of citizens and businesses in transacting with the public sector? In fact, how is the Public Service using AI and data analytics to better anticipate citizens' needs and using robotics to complement its workforce? Of course, it is not and must not be just a tech push. Ultimately, Public Service delivery must be anchored on citizens' needs. Beyond delivering services efficiently and impartially, the Public Service must be able to put in place systems and processes to ensure that public officers do not just apply rules mechanically but always put citizens at the heart of Public Service delivery. They must be able to identify changes in the needs of citizens and be able to update policies, programmes and services in a timely manner. In short, the three "highs": not just high-tech but also high touch; and not just high touch but also high trust. To transform public services, therefore, requires public officers to take on new skills so that they can perform their jobs differently and effectively. Where work can be automated, it is also important for public officers to be able to take on new skills to perform new jobs. In short, SkillsFuture should apply equally to the Public Service. What is the progress of the Public Service in upgrading the digital skills of our public officers?[+7 sentences] Does the Public Service put in place reskilling programmes to help retrain officers to move from one job to another within the public sector as technology changes the way work is done? The Public Service should work closely with our public sector unions and the Labour Movement to encourage all officers to constantly reskill and retool in order to keep themselves relevant and employable. A good start will be forming dedicated training committees jointly with our public sector unions and union leaders. Beyond skills, the Public Service ethos lies at the heart of Public Service. While jobs and skills will change, the values of service, integrity and excellence should always remain. How is the Public Service developing its officers to ensure that they continue to remain grounded, that they are in touch rather than lose touch with the needs, aspirations and concerns of citizens and businesses? How do we develop public officers who are able to serve with heart, be able to connect with citizens and co-create new solutions with both the people and private sectors?
Prof Fatimah Lateef (Marine Parade)239 words
[+7 sentences]Mr Chairman, Singapore has one of the most dynamic and high performance public service sector globally. With a spectrum of younger officers to the very senior and experienced ones, they serve Singaporeans through our Ministries, Civil Service, Statutory Boards and many other organisations. With globalisation and a more connected world, our Public Service must be resourceful, creative and rapid thinking. They must remain nimble and keep abreast of the changes and disruption in the world of today and tomorrow. They must align with the state of the art, be adaptable and flexible in certain aspects of policymaking and governance, but yet uphold the principles that Singapore stands for. The adoption of information technology (IT) and other technology-driven processes, communications as well as surveillance must be top-notch and robust. Yet at the same time, maintenance of safety and security must be upheld. How is the Singapore Public Service assisting the officers in providing adequate training, building of capabilities, acquisition of the necessary software, technology adoption as well as nurturing and managing the mindsets of officers to ensure adaptation, alignment and buy-in?[+2 sentences] And this is also part of the learn, unlearn and relearn process. Another very important tagline with the Public Service must be coordination. With the amount of disruptions and interventions that we face today, how will the Public Service ensure safe coordination and integration of information, data and details across the service whilst, at the same time, maintaining confidentiality?
Mr Cedric Foo Chee Keng (Pioneer)289 words
[+6 sentences]Mr Chairman, my cut today is to discuss whether our Public Service can adopt a citizen-centric approach to delivering Government services. Delivering services to citizens is at the core of what Government agencies do. Unfortunately, many of these services are based on processes and technologies that have been in place for many years and many of these were designed based on each agency's individual needs and requirements. Therefore, such services were not designed with the objective of improving the ease and satisfaction when a citizen interacts or transacts with the Government. To make an enquiry or to complete a transaction, citizens may have to physically visit different agencies, speak on the phone with multiple parties or browse the websites of various Government agencies. Often times, citizens have to fill up many forms and repeat information that were previously provided albeit to a different Government department. Government agencies, in turn, face both declining citizen satisfaction and also incur higher costs from repeated touchpoints across agencies. A citizen-centric Government should function as an integral unit adopting a whole-of-Government approach when delivering services to citizens. This calls for a coordinating unit that cuts across silos like, Ministries, Statutory Boards and departments, and sharing data freely at the backend across all agencies.[+4 sentences] Today, with advances in technology and connectivity, Governments can meet these rising citizen expectations. Digital transformation with AI, machine-learning and data analytics, a Government could even predict and anticipate what a citizen needs. Queuing at counters and filling up forms could be a thing of the past. I would like to ask the Minister about how the Public Service is organising itself to ensure that services are delivered in a citizen-centric manner.
Ms Anthea Ong (Nominated Member)254 words
[+6 sentences]Trust, as they say, is built in drops and lost in buckets. The recent spate of service lapses has contributed to an increasing sense of uncertainty about the robustness of the Public Service. Minister Heng Swee Keat, in response to the Zaobao commentary that alleged complacency, said "We would not flinch from taking a hard look at ourselves each time there is a failure and doing whatever is necessary to put things right." I am heartened by Minister Heng's conviction and commitment. Indeed, a string of events of such significance happening so fast and furiously offers more than a glimpse of possible fault lines within the system, not just in isolated Ministries or with certain officers. Might having an open conversation on these fault lines restore trust? What specific steps are being taken by the Government to restore public confidence?[+3 sentences] Additionally, how does the Public Service Division (PSD) ensure a culture of accountability, transparency and empathy? With increased public scrutiny and expectations, how is the Civil Service College (CSC) training public officers to understand subjective well-being beyond material well-being and how are they trained to formulate better policies that address citizens' well-being in ways that also increase public trust in public institutions? Lastly, how can Public Service Cares, announced in Budget 2019, be more than just a volunteering programme for public officers, but be embodied as an ethos? Notwithstanding my clarifications, I want to take this opportunity to express my appreciation for every Public Service officer in the service who serves sincerely and wholeheartedly.
The Chairman9 words
[+2 sentences]Mr Lee Yi Shyan; not here. Ms Sylvia Lim.
Ms Sylvia Lim (Aljunied)297 words
[+1 sentence]Sir, there are certain public officers created under the Constitution with functions and duties to safeguard the public interest. These appointments are recommended by the Prime Minister and subject to the discretionary approval of the President.[+1 sentence] One example is the Attorney-General. Under Article 35, the Attorney-General shall have power, exercisable at his discretion, to institute, conduct or discontinue any proceedings for any offence. Another example is the Auditor-General, who, under Article 148(F) is entrusted with the constitutional duty to audit and report on the accounts of all departments and offices of the Government, the Public Service Commission, the Legal Service Commission, the Supreme Court or Subordinate Courts and Parliament.[+7 sentences] Sir, we are all familiar with the annual audit reports of the Auditor-General's Office (AGO). It often contains embarrassing findings and may uncover misconduct. The AGO reports are a key measure by the Government towards accountability and the prudent use of public funds. Chairman, today, I would like to ask for clarification about the selection process and criteria used by the Prime Minister in selecting the Auditor-General. The Constitution does not spell out any qualifying criteria for being the Auditor-General. In recent history, our Auditor-Generals have been drawn from senior civil servants and there has been an appointment of a new Auditor-General this year. I do not know the current appointee personally and I have no reason to doubt her integrity. Indeed, I am prepared to assume that she will do her best to do her work honourably. However, can the Prime Minister confirm that the current appointee is the spouse of a Senior Minister of State? And if this is so, did the Prime Minister consider how appointing the spouse of a Senior Minister of State would affect the public perception of the independence of the AGO?
Mr Png Eng Huat (Hougang)424 words
[+17 sentences]Sir, I had spoken on the impact of MediShield Life on pensioners when the compulsory health insurance scheme was introduced and debated in this House in 2014 and 2015. As I understood from some pensioners, they have continued to receive the same medical benefit as before, as assured in this House, although not under MediShield Life but under their original pension medical scheme. As it is, these pensioners are insured under MediShield Life in name only even though they do not need the coverage. I understand their MediShield Life premiums are paid for by the Government and transitional subsidies through MediSave top-ups. The MediShield Life scheme is almost five years now. While pensioners are not worse off, in terms of their medical benefits, I wish to ask the Government if there is any study or survey done to ascertain the financial impact of the redundant MediShield Life coverage on pensioners. After factoring in the various MediSave top-ups, did the subsidies help pensioners pay for their MediShield Life premiums as well as for their spouses' premium in full without the need to incur any out-of-pocket expenses? This is important because this Government has assured pensioners in this House that they would not be worse off under MediShield Life. By that, it should also mean that they would not be financially burdened when they are put under the compulsory but never used medical scheme. Next, Deputy Prime Minister Teo Chee Hean said that pensioners have one important benefit with MediShield Life that they did not have previously. He said that the spouse of a pensioner will cease to have medical benefits when the pensioner passes away. But under MediShield Life, the spouse will be covered by MediShield when the pensioner is no longer around. Sir, this important benefit is assuring but it is also a benefit by default to begin with, since MediShield Life is made compulsory for all. Everyone has to pay for medical coverage by law, regardless of who you are. So, this important MediShield Life benefit, as mentioned by the Minister, only makes more sense for pensioners if the Government continues to pay the premium for their spouses when they are no longer around. Otherwise, the spouses will have to come under MediShield Life by law as they do not have a choice. Sir, I would like to ask the Government to clarify if it would continue to pay the MediShield Life premiums for the spouse of pensioners as a benefit when the old medical coverage ceases with the passing of a pensioner.
Dr Teo Ho Pin (Bukit Panjang)379 words
[+16 sentences]Mr Chairman, Sir, in Prime Minister Lee's "A Tale of Two Cities" speech in London in 2014, he espoused Singapore's global city aspirations. To this end, we achieved 5th place in the Global Cities Outlook List last year. To sustain this, it is imperative that our world-class city is supported by a world-class Civil Service. I would like to know the measures which the Government has undertaken to ensure and upgrade the service delivery skills of our Public Service officers. Sir, just as the Government has called upon the private sector to increase productivity and the quality of their services, it should urge the public sector to take the initiative in setting an example for the rest of Singapore to follow. In addition, I would like to suggest that the Government use the speed of delivery and the quality of Public Services as metrics by which it assesses the progress of its push to build a world-class Civil Service. However, it should be noted that the employment of a one-size-fits-all approach in serving the public will not suffice. There must be greater introspection on the part of our Civil Service. Far too often, we focus too much on the numbers and neglect the human aspect of governance. While automation has allowed for gains in productivity, navigating a pre-recorded voice menu or filling up a form adhering to a strict format online, may not satisfy the needs of the public. Sir, I believe that if the Civil Service provides more channels of access to public services which take into consideration the limitations of automated processes, it can serve Singaporeans better. In the pursuit of headcount and productivity key performance indicators (KPIs), the public sector has resorted to outsourcing, which has affected the quality of public services. Sir, outsourcing does not contribute to the development of human capital in the civil service and may result in public officers losing out on learning opportunities in providing quality services. I would like to propose that we adopt a design-thinking approach to transforming the delivery of public services. At the same time, we should refocus our efforts to train and deepen the skills of our Public Service officers. Sir, our global city deserves a world-class Civil Service with the heart to serve the public.
Mr Ang Hin Kee (Ang Mo Kio)291 words
[+8 sentences]Mr Chairman, Sir, the Government has been active in its efforts to innovate and improve the ease of transactions between the Government and the public. As the pace of transformation quickens with technological disruptions, I would like to know how well public sector workers are being prepared to stay relevant. At the same time, how have jobs in the public sector been transformed and what other changes will be coming soon? In the midst of such changes, I hope the Government can take the lead in ensuring that all public sector workers have access to relevant training, reskilling and redeployment opportunities. Are the various Ministries and agencies aware of the challenges faced by those who may struggle in their training efforts, especially the older workers, who may find it more challenging to acquire new skillsets? Have we been able to redeploy these workers across different departments, agencies or Ministries? Recently, I met about 80 unionised staff from various Statutory Boards and they shared with me their experiences and the assistance given to help our public sector workers to be future-ready and to be prepared for a transformed workplace. Is PSD aware of how each agency is progressing in this journey and whether their respective efforts have been effective, especially to help the older ones adjust to the pace of training required for their new or enhanced job roles or even redeployed roles? Last year, the CSC announced that it is partnering the 12 Institutes of Higher Learning (IHLs) to support public sector transformation, as well as the transformation of learning within the sector. Public officers will have access to one digital learning platform.[+1 sentence] Would the Ministry have an update on the take-up rate of these courses on the new learning portal?
The Chairman12 words
[+2 sentences]Mr Louis Ng, you have two cuts. Can you take both together?
Mr Louis Ng Kok Kwang (Nee Soon)309 words
[+2 sentences]Sir, last year, I spoke about the need to better recognise public servants' contributions and skills beyond their formal academic qualifications. Minister Ong Ye Kung shared that one initiative was to merge existing schemes for diploma and degree holders. Beyond the point of recruitment, an officer's progression is pegged to their on-the-job performance rather than their educational qualification. This has been done for the Ministry of Education (MOE), the generic Management Executive Scheme in the Civil Service, and the Air Traffic Control Officer Scheme. Minister Ong Ye Kung indicated that PSD will work with other public agencies to identify more areas where this can be implemented.[+9 sentences] Can the Minister provide an update on which other public agencies no longer have different salary scales and progression structures for diploma and degree holders? Can we also extend this to the Institute of Technical Education (ITE) graduates and not just diploma and degree holders? Sir, last year, I also spoke up about the need to provide platforms for public servants to provide feedback to upper management. Further, we need to close the feedback loop so that public servants know that their views are valued and can make a difference in strengthening the Public Service. I suggested implementing internal QSMs within Ministries and Statutory Boards. Minister Ong Ye Kung responded that all public agencies do conduct staff engagement surveys periodically. I still meet some public servants who say that they have provided feedback but have no idea if anyone is looking into it and have not received the reply with regard to the feedback that was provided. Will the Minister consider adopting common principles and guidelines for the conduct of staff engagement surveys across the Public Service? Will the Minister also consider requiring public agencies to track the feedback received and actions taken in response to the feedback?
The Chairman4 words
[+1 sentence]Minister Chan Chun Sing.
The Minister for Trade and Industry (Mr Chan Chun Sing)3649 words
[+28 sentences]Mr Chairman, Sir, let me first thank all Members who have spoken up in support of the importance of maintaining an able and committed Public Service. I agree with all Members. Our Public Service colleagues and I are determined to build a Public Service that is the pride of Singapore and Singaporeans. Our Public Service has been a pillar of strength for Singapore's survival and success. It has been so, and it will continue to be so. Our operating environment is changing rapidly. Internally, new generations of Singaporeans are growing up in different circumstances, with different aspirations and expectations. Singaporeans expect services to be organised around them and delivered in an integrated and timely manner. They expect systems and organisations to fit their needs and not the other way round. Singaporeans also expect services and information at their fingertips and have much less patience to navigate complex bureaucracies. Externally, our geopolitical situation has become more uncertain and challenging. New security threats, including the cyberspace, have emerged and which threaten our national security. The contest of big powers and the domestic politics of regional players combined, can potentially squeeze us and shrink our economic and foreign policy options. But all is not gloom and doom. Connectivity and technology allow us the opportunities to overcome our geographical and labour constraints. If used well, they can bring us to greater heights. Our workforce is also more educated and more skilled. We can better compete on quality rather than quantity. To continue to build a vibrant and successful Singapore for the future, our Public Service must constantly challenge ourselves to come up with new ideas, adopt fresh approaches to working, organise ourselves differently and develop new skills. Our Public Service generally delivers services efficiently, but this is not enough. Beyond working the whole-of-Government, our Public Service must achieve whole-of-Nation outcomes. Partnering Singaporeans and the private sector to deliver results must become second nature to our Public Service, and not as an afterthought. It is not just about delivering good service for the public but also delivering better services with the public. However, the Public Service and private sector must play our respective parts well in this new partnership to take Singapore to greater heights. Both must be mature to know the complexities of taking into account many sources of feedback, competing interests and differing aspirations. And if our individual suggestion is not accepted after working the process together, it does not mean that the ideas and inputs are not considered. Instead, it has formed part of the process to arrive at the final solution. I agree with Dr Teo Ho Pin on a design-thinking approach to the delivery of public services. The Public Service will progressively approach the design of many of our services around people and issues, rather than just expect people to adjust to our existing structures and ways of working. The Moments of Life app for families, launched last June, is a small example of how the Public Service can come up with new ways of serving citizens better, by working with citizens and the private sector, as partners.[+3 sentences] The team wanted to make life easier for parents of newborn babies. They want to reduce the administrative hassle so that mums and dads can focus on welcoming baby and caring for baby. So, they started by interviewing many new parents to understand what needs to be done at the point of baby’s birth, what frustrates them and to get good ideas from parents how public services can be delivered better and faster services for them. The outcome was an app that allows parents to register their child’s birth, apply for Baby Bonus and child library membership, all at one go. They do not need to approach multiple agencies and produce the same physical documents for verification again and again. This app has been downloaded over 20,000 times in less than a year and I am happy to say that, beyond public hospitals, we have begun offering this service at private hospitals, starting with Thomson Medical Centre earlier this year. Other private hospitals will progressively come on board in the coming months.[+1 sentence] The Public Service will expand this effort. It has since started more projects to redesign services around more key moments, including pregnancy, parenting a school-going child, National Service, and entering one's silver years.[+14 sentences] We will also design services with different segments of citizens in mind, especially those who may not find it easy to access our services through the usual channels. For instance, at the Inland Revenue Authority of Singapore (IRAS), a priority registration queue is created for the elderly and those with mobility constraints during the tax filing season. They will be ushered to a sitting area and attended to quickly. The Housing and Development Board (HDB) also sets up a priority queue during sales launches to assist the elderly, persons with disabilities and expectant mothers. At the Central Provident Fund (CPF) Board's service centres, there are retired citizens who serve as roving CPF Ambassadors to help post-55 CPF members. The Public Service is working closely with various people and private sector organisations in this expanded effort to redesign services around citizens. We will share more about these developments in the coming months. Within the Public Service, we also need to organise work differently across Ministries and agencies. Our current structures were optimised to solve previous problems. When problems evolved and goals changed, we must similarly be bold to evolve our structures and organisations to serve the objectives of tomorrow, as Member Mr Cedric Foo suggested. Climate change, cyber threats, unmanned systems are but some new challenges that require us to evolve new organisational structures to manage them. Mr Cedric Foo also asked how we can continue to ensure that our services are citizen-centric. Indeed, the Public Service must reorganise itself to be citizen-centric, not agency-centric, in the way we work. The Public Service Centre at Our Tampines Hub is one example. It started by co-locating different agencies together to serve citizens in one physical location. This year, the six agencies are coming together to cross-train counter staff, and each staff will be able to provide a range of some 70 services across the six Government agencies.[+2 sentences] Citizens will be able to approach any counter for help, instead of having to wait for the "right" counter to become available. The Social Service Office (SSO) is yet another example of how we are bringing different services together to help citizens in need. For instance, the SSOs at Taman Jurong, Kreta Ayer, Yishun, Chua Chu Kang and Jalan Besar are piloting an effort for the same SSO officer who provides financial assistance to unemployed residents to also help them find jobs.[+9 sentences] The Silver Generation Office (SGO) is also co-located with the SSOs in Taman Jurong and Geylang Serai, and the officers work closely to address the social and health needs of seniors in a more integrated manner. As many have suggested, it is not easy for the Public Service to organise itself differently and operate differently to serve citizens better without new skills. Ms Anthea Ong, Dr Teo Ho Pin and Mr Ang Hin Kee are right that we have to help our public officers approach their work with new mindsets and give them new skills. First, we need our public officers to think differently. They must be able to see beyond the current task that they are doing, and work with their colleagues in other Ministries or agencies to serve citizens better. This does not come from classroom training alone. PSD will expand the system of job postings to apply to a wider group of officers, so that our officers will gain wider perspectives, and grow a stronger instinct to work across agencies and with the private and people sectors. Second, our public officers cannot just develop good policies but must be able to execute them well. To do this, public officers must be able to understand the needs of citizens and businesses better, know what are the constraints and challenges on the ground in implementing policies, and be able to see through the implementation details. PSD and the Ministry of Culture, Community and Youth (MCCY) launched a new Engagement Immersion for Leaders programme last year.[+8 sentences] Leaders at Director-level and above were attached to different frontline work environments to serve citizens so that they can gain new insights on how policies and programmes can be implemented better on the ground. This year, we will implement Public Service Cares. This is a new initiative to encourage all officers to volunteer and serve the community and, in the process, learn how to better communicate with citizens. It seeks to develop a stronger service ethos and a culture among public servants to walk and know the ground needs even better. Officers, senior ones including, are regularly rotated to join the People's Association (PA), SSOs and the feedback unit Reaching Everyone for Active Citizenry @ Home (REACH) outreach efforts on the ground for them to get a first-hand feel of serving Singaporeans. Third, we need our public officers to have good interpersonal linkages with the people and private sectors. In particular, the Public Service will work towards achieving greater porosity and two-way flow of talents between the public and the people and private sectors. One way is through sending officers to work attachments in the private sector. For example, we sent 10 officers for attachments to various companies, such as the Development Bank of Singapore (DBS), Singtel and Grab, through the inaugural Service Delivery Talent Attachment Programme last year.[+9 sentences] They are bringing back new knowledge and insights to improve the delivery of public services. We will expand such opportunities to strengthen our Public Service and our links beyond the Public Service. Fourth, public officers need to understand our region much better and develop stronger ties with their peers in the region. To continue to expand the economic and international space for Singapore, our officers must be able to be plugged into various international networks and understand the economic, political and social systems of countries in the region and in our key markets. Our Public Service leadership must be able to pick up a phone and call their peers to discuss issues and to engage in new collaboration. Therefore, we will continue to encourage both Public Service Commission (PSC) scholars as well as mid-career officers to be trained in different countries. We will also create many more opportunities for officials across different countries to come together in joint courses, forums and discussions to share best practices and network together. Just as in the private sector, we should expect future Public Service leaders to have experiences working beyond the domestic context. Finally, our public officers at all levels – leaders to officers – must be savvy in using technology, so that we can use technology to make public services better and make the Public Service more productive. The Public Service is aiming for 100% digital literacy.[+2 sentences] Every public officer, from leaders to counter staff, must know how to operate in a digital world and to thrive in it. The CSC has launched LEARN, a mobile platform to enable officers to learn anytime, anywhere. In the last three months since the launch, over 34,000 accounts have been activated and almost 10,000 courses have been completed on this platform.[+3 sentences] The Smart Nation and Digital Government Office (SNDGO) will elaborate more on other Smart Nation Initiatives subsequently. I agree with several Members who spoke on the need to create a more diverse Public Service leadership. We need a Public Service leadership team that has different talents and is able to surface different perspectives. Going forward, when our Public Service selects future leadership teams, we will increasingly look for a combination of operations, communications, mobilisation and international exposure, beyond pure policymaking skills.[+8 sentences] A more diverse Public Service is a more resilient Public Service for the uncertainties ahead. We must systematically select, recruit and develop officers to achieve this diversity. Educational qualifications remain a valid proxy for certain skills and capabilities of candidates we recruit into the Public Service, and we will not disregard that. But the level of educational qualification alone is necessary but not sufficient. The Public Service will also have to look out for other skills, competencies and traits when we recruit new officers. Beyond intellect, we also want officers who have initiative and creative ideas, and those who have strong interpersonal skills and work well with others. In the areas of information and communications technology (ICT), the Public Service will be selecting recruits based on the technical skills they possess, beyond educational qualifications. Mr Louis Ng asked about single structures for ITE graduates, diploma and degree holders. Since 2015, the Public Service has been merging salary schemes such that the ITE graduates, diploma and degree holders are recruited and progressed on the same structure.[+14 sentences] Where schemes require particular qualifications, for example, doctors, accountants and engineers, we will specify these. Today, almost all public agencies have single structure schemes. I have spoken at length about how the Public Service needs to change. But just as important are things that will not change: our values, our aspirations for Singapore and the high standards for ourselves. Our values of excellence mean that we will not rest on our laurels. Our Public Service continues to work towards high aspirations for Singapore. This means always thinking ahead and acting to expand opportunities for Singapore or pre-empting problems in future. For instance, for Singapore to remain competitive, we must be a hub for innovation. So, MOE, Enterprise Singapore (ESG) and the Economic Development Board (EDB) came together to develop the Global Innovation Alliance (GIA) initiative to connect Singapore to major innovation ecosystems around the world. The GIA expands on existing overseas internship programmes offered by our local institutes of higher education that place students on overseas internships in startups or enterprising and innovative companies. The Public Service is leveraging these internships for scholarship holders and in-service officers as well for them to broaden their training and exposure. GIA will create more opportunities for students, entrepreneurs and business owners to gain experience, connect and collaborate with their overseas counterparts. Similarly, we have proactively pushed for more Free Trade Agreements (FTAs) to help our businesses expand overseas and lower prices of imported goods and services for domestic consumers. Such FTAs have to be planned way ahead, as they entail long negotiations with foreign counterparts. The recently concluded European Union (EU)-Singapore Free Trade Agreement (EUSFTA) was planned almost a decade ago and was achieved through close coordination among many agencies, including the Ministry of Trade and Industry (MTI), the Attorney-General's Chambers (AGC), the Ministry of Law (MinLaw), the Intellectual Property Office of Singapore (IPOS), the Ministry of Manpower (MOM) and the Ministry of the Environment and Water Resources (MEWR).[+5 sentences] They worked together and sustained the momentum of the negotiations through time across different teams of officers. We are now planning ahead for our FTAs to embrace digital trade in the new economy. We also think long term when it comes to developing our city. Almost 10 years ago, the Economic Strategies Committee mooted the idea of consolidating our container port activities at Tuas in the long term. This will allow our port to achieve greater economies of scale while freeing up the prime Southern Waterfront for redevelopment into a new waterfront city that will be even more exciting than Marina Bay. Today, the proposed new Tuas Terminal is already taking shape and will be progressively completed by the 2040s.[+16 sentences] The Tuas Terminal, which will be twice the size of Ang Mo Kio town, is expected to be the largest container terminal in the world. Our Tuas Terminal will help Singapore strengthen our position in the maritime sector. This is not the only long-term multi-decade projects we have planned for. We are pursuing other ambitious projects that span many years, in fact, decades, whether it is developing Singapore's deepest cable tunnel system for electricity transmission or planning for Changi East which includes the new Terminal 5, or planning for the Jurong Innovation District or Punggol Digital District. These projects help to create an even more vibrant Singapore and a better home for future generations of Singaporeans. Our Public Service cannot just try to play defensive to uphold the existing system. We expect more from our Public Service constantly thinking of breaking new ground to take the country forward amidst the stiff competition. Even though we plan ahead, sometimes things will not go as planned. When things do go wrong, the Public Service will work hard to fix the mistakes and seek to do better. Head (Civil Service) recently reminded all senior public leaders to use the recent incidents and lapses as an important learning moment to see how we can do better. I support his call and appreciate that the Public Service is taking its mission very seriously. However, integrity means that we need to take responsibility and be accountable at every level for what went wrong. If we do not address the mistake head-on at the respective levels, but instead choose to indiscriminately sack staff and leaders every time something went wrong, then we will have a weaker system over time. We will also discourage the Public Service from trying new things because the surest way not to make a mistake, is not to do anything novel. That will be the biggest mistake and disservice to our nation. The values of integrity and excellence apply equally to the appointment processes. Ms Sylvia Lim asked for clarification on the selection process and criteria used by the Prime Minister in identifying persons to fill key constitutional appointments.[+3 sentences] The process to appoint individuals to any constitutional appointments is set out in the Constitution. The Constitution also sets out the requirements of candidates for certain roles, as well as the officeholders who should be advised or to be consulted on the appointment. In general, the key considerations when identifying candidates include their ability to do the job well, their qualifications and experience, track record, integrity and sense of Public Service. Ms Sylvia Lim asked if we are aware that Ms Goh Soon Poh, the new Auditor-General, is the wife of Senior Minister of State Mr Heng Chee How.[+1 sentence] Yes, we are aware. The Auditor-General is appointed by the President in accordance with the advice of the Prime Minister. The candidate was proposed to the President for his concurrence after consulting the Chairman of the Public Service Commission.[+17 sentences] The President will consult the Council of Presidential Advisors which provides an additional level of scrutiny and advice. Ms Goh Soon Poh has more than 30 years of public sector experience and worked in a range of Government Ministries. She has served with distinction, with utmost integrity and commitment to excellence. She has helmed Deputy Secretary roles in two of the largest Ministries, MOE and the Ministry of Home Affairs (MHA), and also spent time in two central Ministries, the Ministry of Finance (MOF) and PSD, and will be familiar with governance matters related to finance, procurement and human resources. Ms Goh Soon Poh also has public sector experience that will be useful for the Auditor-General role. The role of the Auditor-General is to audit and report to the President and Parliament on the proper accounting and use of public resources to enhance public accountability. AGO's audit observations are conveyed to senior public officers, namely, Permanent Secretaries of Ministries who are Accounting Officers for their respective Ministries and, hence, responsible for managing that. These senior public officers are responsible for addressing the findings and reporting back to the AGO. The audit process generally does not involve political officeholders. There is no conflict of interest generally between AGO and the Ministries it audits. Where there is a potential conflict of interest, there are specific processes to manage these, just as in any professional organisation. Our Public Service cares for our people. Mr Louis Ng asked about staff engagement. PSD currently works with Public Sector agencies to administer a common staff engagement survey across public agencies. The survey enables agency leaders to better understand the areas that the agency is doing well in and what it can do better to help officers. Leaders are expected to respond to the feedback and take appropriate action. Mr Png Eng Huat asked about MediShield Life for pensioners. Like all Singapore Citizens and Permanent Residents, Government pensioners have been covered under MediShield Life from 1 November 2015.[+12 sentences] MediShield Life provides additional help on top of the retirement medical benefits that they enjoy as Government pensioners. This is very useful, especially if someone is unfortunate enough to get a severe illness with a huge medical bill. For example, one pensioner on the Comprehensive Co-payment Scheme (CCS) had pneumonia with a bill size of $29,000. She had 85% of the bill covered by her post-retirement medical benefits. MediShield Life helped to pay for the remaining 15%. She did not have to pay anything out of pocket. Another pensioner on the CCS had lymphoma with a bill size of about $14,000. He only had to pay out-of-pocket expenses of $300, after taking into account his post-retirement medical benefits and MediShield Life. Mr Chairman, Sir, our public officers joined our Public Service because of a calling. And that is to build a better home, a better nation and a better future for all Singaporeans. Our future is in the hands of this generation of leaders – from the public, private and the people sectors. Like it was almost 54 years ago, we must all be pioneers once more and always. If we put our hearts, minds and hands together as one Singapore team, I am confident that we can prevail against the challenges and Singapore will remain vibrant and successful. Our Public Service will lead and support fellow Singaporeans in achieving this.
Dr Lim Wee Kiak (Sembawang)490 words
Mr Chairman, despite a comprehensive strategy to encourage Singaporeans to marry and have children, our birth rates remain low as our population continues to age.[+7 sentences] In fact, this is a global trend among developed and developing economies around the world, and it will certainly take time to find sustainable solutions to alleviate the situation. What is our current concept? That a woman should have a career and also be a good mother; that a man should have a career and also be a good father. We give them good support with maternity leave, paternity leave, childcare leave, Baby Bonus and a whole suite of incentives. But things are not quite working out. Why? Difficulty in juggling office work and care for children, from tending to them when they are sick, to coaching them as they grow up. Have we looked into a more radical or new system whereby women with children may take three to six years off the workforce to bring up their children?[+7 sentences] This will also foster strong family ties and give our children a strong foundation, too. We can make laws where these women and men would not be discriminated against for the years out of the job market. In return, we can allow more qualified older people in our workforce to stay on to fill the vacant slots temporarily left behind by them. As we continue to implement baby-friendly policies as well as family-friendly policies, we must continue to identify and manage other problems stemming from an ageing population. We already have in place many strategies. We are encouraging senior citizens to stay healthy and active in the workforce through a lot of initiatives. Perhaps we can incentivise our senior citizens to look after their grandchildren. Similar to the proposed caregiver allowance for seniors, can we look into a grandchildren caregiver allowance for seniors looking after their grandchildren?[+5 sentences] We face greater challenges with our limited pool of human resources to maintain a vibrant economy. How has the Government directed its population strategies to support an economy that will continue to grow? We rank 13 among countries best at attracting, developing and retaining talent in 2018, according to a report by Business Insider. If we cannot sustain our population by Singaporeans' natural births, then the only way to top up our population is through immigration. We will then face the issue of integration and challenges in forging a national identity and cohesion. What is the upper limit we set for immigration so as not to affect our social compact ?[+4 sentences] As a young nation, we continue to grapple with seeking our national identity. We do not have a shared history of struggles that binds us together. Our PG and MG can share their experience and be a valued resource to inspire the next. Perhaps, the Government can share its plans to foster a strong sense of national identity among Singaporeans, and yet maintain a healthy population profile.
The Chairman9 words
[+1 sentence]Mr Gan Thiam Poh, take the two cuts together.
Mr Gan Thiam Poh (Ang Mo Kio)268 words
[+8 sentences]A rapidly ageing population and a persistently low Total Fertility Rate (TFR), which is among the lowest in the world, pose serious challenges for our future. There are severe implications for our social fabric, national heritage, economy and defence, just to name a few. We must make it a matter of priority and urgency to review our population strategies. We need a core group of young Singaporeans to ensure that our country remains cohesive, dynamic and vibrant. What measures does the Government have to invigorate our population strategies and keep a balanced mix of locals and immigrants? What is the Ministry’s view on the effect of new attitudes to family structures and their impact on families and procreation? In addition, how would we prevent the financial burden of caring for our ageing population from falling on our future generations? In Minister Heng Swee Keat's Budget speech, he urged us to draw on our Singaporean DNA to continue to progress. Unfortunately, with our low TFR at 1.16, one of the lowest rates in the world, the future of our DNA is at risk.[+6 sentences] Modern Singapore had started as an immigrant country and will continue to accept and integrate immigrants in the future. However, it is important that we have a core group of Singaporeans born and bred here. The Government had implemented various measures and incentives to support marriage and procreation. We need an urgent review to understand why they have not been effective. Whether these are inadequate or require enhancements, we must address the roots of the problems. Will the Ministry share its plans to reverse our TFR?
Prof Fatimah Lateef164 words
[+10 sentences]Immigration laws vary from country to country and change according to the needs, factors affecting population as well as growth and development of the nation. There is really no one-rule-fits-all policy. Singapore is challenged even further due to our sheer small size, and more so due to our rapidly ageing populace. Our guidelines and policies must acknowledge our diversity, uphold unity and be realistic and practical. New citizens can have a positive contribution towards nation-building and social integration. The guidelines for recruiting new citizens must be robust and dynamic and at the same time meet our objectives. How are we reviewing our immigration policies? Are we able to implement a more structured community involvement of potential new citizen candidates, perhaps even with the provision of inputs from senior and experienced community leaders? This is with a view to having them immersed and better integrated in the local community and activities. The community leaders can act as assenters and provide valuable inputs in this respect.
Mr Vikram Nair (Sembawang)154 words
Chairman, in 2015, we had a bumper year in terms of babies in Singapore and a rise in our TFR. However, since then, Singapore's TFR seems to have dropped to an all-time low of 1.16 in 2018.[+7 sentences] This is despite the fact that the Government has put in place a wide variety of incentives for people to marry and have children. According to Singapore's population data bureau, we have a large number of people of childbearing age and coming to childbearing age, yet more are choosing not to get married and have children. Have any studies been done on why this is so? I understand from previous COS debates that many young people have a desire to settle down and get married. Yet, it appears they are not doing so. What are the challenges faced, particularly by young adults, in marriage and parenthood? Is there anything that may be done to address these challenges?
Mr Alex Yam (Marsiling-Yew Tee)846 words
[+9 sentences]Mr Chairman, as a nation, we strive to be the best. But, sometimes, we have to take a cold hard look at ourselves to take stock. We are a city in a garden, but are we truly green? We are fast becoming a Smart Nation, but can this nation also continue to grow a heart? We have a highly productive workforce, but what are we truly producing? We can be No 1 on many fronts, but if we allow our most basic of building blocks to start to crumble and weaken, how long more can we keep it up? Chairman, as Singapore continues to progress economically, it also seems that, like the rest of the developed world, we are beginning to face what is an increasingly post-familist future, one where that basic building block, the family, is becoming more sidelined and threatened. Singlehood, childlessness and instability of the institution of the family are growing in many countries around the world and Singapore has not been spared. And while not in the extreme, some anti-natalist propaganda has also recently appeared on our shores. In 2017, our TFR was a dismal 1.16. It was a seven-year low and the second lowest on record. This is despite the billions that we have committed to promoting marriage and parenthood over the years. Surveys tell us that over 80% of young Singaporeans intend to get married and have children, but that intention seems not to be reflected in the actual numbers getting married and also having children.[+27 sentences] Perhaps it is opportune for us to ask ourselves again what is it that we are not doing enough of? What I feel is missing from the narrative is addressing the slow unfortunate change in culture and its threat to the family. Today, we live in a stressful world. We can always admit that – one whose pace is breakneck. We all want to work hard, produce better results and aim for the next rung up in our careers. That is not inherently wrong. But it has unfortunately become a key part of our new culture today. This leaves young Singaporeans breathless. This work ethic subconsciously makes us stay longer in the office and often even when there is no real reason to do so. Great for the companies, but at what cost to society? We end up having no time to date, no time to go out, no time for ourselves, no time to get married, no time to have children. We cannot be indifferent to this problem as a society. Our very fabric as a nation depends of the family nucleus. Families play a vital role in determining the welfare of children, in meeting our deepest needs for meaning and solidarity with one another, and in shaping the economic and political fortunes of nations. When the family is not flourishing and no longer serves as the central organising feature of society, the nation begins to lose its basic unit. So, it is not just about the money. The more money we throw at the problem, the more monetised and mercantile this most natural of building blocks becomes, reinforcing the growing stereotype that families are commodities. What we need to do today is to reinforce a culture that is centred around the family. From our very childhood, we should imbue in our young the importance of family, encouraging them to have quality time with their own families. For parents of this generation to reset the pace and reset the tempo of our culture. Part of it is our auto-reverential culture caused by technology. Many of us can attest to the fact that when we are at home, we may be with one another but we are really not with one another, we are with your phones. We pretend to engage with one another, but actually we ignore one another. We think we speak to many people but, actually, we are just talking to ourselves. On the work front, this happens as well. Technology meant to make work easier, literally ties us to our desk, even if we are away from the office. So, employers must also see more and more the importance that family plays in having a happy workforce. A purely transactional relationship only engenders stress, where parents fear even taking time off for family. We need to do more to encourage a change in work culture and not just through incentives like the Enhanced Work-Life Grant.[+5 sentences] More can be done at the cultural level. For all the generosity of our Marriage and Parenthood Package, there must also be whole-of-society issues that need to be addressed like cost of living and aspirations. How can we ensure that, as a society, we continue to value the family and will be willing to help families achieve their aspirations? These take more than just policy, programmes or grants, but the whole society and a relook of our culture. We must do what we can to avoid what some called the "systematic humiliation, apathy-inducing neglect and soul-killing cruelty" against the role of families in our society.
Mr Saktiandi Supaat (Bishan-Toa Payoh)304 words
[+17 sentences]Couples these days have many valid concerns when planning to embark on parenthood. In truth, some personal sacrifices are necessary. But the broader society, encompassing community groups, employers and families, can do more to compromise and embrace a family-friendly Singapore. There are couples who are perfectly happy juggling four children. These are the ones with good support from the community, their extended families and their workplace. They probably made some personal sacrifices to prioritise their family as well. Others are stressed out just with one. Today's grandparents are not like those of the 1960s and 1970s. Today's grandparents plan their retirement and go on frequent holidays, and I do not fault them. They deserve the break. So, how do we balance between the needs of the grandparents and their young children who are setting up families? What is being done to help instil a family-friendly culture in Singapore which is supportive of marriage and parenthood? We need a mindset shift in our approach to address the issues in this environment. Many a time, my wife and I, who are both working and have three kids, will face emergency calls from the school or kids falling ill, among other things, requiring one or both of us to attend to a child. One example of how we can further improve a family culture environment is to see if we can offer some comprehensive back-up care in corporates or private and public agencies with a national software matching platform to help employees find last-minute childcare or eldercare when the usual arrangements breakdown. In the United Kingdom (UK), there are such companies doing it, such as My FamilyCare. But more can be done to create these private set-ups and help these types of companies grow to create a better and more diverse support network in a family-friendly environment.
Ms Rahayu Mahzam (Jurong)211 words
[+12 sentences]Someone shared a story with me once. A man came home and saw his helper at the playground with his children. They were having so much fun and he was jealous. It had been a long day at work and, at that moment, he felt like he was working so hard so that he could pay his domestic helper to have the life that he wants. It was a fleeting thought, but it reflected on how much he wished he could spend more time with his children. We all have aspirations and we want a better life for our families. We also have much to contribute to the economy and a meaningful job gives us a sense of purpose and drive. However, many of us also yearn for a work-life balance so we can spend time with our families. Employers play an important role in supporting Singaporeans in managing their work-life balance, including providing flexible work arrangements (FWAs) or supporting working fathers in playing more active roles at home. How will the Government encourage employers to play their part? I note there are schemes, such as the Enhanced Work-Life Grant. Have the measures been effective and what more could be done to encourage employers to foster a more family-friendly workplace culture?
Mr Desmond Choo (Tampines)309 words
[+9 sentences]Our young Singaporeans are sandwiched in caring for young children and elderly parents. The Government has been providing support to such families. Can the Minister update on further progress and what more will the Ministry be doing? Demographic trends necessitate changes to how young families are supported at the workplaces. One, with smaller family sizes, our younger Singaporeans need to care for both their children and parents. It is common to easily spend more than a day away from work to bring an older parent for medical check-up. The same applies for an ill child. Thus, Family Care Leave is important to our workers, especially those whose children are older than seven. The fungibility in using the leave provides more flexibility for workers. Can the Government consider having the Public Service to take the lead in providing family care leave for all public servants as a start?[+1 sentence] Second, we need to help our young Singaporean parents better manage the cost of infant care and full-day childcare. Couples are spending, on average, $1,495 on full-day infant care monthly. Those who qualify for $600 subsidy still need to fork out about $900 a month for infant care.[+1 sentence] This can be quite taxing. Similarly, Singapore Citizens are eligible for a basic subsidy of up to $300 for childcare per month.[+1 sentence] This was implemented in 2008. Since 2001, the childcare operators have raised their median fees by 22%.[+7 sentences] Lastly, FWAs are crucial to support families. While many companies today offer FWAs, it has not been socialised into a societal norm like the Nordic countries. We need to take decisive action to make FWA pervasive. Can we introduce the right to FWA? This makes starting FWA conversations easier for workers. We can start with the larger companies. This can provide real impetus in socialising FWA and better support our families, especially our women workers.
The Chairman10 words
[+1 sentence]Mr Louis Ng, you can take your two cuts together.
Mr Louis Ng Kok Kwang403 words
[+2 sentences]Sir, young couples are rightly concerned about whether they have the means to bring up a child. It is now not just "money not enough", but also "time and leave not enough". The current six days of childcare leave and unpaid infant care leave are insufficient.[+6 sentences] It does not make sense that the amount of leave does not increase as well when you have more kids. Parents with four kids clearly need more leave than parents with one child. With Hand Foot and Mouth Disease (HFMD) so common now, six days of childcare leave are just not enough. I experienced this last year when all three of my kids had HFMD consecutively. My four-year-old had to be out of school for two weeks. I am not even sure if parents who have two or more kids will have sufficient annual leave once their childcare leave has been used. Can we consider giving childcare leave on a per child basis? For parents with two or more kids, can the Minister also consider allowing parents to use their sick leave entitlements also when their child is sick?[+8 sentences] Parents can provide their child's medical certificate (MC) as proof when using this leave. Sir, it has been almost two years since I delivered my Adjournment Motion calling for more parental leave for parents of multiples or preterm babies. In the blink of an eye, my twins, Katie and Poppy, are now two years old. From fighting for their lives, they are now fighting for their toys. The burps have been replaced by farts. Their crying has been replaced by smiles and the beautiful sound of laughter. This parenthood journey has been priceless, and I am so happy we have three healthy, happy girls. The Adjournment Motion speech brought back many painful memories of Katie and Poppy being born premature and almost losing their lives. It is an experience that I hope no parent has to go through and I hope that, through my sharing, our policies will change and they are changing. It was announced last year that we will introduce a Tripartite Standard to encourage employers to provide four weeks of unpaid leave for parents of multiples or preterm babies. Can the Minister provide an update on how many employers are providing this leave?[+2 sentences] I understand that MOE is providing this. Can the Minister confirm if the entire Public Service is now providing this unpaid leave?
Mr Speaker54 words
[+5 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 2.45 pm. Sitting accordingly suspended at 2.25 pm until 2.45 pm. Sitting resumed at 2.45 pm
The Minister for Manpower and Second Minister for Home Affairs (Mrs Josephine Teo)674 words
[+10 sentences]Mr Chairman, I thank the Members who have spoken. Their views and suggestions are well appreciated. In my response, I will provide an update of our population strategies and measures to support Marriage and Parenthood. Dr Lim Wee Kiak asked how we will build a sustainable and vibrant Singapore for all ages in light of our demographic challenges. We are doing so through three broad strategies. Our first and foremost strategy in managing the population is to ensure that there is always a new generation of Singaporeans to carry our legacy forward. We want Singapore to be a Great Place for Families, where young couples sense the strong support for marriage and parenthood from society and the state. How are we doing on this front? In addressing this question, it is useful to take a step back. When we consider developments over longer time periods, there are some reasons to be optimistic. The average number of citizen births in the last five years is higher than the previous five-year periods. From 2014 to 2018, the average was 33,000 citizen births annually.[+5 sentences] From 2009 to 2013, the average was lower at 31,400 citizen births annually. If we go back to an even earlier period, between 2004 and 2008, the annual average was 32,000 births. So, for the most recent five-year period, we are talking about 33,000 citizen births on average annually. The five years before that, it was 31,400; and the five years before that, it was 32,000. So, it is clearly higher. On top of this, many Singaporeans are living overseas, so we welcomed about 1,500 citizen babies born overseas annually over the past five years.[+7 sentences] This average is also higher than that of the previous five-year periods. From 2009 to 2013, there was an average of about 1,400 overseas citizen births annually. And between 2004 and 2008, this average was 1,000 overseas citizen births. Recent marriage numbers have also remained high. In fact, the average number of marriages in the past five years was significantly higher than the past decade. Juxtaposed against these developments is another set of forces at play. Most young Singaporeans still want to marry and have children, which Mr Vikram Nair would be glad to know. From our 2016 Marriage and Parenthood Survey, more than eight in 10 single millennials indicated they intended to marry, and more than nine in 10 married couples said they wanted two or more children.[+1 sentence] However, they are also taking longer to find the right partner and starting families later. The surge in the number of young Singaporeans entering the prime child-bearing age may be followed by a surge in births, but at a later stage. We believe this explains recent drops in Singapore's TFR to 1.16 in 2017 and 1.14 last year.[+9 sentences] But, given the positive marriage trends, I remain hopeful that there could be an uptick in TFR when the children of the Baby Boomers start having babies themselves. For family to remain the bedrock of society, which Mr Alex Yam spoke passionately about, we must actively lean against the wind to make marriage and parenthood achievable, enjoyable and celebrated. There are still many things in Singapore that are favourable to child-raising. Last year, Singapore was ranked first in the World Bank's inaugural Human Capital Index. And what that means is that as far as the World Bank is concerned, for a child born in any of the 157 countries that they surveyed, Singapore would be where their human capital potential is most likely to be optimised. In the same year, an international non-governmental organisation, "Save The Children", also ranked Singapore as the best country for children to grow up in. The Government has also progressively enhanced our Marriage and Parenthood Package. Mr Gan Thiam Poh and Mr Desmond Choo had asked about the progress and adequacy of our current measures. Mr Chairman, Sir, may I have your permission to distribute a table showing the key marriage and parenthood benefits that a young couple can receive today, compared to five years ago?
The Chairman9 words
[+1 sentence]Yes, please.
Mrs Josephine Teo2464 words
[+2 sentences]Thank you. Mr Chairman, firstly, a couple can now own their first home sooner. Flats with shorter waiting times – about two to three years, compared to three to four years for typical Build-To-Order flats – are now available to them. The first batch was launched in November 2018. Those who may have urgent housing needs or location preferences, can choose to buy a resale flat and receive up to $120,000 in housing grants, which is $40,000 more than what a couple would have received in 2014.[+2 sentences] First-timers buying a new flat in non-mature estates can service their housing loans using less than a quarter of their combined monthly incomes, often with little or no cash because they draw on their CPF savings instead. Second, parents now benefit from greater support for child-raising costs. When their first child is born, they receive up to $18,000 through the MediSave Grant for Newborns, Baby Bonus Cash Gift, and the Child Development Account (CDA).[+8 sentences] This is $3,000 more than the maximum a couple would get in 2014. They will also receive a CDA First Step of $3,000 deposited by the Government, without having to save into the CDA first, which helps to lighten their load at the start of their parenthood journey. Third, in their child's preschool years, the couple would find it easier to enrol their child in an affordable and good quality preschool. The Early Childhood Development Agency (ECDA) has increased the number of full-day preschool places nationwide by over 50% since 2014. There are 170,000 full-day preschool places today. By 2023, this will increase to about 200,000, and two-thirds of preschoolers will be enrolled in Government-supported preschools. Fourth, throughout their parenthood journey and as their family commitments increase, the couple now has stronger support to manage their work and family responsibilities today. They enjoy enhanced parental leave provisions, which enable fathers to play a more active role. With up to eight weeks of leave, a father now has access to double the amount of leave in his child’s first year, compared to just five years ago. The take-up of Paternity Leave has been encouraging, increasing from 37% in 2014 to 53% for recent cohorts.[+49 sentences] We have also increased paid childcare leave over the years. Today, each parent with children below age seven has six days of childcare leave per year, and two days of childcare leave per year while their children are still in primary school. Mr Louis Ng gave suggestions on further increasing leave for parents to care for their children, while Mr Desmond Choo suggested legislating FWAs. We will keep reviewing the scope to expand leave provisions but, as Mr Douglas Foo reminded us, we should be careful about mandating businesses to do more as it would impact business viability and put jobs at risk. Given the recent enhancements, I hope Members will agree to give companies some time to adjust before further moves. In the meantime, promotional efforts should continue. That is why we introduced a Tripartite Standard last year to encourage employers to provide unpaid leave when their employees have unexpected care needs, including multiple or preterm births, or family members or children who are hospitalised. I must thank Mr Louis Ng for giving us the idea. About 450 employers with over 224,000 staff combined, have adopted this Standard. This includes the Public Service with over 70 agencies. We will continue to encourage adoption of the Standard. I should also add that parents would be more likely to benefit from FWAs. We introduced the Tripartite Standard on FWAs in October 2017, and also launched the enhanced Work-Life Grant last July, to better support the adoption of FWAs. The grant has received more than 340 applications in just five months. More workplaces are now supportive of FWAs. Around 53% of employers now offer at least one formal FWA. This could be flexi-time, flexi-place, flexi-load, and this is up from 47% in 2014. This is, in fact, a significant turning point I have been waiting for. The tide is shifting and I am hopeful FWAs will become much more commonplace henceforth. Nevertheless, I am aware that young Singaporeans still have concerns, which Mr Desmond Choo also raised. Parents have raised concerns about financial costs, such as preschool fees. ECDA is reviewing the preschool subsidy framework, to make quality preschool more affordable for parents. The Ministry for Social and Family Development (MSF) will provide an update on this during its COS debate. Parents may also feel the need to keep up with other parents’ intensive efforts in education, for example. MOE, too, is concerned. To help our students discover more joy and develop stronger intrinsic motivation to learn, MOE is reducing the frequency and stakes of school-based assessments. Students' class and level positions will not be reflected in report books to minimise unhealthy comparisons among students based on their academic performance. MSF has also started the Baby Bonus Parenting Resources Portal to boost confidence in parenting through sharing of tips by experts on raising happy and healthy children. Next, as Ms Rahayu Mahzam pointed out, the workplace environment is critical. Senior Parliamentary Secretary Low Yen Ling will share more at MOM's COS debate. But overall, I am encouraged that more companies are taking progressive steps to support their employees' caregiving needs. One such example is M Tech, a small and medium enterprise (SME) which specialises in cybersecurity and network performance solutions. I visited M Tech this week. As many of their employees are young parents who may also be caring for elders in the family, M Tech decided to offer FWAs to staff who need them. This was made possible by IT tools which enable staff to work remotely and still be effective. I met Petrine, a product manager who was able to telecommute when her children were down with chickenpox, and when her mother was hospitalised. M Tech was initially concerned about the investment needed to enable mobile working but later found that the benefits were well worth it. For example, it is better able to attract and retain employees who are productive and committed to their work, such as Petrine, who has been with M Tech for 11 years. Beyond workplace flexibility, there are deeper issues of workplace culture. Some Singaporeans, indeed, work very long hours, leaving little time for dating or family life. Having fewer hours to rest and recharge not only affects employees' health and well-being, but also the time that they have with their loved ones. As the nature of work evolves, there is value for organisations to adopt new ways of working that achieve good business outcomes while giving staff enough downtime to recharge. M Tech employees, for example, may get off work early, whether to attend courses or to pick up their children from childcare. But they would reconnect later in the evening to complete time-sensitive tasks, such as confirming sales orders taken in other time zones, and they do not mind doing it at all because it does not take very long. So, we hope many more employers will make the effort to promote more sustainable work practices, for the sake of their employees and for their own business viability in the longer run. Finally, with the trend of later marriages and births, the Government will be reviewing our assistance to couples who face difficulties conceiving and who wish to undergo assisted reproduction technology treatments. Members, including Mr Ong Teng Koon, Mr Saktiandi Supaat and Mr Vikram Nair, have given suggestions on further measures to strengthen support for marriage and parenthood. I agree we can do more. However, porting over practices in other countries wholesale may not yield the desired results. South Korea, for example, poured much resources to emulate the Nordic countries. But its TFR has not improved and fell to 0.98 last year.[+13 sentences] I think for South Korea, this is the lowest they have on record. Our efforts over the last five years are significant, even if they may take more time to bear fruit. We also need deeper changes of mindsets to reduce stresses in parenting. Ultimately, marriage and parenthood are personal decisions, shaped by the values that each person holds dear, but they are also influenced in no small part by social norms, our families, employers and the wider society. There are strong cultural and societal factors at play. Like Mr Saktiandi Supaat and Mr Alex Yam have pointed out, no single stakeholder can fully address these on its own. In this regard, I am encouraged to see how various community stakeholders have stepped up. The Families for Life Council, for example, offers a suite of education programmes at workplaces and community touchpoints. It also organises events to encourage Singaporeans to make family life a priority. In Boon Lay Constituency, a Parents' Support Group was formed after a group of young parents met at the PA's Embracing PArenthood community celebrations. The group meets quarterly to share tips about child development, infant nutrition, and other parenting pointers. Such efforts, big or small, go a long way in making parenthood enjoyable and celebrated. We welcome more of them. In the coming months, the National Population and Talent Division (NPTD) will embark on a consultation process to listen to the needs and concerns of Singaporeans around forming families, and how the Government and the community can better support their aspirations.[+7 sentences] I also appreciate the Members' suggestions and there are many good examples. Mr Saktiandi Supaat suggested Back-Up care. So, I would like to invite all stakeholders to join us in co-creating and shaping policies. We will give more details about the consultation process soon. Mr Chairman, I have taken some time to reaffirm our commitment to supporting marriage and parenthood. Our second strategy in managing the population is to maintain a careful balance in immigrant flows. At its heart, the aim of our immigration policy is to sustain a stable citizen population that keeps our economy vibrant and our society cohesive. Similar to the past few years, we granted around 22,600 Singapore Citizenships in 2018, of which 1,600 were to children born overseas to Singaporean parents. With 32,700 Permanent Residencies granted last year, the Permanent Resident (PR) population remains stable at around 520,000.[+7 sentences] As Dr Lim Wee Kiak and Mr Gan Thiam Poh mentioned, it is important that citizens share a strong sense of identity and belonging to Singapore. We also agree with Prof Fatimah Lateef that it matters how we select new citizens. To this end, we conduct regular reviews of our immigration framework. We remain highly selective in granting permanent residencies and citizenships. In all cases, we consider the applicants' age, family profile, economic contributions, as well as their ability to integrate, among other factors. We look for markers of rootedness and identification with Singapore's way of life, values and norms. Family ties and length of stay provide a strong indication of this. As a result, one in four adults granted citizenship in recent years have family ties with Singaporeans; three in five have lived in Singapore for at least 10 years; and the majority of our new citizens each year are in their younger and prime working ages.[+5 sentences] We will continue to maintain a careful balance in managing immigration. Mr Chairman, our third and equally important strategy in building a sustainable population is to enable Singaporeans to age with grace and purpose. The United Nations (UN) has described population ageing as one of the defining features of our time. In Asia, Japan was the first country to age rapidly. Singapore, together with South Korea, Hong Kong and Taiwan, is not far behind. Today, our life expectancy is the third highest in the world.[+6 sentences] Fortunately, more of these years are enjoyed in good health than before. Far from being resigned to this development, our approach is to help Singaporeans enjoy productive longevity, in many varied ways. It starts with being able to stay active, having the opportunity to work if seniors wish to, and strengthening support for retirement adequacy. Since the 1980s, we have been putting in place measures to prepare for an ageing society. CPF has been enhanced over the years. Besides home ownership, it now helps Singaporeans save for healthcare needs and receive payouts for life in their retirement. Beyond CPF Life, the Government also introduced the Community Health Assist Scheme (CHAS), Silver Support, MediShield Life and now, CareShield Life, to help families take better care of their seniors. For older Singaporeans who may have less in MediSave, we have provided the Pioneer and Merdeka Generation Packages with a focus on keeping quality healthcare affordable to seniors.[+10 sentences] This is in addition to regular top-ups to boost retirement savings. As the recent Parliamentary Motion on Ageing with Purpose affirmed, we should continue to improve our policies to support the changing profile of seniors. For example, more seniors wish to work longer. Our employment rate of those aged 55 to 64 is already among the highest in the world and still going up. In my capacity as Manpower Minister, I set up a Tripartite Workgroup on Older Workers. Later in the debate, I will provide an update on the Workgroup's deliberations that will address Mr Gan Thiam Poh's concerns about supporting senior employment. Within our communities, we are also updating the way we care for seniors, for example, through innovative, award-winning solutions like Kampung Admiralty. My colleagues at the Ministry of Health (MOH) will share more during their COS debate. With your permission, Mr Chairman, I would like to conclude in Mandarin. (In Mandarin): Mr Chairman, we will continue to strengthen our efforts to make Singapore a Great Place for Families. In the last five years, trends in marriages and citizen births are encouraging. There were on average 33,000 citizen births each year between 2014 and 2018. In the earlier five-year periods, the annual average was lower, at 31,400 from 2009 to 2013 and 32,000 from 2004 to 2008.[+8 sentences] Marriages are also on the rise. We have significantly strengthened support for marriage and parenthood in recent years, for example, in the areas of housing, child-raising costs, preschool, and managing their work and family responsibilities. Compared to even five years ago, young parents are much better supported. While the Government strengthens its support, we also need the whole of society to make Singapore a Great Place for Families. For example, employers and co-workers can help by accommodating parents’ needs for FWAs. Community organisations can also celebrate parenthood and build networks of support among peers. We will embark on a consultation process in the coming months to listen to the needs and concerns of Singaporeans over forming families. We hope that various stakeholders will continue giving feedback and join us in making Singapore a truly Great Place for Families.
The Chairman3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)143 words
Mr Chairman, the Smart Nation initiative was launched in late 2014 with the aim of applying digital and smart solutions to provide better services to our residents and businesses. Since its inception, the Smart Nation Initiative has gone on to embark on numerous pilot projects and trials, some of which, like contactless payment for public transport and TeleHealth, are starting to bear fruit.[+3 sentences] That said, some of these initiatives seem to have been started as standalone programmes, with Government agencies and Statutory Boards launching their own initiatives. Can the Prime Minister's Office elaborate more on the larger national narrative guiding the Smart Nation Initiative and how it has delivered tangible benefits to citizens and businesses? Also, are there intentions to embark on a public-private partnership to commercialise current initiatives so that more benefits can be delivered to end users by private sector players?
Ms Tin Pei Ling (MacPherson)232 words
[+7 sentences]People must be at the heart of our Smart Nation efforts. Solution should deal with only modern problems to make urban living easier for our people. These could include transportation, energy efficiency, public safety, public health, citizen engagement, privacy and cybersecurity. A Smart Nation needs to succeed. We need to solicit citizens' and businesses' buy-in. Benefits have to be real for them to believe in it. Hence, designing solutions to be citizen- or user-centric is imperative. In Estonia, the use of X-Road by its government offered much benefit to its citizens making life easier at every level and at engendering support for and trust towards its smart government. It is estimated that X-Road saves more than 820 years of working time for the state and its citizens annually.[+5 sentences] Secure digital identity (ID) also enables Estonians to complete transactions efficiently and securely. When a child is born, for example, the hospital enters the information in its database that is linked to the National Population Register. The information is shared automatically with various government systems that then ensure the child receives social benefits, such as healthcare and education. Given our aspirations and the experiences of other countries, how would the Government ensure that services are citizen-centric? While it is the Government's plan to make its services more data-driven and anticipatory, what more can citizens and businesses expect to benefit from our Smart Nation efforts?
Ms Sylvia Lim303 words
Digital Defence is now our sixth pillar of Total Defence, and all, including the Government, play a role in this.[+3 sentences] On 12 February this year, the Minister for Communications and Information told the House that GovTech is overall in charge of the security and safeguards systems for data and that Government Technology Agency (GovTech) is the agency that does many of the reviews, ensures the Government agencies are in compliance with the Instruction Manuals and other provisions. I would like to ask whether GovTech specifically oversees that citizens' personal data stored within public agencies is safeguarded from misuse, hacking or leak. For instance, does GovTech audit the data and privacy protection practices of public agencies? In view of the risks and breaches that had occurred, would the Government look into publishing an annual report on the cybersecurity readiness of public agencies to give some reassurance to citizens and to encourage the achievement of high standards?[+6 sentences] Next, while there are regulations to punish public officers who do not comply with confidentiality obligations, what is the position of the innocent persons whose data has been compromised? For instance, it was recently reported that a station inspector had illegally accessed the Police's computer system to screen the telephone records of a man he suspected of having an affair with his wife. In such a case, are there guidelines about whether the affected person should be told and within a certain timeframe? Such information is crucial for victims to protect themselves and to seek recourse in a timely manner. Finally, during the recent debate on the human immunodeficiency virus (HIV) registry leak, the Government told the House that a person whose data had been leaked, had the recourse of suing MOH. Besides commencing an expensive lawsuit against the Government, how else can an aggrieved person get compensation?
Mr Cedric Foo Chee Keng556 words
[+7 sentences]Mr Chairman, my cut is on our Smart Nation vision and programmes. Our Smart Nation vision is a good one. A digital Government will allow for an integrated and seamless Government, resulting in better policies and operations. A digital economy will increase productivity for businesses, will create new jobs and opportunities right into the future. A digital society will allow our people to enjoy greater conveniences, increased opportunities and a higher quality of life. Since the inception of the Smart Nation initiative in late 2014, good progress has been made in applying digital and smart solutions to provide better services for our citizens and businesses. Several good programmes that have been introduced should be applauded. The Moments of Life initiative is a good example – a one-stop application to help Singaporeans navigate the journey of welcoming a newborn and raise a young child. New parents can register the birth of their newborn and apply for Baby Bonus incentives at one go, through a single application.[+2 sentences] For preschoolers, parents can search for preschools, retrieve and view medical data of their child on the Moments of Life application. For many parents entering the exciting and busy journey of parenthood, the conveniences of a one-stop application versus a need to navigate various agencies and websites provide a real and tangible benefit. Another good programme is the launch of MyInfo Business, which allows SMEs to interact and access 129 Government e-services and 143 private sector e-services.[+14 sentences] However, these initiatives are but a small step towards our Smart Nation goals. The technology curve has moved very rapidly and what was not possible is now possible. I would like to ask the Minister to provide an update on the programmes that we are implementing over the next few years so as to allow us to achieve our Smart Nation vision. Chairman, my next cut is on preparing for the future. Despite lacking in traditional factors of production like land, labour and capital, Singapore was able to beat the odds in our transformation from a Third-World country to a First-World country today. Our success can be attributed to strong and honest leadership, a tolerant multiracial society and a culture of self-reliance and mutual support. Today, we face a fresh set of challenges – an ageing society, sharper infrastructure and manpower constraints, just to name a few. Amidst a global digital revolution, Singapore has to accelerate the transformation of our society and economy in order to remain competitive or risk being left behind. There are many benefits to a digital economy. Higher productivity, better quality of life, better jobs, reduced business operating costs and the list goes on. Because of the significant benefits to citizens and businesses, other cities and nations around the world are also embarking on similar digitalisation efforts. Let me give just one example. In October 2018, Emirates launched trials of the world's first biometric pathways at Dubai International Airport. This allows the use of biometric technology through Smart immigration tunnels, with passengers walking through immigration without a need to stop at a counter. Through adoption of these technologies, the United Arab Emirates has plans to gradually phase out airport immigration officers by 2020.[+1 sentence] As other countries embark on similar digitalisation efforts, what is the Government doing on the Smart Nation front to ensure that we remain relevant and globally competitive?
The Chairman11 words
[+2 sentences]Mr Teo Ser Luck. You can take your two cuts together.
Mr Teo Ser Luck (Pasir Ris-Punggol)283 words
[+2 sentences]We have shared our vision to become a Smart Nation and there have been announcements and programmes implemented. And through Smart Nation, there are many opportunities we can help to liven all the startups and also local businesses. There is a high expectation for a Smart Nation project to bring to businesses efficiency, effectiveness as well as business opportunities, especially in the tech business community. However, instead of a growing interest thus far, there seems to be a lesser anticipation and excitement now about the projects and many have seen that the opportunities that they anticipated were not coming through.[+10 sentences] So, may I know whether the Ministry or the Prime Minister's Office (PMO) could update on what is the impact on the businesses so far in terms of opportunities as well as in doing business within the Smart Nation project? There are many projects that the private sector has embarked on, especially the tech businesses. We should be able to tap on these startups or companies that develop these technologies, and especially when they have developed advanced state-of-the-art developments in AI, machine learning or automation. GovTech does not need to set up another group or another committee to redevelop or reinvent the wheel. It could partner these companies to go into a trial and test process. And many of these technologies have been tested by the market. Do consider them before setting up another major project within GovTech or within the Government. Work with these companies out there. They can offer good help and better help. Could PMO update the business community what are the initiatives available through the Smart Nation project and what are the opportunities that will be available in future.
The Chairman9 words
[+2 sentences]Mr Ong Teng Koon; not here. Mr Vikram Nair.
Mr Vikram Nair93 words
[+6 sentences]Mr Chairman, the Singapore Government is leading the way in making Singapore a Smart Nation. GovTech is ensuring that more and more Government services are available online and are easy to use online. This is commendable. However, a Smart Nation may be led by a smart Government, but it will also need a "smart" private sector to take full advantage of the progress. In this respect, how is the Government involving the private sector and the tech community in this Smart Nation drive? What new initiatives can we expect in the coming year?
Ms Rahayu Mahzam191 words
[+3 sentences]The Smart Nation effort is a commendable one. It is necessary to keep up with the changing global developments and ensure that our citizens can benefit from updated technology, so that we can all enjoy a better quality of life. Smart technology can also be used to make society more inclusive. For example, the Land Transport Authority (LTA) is now trialing a new mobile app that makes it easier for people with special needs to travel.[+2 sentences] Still, some have expressed concern that we may be changing too fast and that there are vulnerable groups in our community who may not be able to keep up with the change. Some are concerned that the elderly may not be digitally savvy and will have difficulties adjusting to the changes. Others are concerned that low-income families may have limited access to new devices or even the Internet. We need to ensure that these groups are not left out and can, in fact, benefit from the Smart Nation initiatives. Could the Ministry give an update on the efforts taken so far and elaborate on how the Smart Nation can benefit the vulnerable groups mentioned above?
The Chairman3 words
[+1 sentence]Minister Vivian Balakrishnan.
The Minister for Foreign Affairs (Dr Vivian Balakrishnan)157 words
Mr Chairman, on behalf of the prime geek in Government, Prime Minister Lee Hsien Loong. We have made significant strides in our use of the latest digital technologies, first, to generate new jobs; second, to reskill our workers for these new jobs; third, to restructure our economy in order to sharpen our competitiveness; fourth, to improve the quality of life on a daily basis; and, fifth, of course, to enhance the integrated delivery of Government services on a citizen-centric level.[+2 sentences] I want to thank Mr Cedric Foo, Ms Tin Pei Ling, Mr Vikram Nair who have quite rightly emphasised that what matters is not technology for its own sake, but people, that is, what we do with the technology and how it benefits us in our daily lives. With your permission, Mr Chairman, may I display an infographic to show our Smart Nation projects and their milestones, and also request that the Clerks to distribute the printout.
The Chairman10 words
[+1 sentence]Please do so.
Dr Vivian Balakrishnan2508 words
[+3 sentences]Thank you. First, we have focused on increasing convenience in our daily lives. The MyInfo project allows you to open a bank account or apply for credit cards online and get approval almost instantly through carefully secured shared data. SingPass Mobile is an app that allows citizens to log in to Government services using biometric authentication instead of passwords. I am glad to report that 200,000 people have used the system since we launched it four months ago.[+2 sentences] PayNow has seen 2.3 million registrations. And, in fact, a lesser known fact that those of you who have linked your National Registration Identity Card (NRIC) number to PayNow can receive your SG Bonus, Edusave awards and, even more pertinent politically, can even receive your CPF lump-sum payments quickly, almost instantly, instead of waiting for cheques to arrive in the mail. The Moments of Life app helps parents manage their child's early years. So far, 2,000 births have been electronically registered through a single auto-filled form.[+13 sentences] I forgot to check whether Ms Tin Pei Ling used the app. Not yet. For the next one, then. This is part of the service delivery approach that Minister Chan Chun Sing described just now. After my appeal and Mrs Josephine Teo's appeal, Ms Tin Pei Ling should have the next one. Together, we believe that these improvements will allow all of us to save time, reduce transaction costs and increase efficiency. Second, Smart Nation has also tried to facilitate a safer living environment. We are trialing a new Personal Alert Button for the elderly to call for help, especially after a fall, when they may be immobilised. This was brought home to me even more starkly recently when Minister Khaw Boon Wan described when he had his fall and he fractured his arm and the intense agony that immobilised him. And as you would have seen in his Facebook post yesterday, this is not unique to him. Many elderly people have faced emergencies at home alone, immobilised and they need to call for help. So, this is one example in trying to make a difference at a direct personal level. Another example, drowning detection systems have helped our lifeguards keep community swimming pools safer. The National Environment Agency (NEA) has installed 50,000 Smart Gravitraps to help monitor and destroy breeding sites for dengue-spreading Aedes mosquitoes. The MyResponder app has helped to save the lives of at least 13 heart attack victims so far.[+11 sentences] But more important than the apps and the technology is the fact that this is an example where technology has enabled us to express our mutual care for one another. Third, our initiatives have helped made it easier to do business. We are continuing to provide more choice and better interoperability in e-payments. Last year, the Smart Nation and Digital Government Group (SNDGG), the Monetary Authority of Singapore (MAS) and the Infocomm Media Development Authority (IMDA) together launched the common Singapore Quick Response Code (SGQR) standard, and the Network for Electronic Transfers (NETS) has rolled out 50,000 Unified Point-of-Sales terminals across the country. These initiatives have helped merchants to offer greater convenience for consumers and reduced cash usage. In Smart Nation, we must always be data-driven. So, I asked and I have been informed that e-payment values have increased to more than three times that of automated teller machine (ATM) cash withdrawals. So, we are moving in the right direction. NETS was also appointed to unify the e-payment landscape at hawker centres and coffee shops. This will allow the consolidation of different e-payment methods and, more importantly, faster settlement for hawkers. So, they receive their money the next day. More than 80,000 businesses have registered for PayNow Corporate since its launch last August.[+17 sentences] Like individuals, businesses can now send and receive payments instantly. The PayNow initiative has contributed to cheque usage falling to 20% of inter-bank transfer volumes. Again, making progress in the right direction. MyInfo Business allows up to 220,000 SMEs to open bank accounts and apply for loans easily and quickly. IRAS has piloted direct submission of Goods and Services Tax (GST) returns from businesses’ accounting software, enabled by National Digital Identity (APIs), and will look to extend this to all GST-registered businesses. The Networked Trade Platform has reduced application time for trade permits. It used to take several days, now it takes one hour. This reduces the burden of administrative processes and enables our entrepreneurs to focus on growing their businesses instead of navigating red tape. Mr Teo Ser Luck and Mr Vikram Nair asked about our upcoming initiatives. We will continue to make our digital services more accessible, more integrated. We will enhance the SingPass Mobile so that it can be used for secure logins to selected private sector applications as well. Security will, of course, remain our central preoccupation. Senior Minister of State Janil Puthucheary will address Ms Sylvia Lim's question on security, because without security at the core of our Smart Nation, many of these initiatives will be at risk. We will expand the slew of services under Moments of Life to help citizens deal with all the significant turning points in our life, birth, school, marriage, even including end-of-life matters. And we will empower seniors to lead more active lives. MOH will share more of this in their session. We will continue to enhance convenience in daily life. Parking.SG is already used by over 60% of car owners, and we want to make it even easier not just to pay for parking but to find their parking lots. This year, GovTech, the Urban Redevelopment Authority (URA) and the Municipal Services Office (MSO) will be trialing the installation of smart sensors so that we can provide real-time availability of kerbside parking lots to people who are looking for a lot.[+3 sentences] HDB is looking to create smarter towns so that we can optimise land, infrastructure and utilities, and allow people to engage and form communities using these digital tools. This will make our heartlands more liveable, efficient, sustainable and safe. Businesses can look forward to more digital tools to increase connectivity both within Singapore and beyond our borders. IMDA's new national e-invoicing standard will speed up corporate invoicing and payments.[+2 sentences] And those of you in business will know that the velocity of cash flow is crucial in business. We are streamlining Government transactions. The Minister for Finance mentioned a pilot portal to help up to 18,000 food service companies cut red tape in their licence applications.[+9 sentences] Anyone who has tried to open a restaurant would have known it takes many applications. We will try to streamline all these in the process, remove duplicate applications, reduce red tape and to give approvals faster. We hope to expand this effort to other industries in future. Our goal is to integrate all these services to help firms unlock new ways of connecting with consumers and other businesses and transacting with the Government. SNDGG is not doing this on our own. We are not a Ministry but we view ourselves as a shared platform for the whole of Government. The Digital Government Blueprint calls for the Government to be digital to the core by 2023. Many agencies have, therefore, implemented or are in the process of implementing new digital initiatives in order for us to achieve this. Let me give Members another example. MOH launched Healthy 365, which has kept 1.7 million users active over the past four years.[+28 sentences] Many people have told me that they enjoy the National Steps Challenge and I am especially intrigued to see so many non-techy people wearing activity trackers. It is not just because the Health Promotion Board (HPB) is giving it away free, but the combination of community and activity and, of course, the usual Singapore pursuit of health points and discounts helps. But the point is that we have used technology to make a difference and to improve health on a daily basis. MCCY recently launched a central volunteer management system to deepen volunteer engagement and recruitment. Six public agencies now use volunteer.sg to manage over 20,000 active volunteers. MCCY will share more during their session. I have described a whole slew of existing and upcoming benefits to citizens from the Smart Nation. But I also agree with Ms Tin Pei Ling that we must continue to our citizen-centric focused and delivering services in an integrated way. In the coming years, with the data generated from our expanding digital infrastructure, we can expect the services to become more personalised, more tailor-made to the individual needs of citizens and be more responsive. When people shop online, when people engage online, especially with the private sector, expectations are raised and they expect the Government to also be able to respond in such a personalised, responsive manner. One way which we are going to do this is also to make better use of AI which, we believe, will greatly improve our lives and our economy. Let me spend some time then to share with Members what we are doing in this AI space. AI and, in particular, deep machine learning, have revolutionised the scene in recent years. AI has already begun to make an impact in our daily lives. If we just stop to think about it, the voice assistants in our handphone, the language translations, the global positioning system (GPS) optimisation, the credit card fraud alerts, all these have benefited from advances in AI just within the last two years. I have mentioned just now that the Government has been using AI for drowning detection in our swimming pools. We have also used it for SkillsFuture's fraud detection, and for local speech recognition. In fact, AI speech recognition has been used to augment the transcription of COS speeches this year. So, it should make it more accurate. And even if you point out mistakes, you will help us improve the system. Mr Cedric Foo asked how Smart Nation will keep us relevant. AI, data analytics, robotics and automation are crucial ingredients for us to restructure of our economy. We need to achieve a quantum leap in productivity by creating new engines of growth. The Government needs to upgrade our technology stack so that we can be more responsive to citizens’ needs and to the demands of an increasingly competitive marketplace. We believe that Singapore has a good foundation for AI, through a multi-agency effort from SNDGG, the Ministry of Communications and Information (MCI) and our economic agencies. The National Research Foundation (NRF) set up AI Singapore to bring all relevant research institutions and AI startups together. GovTech will set up a centre of excellence in data science and AI to help other agencies deploy these AI solutions and technologies. Finally, MCI is developing guidelines to encourage responsible and safe use of AI, such as the Model AI Governance Framework which Minister Iswaran announced recently. We need to double down on these efforts. This year, an interagency taskforce will study how Singapore will develop AI as a strategic capability and become a trusted global hub for test-bedding, for deploying and scaling up AI solutions, especially in the context of a highly urbanised city like ours.[+13 sentences] For citizens, this means new and better services, whether from the Government or private sector. The possibilities are promising. McKinsey has identified 160 use cases where AI can be used for social good. For example, AI can "recommend content to students based on past successes and engagement with the material" and "detect student distress early". Basically, what it means is that we talk about streams and subject banding. All that is still relevant. But to really be able to customise that educational journey for that individual, sometimes maybe even to gamify it, will provide a more helpful educational experience for our students. We also foresee AI optimising urban scenarios, for instance, in optimising our traffic light networks and to predictively maintain public infrastructure. In other words, make sure things do not break down or to identify potential problems, before they lead to a breakdown. We foresee AI applications in finance, in logistics and cybersecurity. In fact, there are already many local companies in these and other domains. This is to answer Mr Teo Ser Luck. We hope to co-create with these companies the development of these new AI solutions. To scale up AI development, we are looking to democratise access to data and AI tools so that everyone can learn and experiment with AI solutions.[+2 sentences] We want to support SMEs to adopt AI and to work with the Government on relevant use cases. We will expand Government and private sector collaboration. One example is AI Singapore's 100 Experiments programme for companies to solve their own real-world business problems, together with AI experts.[+2 sentences] This programme will also bring AI apprentices to co-train with industry. So, in other words, we are linking businesses to main experts and people who want to learn and enter this industry. Lastly, we will build up local know-how in AI, and we will equip everyone to benefit from AI capabilities. This means teaching computational thinking and data literacy in schools, and training adults in data science and AI skills.[+6 sentences] Before that sounds too scary, I want to say that we do not expect everyone to become an AI expert. But think of AI in the future in the same way which you think of word processing today. It is a general-purpose technology, and we want our workforce to be able to use AI tools to participate meaningfully in the future AI-driven economy to secure good jobs, improve productivity and raise wages. So, let me conclude by restating the obvious. Smart Nation is ultimately about improving lives and livelihoods. We have done reasonably well so far. Singapore won the City Award at the 2018 World Smart City Awards in Barcelona, which testifies to the concrete benefits that Smart Nation brings to Singaporeans and the recognition which we have from the rest of the world.[+1 sentence] Still, we cannot be complacent because the pace of technological change is so unrelentingly quick. The Government will continue supporting our local firms in this mercurial environment through initiatives, such as Scale-Up SG, the Enterprise Financing Scheme and SMEs Go Digital, which Members have heard about from Minister Heng Swee Keat in the Budget speech.[+5 sentences] And I share Ms Rahayu Mahzam's concerns on digital readiness and inclusion, and Senior Minister of State Janil Puthucheary will elaborate on the special inclusion initiatives that we will embark on to make sure no citizen is left behind. But these challenges and all these disruptions also bring many opportunities for Singapore, especially a city-state with hardworking, disciplined, highly educated people. We have disproportionate opportunities in such a world. We call on citizens and businesses to journey with us, to fully exploit our comparative advantage, take advantage of the resources and the infrastructure that we have put in place, and to co-create solutions for the future. If we do this, Mr Chairman, we can all reap the benefits of our Smart Nation for years and decades to come.
The Chairman6 words
[+1 sentence]Senior Minister of State Janil Puthucheary.
The Senior Minister of State for Communications and Information and Transport (Dr Janil Puthucheary)2064 words
[+7 sentences]Mr Chairman, if I may follow on from Minister Vivian Balakrishnan's rallying cry for all of us to become involved in Singapore's Smart Nation ambition. The Government cannot make this happen alone, cannot make this happen through force of will, by wishing it, by making speeches. We need the ideas and capabilities of our people and our businesses. As a nation, everyone needs to be part of our Smart Nation journey. We do not have a monopoly on the best ideas and talent. We will need to create opportunities for citizens, community partners and businesses to contribute meaningfully to Smart Nation. Members Mr Teo Ser Luck and Mr Vikram Nair have asked about partnerships between the Government, businesses and the tech community. One of the ways we are facilitating greater participation from businesses is through building something we call CODEX which stands for Core Operations, Development Environment and Exchange, which is a shared digital backbone, part of which is the Singapore Government Tech Stack.[+13 sentences] This can be used to build applications and digital services. CODEX will be modular, interoperable and will, in future, allow an interface to parties outside the Government. As part of CODEX, we are working with public agencies to shift their ICT systems towards the commercial cloud. So, Government, systems, public agency systems on the commercial cloud, and this will allow us to benefit from leading edge private sector capabilities to build products and services better for our citizens. We are also actively involving the tech community. One example is a mobile application called “Kill The Queue”, which allows shoppers to save time by scanning and paying for items through their mobile phones as they shop. The app was conceptualised by a team of GovTech engineers. They then partnered students from Temasek Polytechnic to build a prototype, as part of the students' final year project. This partnership also allows students to improve their skills through solving real-world challenges. So, partnerships through businesses by looking at how Government build platforms and products can be interoperable and can create opportunities for businesses to interface with ideas that we can seed out into the students and the academic community so that they can run with and try to develop real-world solutions. Members may have heard of "Developers Conferences" or DevCons. These are usually organised by tech companies, such as Apple, Google or Facebook, and they are done to engage engineers and the tech business communities to leverage upon the product or the platform owned by that company. So, we might have an Apple on iPhone operating system (iOS) Developers Conference, for example, or Facebook Developers Conference, where the time is given for software developers and businesses to think how they can utilise that product better for their own business purposes and how their feedback then improves the product of the person running the Developers Conference. To facilitate greater collaboration with the community, and to look ahead to how the private sector can build products that layer onto or interface with our Smart Nation platforms, we organised our first ever Developers Conference, GovTech STACK DevCon 2018.[+1 sentence] I have yet to comprehensively verify this. So, a bit of a caveat that I have not received evidence to the contrary, but I believe so far, this is the first and only Government-driven Developer's Conference. And this event attracted over 1,200 attendees from the private sector, the Government, public sector and tech community.[+5 sentences] Separately, we also support hackathons. Members may have heard about hackathons. So, what is the difference between a Developers Conference and a hackathon? A Developers Conference, the person organising it has a product, has a solution, has a platform and wants to ask the community how to do things better using this product, how to make the product better for you. In a hackathon, the participants are generating ideas to solve the problems that they are concerned about and the Government also supports this. This provides platforms for the tech community to come together, learn from one another, ideate and build products. We support the hackathons, such as the Startup Weekend Singapore Mega 2018 and the "Smart City Challenge", which was jointly organised by DBS, GovTech and the Singapore University of Technology and Design (SUTD).[+6 sentences] We are extending our outreach efforts beyond the tech community because we need a Smart Nation which benefits all citizens from all walks of life. We are actively engaging citizens on Smart Nation initiatives through a project called Smart Nation Co-Creating with our People Everywhere (SCOPE). SCOPE is a platform for us to bring out early prototypes of our digital products or ideas to citizens. So, one example that Minister Vivian Balakrishnan quoted was the alert button. Very earlier on in its design phase and its conceptualisation phase, just as soon as we have something physical, we encourage participants to play with these products, to try them out, to test them and their feedback then is used to improve our product development process. This is something very common in the private sector. But now we are starting to use these techniques in developing our public sector's Smart Nation solutions. We have had a series of engagements over four months, at Senior Activity Centres, grassroots events and National Trades Union Congress (NTUC) events, reaching in this way to over 3,500 citizens.[+2 sentences] We have collected many useful insights and suggestions. One example of these insights is how receptive seniors are to active ageing services within the Moments of Life application. On our preliminary findings, the majority of seniors aged 60 and above have smartphones, and are open to the idea of using digital services.[+3 sentences] They also gave feedback about how to design the application in an easy-to-use manner, and how to provide support and coaching to seniors so that they can use these apps and benefit from these services. All of this will help us to develop and deliver a better product, better services and better experience. We will continue to scale up these efforts. To enable more Singaporeans from different walks of life to contribute to Smart Nation, we will be signing a memorandum of understanding with NTUC to further engage workers and their families to help them make the most of new jobs and opportunities. I agree with Mdm Rahayu Mahzam that even as we move ahead in building Smart Nation, we need to ensure that this Smart Nation includes and benefits all Singaporeans. We are committed to Digital Inclusion and Digital Readiness, so that everyone is able to access the opportunities that technology creates.[+2 sentences] I will speak more about these broader Digital Readiness efforts in the MCI COS. But SNDGG will play our part by ensuring that the Government's digital services are designed to benefit all. As part of these efforts by the Government to improve the useability of our websites, we have developed a set of Digital Service Standards (DSS) for Government agencies.[+6 sentences] For example, HDB's website MyNiceHome is a portal that provides first-time home owners with useful information about buying and renovating a flat and this has been completely redesigned. The site was made mobile-responsive, different forms of search and assistance had been added, and the content had been made accessible to people with disabilities. And as a result, the site traffic has increased significantly. Ms Sylvia Lim has asked about data protection within the public sector. The Government should, indeed, be held to high standards for the protection of the data it collects. In SNDGG, our role is not just about delivering good products, but also in setting and maintaining high standards of data protection for the public sector. The Government has progressively enhanced security measures to safeguard sensitive data. We introduced the Internet Surfing Separation policy in 2016 and the disabling of Universal Serial Bus (USB) ports from being accessed by unauthorised devices in 2017.[+24 sentences] We have also increased the number and types of internal IT audits to check on agencies’ data access and data protection measures. As a matter of practice, agencies will use identifiable data only when necessary, such as for providing personalised services. We will continuously review our standards and measures and incorporate lessons learnt and industry best practices. For example, we will be progressively automating user account management to ensure tight and robust access control. Where citizens suspect that their data have been misused or hacked, they can lodge a complaint with the agency and, if there is any suspicion of a crime, they can make a report to the Police. They can contact GovTech directly. We have guidelines for the handling of data and protocols that should be in place. Complaints will be thoroughly investigated and appropriate action taken. On top of that, there are other issues and consequences as a result of that, and we would like to discuss the ways we can help and support them. To build our Smart Nation platforms and products, to engage the tech community and businesses, to develop and enforce rigorous standards across the public sector, and to create jobs and opportunities for Singaporeans, we will need to build up a strong core of engineering skills. We have been searching for engineering talent to join us. We are looking for people with bright minds, an eye for computational design and the drive to contribute to society. There are exciting opportunities for engineers in the Government. And I would like to cite a particular example, Ms Laura Lee. Members may or may not be familiar with Ms Lee's first employer King.com which is a software developer. I suspect some Members may be more familiar with one of their products which is Candy Crush. While Ms Lee was working at King.com, helping Candy Crush to become one of the bestselling games of all time, she read about how data was used by GovTech engineers to resolve the spate of mysterious disruptions to the Circle Line in 2016. So, reading about that effort by our data scientists to solve these real-world problems, Ms Lee was inspired to come back home to Singapore and join us. And now she is currently a Data Scientist with GovTech working to improve the Government’s digital services, such as transport route planning and jobs matching. Like many of our engineers, she also pursues other projects as part of her personal professional development within the team. Currently, she is part of a team that is trying to find ways to use technology, machine learning and our Smart Nation platforms to encourage more recycling. This is something that she initiated as part of a hackathon she participated in, using her skills to pursue something that matters to her. Ms Lee did not graduate with a computer science degree. Her training was in Mathematics, Economics and Statistics. While at university, in order to pursue one of the courses that she had, she had to learn R which is a programming language focused on Statistics and her ability to use R to solve the problems and apply those solutions to what she was working on sparked her interest in coding and data science. So, today, she is familiar with a variety of coding languages – Python, CSS, Javascript and HTML – and all of these she picked up after starting work. Recently, she had developed a full-stack web application as part of an internal hackathon project. And the point I want to make with this: what Ms Lee’s story demonstrates, and there are many others like her, the experience that they have, this demonstrates that the opportunities that are created in Smart Nation are not just for a handful of people, not just for a few.[+2 sentences] We are hoping to make them as widespread as possible, including the jobs that are created. It is not just for those students who are currently pursuing a Computer Science course or participating in Robotics as a co-curricular activity (CCA). Ms Lee's CCAs, by the way, were hockey and Student Council. It is not necessary to have picked up all the programming skills before leaving school.[+1 sentence] What is important is to have the drive, curiosity and willingness to pick up new skills throughout our lives. Smart Nation is a national effort, and we in the Smart Nation and Digital Government Group will do our part to work closely with citizens and businesses to create jobs, opportunities and a sense of transformation and optimism for the next generation of Singaporeans.
The Chairman3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)359 words
[+12 sentences]Sir, in 2015, Workers' Party Non-Constituency Member of Parliament Yee Jenn Jong noted that the completeness of the Electoral Boundaries Review Committee (EBRC) report had been shrinking over the years and asked for the meeting minutes of the Committee's report to be released. In response, the Prime Minister replied that on the completeness of the report and the minutes, "I leave that to the Committee". Even though the Prime Minister said that he was not in favour of publishing every twist and turn that would be reflected in the minutes, the Prime Minister was noncommittal on the prospect of a more complete report. It would appear that this can change should the Government decide to do so since the EBRC's Terms of Reference are determined by the Prime Minister himself. I hope we can move from the circular nature of these justifications and provide a report for the public that details why specific precincts in Group Representation Constituencies (GRCs) and Single Member Constituencies (SMCs) are moved or swapped for each and every constituency in future. In addition, why does the Government not announce the formation of the EBRC as a matter of practice? It would be a waste of Parliament's time and even bordering on an abuse of process if a Member of Parliament had to file the same Parliamentary Question to the Prime Minister when rumours of an imminent election are in the air. In making the point, can I enquire if the EBRC has been formed? In 2013, Deputy Prime Minister Teo Chee Hean stated that the Prime Minister will certainly remain open to and consider making refinements to its procedures when necessary. I hope these suggestions on greater detail in the Committee’s report and announcing when the Committee is formed will be taken on board. Finally, it was announced that the Elections Department will conduct roadshows to educate voters on changes to the Parliamentary elections system, specifically, the electronic registration for voters. Can the Prime Minister update the House on this matter and the number of roadshows that will be organised for this purpose, where and when they will be held in the months to come?
The Chairman4 words
[+1 sentence]Minister Chan Chun Sing.
Mr Chan Chun Sing257 words
Mr Chairman, on behalf of the Prime Minister. It has been the practice for the Prime Minister to appoint an EBRC to review the number, names and boundaries of electoral divisions ahead of a General Election.[+1 sentence] The Committee is made up of senior civil servants who are knowledgeable in demographic shifts and population statistics. The review report is presented as a White Paper to Parliament and released to the public once it is accepted by the Government.[+1 sentence] In drawing up its recommendations, the Committee is guided by the terms of reference laid out by the Prime Minister. The Committee independently considers and determines how the constituencies are delineated, the size and configuration of the constituencies, as well as the total number of Members of Parliament to be returned.[+3 sentences] When reviewing the electoral boundaries, the Committee takes into account technical factors, such as population growth and shifts and other relevant parameters. As a matter of practice, we should allow the Committee to focus on its work professionally, away from unnecessary media attention or public pressures. As with past elections, there will be sufficient time, from when the Committee’s review report is made public to the time of the election, for candidates and political parties to make their preparations. On Mr Pritam Singh's second question as to whether the EBRC has been formed yet, the answer is no.[+1 sentence] And for the number of roadshows, we have done that in preparation for the last Presidential Election and will continue to do that as we move towards the next General Election.
The Chairman4 words
[+1 sentence]Assoc Prof Daniel Goh.
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)245 words
[+1 sentence]Mr Chairman, MAS recently announced a $75 million plan to boost equities research and equity listings. The Grant for Equity Market Singapore (GEMS) will co-fund listing costs of companies and the salaries of equity research hires by 50% to 70%.[+10 sentences] Critics have argued that this is throwing money at the problem without addressing the fundamental issues of stock market malaise. For small to mid-size caps, the main problem seems to be the lack of expertise and experience on corporate governance. Even before we can talk about investor excitement, we should address the confidence of retail investors in small and mid-caps. There is often excitement in initial listings, many times encouraged by enthusiastic analyst coverage, but this excitement very easily gives way to collapsing stock prices due to corporate governance issues. Recent examples include e-commerce startup Y Ventures and food and beverage (F&B) company Kimly. These have affected retail investor confidence. The restructuring of Noble Group, which has not been allowed to relist, and the current restructuring of Hyflux to save it from liquidation, have further affected confidence. For both Noble and Hyflux, analyst reports have had little impact in educating retail investors about their cash flow problems. Shareholder activism and academic scrutiny have done more to highlight potential issues, but often too late for retail investors. Would not the Grant for Equity Market Singapore (GEMS) do better to fund programmes to advise small and mid-caps on corporate governance and improve their performance in this aspect?
Mr Dennis Tan Lip Fong (Non-Constituency Member)489 words
[+3 sentences]Mr Chairman, last year, the Keppel Offshore and Marine corruption case was discussed in this House. Many people have wondered how sizeable bribe payments were made without oversight from the highest level of management or its Board. Like the Swiber case, we are still waiting for the outcome of the Keppel case. The ongoing problems plaguing Hyflux that have since surfaced remind us that corporate governance issues remain complex and entrenched, with potential market-wide implications.[+4 sentences] This, in turn, can affect shareholder value and investor confidence. The repercussions of such problems affect many small-scale retail investors. Sixty-year-old Mrs Goh shared with Channel NewsAsia her worries of not being able to recoup her investment in Hyflux. Such worries are not unfounded as recent announcements by Hyflux have indicated that investors like her will have to suffer losses on their investments if a proposed restructuring plan proceeds. In many other cases, it is often the minority investors that lack protection and do not get any help from the regulators or the law when majority shareholders and directors make use of loopholes in regulations to effect transactions at the expense of minority shareholders.[+1 sentence] Another worry arising from such corporate malfeasance is the impact such incidents can have on the companies' reputation and, by extension, on Singapore’s. Some international commentators have made unflattering remarks on the robustness of Singapore’s regulatory regime and enforcement. I note that MAS has set up a Corporate Governance Advisory Committee (CGAC) as part of the recommendations by the Corporate Governance Council, itself set up in 2018 to review the Code of Corporate Governance.[+9 sentences] Despite such efforts, it may be time for us to acknowledge that self-regulation and internally-driven processes on corporate governance cannot be relied upon solely. The present oversight processes and regime are surely not adequate. In some of these cases, the problems reported seemed to have escaped the attention of their auditors or the problems have not been commented upon by their auditors. In cases where the executive management of a company or its board is aware of serious malfeasance or malpractices or is not aware of such malfeasance but ought to be aware, the buck should never stop anywhere below executive management and its Board. Regulators should be more proactive in taking errant or neglectful directors to account when they fail in their duties and obligations. Can Singapore Exchange Regulation (SGX RegCo) or the Accounting and Corporate Regulatory Authority (ACRA) not do more? The Government should do more to improve the corporate governance regime of our companies. I would like to propose that an independent task force be convened to evaluate the need for a Government agency to provide oversight on corporate governance standards and to improve audit quality. Such a review is timely and necessary to ensure that safeguards are in place to protect shareholder value and to ensure that the reputation of Singapore companies is not adversely affected by those who have fallen short.
Ms Anthea Ong258 words
[+5 sentences]Mr Chairman, I am heartened that Budget 2019 acknowledges climate change as a strategic challenge for Singapore. The financial sector’s role in allocating capital for a climate-safe future across generations is a significant one that we must include in our strategic plan for climate change action. As a leading financial hub, Singapore’s banking and asset management industry must rise to this challenge. How we lend is a reflection of our values and principles. For example, civil society recently called out our banks for continuing to fund coal-fired power. As of September 2018, 17 banks have committed to stop financing coal-fired power.[+2 sentences] The Governor of the Bank of England is reported to be open to increased regulatory requirements for "brown" investments. What regulatory and supervisory mechanisms are being developed so that banks in Singapore will: (a) actively implement existing green standards, like the Association of Banks in Singapore's (ABS’) Haze Diagnostic Kit, into their lending policy frameworks; and (b) proactively work with civil society and experts to identify other critical industries, like energy, where green standards should be developed and implemented? Our asset management industry currently manages US$2.4 trillion.[+3 sentences] Can we allocate funds to support our asset management industry to develop stronger stewardship principles and use the tools available in the market to help us safeguard our future, one that is climate-safe? For example, the Government Pension Investment Fund of Japan allocates close to 10% of its investments into funds using sustainability indices. Two pension funds in Korea have gone even further and stepped away from future coal investments.
The Chairman4 words
[+1 sentence]Minister Ong Ye Kung.
The Minister for Education (Mr Ong Ye Kung)1048 words
[+2 sentences]Mr Chairman, let me first start by addressing Assoc Prof Daniel Goh's question on GEMS. Let me first explain. GEMS, as a scheme, is funded by the Financial Sector Development Fund (FSDF) which was set up in 1999 following the demutualisation and listing of the Singapore Stock Exchange (SGX).[+9 sentences] So, it is not funded from taxpayers' money. The scheme was then designed in response to feedback from the industry that a vibrant equity market requires not only new listings but also sustained investor interest post-listing. So, it is really a fund started from the industry to address feedback from the industry and you design GEMS. And the primary aim is to strengthen public financing channels for growth enterprises, in particular, SMEs. So, GEMS does so, as Assoc Prof Goh mentioned, by defraying listing-related expenses and promoting better research coverage of the sectors they are in, as well as their business models. There are certain sectors that we can do better in attracting listings; high growth sectors being one example. And GEMS is designed to promote those sectors. There are also gaps in investment coverage for small and mid-cap listed enterprises and new business models. This is why the scheme comprises a listing grant and research-related grants to improve the equity research ecosystem. The quantum of listing grant has thus been also tiered to favour high growth areas, such as the technology sectors. Well-developed sectors, such as Real Estate Investment Trusts and Business Trusts, do not qualify for the grant.[+14 sentences] Applicants for the research grant are also required to provide coverage for small and mid-cap listed enterprises. It is a young scheme. I am sure different agencies will monitor the effectiveness, take in further feedback and inputs and try to improve the scheme over time in order to serve its objectives. Mr Dennis Tan asked about corporate governance and whether it should just be left as an internally driven process, and whether SGX RegCo, ACRA can do more. He called for an independent task force to review the corporate governance framework and a Government agency to provide oversight on corporate governance standards and improve audit quality. Actually, many of these features already exist within our current system. MAS, as the statutory regulator of Singapore's capital markets, and SGX, as the frontline securities market regulator, oversee the corporate governance standards of listed companies, set out in the Code of Corporate Governance. The SGX Listing Rules, in turn, require companies to disclose how the companies' practices conform to the principles in the Code. ACRA is responsible for upholding financial reporting and audit quality by inspecting the statutory audits performed by public accountants. As for an independent task force to review the corporate governance framework, as Mr Dennis Tan has alluded to, MAS has convened an industry-led Corporate Governance Council in 2017. That was an ad hoc Council. It had a list of recommendations. MAS accepted all the recommendations that the Council submitted last year in August. Consequently, changes were made to the Code and the SGX Listing Rules to implement the recommendations. In line with one of the key recommendations of the Council, MAS established now a permanent CGAC earlier this month.[+17 sentences] The CGAC comprises prominent industry leaders with stature and corporate experience to advocate good corporate governance practices. It will identify current and potential risks to the quality of corporate governance in Singapore and advise the regulators on corporate governance issues. High standards of corporate governance do help sustain good corporate performance for the long term. It ensures good systems and structures to evaluate investments, manage risks, safeguard all shareholders’ interests, conduct leadership succession and other key processes in the company. However, risks are inherent in investment. One of the key aims of regulation is to require that investors have access to up-to-date material information, such as a listed company’s financial condition and prospects, in order to make informed investment decisions. Investors, on their part, also need to pay close attention to what is disclosed, look beyond potential returns and assess if they can also accept the risks that come with specific investments. The regulators, namely, ACRA, MAS, SGX RegCo, will continue to calibrate rules and work with stakeholders, such as the new CGAC, to strengthen the corporate governance standards and practices in Singapore. At the same time, we will continue to educate the investing public on the tradeoffs between risks and returns, through the MoneySENSE programme. Lastly, Ms Anthea Ong asked about sustainable financing. MAS is committed to advance the agenda for sustainable finance. As a member of the Network for Greening the Financial System, MAS works closely with our international counterparts to develop best practices for financial institutions to manage climate risks and opportunities. Let me outline MAS' efforts in three key areas. First, our local banks have implemented policies aligned with the Guidelines on Responsible Financing issued by the Association of Banks in Singapore, to evaluate their borrowers’ environmental, social and governance (ESG) risks, and help borrowers improve their sustainability profiles. In this regard, the local banks have also committed to stop new financing of inefficient coal plants. MAS also expects insurers to consider environmental risks in their risk assessments and has introduced a climate scenario in our industry-wide stress tests. Second, the financial industry is promoting green financing, such as green bonds. Over $2 billion of green bonds have been issued to date, following the introduction of the MAS Green Bond Grant Scheme. Recently, the Scheme was expanded to cover social and sustainability bonds. Indeed, within the asset management sector, the large majority or 80% of sizeable asset managers in Singapore are signatories to the UN Principles for Responsible Investment, and take on board environmental, social and governance risks considerations in their investment processes. In MAS’ own investment portfolio, we have been actively working with our fund managers to ensure that ESG considerations are incorporated.[+1 sentence] Finally, to strengthen the region’s financial resilience to disaster risks and address protection gaps, the Southeast Asia Disaster Risk Insurance Facility will be set up in Singapore this year as the Association of Southeast Asian Nations' (ASEAN’s) first regional catastrophe risk pool. It will better cover emergency response costs in the aftermath of catastrophes. MAS will continue to work with key stakeholders in the financial industry to promote the sustainability agenda.
[+3 sentences]The question is for Minister Josephine Teo. The Minister has prepared a good discussion on all the different initiatives by the National Population and Talent Division. But I am just curious. What is the root cause of the fall in TFR over the last three years despite all these initiatives?
Mrs Josephine Teo685 words
[+22 sentences]Mr Chairman, I thank Mr Vikram Nair for his question. This is an important question. I could not help but overhear my colleagues' chuckle. In fact, I have been studying this for some years and perhaps, if Members allow, I could share my own reflection on this. When we think of births, we think of TFR. My observation and my reflection would be that there are really two key sets of driving forces. One key set of driving forces is longer term in nature. Births, when looked at from a longer-term perspective, really have to do with values and social norms. And these would include attitudes towards singlehood versus marriage, couplehood versus parenthood. And then within parenthood, the role played by fathers versus mothers. It would also include norms as to how many children is considered ideal in any society. And also how people prioritise parenthood versus other pursuits, such as career, caring for elders, service to the community and, very importantly of course, personal lifestyle interests. Parenting norms also matter a great deal, such as whether, like in the Scandinavian countries, it tends to be quite a relaxed attitude; or whether in an East Asian context, generally a very intensive form of parenting. These impact costs – how much people spend on children and, of course, as a result the perception of affordability. And then, as a result, for the parents, how many children they will eventually actually have because of how much they think they can afford. So, these are the longer-term driving forces, a whole set of forces at play. So, root causes. But in the shorter term, births can also be affected by other things. For example, economic uncertainty. So, if the job situation is not clear, people are anxious. Then, you could see that translates into a dip, as what Korea experienced in the last couple of years. And in fact, one of the "stars", if we could put it that way, of high births, Finland, often touted. In fact, since 2010, Finland has also seen a decline in the birth rates. So, before 2010, Finland's birth rate was around 1.9. By now, it has gone to below 1.5.[+17 sentences] And if we look at the TFR by rural areas versus city areas, actually it is quite across the board. In Finland's rural as well as city areas, births have declined. I think it has something to do with the sense of malaise and people feeling not confident. So, that is one type of short-term effects, if you could put it that way. There is also another factor in the short term how TFR could fluctuate. It is mathematical. Because TFR is a ratio, so it depends on what you have in the numerator and what you have in the denominator. So, I will not go too much into that. But I would say that these are short-term factors because when confidence returns, it is entirely possible that people who have put off parenthood in Finland could then decide that this is the time. Okay, we have been putting it off. And then you might see an uptick in their TFR. So, the long-term factors versus the shorter-term factors. What would be important for us is really not to be overly distracted by the year-to-year ups and downs in TFR. We pay attention to them, we look at them, and we ask ourselves why it is happening this way. But do not be overly focused on it. What we should really focus on would be the values and our societal norms, which many Members spoke about. It is important for us to firstly remember we have to strengthen the fundamentals. And the fundamentals are that you need to have economic vibrancy, you need to have societal cohesion.[+1 sentence] These are fundamentals. And then, on top of these fundamentals, we must do our utmost to support marriage and parenthood aspirations, meaning we have to try as best as we can to make marriage and parenthood achievable, enjoyable and celebrated.[+2 sentences] Those are the things we have to focus on. We should stay the course.
The Chairman3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan65 words
[+2 sentences]In one of my cuts on public sector transformation, I asked the Minister, in our drive towards upskilling and reskilling in the Public Service, whether the Public Service can partner the Labour Movement as well as the public sector unions in forming training committees to drive some of these training efforts that cross our Ministries and Statutory Boards. I wanted a response from Minister Chan.
Mr Chan Chun Sing256 words
[+2 sentences]Mr Chairman, that is definitely a good suggestion. As the former immediate past Secretary-General of NTUC, I would certainly take note of that. Indeed, I have instructed PSD, in our transformation, to pay extra attention to those who require a bit more assistance to transit to new jobs.[+3 sentences] And I would say that we are not setting up a big overall committee to integrate with the Amalgamated Union of Public Employees (AUPE) at that level, but importantly, we are starting at the respective job levels. So, for example, there are lower-skilled workers in the Ministry of the Environment and Water Resources (MEWR) who require new skillsets and we are focusing our attention on them, prioritising them in our transformation effort first. Likewise, the CSC will also contact and work closely with the Labour Movement to make sure that the modular system of training is made available to as many of the public servants as possible. We all know public servants, just like any other people, who are in full-time jobs, it is always difficult for them to take time out from their jobs to do training for one or two weeks. So, we need to work together with the Labour Movement to design modular courses, stackable modules, to be accessible to our public servants in order for them to acquire the new skills, especially in the area of digital literacy.[+1 sentence] We welcome this move by the Labour Movement and the offer by the Labour Movement and will certainly work closely with AUPE to bring this about.
The Chairman3 words
[+1 sentence]Ms Sylvia Lim.
Ms Sylvia Lim80 words
[+2 sentences]Mr Chairman, I have a clarification for Senior Minister of State Janil Puthucheary on my cut on personal data protection in the public agencies. I would like a clarification from him as to whether it is the expressed Government policy that persons whose data has been compromised, while in the care of public agencies, that such persons have a right to know that there has been a breach and that they have the right to know in a timely manner.
Dr Janil Puthucheary163 words
[+4 sentences]Mr Chairman, we addressed some of these in the discussion recently in the previous Sitting. There are guidelines about how public sector officials should handle the matter of a data breach involving citizens' particulars. There is no absolute requirement. We do need to look at every case, and we do need to look at the issue at hand as to what has been accessed, what are the circumstances, what the potential impact would be on the citizen to be involved in that process thereafter. We have heard about the examples cited in this Chamber about what has happened after the recent breach. So, the short answer to Ms Sylvia Lim's question is no. There is no single expressed position on this.[+3 sentences] There are guidelines about how the matter should be handled. There are guidelines about how citizens should be approached. The situation needs to be taken on a case-by-case basis and all the factors that are relevant need to be taken into account.
The Chairman3 words
[+1 sentence]Ms Anthea Ong.
Ms Anthea Ong34 words
[+1 sentence]Mr Chairman, can I kindly request for Minister Chan to further expand on my question on how or what specific measures or steps is the Government taking to restore confidence in the Public Service?
Mr Chan Chun Sing455 words
[+12 sentences]Mr Chairman, every time when something goes wrong in the Public Service, regardless of which agency, the first thing to do is to get to the bottom of it by the respective agency to see what are the lessons learnt that the agencies must do internally to make sure that they get to the bottom of it and put things right. The second step that we always will do is to make sure that these lessons are shared across all the other agencies because things that happen in one agency can offer important lessons to other agencies. There is a third step that I would always ask the Public Service to do, which is that when we do our debrief, to ask ourselves if we could have prevented or pre-empted this incident right at the beginning. And that is why I always discuss and share with my fellow colleagues in the Public Service that it is necessary but not sufficient just to put things right. Actually, more important than playing defensive, we need to make sure that our systems are in place to pre-empt problems from arising in the first place. Of course, it is very difficult for the Public Service to say that I have done this and, therefore, I have prevented these problems because the problems never even manifest themselves. But that is our challenge. That is the high benchmark that we need to set for ourselves as the Singapore Public Service if we aspire to be a Public Service that Singapore and Singaporeans can be proud of. And, indeed, as I shared, we have done many things that I think we can be proud of because that has put Singapore at the forefront of many of these views so that we have prevented and pre-empted many of these issues. Be that as it may, we should never be complacent. So, the way to restore public confidence is to make sure, one, we get to the bottom of the issue; and if there are people who are responsible, we will make sure that we rectify that; even as we take the responsibility at that level, we would ask ourselves could we have trained that person better, could we have changed our process to take into account the human factors to prevent those mistakes from happening in the first place? So, these are things that we owe it to ourselves in the Public Service to get things right and to prevent things from going wrong in the first place because it gives us no joy to say that we are able to recover from our mistakes fast. In fact, I would like to see ourselves not getting into those mistakes in the first place.
The Chairman5 words
[+1 sentence]Mr Louis Ng Kok Kwang.
Mr Louis Ng Kok Kwang246 words
I think Minister Chan Chun Sing has responded to my cut in saying that almost all public agencies have now a single structure scheme in terms of career progressions for a public servant.[+3 sentences] Could I just ask what percentage do not have this single structure scheme and what are we doing to close this gap? Secondly, I think in response to my cut as well, the Minister said that leaders should respond to that feedback provided. But my cut really was about how are we going to ensure that they do and whether we can have internal QSMs to take that role instead, to take that feedback given, it is actually looked into and the loop is closed? For Minister Josephine Teo, I am very thankful that the Minister has announced that 450 employers are now offering unpaid leave and I think you mentioned 70 public agencies.[+2 sentences] Could I ask whether the entire Public Service can offer this unpaid leave for parents with multiple or preterm babies so that we can walk the talk and we can take the lead on this issue? Lastly, with regard to childcare leave, could I ask the Minister to consider again whether we can allow people to use their current sick leave entitlements, not just when they are sick, but again when their children are sick and, to avoid people from misusing this, they have to provide the child's MC as proof when they take this kind of sick leave?
Mr Chan Chun Sing323 words
[+3 sentences]Mr Chairman, let me first clarify that our aim is not to merge every scheme possible. You cannot do that because there are schemes that are for professionals – doctors, engineers, accountants. So, our aim in the Public Service is not to merge every scheme. Our aim is to merge the schemes where it is possible to do so. And the last I checked, for the 50 over agencies, I would say almost 50 of them have done so; and the rest who are not able to do so, it was because they have good professional reasons.[+11 sentences] Now, even for those who have done so, we will constantly challenge ourselves. Are we able to merge those schemes even earlier, at an earlier stage whereby we take into account an individual's performance rather than just the academic grades? So, going forward, we will see the following things. Yes, academic grades will be taken into account as one of the signs as a proxy of what the person is capable of, but increasingly, as I mentioned, there will be other skillsets that we are required to take into account for a holistic assessment of the individual. To what extent we can, I think beyond those professional schemes and engineers, qualified engineers and doctors, we will try to that extent possible. So, that answers the first question. The Member's second question is about how do the leaders follow up on their respective agencies when they get the feedback? Well, there are few ways. First, when they get the feedback, I expect them to take actions on their own. And, of course, all the respective agencies' feedback comes to me and, if necessary, I will have a discussion with the respective Permanent Secretaries or the Chief Executives of the various agencies. They know that we take this seriously, they know that I expect them to take this seriously and, if need be, I will let them know.
The Chairman3 words
[+1 sentence]Minister Josephine Teo.
Mrs Josephine Teo361 words
Mr Chairman, to the first question as to whether all public agencies, in principle, yes.[+15 sentences] But if the Member knows of any which somehow is not in that list of 70, feel free to let me know. We will check up on it. On the question on whether parents' leave entitlements can be used for their children, here I want to just have a word of caution. I remember some years ago when I was still in the Labour Movement, NPTD at that time was doing consultation on whether we should raise the Maternity Leave benefits. So, it surprised me, but when we did the engagement with our women unionists, they were very wise and they said to me, "Sister, be careful about what we ask for because whenever we increase these leave benefits, we look different to the employers. They start seeing us differently, because they start seeing us in terms of the liability and obligations that they have towards us." So, not all of them were so keen to expand the leave benefits. So, that was a very useful exercise and I keep bearing it in mind. What the Member has asked for, I think amounts to that; you are really going to expand the leave provisions for people who are parents. Not that you cannot do that, but, by doing so, we have to ask ourselves what the employers will think of it. From having obligations to the individual as an employee, now they have obligations to the entire family. The same benefits can extend to the whole family. I think that is very expansive. And I will be very careful about this because, primarily, the leave provisions were designed to protect the individual in the event of illness. If we think that society can bear more leave provisions for those who are going to be parents, I think we do it openly, we do it in a transparent fashion, we do it in a way that is honest with the employers so that they do not have to second-guess when they take on an employee whether there are these other hidden obligations that they have to fulfil.
The Chairman4 words
[+1 sentence]Mr Ang Hin Kee.
Mr Ang Hin Kee244 words
[+8 sentences]For Minister Chan Chun Sing, just one clarification and one suggestion. When the Minister earlier mentioned about public sector transformation, he will have his officer work with AUPE to ensure that public sector servants are assisted and well-coached as far as training is concerned. I think the Minister also referred to the Statutory Board unions and those who are House unions, not just those that are belonging to AUPE, just for clarification, so that the other union leaders and members will not feel left out that their areas are not looked after. Secondly, a suggestion. I had a conversation with many of them and they have mentioned that a lot of the trainings are centred on the workers themselves – on the lower-skilled or the older ones. Then, they realised that their supervisor could be much younger, could be somebody who is in their 30s or 20s. And they realised that, sometimes, the supervisors do not quite understand that this transition, this situation that they face, require some level of empathy, some assistance and some mentoring and coaching from the supervisors. So, the suggestion is that, can supervisors that oversee some of these workers also go through a system of training whereby they are able to coach and guide these officers along so that the entire transformation and the ability to adapt will be something that is owned by both the staff as well as the supervisors and, therefore, make the workplace more inclusive?
Mr Chan Chun Sing405 words
[+1 sentence]Mr Chairman, I thank Mr Ang Hin Kee for reminding me to clarify this. Yes, indeed, that is why I mentioned that when we talk about the Public Service transformation, when we talk about acquiring new skills, it is not just at the AUPE level, it is beyond that, actually at every of the agencies' level with the respective unions. This would include the Amalgamated Union of Statutory Board Employees (AUSBE) for the Statutory Boards, it would also include agencies like the Singapore Urban Redevelopment Authority Workers' Union (SURAWU) and so forth.[+4 sentences] So, that it is at the respective agencies' level because we find through our experience that the most impactful training is when it is focused on the respective agencies rather than the generic skillsets. There is a place for generic skillsets. But there is also a place for very focused, targeted intervention at the respective agencies' level. So, that is the first thing. On the second point about the training, indeed, PSD, together with CSC, has worked out a framework for different levels of training to be given to different levels of our Public Service officers. There are basic levels of skills that are given to everybody, the basic digital skills, and there are specific skillsets given to the workers at the lower-wage level and the lower-skill level to help them upgrade.[+5 sentences] But the Member is right that we also have other forms of training that include the intermediate managers and even the higher managers because different levels of managers require different skillsets. For example, in the Member's particular situation, indeed, for the middle managers, they must know how to make use of some of these technologies; besides using it, how to exploit this technology, how to use, how to help their fellow workers to adopt and adapt to such technologies. Yet, at the higher level, at the more senior management level, we expect them not to just be hands on, but also to know the potential to use some of these new technologies to restructure and change the processes which they are doing at their job at the current point in time. So, Members can see that in this overall digital masterplan or the digital skills masterplan, we are looking at different skillsets for different managers at different levels. So, that is, indeed, what we are going to do at the training at CSC as they roll out across the Civil Service.
The Chairman50 words
[+5 sentences]End of clarifications. I would just like to encourage Members, you have been doing well in time-keeping. We get to go home earlier than expected, it might help our TFR as well. We will check back on next year's Budget. Mr Patrick Tay, do you wish to withdraw your amendment?
Mr Patrick Tay Teck Guan167 words
[+2 sentences]Mr Chairman, I would like to thank the responses from Minister Chan Chun Sing on building a great Public Service; Minister Josephine Teo for sharing on how we are going to support families, parenthood and marriage; Minister Dr Vivian Balakrishnan and Senior Minister of State Dr Janil Puthucheary on not just building a smarter nation, but really one on improving lives and livelihoods; Minister Ong Ye Kung on strengthening our financial markets and our regulatory system; Head (Civil Service) and the PSD team, as well as all our public servants, for putting us all at the heart of what they do and working hard to ensure we are top-notch and first-class. On that note, I beg leave to withdraw my amendment.
Committee of Supply – Head M (Ministry of Finance)›Budget35 turns · 8,886w
· 53 highlighted
budget-1113
The Chairman9 words
[+2 sentences]Head M, Ministry of Finance. Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Holland-Bukit Timah)775 words
[+2 sentences]Mr Chairman, Sir, I beg to move, "That the total sum to be allocated for Head M of the Estimates be reduced by $100". Sir, our spending has increased by about 2.5 times in the last decade with healthcare and infrastructure among the steepest growth. On the other hand, our revenue, inclusive of Net Investment Return Contribution (NIRC), grew by about two times in the last 10 years. If NIRC is excluded, our operating revenue would have only grown by about one time in the last one decade.[+6 sentences] Therein lies our fiscal implications. Firstly, our total expenditures are growing at a faster rate than our operating revenue. In business budgeting, this phenomenon is known as the negative draw, that is, when the rate of growth in expenditures exceeds the rate of growth in revenue. If left unchecked, where expenditures continue to grow faster than revenues, we could end up with a ballooning deficit situation in the years to come. Secondly, we are now dependent on the NIRC to balance the Budget. Otherwise, our Budgets will run into structural deficits. NIRC now accounts for about one‐fifth of our total revenue, as the Minister for Finance has said earlier.[+16 sentences] Thirdly, both the short‐term recurring expenditures as well as the long-term infrastructure spending have grown larger and are projected to increase further in the decades ahead. In particular, social and healthcare spending will rise as our population enters into a faster pace of ageing and healthcare needs increase further. In his Budget Statement speech, the Finance Minister spoke about pursuing differentiated fiscal strategy to fund our various spending, namely, one approach for major infrastructural investments, and another for recurrent social and security expenditures. I agree with the Finance Minister that for recurrent spending like healthcare, security and other social expenditures where it directly benefits the current generation, they should be funded with current taxation so that every generation pays its share. This approach would also instil the spending discipline as any further rise in recurring expenditures would have to be funded through more taxes. This in‐built discipline will not only help keep our operating Budget sustainable but also fairer as well across generations. For long-term mega infrastructure projects with high capital outlays, the Government should, as far as possible, set aside surpluses where possible, to use the savings accumulated to pay part of the lumpy investment, which is what we have been doing in the past. This pre‐funding approach demonstrates commitment and ensures that there is sufficient funding for projects with very high capital expenditures, such as the Cross Island Mass Rapid Transit (MRT) Line. But I also agree with the Finance Minister that with the new financing approach for projects, especially where they generate future economic returns, and those that are long-term in nature with some uncertainty, the entity that undertakes the project can look to borrow to finance the project and potentially could draw on the Government's guarantee to lower the financing costs of these long-term borrowings. The Government is a net creditor and actually does not need to borrow other than the issuance of Singapore Government Securities, which is there to help create a risk-free bond market yield curve. However, for the entity that builds the Government-invested infrastructure, borrowing at the project level does require higher financing costs because of the risks associated, such as construction risks. This could result in a negative carry situation from the Government's standpoint where the borrowing rates may be higher than the returns from investing the Reserves. Hence, it makes smart sense to tap on Government guarantee to reduce the borrowing costs. I have a few questions for the Finance Minister. Firstly, can I ask the Minister how would this differentiated fiscal strategy impact spending flexibility, for example, in the event of a crisis or a severe recession where we need to inject an impactful assistance package? Secondly, we know that spending, especially in social, healthcare and security areas will rise in the years to come. Can the Minister shed some light as to how the Ministry of Finance (MOF) sees the spending trajectory in the next five to 10 years and how do we ensure fiscal sustainability?[+3 sentences] Thirdly, as I have said earlier, our investment income from our Reserves is now a significant source of Government revenue. How does the Government ensure that we will not be overly reliant on it, especially as the investment climate is getting more volatile? And finally, in the midst of changing to this new approach, how do we also ensure that our tax regime remains progressive, with the higher-income earners shouldering more of the tax burden?
Ms Foo Mee Har (West Coast)365 words
Chairman, Sir, Singapore has been incurring more spending than its revenue base since 2015. We have come to rely heavily on contributions from NIRC as the top contributor to spending needs, providing 21% of total expenditure in 2018.[+12 sentences] This high dependency represents a significant vulnerability, given the volatility of any investment portfolio. Experts are divided on how much risk corporate taxes – this is traditionally Singapore's largest source of revenue – pose to Singapore's fiscal sustainability. Most agree that it will be increasingly difficult to raise corporate taxes, especially as major economies, such as the United States (US) lower them. Personal income taxes are also expected to contribute less to revenue in the coming years, due to our greying population. Our ageing population will further demand higher spending in healthcare and to build elderly-friendly infrastructure. So, to pay for our increasing needs, I urge the Government to study all possible streams of revenue, with the Goods and Services Tax (GST) rate as a last resort, given its broad impact on society. Could the Government look instead at introducing e-commerce tax, a lift in gambling, tobacco and alcohol taxes, perhaps new sources of tax revenue from carbon and sugar, and more progressive personal income tax by introducing new and higher tax brackets, including those for the super high-income earners and ultra-rich? Tax increases are never easy to swallow. So, to address the fiscal sustainability, perhaps we can also balance this with more focus on the "costs" line. It is always easy to call on the Government to do more and give more, usually with less consideration on how these expenditures are going to be paid for. Sir, I am also hearing questions on the ground on whether big-ticket projects can be less glitzy, whether we can space these projects out a little more so that we can pace our spending a little better, and whether we can better prioritise Government initiatives and programmes. So, I would like to ask the Finance Minister about the process by which large projects and programmes are prioritised, and whether Singaporeans can play a bigger role in influencing this process, so that they can feel included in the building of Singapore.
Mr Pritam Singh (Aljunied)299 words
[+2 sentences]Sir, probably, the largest contributor to the Net Investment Return (NIR) component of the NIRC, the Government of Singapore Investment Corporation's (GIC's) mission is to preserve and enhance the long-term international purchasing power of the country's Reserves. The size of the fund GIC manages has been estimated by some at well over hundreds of billions of dollars. For the year ended 31 March 2018, GIC achieved the 20-year annualised rate of return of 3.4% above global inflation. The year before that, the rate of return was 3.7%, and for the year ended 31 March 2016, it was 4%. This constitutes three consecutive years of decline from the 4.7% at the end of 31 March 2015.[+7 sentences] GIC's latest report states that the reason for this decline is that the high returns from the beginning of the tech bubble window have dropped out of the rolling 20-year return window while the post-tech bubble declines have remained. GIC foresees this decline in the rolling 20-year annualised rate of return to continue for a few years, although the same report states that, in most recent years, the returns have been good. In previous replies in Parliament on fund performance, officeholders have stated that the Government's view is that GIC and Temasek have performed creditably in challenging market conditions. How does the Government ascertain this beyond the inputs of individuals who are on the boards of these funds? How does the public scrutinise fund performance and comparison to other fund managers with not too dissimilar or long-term mandates? What does the GIC mean when it states the returns from the recent years have been good? And what is stopping the fund from reporting its yearly performance so as to meaningfully allow the public to track its performance closely, as we see with Temasek today?
Assoc Prof Walter Theseira (Nominated Member)218 words
[+12 sentences]Mr Chairman, tax structure has an important role to play in retirement adequacy. We grant income tax reliefs for retirement savings, and we do not tax income from retirement accounts, except for the Supplementary Retirement Scheme (SRS) at a concessionary rate. These tax advantages are a hidden subsidy to retirement for the rich. Because the value of tax relief depends on Assessable Income, high-income Singaporeans benefit much more than the low-income do. The Minister stated recently that 90% of those making SRS contributions have Assessable Income above $80,000, and the average marginal tax rate there is about 15% for those making the contributions. As for Central Provident Fund (CPF), my estimates suggest that CPF tax reliefs cost the Treasury about $1 billion annually. We might accept this if tax relief was effective at increasing retirement savings. But the international evidence now suggests otherwise. A review by Bernatzi et al, published in Psychological Science in 2017, suggests tax incentives only generate a few dollars of incremental retirement savings for each tax dollar spent. This is an order of magnitude less cost‐effective than alternative policies, such as simply providing targeted information on retirement planning. There are alternative revenue-neutral policies that could boost retirement adequacy for all. Mr Chairman, may I have your permission to display a slide on the screen?
The Chairman9 words
[+1 sentence]Yes, please.
Assoc Prof Walter Theseira148 words
[+2 sentences]Thank you. CPF tax relief has retirement value because the tax savings can be used for retirement instead. Consider replacing CPF tax relief with a flat annual CPF top‐up of $250 and a 3% match on contributions. In terms of retirement income, this could give the lowest-income deciles more than $200 a month, while cutting the benefit to the top decile from over $1,000 a month to about $500 a month.[+3 sentences] The numbers will, of course, have to be studied further. So, my suggestions are: first, could the Ministry provide a regular update on the tax cost of the CPF and SRS tax relief system, and estimates of how effective SRS is at inducing additional retirement savings? Second, could the Ministry study revenue‐neutral alternatives, such as matching contribution credits to CPF, that would boost retirement adequacy for the broad middle class while increasing progressivity of the tax system?
Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member)177 words
[+8 sentences]Chairman, the Foreign Maid Levy Relief is currently given to married, separated, divorced and widowed women with school-going children to claim relief for Foreign Domestic Worker (FDW) levy paid for domestic workers they or their husband employed in the previous year. Singles and married men are not eligible, as are separated, divorced or widowed women with no children to claim child reliefs. This is severely limiting. The policy objective is to encourage women to stay in the workforce. I urge MOF to expand the scope of the levy generously to all Singaporeans who paid the foreign maid levy for domestic workers taking care of children, elderly parents or people with disabilities. This will then encourage all caregiving Singaporeans to stay in the workforce, regardless of gender and marital status. Furthermore, the Government has announced it would expand the scope of the FDW Grant and replace it with the Home Caregiving Grant in recognition of the sacrifices made by caregivers and to support their care work. A universal Caregiver Levy Relief will be better aligned with this objective.
Mr Ang Hin Kee (Ang Mo Kio)692 words
[+5 sentences]Chairman, I declare my interest as an advisor to the taxi union and the private hire union. Taxi drivers pay daily rental fees of mostly over $100 a day for the vehicle they rent, and operation costs have also risen. Even car wash costs more today. This is before the latest diesel tax hike and potential future GST increases. The situation is made dire because of stiff competition from private hire cars. On the road today, there are now two private hire cars to one taxi, an alarming jump, considering that five years ago, we had 28,500 taxis and no private hire cars.[+11 sentences] Today, we have only 20,000 taxis on the road. I have raised this suggestion some years back. Will the Ministry consider a review or waiver for the GST that is levied on the daily rental of taxis that is borne by taxi drivers? Finance Minister Tharman Shanmugaratnam back then had replied to my suggestion that one way is to get the taxi drivers to register for GST which would then allow them to charge customers for GST and they do the claims later. However, it is not a feasible solution since fares are set by their respective taxi operators. If waiver of GST on the daily rental of taxis through this channel is not a viable solution, perhaps the Government can consider other options so that the drivers can claim back the GST paid on the rental of the vehicle that they lease from the taxi operator. Secondly, the reduction of the annual Special Tax for diesel taxis by $850 helped to manage part of the cost increase. With 15,100 taxis running on diesel, the taxi drivers have shared with me that they may need to drive longer hours and longer distances to cover the higher diesel tax. That defeats the purpose of trying to cut down the use of diesel. But because of the cost increase and you cannot pass on the cost, they need to drive longer hours. The rental costs of hybrid taxis are also not viable. Those are about $20 more expensive than the diesel-driven taxis per day. So, with 65,000 taxis and private hire cars on the road, the size of the daily hired trips only increased marginally from about one million when we had 28,000 taxis, to slightly over 1.2 million currently, meaning that the number of commuting public that took either taxis or private hire cars, did not grow in tandem with the growth in total vehicles serving them.[+8 sentences] Perhaps, in terms of the size of the MRT lines and the buses that we provided, the commuting size did not grow as much as for taxis and private hire cars. One way I mentioned earlier during my Budget Debate speech is to encourage operators to reduce rental for hybrid taxis or find a better booking system that reduces empty cruising for the taxi drivers or perhaps even consider reducing the pump price at their pump stations so that taxi drivers can manage the increase in diesel tax. I hope the Government agencies that issue operating licences to them or give permits to them to operate will ensure that everyone, not just the taxi drivers, and the Government co-share the burden of diesel-generated pollution. Sir, I had earlier also suggested if the incumbents are not willing to do so, perhaps the Government can consider letting the taxi union run such prime licences so that we can charge a lower fee to the drivers. Even private hire drivers have told me that they are also in this dilemma because some of them use diesel vehicles. I hope that the licensing authority like the Land Transport Authority (LTA) can track what is the size of the diesel fleet under private hire services. Perhaps, we should have no new private hire cars that use diesel vehicles because that is not going to help us solve the problem but increases the size of the problem. Finally, the private hire car drivers suggest whether they can be given a higher percentage of tax deductible of 80% instead of the current 60% to deal with the higher diesel tax.
Mr Saktiandi Supaat (Bishan-Toa Payoh)371 words
[+17 sentences]Mr Chairman, we all know how rigid most corporations are when they spend money, especially on big ticket items. I know MOF, too, has its process in place where they would ask Government Ministries to justify their spending. The process may be robust in seeking justification from Ministries seeking budget allocations, but how much deeper is the process so as to ensure that Government fund is well-spent, especially on big ticket items, such as on information technology (IT), and on various research and development (R&D) projects? This is especially in the case of IT projects where the innovations are making such rapid progress that even as we put an order for one equipment, a newer and improved version is in the making. And by the time we install the equipment, it would before long be outdated. So, may I ask how does the evaluation process address this issue? Secondly, how do we ensure that the projects benefit the country, businesses or the citizens? How do we know that the funds are spent effectively and efficiently? It is not uncommon, especially in IT, to find compatibility of equipment or programmes becomes an issue at some point if there is no proper planning. Next, what is the impact on our workforce? If I may borrow the thoughts of the late economist Sir Anthony Atkinson, he pointed out that the direction of technological change should be an explicit concern of policymakers. It should encourage innovation in a form that increases the employability of workers. Next, I would like to touch on Government support for research projects. In the US, the federal government played a key role in the development of iPhone and many other technological breakthroughs like global positioning systems (GPS), multi-touch screens, liquid crystal displays (LCDs) and so on. I know research can be a bottomless pit and, at the end of the day, it may end up in the bin because the outcomes are not what were expected. Research is about exploring the unknown. May I ask the Minister, when our Government supports any funding for R&D, what are the factors that are taken into consideration viz-a-viz financing, licensing and regulating the project?
Mr Liang Eng Hwa216 words
[+6 sentences]Sir, today, our economy is more innovative and technology-driven, and we do have a vibrant startup ecosystem. We are seeing more new‐to‐economy activities that have also been developed in recent years, such as the proliferation of financial technologies (fintechs), deep tech ventures, sharing economy apps and others. While we continue to strengthen the ecosystem for startups to flourish, we are also encouraging smaller enterprises to innovate and to scale up. Government policies, regulations and processes must, therefore, also keep up with the changes and stay abreast with the new business landscape. On this note, I would like to ask MOF three questions. Firstly, how are the Government procurement policies and practices supporting innovation and enterprises while ensuring value-for-money in its purchases? Procurement rules need to be evolved from being prescriptive to being more principles‐based so as to better support innovation and enterprise.[+4 sentences] Secondly, how is the Government tapping on digital technology to streamline corporate regulatory requirements? For example, can the Government consider allowing companies to conduct electronic or virtual annual general meetings (AGMs) to help them save costs? Finally, also importantly, how does the Government help small enterprises and freelancers understand their obligations with regard to business band tax-filing? Some of the businesses may be still less tax savvy and may still require some more support.
Mr Kwek Hian Chuan Henry (Nee Soon)204 words
[+5 sentences]Chairman, it is important for the Government to achieve value for money in purchases, especially in the face of anticipated rising public expenditure. There are many ways to achieve that. Let me provide two examples. First, large projects, especially infrastructure projects, have a long tail to their project life. We are at the cusp of funding some truly large infrastructure projects and adjusting reducing manpower intensity of our economy. Could the Government adopt a lifecycle approach to evaluate more projects? Second, our Budget has increased from around $40 billion in 2007 to around $80 billion this year.[+3 sentences] Therefore, I suggest that various Government agencies, when the need arises, be able to tap on even more industry experts to achieve excellent design and savings. At the same time, given the Government's role as one of the largest procurers of services, it can play the role of supporting innovation and enterprises, including from startups, which will benefit both citizens as consumers of these services, as well as the overall economy. Therefore, it is important for the Government to be able to manage the balance between innovation and enterprise versus value for money. Can MOF share on how, moving forward, the Government intends to achieve this balance?
The Chairman4 words
[+1 sentence]Second Minister Lawrence Wong.
The Second Minister for Finance (Mr Lawrence Wong)2625 words
[+12 sentences]Mr Chairman, I thank the Members for their questions and comments for MOF. Members' cuts covered three broad topics. First, fiscal sustainability, investment and other tax-related measures. Second, how to ensure that resources are employed efficiently and effectively. Third, our plans to strengthen support for businesses. I will address the cuts in the first topic and Minister Indranee will take the remaining two topics. Mr Liang Eng Hwa and Ms Foo Mee Har asked how the Government ensures sustainability in our spending and resilience in our revenue streams. These are, indeed, very important issues. We ensure long-term fiscal sustainability in a few ways. First, the Government continues to spend within its means, so as to achieve a balanced Budget over the medium term. Second, we remain prudent in our spending and emphasise value for money in every programme. For development projects, especially the major ones, we have robust processes to scrutinise and ensure that they are prudently managed. Our overall Government expenditure is around 19% of gross domestic product (GDP), less than half of what many governments of developed countries spend.[+4 sentences] Even so, we are able to deliver good outcomes in many areas, such as healthcare, education, home ownership and public safety. Third, we have and will continue to manage expenditure growth carefully, precisely because of concerns that Mr Liang Eng Hwa highlighted on this rise in Government expenditure. In fact, we have tightened Government spending in recent years, by permanently reducing the budget caps of all Ministries and Organs of State by 2% from financial year (FY) 2017 and reducing the growth in Ministries' annual budgets from FY2019. Even as we continue with these best efforts to manage our spending, we recognise that our needs will continue to grow, particularly in healthcare, security and infrastructure, as the Finance Minister explained earlier today. Already, our healthcare spending has more than doubled over the last decade to $10 billion in FY2018.[+6 sentences] This is close to what we collect from GST today. And over the next decade, we have projected that annual healthcare spending will increase by nearly 0.8 percentage points of GDP to around 3% of GDP. We will also be spending more in areas like security and preschool education. So, overall, there is no doubt that our recurrent spending, despite our best efforts to manage expenditure, will continue to rise. This is precisely why we need to ensure a diverse and resilient revenue base to meet these growing needs. And I share Mr Liang Eng Hwa and Ms Foo Mee Har's concerns that we really need to ensure resilient revenues, adequate revenues, to fund these recurrent expenditures and not rely too much on NIRC. As both Members noted, we would have had overall Budget deficits in each of these last 10 years without the inclusion of NIRC. In FY2018, NIRC and corporate tax contributed around 18% each to total Government revenue, followed closely by personal income tax and GST, each of which accounted for around 13% of total Government revenue.[+27 sentences] Property-related taxes make up another 10%. Several other items make up the remainder. Overall, our revenue base is a diversified one, and we are mindful not to be over-reliant on any single source. Even as the share of NIRC has grown over the last decade, we have taken steps to ensure and enhance the resilience of other revenue streams. First, we keep GST broad-based while providing targeted help to lower- and middle-income households through GST Vouchers and other forms of transfers. In the recent Budgets, we introduced GST for imported services and revised the import GST relief limits for travellers to ensure that our GST base remains resilient with digitalisation and increasing travel. Second, we have been looking at other possible streams of revenues, as Ms Foo Mee Har highlighted. We looked across all possible streams, and we have increased the tax rates for personal income tax, property tax and stamp duty in recent years. We have been careful to do so in a manner that ensures our overall system is fair and equitable, while keeping watch over our competitiveness. For example, today, about half of our workers pay personal income tax and the top 10% of the taxpayers contribute 80% of our personal income tax. Around 40% of companies assessed by the Inland Revenue Authority of Singapore (IRAS) pay corporate tax and around 10% of these companies pay about 95% of our corporate income tax. It is a fair and progressive system. And we will continue to ensure that we have such a system, including one with a diversified base of operating revenues, while at the same time borrowing prudently for major infrastructure projects. I think this is the best way to ensure we have a resilient system and also one where we can have maximum flexibility to deal with contingencies like a slowdown or a recession, as Mr Liang Eng Hwa had highlighted. Ultimately, and most importantly, sustainable Government finances depend on whether we have a healthy and growing economy. With a strong economy, we will have more resources to create jobs for Singaporeans and to meet the needs of our people. This is the key way to grow our revenues sustainably. Next, Mr Pritam Singh highlighted the performance of GIC and asked for more information on GIC's investments. Let me start by clarifying about how GIC has performed. The mandate that the Government has given GIC is to achieve good long-term returns in order to preserve and enhance the international purchasing power of the Reserves that GIC manages. Consistent with this mandate, GIC’s portfolio performance is evaluated not just on the returns within a single year, but on a continuing basis over the long term. In particular, we look at the annualised rolling 20-year real rate of return of its portfolio, which GIC publishes every year. This 20-year return in recent years has been lower than that in previous years. Mr Pritam Singh has highlighted this and also highlighted the explanation that GIC has put out for this decline in the 20-year return, which is, firstly, because the high returns earned in the run-up of the tech bubble in the late 1990s have dropped out of the past 20-year period, while the subsequent bursting of the bubble and decline in asset values has remained within the 20-year window. So, that is one reason. The second reason is that the investment environment in recent years has become more difficult, and that is so not just for GIC but for fund managers everywhere. Nevertheless, in these challenging market conditions, GIC has done creditably. Over a five-year timeframe, GIC's nominal return was 6.6% in US dollar nominal terms.[+25 sentences] It has continued to generate positive returns on its portfolio. What I have explained is published in the GIC annual report. Every year's annual report includes an extensive write-up on how GIC manages the portfolio, including its investment methodology and risk management framework. While the relevant measure for its long-term mandate is the rolling 20-year return, which I just highlighted, GIC has also been putting out more information in its annual report. For example, it publishes other indicators, including its rolling 10-year and five-year nominal returns, and how they compare against a typical market portfolio adopted by large global investors. So, the information is there. Mr Pritam Singh would like even more short-term indicators; he has asked for annual indicators. But it is well accepted in the investment world that a requirement to report short-term performance leads to short-term investment behaviour by fund managers. And this is especially important because market booms and downturns are a common feature of global markets. For example, if there is a market downturn, a short-term investor will try to unwind its holdings to cut losses so as to limit the damage to its short-term performance. By contrast, a long-term investor will be able to look at fundamental valuations and ride through short-term market cycles so as to achieve better long-term returns. This is, in fact, a major strength that GIC has, and it is important that we continue to preserve this long-term orientation. If GIC puts out annual indicators, there is the inevitable risk that this will incentivise its fund managers to be more mindful of short-term investment outcomes. And I think this will weaken and undermine GIC's strategic advantage as a long-term endowment fund. I should also clarify that while GIC reveals its past performance over five-, 10- and 20-year periods, this is categorically not the basis for estimating its future performance. As the Government has explained several times before in this House, including when the Constitution was amended for the NIRC framework, the process of estimating the long-term expected returns of GIC, as well as that of MAS and Temasek, rests on thorough professional assessments of the future investment environment. Such assessments are reviewed by MOF. The Government then proposes these long-term expected return rates to the President, who does a further independent check, as advised by the Council of Presidential Advisors. So, there is a robust system in place to determine and evaluate the long-term expected returns. And as we have explained in this House, and the GIC's Annual Report also highlighted, there are reasons to expect a weakening of investment returns for serious, diversified global investors over the next 20 years compared to the past, and this is due to structural headwinds in the external environment, for example, demographics, elevated debt and lower productivity in many countries. Next, let me touch on tax-related matters. Assoc Prof Walter Theseira asked about CPF and SRS tax reliefs. We do have a range of policies to address the retirement adequacy needs of different groups. Currently, SRS and CPF contributions are exempted from tax, subject to certain conditions, and the tax exemption is meant to encourage people to save for their own retirement. I know Assoc Prof Theseira has highlighted some international studies. In the case of SRS, in Singapore's context, for every $1 of tax savings enjoyed, $7 is contributed to SRS on average.[+5 sentences] In keeping with progressivity, the Government limits the tax benefits that higher income individuals receive from CPF and SRS. First, the reliefs are not unlimited. For CPF, there is a salary ceiling and top-up limits that restrict the amount of contributions to the system and, consequently, the amount of relief claimable. For SRS, there is an annual cap on contributions. The SRS is a tax deferral scheme, and not fully tax-exempt like the CPF. Second, these reliefs are subject to an overall personal income tax relief cap of $80,000. At the same time, the Government provides substantial support to help the lower- to middle-income achieve a more secure retirement. These include Workfare which helps to build up CPF savings, higher CPF interest for the first $30,000 and $60,000 of CPF balances, and top-ups to CPF and MediSave accounts.[+6 sentences] So, overall, our system of taxes and transfers remains progressive. I do share Assoc Prof Theseira's objective of having a fair and equitable system to improve retirement adequacy for all Singaporeans. So, we will continue to review our schemes, taking in suggestions and feedback and ensure that the balance of support remains tilted towards the lower- and middle-income groups. Assoc Prof Daniel Goh asked about the foreign maid levy relief. As he highlighted, this relief is quite specific, with an objective of encouraging women to stay in the workforce after marriage and child birth. He asked about broader support and, indeed, we do have a range of broad-based schemes in place today to support caregiving. Tax reliefs of up to $9,000 per parent or $14,000 per handicapped parent are available for the support of dependent elderly parents.[+2 sentences] There are similar tax reliefs of up to $4,000 per child or $7,500 per handicapped child for those who care for their dependent children. For these reliefs, the family has the flexibility to decide on the care arrangements for the child or elderly parent, which may not necessarily involve the hiring of an FDW. Families which hire FDWs to take care of children, household members with disabilities or elderly family members pay a concessionary levy of $60 instead of the standard $265.[+9 sentences] The tax reliefs for the care of dependent children and aged parents, and the concessionary FDW levy, are not dependent on the gender of the caregiver. So, these support measures are also on top of existing subsidies to the care recipient, such as subsidised healthcare. Basically, we do want to do more to support caregivers and we will continue to review our policies regularly to ensure their relevance and effectiveness. Mr Ang Hin Kee asked about GST waiver for taxi rentals. The Government has made clear its position. Singapore adopts a broad-based GST regime with few exemptions, and we chose this approach to keep our GST rate relatively low and administration simple. Nevertheless, we will certainly do whatever we can to help taxi drivers and private hire car (PHC) drivers better manage their businesses as well as their regulatory compliance costs. For example, last year, after a review with the National Private Hire Vehicles Association and the Ministry of Transport (MOT), MOF amended the Income Tax Act to allow private hire car drivers to claim tax deductions for motor car-related expenses like car rental and petrol against their driving income for income tax purposes. Taxi drivers are already entitled to this, but we extended it to private hire car drivers. To further reduce record-keeping burden and administrative costs, we allow both PHC and taxi drivers to claim tax deduction on a deemed expense ratio at 60% of their gross driving income.[+8 sentences] This percentage was decided after an extensive public consultation by MOF. And drivers, of course, can opt to claim tax deductions based on actual expenses incurred if their expenses exceed 60%. I hear Mr Ang Hin Kee, who has suggested raising the 60% to a higher figure, but we have had extensive consultations and we have arrived at this figure just very recently. MOF will continue to monitor and review and update the figure if and when necessary. With regard to diesel duties, we have explained the need for this restructuring of the diesel regime from ownership to usage-based taxes which is necessary for a cleaner environment and better health. Besides the restructuring of diesel taxes, we also have a range of measures to encourage the shift towards cleaner vehicles, and taxi operators are, indeed, responding. We have seen strong growth in the number of cleaner taxis, and we now have more than 5,000 electric and hybrid taxis plying our roads, or about 30% of the entire taxi population. To cushion the impact of the increase in diesel duties, we have provided some measures to help users, including taxi drivers, manage the transition. The Special Tax reduction for taxis is expected to permanently cover more than 75% of the cost impact to drivers.[+7 sentences] As Mr Ang Hin Kee is aware, the Government has been working with taxi companies to encourage them to pass down the savings from the Special Tax reduction to their drivers. And I am glad that all taxi companies have agreed to do so. Mr Ang had many other suggestions to work with companies and to help the drivers, including through licensing or through the pump prices that the companies offer. We will study these suggestions and will continue to work with the taxi operators to see how best to improve the welfare of drivers. Mr Chairman, let me conclude by reaffirming MOF’s commitment to ensuring the long-term sustainability of our fiscal system. We will continue to build a resilient and progressive tax and benefit regime to support our rising spending needs. I will let Minister Indranee address the other questions that have been raised.
The Chairman8 words
[+2 sentences]Second Minister Indranee Rajah. You have 10 minutes.
The Minister in the Prime Minister's Office, Second Minister for Education and Finance (Ms Indranee Rajah)1442 words
[+2 sentences]Mr Chairman, let me now address Members' questions on how the Government manages our spending and how we support businesses. Ms Foo Mee Har and Mr Saktiandi Supaat asked how the Government manages our infrastructure and info-communications technology (ICT) spending in the long run, and how we ensure that these programmes deliver value to citizens and businesses. Over the past five years, total development expenditure amounted to $91 billion.[+8 sentences] This was 26% of the Government's expenditure. On average, we expect that development expenditure will increase in the coming decade as we continue to invest in public infrastructure and adopt ICT to meet citizens’ needs and support our economy. We, therefore, place significant emphasis on identifying opportunities for cost savings and achieving better outcomes in these areas. Before we embark on a project, there is a robust process to consult stakeholders and assess the need for the project, the broad scope and timeline, and the balance of benefits over costs. For a major project like the Changi East development, the Cabinet must first be satisfied of the need for the project before it can proceed further. We also conduct public consultations on our future infrastructure plans, such as the Urban Redevelopment Authority (URA) Master Plan and the Land Transport Masterplan. All public infrastructure projects above $100 million are also carefully reviewed by a team of architects and engineers within MOF, before approval is granted by the Development Planning Committee (DPC) comprising three Cabinet Ministers. Projects above $500 million are put through the Gateway process, where they are subject to additional scrutiny by the Development Projects Advisory Panel that includes senior public officers, academics and industry practitioners with deep technical expertise. Over the past five years, these reviews have led to design improvements and generated savings of about $3 billion or 6% of the initial estimated value of the projects reviewed.[+3 sentences] In one review, the design for an MRT station was improved such that two proposed underground links and entrances could be brought to ground level, yet without compromising the objectives of commuter accessibility and connectivity. This redesign reduced the amount of utility diversions, underground excavation and tunnelling works required, leading to an estimated cost savings of $54 million. All major Government ICT projects are reviewed by a committee of experienced public sector officers and ICT practitioners before approval. This committee reviews the project scope and system design to ensure that our ICT projects are cost-effective and well-integrated across the Public Service. This has helped us save almost $800 million, or over 5% of our ICT spending, over the past five years.[+12 sentences] Besides reviewing projects before granting approval, the Government also monitors existing services and programmes post-implementation. We actively seek ways to enhance cost-efficiency and outcomes. Improvements can arise by leveraging technology, improving processes and collaborating across agencies. For example, the National Library Board now uses robots and automatic sorting machines to help staff and volunteers with shelving work. Library users can also check out books without queuing by using a mobile app, and pick up reserved items at self-service lockers outside library operating hours. These have helped to achieve cost savings of $2 million annually, in addition to bringing convenience to citizens. Agencies also tap on one another's expertise to co-develop and co-deliver programmes that bring about better outcomes for citizens. For example, the Public Service Division (PSD) mentioned in its Committee of Supply (COS) that agencies at Our Tampines Hub (OTH) will be coming together to cross-train counter staff for better service to citizens. Besides counter services, the People's Association, Sport Singapore and the Health Promotion Board are also collaborating on joint programming opportunities at OTH. Just last Sunday, they organised "The Greater Singapore Workout" for more than 200 participants of all ages, achieving community bonding and healthy lifestyle promotion objectives simultaneously. Finally, we are deepening capabilities in our agencies to ensure that spending translates into good outcomes and building a stronger culture where every public officer contributes towards better use of resources. Such efforts are bearing fruit, with agencies seeking ways to achieve greater value-for-money in their work. For instance, when constructing the Thomson-East Coast Line, LTA officers worked with the management corporation of a condominium to use some space within the condominium’s perimeter temporarily, so as to reduce the number of traffic diversions required from 10 to three.[+10 sentences] Residents experienced less inconvenience as construction time was shortened by two months, and this also generated cost savings of about $3.6 million. Such collaboration between public agencies and citizens is a good example of partnership at work. Value-for-money lessons learnt from one agency are shared across the Public Service so that they can be applied by others. MOF also guides agencies in applying different methodologies to quantify costs and benefits of their programmes, and setting outcome-based indicators to monitor their effectiveness. Mr Henry Kwek and Mr Liang Eng Hwa asked how Government procurement policies support innovation and enterprise, in addition to ensuring value-for-money in Government spending. Achieving value for money remains an important criterion in Government procurement decisions, but it does not mean awarding contracts only to the lowest quote. The Government has adopted price-quality evaluation as the default approach in tenders, where a balance of price and quality factors are considered. Today, about half of Government tenders are not awarded to the lowest bidder. The Government has also stepped up the adoption of more outcome-based procurement, where tenderers have more flexibility to propose innovative solutions to meet the desired outcomes. For example, JTC adopted an outcome-based security contract for one of its business parks. As a result, JTC achieved better security coverage for the estate, alongside 25% security manpower reduction and projected cost savings of up to 40% over the contract period.[+1 sentence] Apart from being open to good ideas and solutions, we also continually seek to make it easier for small and medium enterprises (SMEs) to participate in Government procurement. Last year, we removed the requirement for companies with less than $5 million turnover to submit audited accounts when applying for Government Supplier Registration (GSR).[+1 sentence] We now accept unaudited financial statements if the company's Director certifies that their financial statements are accurate and true. About 3,900 GSR-registered suppliers have benefited from this. This year, we will increase the upper limit for Quotations from $70,000 to $90,000.[+11 sentences] Smaller companies and startups without GSR can capture higher-value Government projects through Quotations, which come with simpler contractual terms and conditions and tend to be processed more quickly. We hope that many among the 12,000 suppliers who participate in Quotations but not Tenders will benefit from this. I agree with Mr Henry Kwek and Mr Liang Eng Hwa that the key here is balance. Government procurement can help to give a boost but, fundamentally, for companies to grow and be competitive, they must be innovative and offer value-for-money solutions. Mr Liang Eng Hwa asked how the Government taps on digital technology to streamline corporate regulatory requirements. The Government has continued to simplify and digitise corporate regulations. Over the past two years, a number of improvements have been made. We reduced the number of steps in the annual returns filing form for eligible companies. The simplified form is available on the Accounting and Corporate Regulatory Authority's (ACRA's) mobile app and the online BizFile+ portal. Company directors and secretaries can receive short message service (SMS) reminders to file their annual returns and meet statutory obligations on behalf of their companies. Mr Liang Eng Hwa's suggestion on virtual AGMs is a good one. Fortune 500 companies like Hewlett-Packard (HP) Inc and PayPal have adopted virtual AGMs, citing reduced cost. This year, we will review the Companies Act to expressly provide for the use of digital means for companies to conduct meetings and interact with stakeholders.[+8 sentences] Mr Liang Eng Hwa also asked how the Government can help small enterprises and freelancers understand their statutory obligations. ACRA's Directors Training Programme has helped new and aspiring company directors understand their statutory obligations under the Companies Act. In April 2018, ACRA worked with CPF Board, Enterprise SG, IRAS, the Ministry of Manpower (MOM) and the Singapore Institute of Directors to provide an online training programme for directors. Company directors can access the online programme anytime, anywhere, and more than 2,500 have done so since its launch. We have received positive feedback that the programme has helped company directors better understand their roles and responsibilities. Some businesses may prefer to receive help in person. The Taxpayer and Business Service Centre located in Revenue House offers businesses one-stop Government services by co-locating taxpayer services. Mr Chairman, as I have just a little bit more, may I seek your indulgence for a couple more minutes?
The Chairman4 words
[+2 sentences]Yes, please. Go ahead.
Ms Indranee Rajah181 words
[+10 sentences]Thank you. As I was saying, the Taxpayer and Business Service Centre co-locates taxpayer services, CorpPass, ACRA and Enterprise Singapore services. Businesses can meet staff from ACRA, IRAS, Enterprise Singapore SME Centre and CorpPass there for help with their questions about regulations and tax obligations, amongst other issues. Mr Saktiandi Supaat asked about R&D spending. We take a portfolio approach. We support research, development and innovation through different schemes where we also require co-payment in order to keep them relevant. On the Government side, where the innovation has a long horizon, are higher-risk or involve manpower development like PhD training, then the Government takes a bigger role. In R&D, we invest in areas that support current and future competitiveness, like digital technology, advanced manufacturing, urban solutions and sustainability, and health and medical solutions. In conclusion, Mr Chairman, the Government will keep its focus on ensuring fiscal prudence, using resources efficiently and effectively, and enhancing our policies and processes to support businesses. We will continue to partner citizens, businesses and the community to achieve good outcomes with the resources entrusted to us.
The Chairman12 words
[+2 sentences]We have a bit of time for clarification. Mr Ang Hin Kee.
Mr Ang Hin Kee199 words
[+6 sentences]I can sense that Mr Lawrence Wong understands the plight that the taxi drivers are facing. Unlike many countries where the digital disruption of Uber and Grab has caused a lot of chaos and there were strikes, fights and the burning of vehicles – even taxi drivers in some countries burn themselves to death just to show their protest – ours have been relatively supportive and they have seen the advent of technological disruption and tried to accommodate, everybody trying to make a living on the road. We have 65,000 taxis and private hires on the road, and only about 1.2 million-plus commuting traffic a day, which is less than 100% of the increase in the vehicle fleet size. I think the market probably cannot absorb so many vehicles. So, despite the diesel tax, there is really not a big market and we have many vehicles, and every driver trying to eke out a little living from this. Perhaps, the Ministry can consider that we may not need such a big size of vehicles on the road because it is not just technology; it is just the size of the market that is not big enough to accommodate —
The Chairman10 words
[+1 sentence]Mr Ang Hin Kee, can you keep your clarifications short?
Mr Ang Hin Kee33 words
[+1 sentence]So, I would like to ask the Minister if MOF would look at this kind of parameters rather than only on diesel tax as a way to manage the vehicles on the road.
Mr Lawrence Wong138 words
[+7 sentences]Mr Chairman, I can confirm to Mr Ang Hin Kee that it is not just a sense. I do share and understand what the drivers have to go through. That is why MOF works very closely with the private hire car drivers and the taxi drivers earlier on when we amended the Income Tax Act to allow for deductions and for it to be done on a deemed expense basis. So, as I have said, there are many ways in which we can look at this. Not all of the levers are with the Government. Taxi companies and operators can do their part, too, as Mr Ang Hin Kee has suggested. So, the Government will continue to work with the companies, the associations and the unions to see how best we can help our drivers who are impacted.
The Chairman4 words
[+1 sentence]Assoc Prof Walter Theseira.
Assoc Prof Walter Theseira90 words
Mr Chairman, Minister Lawrence Wong noted that $1 of tax cost in SRS leads to about $7 of retirement savings. I want to ask if this estimate accounts for the diversion of retirement savings from taxable savings accounts to non-taxable.[+1 sentence] Because the international studies show that much of the response actually comes from this kind of diversion – movement from the taxed to the untaxed account. So, could the Ministry continue studying this with a view to understanding how the marginal new savings dollar is actually affected by the policy?
Mr Lawrence Wong42 words
[+1 sentence]Mr Chairman, I have to confirm. But I do not believe it has fully accounted for the effects that the Member has described.[+1 sentence] So, the Member is right. We do need to do more detailed studies and we will engage in this.
The Chairman3 words
[+1 sentence]Mr Saktiandi Supaat.
Mr Saktiandi Supaat165 words
[+7 sentences]Mr Chairman, I would like to ask a clarification from Minister Indranee Rajah. With regard to the Government's expenditure on infrastructure projects and also IT spending, I firmly believe that Government spending plays a big role in terms of giving direction in terms of technological change in the long run and also it is an explicit concern for policymakers. So, my question is about balancing the value-for-money and cost-savings that the Minister mentioned and the outcomes. The Minister mentioned about the outcomes and my clarification is whether the issue of employability of workers in the long run is part of the outcomes as well, rather than in terms of what the Minister mentioned just now, of public sector concerns in terms of outcomes as another option or parameter. But in terms of outcomes, what is the Minister's definition of outcomes? Does it involve in the long run the impact on work, workers or jobs lost or gained? So, it is a clarification on that point.
Ms Indranee Rajah106 words
[+5 sentences]When we look at outcomes, we look at a variety of things. Obviously, we want to look at efficiency, we want to make sure, depending on the project, reliability. If the question is: will we look solely at one factor, for example, "Does this result in employment of a certain group?", it cannot be seen in isolation. So, where we can, we try to encourage businesses to employ. But that is really done through the work of MOM and it cannot be a single type of factor driving the way that project requirements are structured, because then you might have all sorts of other unintended outcomes.
The Chairman4 words
[+1 sentence]Mr Liang Eng Hwa.
Mr Liang Eng Hwa70 words
[+2 sentences]Sir, I am not sure whether the Minister has the figures, but I just thought I want to ask about the Pioneer Generation Package, that is, the $8 billion that we have set aside. Given the consumption rate and so on, is the $8 billion that was set aside ahead of utilisation or are we still in good shape in terms of the funding for the whole Pioneer Generation Package?
Mr Lawrence Wong89 words
Mr Chairman, actually I believe we had answered a Parliamentary Question on this some time back. I have not looked at the latest data, but at the time of that question, when we looked at the figures, the utilisation rate was, indeed, in line with projections as of that time.[+1 sentence] But these things can change. We make assumptions on these projections and so we will continue to monitor the utilisation, the assumptions that we have used and whether they are still relevant, and we will continue to do so.
The Chairman17 words
As there are no other clarifications, Mr Liang Eng Hwa, would you like to withdraw the amendment?
Mr Liang Eng Hwa93 words
[+1 sentence]Sir, as always, MOF has done it again very prudently and efficiently with not just the financial resources but time resource as well! I believe we have a pretty good accumulated surplus for our COS time now.[+1 sentence] Sir, I want to thank the Finance Minister for a very caring Budget, especially the very strong commitment to our workers and seniors in this Budget, and also to Minister Lawrence Wong and Minister Indranee Rajah for their replies and also to the hardworking MOF team. With that, I beg leave to withdraw the amendment.
The Chairman64 words
[+1 sentence]In light of the surplus that we have, is the hon Member given leave to withdraw the amendment?
Committee of Supply – Head J (Ministry of Defence)›Budget29 turns · 6,267w
· 38 highlighted
budget-1114
The Chairman8 words
[+2 sentences]Head J, Ministry of Defence. Mr Vikram Nair.
Mr Vikram Nair (Sembawang)846 words
[+14 sentences]Mr Chairman, I beg to move, "That the total sum to be allocated for Head J of the Estimates be reduced by $100". In 2017, we celebrated 50 years of National Service (NS) and Singaporeans of all generations joined in. The Singapore Armed Forces (SAF) has been an integral part of Singapore and we are all either serving National Servicemen (NSmen) or family members of one. Yet, the SAF was set up over 50 years ago and much of the training involved training in jungle warfare which reflected the terrain of our region. Yet, the nature of our region and the nature of our threats have evolved significantly over the years. If we start with the threats, the SAF was set up against the backdrop of the Cold War, and the struggle with the communist insurgents in the region was one of the main focuses. The Cold War is over. In its place, we see new rivalries and tensions. The strategic competition between the United States (US) and China has intensified and it appears to be a new great power rivalry. Tensions in the South China Sea continue and no swift resolutions appear to be in sight. The Korean peninsula, probably one of the last legacies of the Cold War, remains volatile. And although Trump and Kim are having a second summit, there does not appear to be any firm commitment to denuclearise on the part of North Korea. India and Pakistan have always had tensions between them, but the events in the last few days are particularly worrying, especially because of how fast the conflict seems to be escalating. Against this backdrop, the Association of Southeast Asian Nations (ASEAN) countries have also been spending more on defence, and these are our immediate neighbours. Defence spending has doubled from 2003 to 2016.[+8 sentences] Fresh in Singaporeans' minds would be the fact that Malaysia still has two vessels in our waters. Although both sides have made efforts to de-escalate since, there does not appear to be an easy resolution or end to this matter. And if matters escalate – we hope it will not be necessary – but the SAF may have to get involved. On the other end of the technological spectrum, the threat of terrorism remains present. There are an increasing number of foreign fighters returning to the region from the wars in the Middle East and they remain a potential source of terror here. The Islamic State of Iraq and Syria (ISIS) has also set up in Indonesia and there were reports of attacks being planned on Singapore from there. The issue with terror attacks is that they are targeted at the civilian population, unlike conventional warfare, and could strike anyone, anywhere. Against the backdrop of these threats, the SAF faces two primary challenges. The first is falling cohort sizes, meaning that we are probably going to have fewer people coming into National Service. The second is reduction in available areas for training.[+17 sentences] Singapore already has a very significant disadvantage in terms of size in any conflict. And our only hope appears to be that if we rely more on automation and sophisticated equipment systems, we may be able to compensate for this somewhat. And it is in this context that I ask about the future of the SAF. In view of the variety of threats we now face, how does SAF ensure it remains an effective fighting force capable of defending Singapore? What new capabilities will SAF be introducing over the next few years to meet the new security challenges? I earlier discussed the wide variety of threats SAF was facing. SAF also has a wide range of resources and capabilities it has developed over the years, as well as a variety of different operations that it engages in. This is necessary to deal with the wider spectrum of threats we are facing, as well as the more messy nature of warfare. However, even if these demands on SAF continue to grow, as mentioned earlier, it faces constraints in terms of having less space to train. More and more SAF training areas and camps are being converted to other uses, particularly residential and commercial uses. The announcement in relation to Paya Lebar Airbase was one example of this. I am aware that SAF has adapted to this in many ways. This includes the more productive use of land for training, such as multi-storey rifle ranges and centralised conducting of training activities, such as Basic Military Training and reservist training. SAF has also leveraged on its good relationships to train in territories overseas and this has helped train in capabilities that we may not be able to train in Singapore as well. Most NSmen and reservists would have some experience of training overseas. These efforts are, indeed, commendable. However, I remain concerned as more and more training areas are given up for other uses. How does SAF overcome its training area limitations and ensure that it continues to have sufficient land to house its facilities and conduct its training?
Ms Sylvia Lim (Aljunied)161 words
[+7 sentences]As mentioned in this year's Budget speech, today's more uncertain world spells greater possibility for tension and even conflict. Unexpected incidents under such circumstances can result in potentially dangerous unintended and uncontrolled escalation. The Government has rightly continued to stress the need for Singapore to support a stable, rules‐based order founded on international law and norms. I would like to ask how the Ministry of Defence (MINDEF) provides this support through its defence diplomacy efforts and its guiding principles. When meeting and engaging with foreign counterparts during peacetime, such as in the Shangri‐La Dialogue, how does MINDEF seek to contribute to the prevention of unintended and uncontrolled escalation of tensions in the region? More specifically, what kind of practical cooperation with other militaries regionally has MINDEF engaged in to enhance cooperation and dispel mistrust? Does MINDEF maintain or initiate high‐level military hotlines with the military from other countries to ensure that any potential issues on the ground can be discussed quickly?
The Chairman11 words
[+3 sentences]Mr Vikram Nair. You have two cuts. Please take both together.
Mr Vikram Nair395 words
[+8 sentences]Chairman, ASEAN is the cornerstone of our regional security architecture. It has promoted an avenue for Southeast Asian countries to meet and discuss areas for mutual cooperation. While most people are familiar with ASEAN as an economic forum, ASEAN is also an important platform to come together on defence matters. The ASEAN Defence Minister's Meeting (ADMM) was one of the primary pillars of these. In recent years, however, relationships among ASEAN appear to have become more strained for several reasons. First, the rivalry between the US and China also seems to be putting pressure on ASEAN countries as some come under pressure to choose in this rivalry. Second, on matters related to the South China Sea, there appears to be a growing risk of a divide among ASEAN members as some of them are direct claimant states in this matter, while others have differing views and different economic incentives in this. Third, terrorism is a growing security threat and, with fighters returning from the Middle East to the region, there is a pressing need for cooperation to manage this threat. In 2018, Singapore assumed chairmanship of ASEAN and ADMM. What have we achieved with our Chairmanship of ADMM in 2018?[+6 sentences] Many countries in the Asia Pacific have overlapping maritime and territorial claims. As tensions escalate among claimant states, there is a real risk of miscalculation on the ground. As militaries become more advanced, the cost of any conflict will be grave. For example, if fighter planes of one country are perceived to have improperly crossed into the territorial air space of another country and that country responds by shooting down the plane, that could quickly lead to retaliation and escalation and both countries may find themselves on the path to war. The current exchanges between India and Pakistan are an example of how quickly a conflict can escalate once one party engages in the use of force. Given the high risk of conflict breaking out, it is important for regional militaries to establish mechanisms to build trust, strengthen confidence and minimise conflict in the region. At the Committee of Supply (COS) debate last year, the Minister for Defence spoke about creating a Code for Unplanned Encounters for military aircraft. Could MINDEF provide an update on this and any of the confidence-building measures that were introduced to reduce the risk of conflict escalating in the region?
Mr Seah Kian Peng (Marine Parade)480 words
[+5 sentences]This year, fully a third of our Budget goes to Diplomacy and Defence. It is the lion's share of the Budget and, for MINDEF at least, spent in anticipation of actions we hope never to take, and events we hope never to transpire. However, the fact that we are prepared, willing and able will continue to make a difference in the way the odds fall for or against us. Deterrence is, as the Finance Minister has said, one of the two important prongs of our foreign relations. In this, I would like to first ask: what is the role of the SAF in the ongoing bilateral dispute with Malaysia in our Territorial Waters around Tuas? Dr Vivian Balakrishnan, the Minister for Foreign Affairs, a few days back, has set out our Government's position and that of the Malaysian agencies with regard to the intrusions by Malaysian government vessels into Singapore Territorial Waters in Tuas. We have seen that Dr Vivian Balakrishnan and his counterpart in Malaysia have agreed at their meeting on 8 January this year to set up a working group of their officials that will discuss the de-escalation of the situation in the waters off Tuas and will report within two months.[+6 sentences] We certainly look forward to this report. In the meantime, Minister for Defence, Dr Ng Eng Hen, has also told this House how our security personnel will respond to intrusions into Singapore Territorial Waters. The Police Coast Guard, Republic of Singapore Navy and Maritime and Port Authority of Singapore are all part of the protective cover that we have, in defending our waters. For sure, there is a difference between what we can do, given our military equipment, and what we should do. Intrusions into our waters have taken place since late November last year. We have seen how these intrusions can lead to accidents. In February, we had asked again for Malaysia to withdraw its vessels from Singapore's Territorial Waters off Tuas, after a collision between Greek carrier Pireas and a Malaysian government vessel, Polaris.[+7 sentences] This is not something that we had not foreseen. In fact, we had previously warned our neighbours, the Malaysians, that through these actions of theirs, it poses a threat to safety of navigation in the area. Overall, our recent dispute with Malaysia has emphasised the need for Singapore to have a credible defence to protect Singapore's sovereignty. We have made clear our stand, and we have sent strong signals that threats to our sovereignty will not be cost-free. Patience is a virtue, but patience also has its limits, and it also cannot prevent accidents from taking place, nor does it automatically lead to de-escalation of tensions. Finally, I would like to ask the Minister what guidance he has given to our agencies in this regard. And specifically, what are MINDEF and the SAF doing to enhance our defences around Singapore?
Mr Pritam Singh (Aljunied)277 words
[+2 sentences]Chairman, Sir, NS is a key institution in this country we call home. Hundreds and thousands of men have served in uniform since 1967 and stand ready to defend the country as operationally-ready NSmen. In the runup to 2030, however, the effects of our steadily declining total fertility rate (TFR) will begin to be acutely felt with NS numbers dropping by about one-third from the current numbers.[+2 sentences] This outcome will have a significant impact on manpower-intensive vocations and services, such as the Army, in particular. Some years ago, the Minister shared that part of the solution would be the steady evolution to motorised platforms and equipment that require a lower complement of men and women to man. Can the Minister update the House on how the SAF is preparing itself for a manpower-lean future and outline the SAF's approach over the next few years, so as to ensure that a credible and effective fighting force stands ready to defend Singapore from 2030?[+5 sentences] And to this end, does the Minister foresee an even greater reliance on unmanned platforms and does the SAF intend to procure such platforms in a weaponised form in larger numbers? Separately, in light of the regional and global environment, it would appear the SAF will continue to play a significant role in various national duties alongside Home Team units. More recently, the Minister has spoken about ramping up cyber warfare and cyber defence capabilities. These are likely to stretch the SAF's manpower requirements even further. How will the SAF manage the manpower imperatives of these new functions, in addition to its core war-fighting responsibilities, in light of dwindling numbers over the next few years?
Mr Kwek Hian Chuan Henry (Nee Soon)197 words
Chairman, MINDEF recently announced the intention to purchase the F-35, a 5th Generation multirole aircraft, which can perform air-to-air, air-to-ground and intelligence, surveillance and reconnaissance (ISR) missions.[+8 sentences] More importantly, the F-35's stealth capabilities can help us maintain air dominance and overcome sophisticated air defence. At the same time, the F-35s can fuse sensors and information from different sources, thereby networking our 4th Generation aircrafts and SAF assets together. In short, the acquisition of F-35s can level up the Republic of Singapore Air Force's (RSAF's) capabilities significantly. And despite earlier concerns of the F-35 programme, it has achieved initial operation capability in several countries, including the US. At the same time, given the unprecedented complexity of F-35 as a programme, we can expect it to evolve and mature over time. In other words, the cost of the F-35s can differ, and perhaps decrease, as the F-35 programme becomes more mature. Therefore, it is important for us to purchase the appropriate number of F-35s, with the appropriate capabilities, at the appropriate time. As such, can MINDEF share on how we can best ensure our announced F-35 purchases will be cost-effective, while delivering the required capabilities to keep Singapore secure?
Prof Fatimah Lateef (Marine Parade)223 words
[+6 sentences]Sir, the military today has a strong emphasis on information technology (IT) and data analytics, including big data. The use of this has become integrated into many aspects of defence. On the other hand, cyberattacks and breaches are also getting more innovative, threatening, complex and widespread. Cyber threats do not fit into traditional security framework. So, therefore, Singapore cannot let down our guard. We are on the radar and the target of many, due to a variety of factors. Recently, the launch of the Cyber Defence School is an excellent move, providing training across the networks and in cyberspace.[+5 sentences] It will help in training officers in preparedness, thinking several steps ahead of the perpetrator and culprits. How is MINDEF upscaling cyber defence and security and ringfencing, with a view to fortifying our national and defence cybersecurity systems? In alignment with this, can the Ministry also update us on what further efforts are being pursued to continue to develop the area of cyber defence and expertise in the SAF? Can we also have an update on the Cyber NS Scheme and how MINDEF intends to boost our cyber defence expertise in the military? Knowing also that the military response must be part of a concerted national effort, how is MINDEF's approach coordinated with that of other Ministries and agencies in our national cybersecurity ecosystem?
The Senior Parliamentary Secretary to the Ministers for Foreign Affairs and Trade and Industry (Dr Tan Wu Meng)120 words
[+4 sentences]Mr Chairman, the establishment of Cyber Defence training is key to a future-ready 21st century defence capability. And these skills will come in useful, not just in the SAF, because the cyber frontline is everywhere anywhere where there is a network, a digital device, a gadget connected to the Internet of Things. And so, as successive generations of cyber defence vocationalist graduates complete their full-time NS and become operationally-ready NSmen, these servicemen can add to the pool of cyber defence knowledge and cyber defence instincts in Singapore. Can MINDEF share more on how our Cyber Defenders' skills can be accredited and recognised, in ways that will help potential employers, in turn, recognise their value to organisations, workplaces and to Singapore?
Mr Desmond Choo (Tampines)311 words
[+3 sentences]Preventing sophisticated cyberattacks by malicious parties is now a critical mission for both governments and companies globally. Yet, nearly every country in the world lacks cybersecurity talent. Singapore needs all hands on deck. Recognising the need for individuals to play their part, a new "digital defence" pillar has been added to Singapore's Total Defence framework. Our young digital native Singaporeans are well-placed to protect our nation in cyberspace. Therefore, the Cyber Full-time National Servicemen (NSF) Scheme is an important foundational initiative.[+15 sentences] Could MINDEF provide an update of the Cyber NSF Scheme? How will we ensure that our NSFs' expertise is constantly updated and deepened? We must also collaborate with the private sector to keep up with evolving technologies and be updated to the ceaseless cyber threats. The continual development of cyber defence expertise must go beyond just having the Cyber NSF Scheme. We must also continue to develop them when they reach the Operationally Ready Date (ORD). What are MINDEF's plans to build a strong reservist corp of Cyber NSmen? In fact, I encourage MINDEF to consider developing a Cyber NSmen Scheme. There are already many NSmen in the IT industry with deep cybersecurity expertise. Some of them are highly-skilled operators while others are already IT industry captains. Our Cyber NSFs can form the foundation of this Cyber NSmen Scheme. The Israeli Defence Forces' Unit 8200 has reportedly had many of its servicemen gone on to build many top IT companies. Similarly, our Cyber NSFs can go on to have such impact and help to build up the tech expertise in the private sector. This spreads talent in a manpower-scarce Singapore. We need to ensure that we enrich our Cyber NSFs training, such as providing for a stronger nexus with the startup sector. With this, we can build up dynamic and sustainable cyber capabilities that will protect Singapore at all times.
Prof Fatimah Lateef150 words
[+10 sentences]Sir, now more than ever before, Singapore's security is at risk from a variety of conventional and non-conventional threats and sources, and all the more we need to remain vigilant and defend ourselves and our borders. We will need to continue to boost our capacity and capabilities and build up our defence capabilities, systems, operations, manpower and technology. We need to ensure we maintain our edge at all times. This requires state-of-the art mindset, equipment and systems. The military hardware itself is costly. With that background, what will be the projected medium- to longer-term increments in defence spending? How are we to balance this against the needs in other competing areas? Training also, Sir, requires planning and preparation, more so in terms of teams training, table-top exercises and simulated exercises. These are also not cheap. How will MINDEF be allocating funds into these aspects of development and training as well?
Mr Zainal Sapari (Pasir Ris-Punggol)208 words
[+9 sentences]Sir, since the maiden batch of 9,000 soldiers were conscripted in 1967, more than one million male Singaporeans and second-generation Permanent Residents have invested their time, blood and sweat in faithfully performing their NS duties. Their sacrifices and their families' sacrifices have kept our country safe and secure. NS has served as the backbone of the SAF. It has been the bedrock of peace for Singapore over the last 50 years. Even though the probability of conventional conflict is low, I am heartened that the majority of us acknowledge the importance of NS as a deterrent against potential adversaries. Over the years, our NSmen have responded with distinction to challenges, such as international piracy, terrorism and even natural disasters abroad while, at the same time, deterring potential aggressors. In today's constantly changing geopolitical environment and in view of the evolving security landscape and threats that are changing rapidly, MINDEF needs to redefine NS. At the same time, SAF also needs to respond to the domestic challenge of falling birth rates which requires a paradigm shift in our approach to NS. Could MINDEF share how it will respond to these challenges and the future warfare and elaborate on the role that NS plays today and its importance to Singapore?
Mr Chong Kee Hiong (Bishan-Toa Payoh)210 words
[+2 sentences]Sir, the SAF draws heavily from Singapore's human resource in order to defend our nation against a wide array of threats. However, an ageing population and declining fertility trends will have implications on our NS resources and will pose a significant challenge for us in the long term. SAF will see a projected one-third reduction in manpower supply by 2030.[+8 sentences] This is a significant number. Therefore, there is a clear impetus to effectively manage our NS manpower resource to ensure that MINDEF and SAF are able to achieve its growing spectrum of missions even as the enlistment cohorts decline. Over the years, MINDEF/SAF has introduced initiatives to allow the SAF to tap on our servicemen's civilian expertise and talent to expand operational capabilities. How is MINDEF harnessing the expertise of our current pool of servicemen to maximise the potential of our NSmen? With growing manpower limitations, what is MINDEF/SAF doing to ensure that we can maximise our manpower resources? Will MINDEF consider options taken by other manpower-scarce countries, such as tapping on woman power? Will the Ministry consider pushing back or doing away with the retirement age of regulars? Will MINDEF also consider redesigning functions so that in suitable areas, persons with disabilities can also contribute to our national defence?
The Senior Parliamentary Secretary to the Minister for Culture, Community and Youth (Mr Baey Yam Keng)181 words
[+7 sentences]NS was and continues to be essential for the defence of our nation. Fifty-two years on, our country has benefited from relative peace and stability, achieved by a strong SAF that protects Singapore's interests, and supported by generations of NSmen. Recent tensions with our neighbour over sea and air boundaries are a reminder of why we need a credible SAF, one that conducts realistic military training so that our soldiers are operationally-ready. NS has fulfilled a critical need for defence and security and also provided the peace and stability facilitating Singapore's development and progress. Arguably, few national policies affect the Singaporean way of life to the extent that NS does. For many Singaporean men, NS is a rite of passage, where he takes on the commitment of defending his country at a young age of 18 and, regardless of social standing, race or religion, to be trained and to serve with one another as a unit. I would like MINDEF to provide an update on its efforts to maximise the potential of NSmen and how we can enhance their NS experience.
The Chairman8 words
[+2 sentences]Mr Douglas Foo; not present. Mr Arasu Duraisamy.
Mr Arasu Duraisamy (Nominated Member)132 words
[+1 sentence]NS exists to fulfil the critical need of national security and defence. The Committee to Strengthen NS (CSNS) was set up in March 2013 to examine how the NS system could be strengthened for the future to better serve Singapore and Singaporeans. One of its recommendations then was for skills learnt during full-time NS to receive Workforce Skills Qualification (WSQ) accreditation as a means to further enhance the value proposition of NS and facilitate full-time NSmen's (NSFs) transition back to studies or the workplace.[+1 sentence] In today's rapidly evolving learning environment, we need to ensure that our NSFs are well-equipped to thrive in higher education or in the working world. How is MINDEF working with the relevant agencies to support skills upgrading, so as to further enhance the value proposition of NS today?
Mr Charles Chong (Punggol East)666 words
[+2 sentences]Mr Chairman, earlier this month, the Minister for Defence made a Ministerial Statement on NS training deaths and safety enhancements for the SAF. The Ministerial Statement addressed some of the circumstances around the untimely death of Corporal First Class (CFC) Aloysius Pang and the Minister also shared some of the findings of the Committee of Inquiry which was convened after CFC Liu Kai was killed in a training accident in November 2018. The Minister also shared some training enhancements which were made in SAF following the recent training fatalities. And just last week, SAF announced that it has appointed its first Inspector-General, who I understand, started in that role on 27 February.[+11 sentences] The issue of training safety is one which concerns us all. Every Singaporean family has a family member who has gone through or will go through NS. We also have a large number of men and women who have chosen to protect our country as their careers. Some spend decades in our armed forces, ready to put their lives on the line for Singapore should the need arise. I am aware that the issue of training safety is not confined just to NSFs but also to the regulars who serve in SAF. But this bond of trust we have with the families of NSFs and NSmen, those who are required by law to serve, is where it can be felt most keenly. That is not to say that we should mollycoddle our servicemen or that we eliminate activities which carry the slightest amount of risks. That is not how a military should be run. I would, therefore, like to ask the Minister how do MINDEF and SAF strike a balance between the need for an operationally-ready SAF that is able to defend Singapore's sovereignty with the need to ensure the safety of our soldiers, especially during training. We have heard on various occasions that this balance will be struck by MINDEF and SAF and I would like to ask the Minister for clarification as to how this balance is achieved. As I mentioned earlier, the first Inspector-General of SAF has just started in his role yesterday. The role of the Inspector-General was stated by the Chief of Defence Force as being to ensure that command emphasis on safety is consistently applied across all services and units. MINDEF also stated that the Inspector-General's Office will have full authority to scrutinise and enforce safety processes and practices at all levels of SAF.[+11 sentences] The appointment of the Inspector-General is a positive step as I understand that there was previously no organisation which covered safety across all branches of SAF. The appointment has a strong signalling effect and indicates to our troops how important safety is to our armed forces. It was reported that the new Inspector-General stressed the importance of open reporting and that he wants to introduce concrete actions to promote open reporting. I would like to ask the Minister if he could clarify what he sees the role of open reporting to be, particularly in a hierarchical organisation, such as the SAF. Indeed, the concept of open reporting in safety matters is counter-intuitive. In other organisations and industries, the reporting of safety issues and lapses is encouraged through confidential reporting where the identities of those doing the reports are protected. This is particularly so if it involves unsafe practices by their superiors and colleagues. Are we essentially asking for whistleblowers to come forward with the reports in the open? Could the Minister clarify why open reporting would be more successful than confidential reporting? Finally, I would like to ask the Minister what steps MINDEF and SAF take when safety lapses are discovered, including where no harm or injury is caused by such lapses. Apart from the appointment of the Inspector-General, I would be grateful if MINDEF could elaborate on other systems and safeguards that they have or will put in place to ensure training safety in SAF, particularly in the light of recent training deaths.
The Chairman9 words
[+2 sentences]Your time is up. Assoc Prof Dr Muhammad Faishal.
The Senior Parliamentary Secretary to the Ministers for Education and Minister for Social and Family Development (Assoc Prof Dr Muhammad Faishal Ibrahim)184 words
[+7 sentences]Mr Chairman, safety is one of the SAF's core values and it is integral to mission success. It enhances the soldier's confidence and enables the SAF to conduct reality training and to operate effectively during missions. Safety, while an individual responsibility, is also a command responsibility. I understand that our commanders are trained in command schools on the requirements on how to conduct training safely; and safety education and training are also constantly reinforced in the various courses that our commanders go through as they progress in their career. During training, I also understand that commanders are responsible for planning a proper work-rest cycle to ensure that their soldiers have sufficient rest, and exercise right judgement to moderate training intensity according to ground conditions. Despite all the measures that have been put in place, there have been one too many cases of training safety incidents recently. What is MINDEF doing to ensure that there is command emphasis on training safety on the ground and that it is consistently applied for all the units of SAF so that it can work towards zero training accidents?
The Chairman9 words
[+1 sentence]Miss Cheng Li Hui, you have half a minute.
Miss Cheng Li Hui (Tampines)87 words
[+2 sentences]Chairman, since NS was introduced more than five decades ago, generations of Singaporeans had served in various capacities and contributed to our national defence. The commitment of Singaporeans to serve in peace time allows us to build and maintain a strong armed forces. Regulars and NSmen have sacrificed their lives in building up this strong deterrent force. We will be upgrading the Marina Floating platform to be renamed NS Square.[+1 sentence] Will the Ministry consider building a small memorial there or somewhere else to honour our fallen servicemen?
Mr Kwek Hian Chuan Henry127 words
[+2 sentences]Chairman, as a member of the MINDEF Advisory Council on Communal Relations (MINDEF ACCORD) for the past three years, I have witnessed first-hand how MINDEF successfully build broad support from society, from businesses, schools and various communities. In particular, I would like to commend MINDEF on its successful engagement of Singaporeans through NS50 in the past year. Nevertheless, in the wake of the recent training incidents, there is much work to be done to strengthen our people's support for NS and defence. We have also just introduced a new pillar for Total Defence.[+1 sentence] As such, what are MINDEF's plans in the year ahead to engage the community and grassroots leaders to understand and support the importance of NS, as well as our broadened concept of Total Defence?
Dr Teo Ho Pin (Bukit Panjang)409 words
[+9 sentences]Sir, living in a safe and secure Singapore which the Government has worked tirelessly to ensure may have desensitised many Singaporeans to the multitude of perils that one may face today. Recent events, and the threat of military escalation, have reminded many Singaporeans of the threats surrounding us. It is at times like this, that Singaporeans must understand the threats that we face, and the importance of total defence. Sir, in line with total defence, I would like to seek an update in regard to the measures undertaken by the Ministry to build emergency preparedness capabilities in our population. Sir, the world is changing. Climate change is resulting in more extreme weather conditions, while state actors and terrorists have shown that they are more than willing to exploit our vulnerabilities should we present them with such. On this note, I would like to take the opportunity to introduce a ground-up initiative developed in Bukit Panjang. An Emergency Preparedness Resource Team, comprising 15 young Singaporean volunteers from different backgrounds, was formed a year ago, to explore ways to build emergency preparedness capabilities in the community to prepare Singaporeans for emergencies, both in Singapore and overseas. The team compiled best emergency preparedness practices from both domestic and international sources. With the support of the Bukit Panjang Community Emergency and Engagement Committees (C2E), the Bukit Panjang Emergency Preparedness Guide was published.[+5 sentences] The guide covers 14 different scenarios. It also provides an Emergency Bag inventory that one may use when preparing for a disaster, a list of the various resources available in the constituency, and includes a directory of emergency hotlines in the 10 most frequently travelled overseas places by Singaporeans. Sir, we are ultimately responsible for our own safety and security. It is my hope that this guide will help encourage greater ownership by Singaporeans in developing deeper emergency preparedness skills. Sir, the second point which I wish to speak on pertains to digital defence. As we step into the digital age, and as our lives become more intertwined with the digital, the cybersphere has become an increasingly viable vector of attack for those who would seek to undermine us. I strongly support the establishment of digital defence as the sixth pillar of total defence.[+2 sentences] We must ensure that both the Government and members of the public do their part to ensure our cybersecurity. Sir, I would like to seek some clarifications on how the Ministry intends to build cyber defence capabilities.
The Chairman12 words
[+2 sentences]Ms Joan Pereira, you have two cuts. Can you take both together?
Ms Joan Pereira (Tanjong Pagar)410 words
[+9 sentences]Sir, in this age of the Internet, Singaporeans are increasingly well-connected. Many of us are able to access information 24/7, make transactions anytime, and communicate with others through our mobile phones and social media platforms. While Singapore's strong digital connectivity offers enormous social and business opportunities, it is also a point of vulnerability that individual hackers, criminal syndicates and state adversaries exploit to do us harm. As Singapore moves towards becoming a "Smart City", we need to be better prepared against threats from the digital domain. What measures does MINDEF have in place to rapidly detect and contain digital threats against Singapore? Recent incidents of data breaches had highlighted the human factor as a major vulnerability. In fact, users of the Internet have long been viewed as the weak link. No matter how robust our Internet structure, software and hardware are, complacency, poor personal hygiene and low awareness of digital threats will endanger our SAF systems. What steps does MINDEF have to strengthen this area and how will the Ministry ensure that internal and external audits of our digital networks are robust? MINDEF has recently launched Digital Defence as a new pillar of Total Defence this year.[+10 sentences] How are we getting Singaporeans to be more aware and better prepared to respond to digital threats? Over the past year, we have seen how the spread of fake news online has divided societies, influenced elections and triggered ethnic riots overseas. Singapore is not insulated from these events. In fact, as a multicultural and diverse society, Singapore’s social fabric could easily be threatened by the spread of falsehoods that exploit potential fault lines in our society, such as race or religion. One of the biggest challenges we face in combating fake news is on social media and messaging applications, such as Facebook and WhatsApp. Does the Ministry have any measures to counter misinformation online, such as an IT team to look into messages circulating online and intervening on the same platforms with clarifications? More importantly, we have to shore up our social defences, strengthening them on all fronts to counter these online threats. From our neighbourhoods, workplaces, markets and other common spaces, we will see and experience the real nature of our interactions and unity, making us less easy as targets. Does the Ministry have regular outreach sessions and public education initiatives to enhance our awareness of Social Defence? How can our Social Defence be further strengthened to deal with these online threats?
Miss Cheng Li Hui176 words
[+3 sentences]Sir, Total Defence was launched in 1984 to galvanise all Singaporeans to play our part in building a strong, secure and cohesive nation that is resilient against any crisis. It is a framework for an all-round response to threats and challenges and it involves six aspects, one of which is psychological defence. Sir, in this day and age, our Total Defence, especially psychological defence, has become more relevant and important. Today, Singapore faces a range of challenges, one of the most worrying is disinformation campaigns. Such campaigns are dangerous because they target the hearts and minds of Singaporeans and are difficult to detect early.[+3 sentences] They also take several forms – from exploiting social fault lines in order to weaken our national unity, to eroding people’s trust in the Government. With the increasing use of the Internet and the social media, many of us are becoming more vulnerable to fake news and misinformation online. In this context, can the Minister share what MINDEF is doing to strengthen the psychological defence of Singaporeans in light of external pressures?
The Chairman14 words
[+2 sentences]Mr Douglas Foo; not present. Ms Joan Pereira, can you take both cuts together?
Ms Joan Pereira246 words
[+5 sentences]Sir, Singaporeans' commitment towards defending our country rests on our citizens’ full understanding of our vulnerabilities and an ingrained conviction of the importance of what we are defending. It is, therefore, of utmost importance to instil this understanding in our youths from a young age. In this digital age where growing global interconnectivity may result in the potential dilution of the "Singapore Identity", it is important that MINDEF reaches out to youths to deepen their understanding of Total Defence and ensure that they remain resilient to external misinformation, misguidance and threats, especially from the digital domain. Can MINDEF share how it is reaching out to our youths to reinforce the importance of the six pillars of Total Defence, nurture their patriotism and encourage them to play their parts for national defence? Businesses play a crucial role in economic defence as it is critical that they are prepared for emergencies and can recover quickly from disruptions to our economy. For example, in the recent incident of eggs, fish and shrimp export restrictions from Malaysia, our businesses were able to adapt effectively to the threat of disruption to our food supply. Food security is an essential requirement for our national security.[+2 sentences] Therefore, it is important for the Government and businesses to work together to put in place measures to build up a strong and robust economy which would, in turn, ensure the resilience of our country. How is MINDEF leveraging businesses to bring across our Total Defence messages?
The Senior Minister of State for Defence (Mr Heng Chee How)22 words
[+1 sentence]Mr Chairman, may I seek your consent to move that progress be reported now and leave be asked to sit again tomorrow?
The Chairman48 words
[+2 sentences]I give my consent. . (proc text)]
Mr Heng Chee How32 words
[+1 sentence]Mr Deputy Speaker, I beg to report that the Committee of Supply has made progress on the Estimates of Expenditure for the financial year 2019/2020 and ask leave to sit again tomorrow.
Mr Deputy Speaker3 words
[+1 sentence]So be it.
Adjournment›Motions1 turns · 21w
· 0 highlighted
motion-1116
Speaker not recorded21 words
[+2 sentences]. (proc text)] Adjourned accordingly at 6.27 pm.
Commencement Time of Committee of Supply›Announcement by Speaker1 turns · 77w
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speaker-1110
Mr Speaker77 words
[+5 sentences]We have completed the Debate on the Budget Statement. We are now going into the Committee of Supply to debate the Estimates. I have revised the commencement timing of the Committee of Supply to start immediately. With the change in commencement time, the revised "guillotine time" for Head U – Prime Minister's Office is 4.55 pm which includes a tea break. Hon Members will be notified of the revised conclusion times for the subsequent Heads of Expenditure.
Local Cleaners Directly Hired by F&B Establishments and Outside Progressive Wage Model›Written Answers to Questions2 turns · 146w
· 0 highlighted
written-answer-4641
Mr Louis Ng Kok Kwang33 words
[+1 sentence]asked the Minister for the Environment and Water Resources what percentage of local cleaners are directly hired by food and beverage establishments such that they do not fall under the Progressive Wage Model.
Mr Masagos Zulkifli B M M113 words
[+5 sentences]We do not track the number of local cleaners being hired directly by food and beverage (F&B) establishments. The Progressive Wage Model (PWM) applies only to local cleaners employed by cleaning businesses. The model does not apply to cleaners hired directly by F&B establishments as, unlike outsourced cleaners, they are not subject to the effects of cheap sourcing that had depressed wages. Employers are, nonetheless, encouraged to upgrade their workers' skills and implement productivity-based wage progression in accordance with the key tenets of PWM. The Government will continue working closely with the Tripartite Cluster for Cleaners to ensure that PWM for the cleaning sector remains relevant and aligned with the industry's transformation goals.
Committee of Supply – Head J (Ministry of Defence)›Budget16 turns · 9,560w
· 69 highlighted
The Minister for Defence (Dr Ng Eng Hen)1236 words
[+7 sentences]Mr Chairman, let me thank Members for their continued commitment to a strong defence for Singapore. I note the speeches that many Members in this House have given during the Budget Debate. It is particularly gratifying and reassuring for our future, for Singapore's future, that despite Defence, Security, Home Affairs and Foreign Affairs accounting for one-third of our expenditure, that we have got support across the aisle, across parties. I think that is a strong signal that the future for Singapore bodes well. Last year was a busy year for Singapore. We staged a number of key events on international efforts on the world stage, and in response to Mr Vikram Nair and Ms Sylvia Lim, Singapore's image and standing, because we played host, were enhanced, but it also called for extra and stringent security measures here. In June, Members would remember that the Singapore Armed Forces (SAF) deployed at short notice – it was yes, on-off, on-off – and in two weeks, we were asked to host the United States (US)-Democratic People's Republic of Korea (DPRK) Summit. Because such high-profile events can be attractive targets for terrorists, the SAF mounted a large-scale deployment involving 2,000 personnel, with dozens of aircraft, ships and vehicles, to provide air, land and sea security domes that covered Sentosa and parts of Orchard Road.[+2 sentences] Our efforts, together with those of the Home Team, proved a deterrent to would-be provocateurs. The SAF mounted a similar operation when Singapore hosted the Association of Southeast Asian Nations (ASEAN) Summit in November where all the ASEAN Heads of Government and many other foreign dignitaries gathered. In October last year, the Ministry of Defence (MINDEF) chaired the 12th ASEAN Defence Ministers’ Meeting (ADMM) and the 5th 18-member ADMM-Plus, which collectively represents four billion people and accounts for 90% of the world’s military.[+3 sentences] That meeting, we galvanised the ADMM and ADMM-Plus countries to address common security concerns, including counterterrorism and Chemical, Biological and Radiological Defence threats, and we facilitated ASEAN’s adoption of Indonesia’s “Our Eyes” Initiative. It is an initiative which can enhance regional counterterrorism information-sharing. And Singapore will assist Indonesia to set up and operate this facility. This is an important initiative as we prepare to deal with the wave of returning fighters coming back from Iraq and Syria, even as the Islamic State in Iraq and Syria (ISIS) loses ground there. I am also glad to report that under our Chairmanship, ADMM adopted the ASEAN Guidelines for Air Military Encounters (GAME), the first such set of multilateral guidelines in the world, with the support of the ADMM-Plus countries.[+7 sentences] GAME can prevent disastrous consequences that can result from unplanned encounters between military aircraft in the air. We have also worked on putting the Code for Unplanned Encounters at Sea (CUES) – some Members asked about this – it has been put into practice across all ADMM-Plus navies, including during the inaugural ASEAN-China Maritime Exercise in October last year. Later this year, we will use CUES for the ADMM-Plus Maritime Security Exercise, which will include both the US and China. All in all, Singapore did its fair share to enhance regional security and stability. On that score, it was a productive and fruitful year. In the last few months though, we have had our challenges with Malaysia. Mr Seah Kian Peng had asked about this. Since last November, Malaysian government vessels have repeatedly entered Singapore’s territorial waters off Tuas, over which the Maritime and Port Authority of Singapore (MPA), Police Coast Guard (PCG) and Republic of Singapore Navy (RSN) vessels have exercised jurisdiction and enforcement without any protest or intrusions from Malaysia for more than two decades.[+22 sentences] Even now, two Malaysian government vessels continue to be anchored in our territorial waters off Tuas. Singaporeans and Members are familiar with these developments and I need not elaborate. Suffice to say, we have strongly cautioned Malaysia to withdraw their vessels. In fact, the Ministry of Foreign Affairs' (MFA’s) press statement in December last year pointed out that, I quote, “Malaysia’s deployments in this area will not strengthen its legal claim and can only heighten tensions. Malaysia will be responsible for any untoward situations on the ground that arise from continued deployment of its vessels into this area.” And indeed, just as we warned could happen, last month, the Greek bulk carrier Pireas collided with the Malaysian government vessel Polaris. Mercifully, no bodily harm ensued, but it could have been much worse. Singaporeans will remember the collision between the USS McCain and the oil tanker Alnic off Pedra Branca in August 2017, where 10 crewmen perished. Even so, some in Malaysia have accused Singapore of orchestrating the collision with the Polaris. These false accusations would have been much louder and strident to push for retaliation against Singapore and Singaporeans, if lives had been lost in the recent collision. Our MFA and the Ministry of Transport (MOT) officials are meeting for discussions and negotiations and the presence of these Malaysian government vessels does not help in any way and, in fact, exposes them to danger and obstructs productive talks. MPA, PCG and RSN are closely monitoring activities in Singapore’s territorial waters off Tuas 24/7 and will remain ever vigilant to guard our sovereignty and rights under international law. MINDEF will continue its efforts in defence diplomacy. Members have asked that, including Ms Sylvia Lim and Mr Vikram Nair. We want to promote regional peace and stability. We make friends with those who are willing, and partner those countries whose interests are aligned with ours and who share our desire for inclusiveness, peaceful resolution of disputes and respect for the law. But at the same time, we must ensure that the SAF is strong and adequate to defend our rights when diplomacy fails and when others choose to do us harm or ignore our rights. As Prof Fatimah Lateef said, "A strong SAF protects Singapore and Singaporeans." And it has been our persistent investments and efforts to build the Next-Generation SAF that can better respond to the security threats for another generation. These developments are progressing well and I would like to elaborate on that because many Members of Parliament have asked how do we respond to different scenarios of threats that will come upon us in this generation. And we have to prepare for the future because it takes that period of time to build up that kind of SAF. First, homeland security. The Mumbai attack in 2008 showed us the devastating destruction that can come from the sea, and we are surrounded by seas. To deter and mitigate external attacks against Singapore, we will beef up security for our entire coastline. SAF will add more optical sensors and coastal radars to deter and detect potential threats. We will build more unmanned watch towers for better coverage of the busy traffic across the Singapore Strait. We will also add unmanned surface vessels to patrol our waters, beginning next year.[+3 sentences] Members have asked for more details on our modernisation of the Next-Generation SAF – Mr Vikram Nair, Mr Pritam Singh, Prof Fatimah Lateef, Mr Chong Kee Hiong and Mr Charles Chong – so, let me elaborate. Our plans to build the Next-Generation SAF to better respond to security threats are progressing well for all three services. With your permission, Mr Chairman, I would like to display some slides on the LED screens and also ask for the handout to be distributed.
The Chairman9 words
[+1 sentence]Please do.
Dr Ng Eng Hen3196 words
[+6 sentences]Let me begin with the air. Mr Henry Kwek has asked about the F-35s. We have announced our plans to replace the F-16s, which will face obsolescence post-2030, with the F-35s. This will mean that the Republic of Singapore Air Force (RSAF) fighter fleet will consist of F-35s and F-15SGs, if plans come to fruition a decade or so from now. As stated previously, MINDEF will issue a Letter of Request (LOR) to the US to acquire F-35s. As required by US law for foreign military sales, the US Congress must approve the sale of F-35s. Our LOR will request an initial acquisition of four F-35s, with the option of a subsequent eight if we decide to proceed.[+7 sentences] Singapore has the endorsement of both the US Administration and the Department of Defense for our proposed purchase of F-35s. But the Congress must still approve it. In fact, President Trump wrote to Prime Minister Lee last month welcoming Singapore's plans to acquire the F-35s. During my meeting with Acting Secretary of Defense, Patrick Shanahan at the Munich Security Conference two weeks ago, he also said that the US was greatly appreciative of Singapore's decision and his department supported it. A word on price. The price of F-35s has been steadily falling due to healthy orders from the US and 10 other countries, including the United Kingdom (UK), Italy, Australia, Japan and South Korea. The Defence Science and Technology Agency's (DSTA's) assessment is that now is an opportune time to put in Singapore's request. The current unit price of the F-35 ranges from US$90 million to US$115 million per aircraft, comparable to what we have paid for our F-15SGs.[+14 sentences] The Total Cost of Ownership of a fleet of F-35s, including maintenance across its lifespan, will also be similar to our F-15SGs. Nonetheless, MINDEF will continue to work with the US Department of Defense to optimise operating and maintenance costs. RSAF will also take delivery of new helicopters from 2020 onwards. The H225M medium-lift and our Chinook heavy-lift helicopters will replace our existing Super Puma and CH-47D fleets. These new helicopters will add capacity and be more effective in Search and Rescue or Humanitarian Assistance and Disaster Relief operations. That is for the Air Force. Let me move on to the Navy. For RSN, our submarines in operation are over two decades old. We will replace them with four new Invincible-class submarines. The first was launched recently in Germany, with the other three being built. The Invincible-class submarines will have longer endurance, and also the latest locally-developed sensors and automated systems designed for optimal use in our surrounding waters. We have launched our submarines lately in Kiel, facing the North Sea. We launched our previous class of submarines in the Baltic Sea. Those waters there are much colder. So, we have to optimise them for our warm waters here. We aim to have a full fleet of four Invincible-class submarines by 2025.[+2 sentences] For surface ships, our ageing missile corvettes have served with distinction since 1989. They are also "Pioneer Generation" that will have to be retired soon, and they will be replaced by the new Multi-Role Combat Vessels (MRCVs). The first of these will be delivered around 2025, with full delivery expected by 2030.[+41 sentences] More than just improving capabilities, the new MRCVs will incorporate many new ideas. First of all, they will use less manpower. Many Members of Parliament have pointed out how we will deal with the one-third reduction in manpower. The MRCVs will use less manpower, about half the size of that found in modern frigates. This is quite an achievement. This is possible because we designed it from the onset, custom-built for lean manning, using technologies which automate many functions, including maintenance. As a result, there is also a cost saving of up to 10% in operating them, compared to other similar-sized frigates. The MRCVs will also have more unmanned air and sea drones. So, it would not be just a manned ship, it will have air and sea drones and modular packages to extend their reach and flexibility against threats. Many Members are familiar with our Landing Ship Tanks (LSTs). I think many Members have sailed on them and they proved their worth time and again. Each time we deploy them in exercises, we say we are so grateful that we have this platform. So versatile and able to meet mission objectives. It has been the workhorse in our humanitarian assistance and disaster relief (HADR) efforts and other missions. The LSTs are ageing, too, and will need to be replaced in the next decade by larger and more flexible Joint Multi-Mission Ships. Let me move on to the Army. For the Army, the Next-Generation Armoured Fighting Vehicle will replace our M113 Ultras as the mainstay of the SAF's mechanised forces from this year onwards. Singaporeans will see them soon on our roads at this year's National Day Parade. These Armoured Fighting Vehicles have better armour protection and mobility through urban environments. Another addition to the Army will be the Next-Generation Howitzers with extended range and greater precision strikes compared to our current platforms. I have talked about air, land and sea manned platforms, but the signature change for the SAF 2030 and beyond is that the SAF will become more of a hybrid force. We will use many more unmanned platforms. Some of the RSAF's unmanned aerial vehicles (UAVs) have been operating for more than a decade. They will be replaced by newer UAVs with better capabilities over the next few years. I mentioned the MRCVs and unmanned surface vessels, too. But in the Army, soldiers within the Army will soon use micro-UAVs, your own UAV or the UAV for your unit, for the first time, which will be particularly useful in built-up and urban environments. These unmanned platforms will complement traditional manned equipment, to enhance responses across a full range of operational scenarios. In all, the Next-Generation SAF of 2030 and beyond, with this full complement of assets in air, land and sea, will be able to defend Singapore for another generation. This is the SAF that will take us into and guard our future. This is the SAF that our investments have bought or will buy. This is the SAF on air, land and sea with which the next generation of Singaporeans will celebrate for SG75. By then, we will have a state-of-the-art coastal surveillance network and air defence systems to form a shield around Singapore against incoming threats. RSAF will fly F-35s and F-15SGs over our skies, supported by A330 Multi-Role Tanker Transport aircraft, G550 Airborne Early Warning Aircraft, new helicopters and a host of new UAVs. RSN will have MRCVs, Invincible-class submarines, new unmanned surface vessels and larger Joint Multi-Mission Ships, in addition to existing frigates and Littoral Mission Vessels. The Army will be more protected and mobile, with soldiers mounted in Next-Generation Armoured Fighting Vehicles and Terrex Motorised Vehicles. Leopard tanks, HIMARS and Next-Generation Howitzers will support them, complemented by a full suite of combat engineers, signals, logistics and maintenance platforms. But hardware alone would not build you a strong army and a strong military. We will have to have new training facilities both here and overseas which will ensure that our National Servicemen (NSmen) and Regulars can build a modern and capable SAF that can defend Singapore and our interests. I know Members here have asked that, Mr Zainal Sapari, amongst others. The SAF of 2030 and beyond has been designed to be operated with a leaner manpower pool. Mr Baey Yam Keng, Mr Chong Kee Hiong, Mr Zainal Sapari and Mr Pritam Singh asked about this. In other words, we design the SAF of 2030 and beyond to work with a reduction of manpower supply by a third after 2030.[+1 sentence] I have already mentioned the MRCVs for the Navy which need a smaller crew. The Next-Generation Howitzer which I mentioned earlier will only need three men to operate, compared to nine now.[+22 sentences] So, it is a significant reduction, and yet the Next-Generation Howitzer will fire more rounds accurately per minute. Autonomous and automated systems will reduce labour-intensive tasks, for example, runway damage assessment of our air bases and air strips. The modern systems and platforms of the SAF can also be operated by NSmen who are not Physical Employment Standard (PES) A or B and, therefore, effectively increase our utilisation of manpower pool. Pari passu with the acquisition of hardware, we will also invest more into training facilities for SAF soldiers. I last spoke to this House about the SAF Training Institute (SAFTI) City in 2017. The Pioneer and Merdeka Generations are all too familiar with the old SAFTI – you would remember FOFO Hill, Peng Kang Hill, the Pasir Laba Boat Shed and Elephant Hill. We charged up them and sometimes charged down them. SAFTI City will complement these traditional terrains with urban settings to better prepare our soldiers for a wide variety of operations in the 21st century. SAFTI City will be a wired city. We talked about our SMART City; we are hoping that SAFTI City will be a smart training ground. We will use more simulation and detailed monitoring to help our soldiers to learn better. It will be a far cry from the days that we did our NS and charged up hills or against enemy battalions shouting, "Bang, bang, bang, bang!", and they shouted, "Bang, bang, bang, bang!" back. This method is not new. For instance, our fighter pilots have been using this for decades to train for high-speed manoeuvres. After every manoeuvre, they sit down and say, "All right, you say what you did, he says what he did." This is the objective. They showed the tracks, they showed where your weaknesses are. And they have been able to do that because planes are expensive and pilots even more so. But it is only now that modern technology allows us to scale this up for the same processes for individual soldiers within the Army. So, we have been doing this over the years where you can no longer assume that you have hit the target, and you actually have electric sensors on soldiers, on platforms, and the attrition rate is real. And I am glad to report that SAFTI City is taking shape and is on schedule. We will build more roads and bridges so that motorised and mechanised troops in the Army vehicles can start training this year. SAFTI City will be progressively built and will have more than 200 buildings of varying heights and types when completed, all wired up.[+6 sentences] But with this kind of SAF for 2030 and beyond we can move great distances. Our Terrexes can move 70 kilometres per hour (km/h), and our Leopards close to that, slower perhaps across more difficult terrain. But if we only had space to train in Singapore, you could reach one end to the other within less than an hour. So, we will need larger training spaces. In particular, the training areas at Shoalwater Bay will be expanded. There will be new developments in the Townsville Region in Northeast Australia. Under the Singapore-Australia Comprehensive Strategic Partnership, new facilities, such as Instrumented Combined Arms Air Land Ranges and Urban Operations Live-Firing Facilities, are on track to being built.[+2 sentences] I said that very quickly, but an air-land range is priceless. We can only do this in very few places now – some in the US because they have the land. It allows for coordinated strikes between land and air platforms. So, when these facilities are completed over the coming years, we will be able to train large groups of troops for up to 18 weeks annually, a significant increase from the current six to seven weeks, or about a three-fold increase.[+12 sentences] Many Members have talked about digital defence. I completely agree. It is a battlefront that we cannot choose to ignore or we ignore it at our peril. Mr Charles Chong, Mr Desmond Choo, Prof Fatimah Lateef and Dr Tan Wu Meng have spoken about this. I spoke to this House about the threat of hybrid warfare and its effect on the real world previously. We have seen this played out against the Baltic States and Ukraine, to name some. And as a culturally and ethnically diverse nation, we, too, are vulnerable to such hybrid attacks, including targeting of our information technology (IT) networks to disrupt services and capabilities. Members have asked what is our progress of protecting this front and building up a force to protect this front. Two years ago, I announced the set-up of the Defence Cyber Organisation (DCO). DCO has stood up the Defence Cyber Security Centre. In other words, we have this Defence Cybersecurity Centre within MINDEF and SAF for daily operations against cyber threats against MINDEF and SAF IT systems, especially our command-and-control computer networks. In place are incident response teams which can also be deployed to support other national agencies during cyberattacks on critical systems. To meet these needs, SAF has to expand the pool of regulars for the cyber domain, and they will be Military Domain Experts Scheme (MDES) personnel, as well as the non-uniformed Defence Cyber Experts. We have recently announced that more than 300 will be hired in the first phase.[+2 sentences] But full-time NSmen (NSFs), too, can play an important part in digital defence, just as they do for kinetic operations. I think that was the point by Mr Zainal Sapari and Mr Vikram Nair. The 59-strong pioneer batch of the Cyber NSF Scheme enlisted in late 2018 after passing two rounds of rigorous tests. They are now undergoing an eight-month-long Cyber Specialist Cadet Course, in partnership with the Singapore Institute of Technology, and will graduate this August. We expect to take in another 80 to 90 Cyber Specialists this year to beef up our cyber units.[+30 sentences] Just as we have done for kinetic operations – many of you are familiar with our SAF firing ranges, many of you have fired there – well, we have a cyber range as well – the Cyber Defence Test and Evaluation Centre. In this cyber range, our cyber soldiers are exposed to realistic training. We have created a mock-up, a simulation of the SAF’s networks and online traffic, and we use actual malware and attacks against these nodes. Like in live firing ranges, you are supposed to shoot straight, the SAF aims to train soldiers that can respond to these attacks in a realistic and challenging environment. SAF will also tap on NSmen with IT expertise as a result of their civilian jobs or training. One example is the existing NS Expertise Conversion Scheme. It allows non-officer NSmen with industry expertise to become MDES officers for cyber vocations. MINDEF and SAF are exploring better matching of NSmen with their civilian IT vocations. All of us have a part to play in Digital Defence for Total Defence. In Singapore’s digital fortress, we are only as strong as the weakest link, and Senior Minister of State Mohamed Maliki will share more. These acquisitions in hardware and facilities, together with the will and skills of our NSmen and NSFs that make up the bulk of the SAF, will put us in a good position to deal with security challenges for another generation. If all these plans come to pass – and I will add that it will take us 10 to 15 years – SAF will be one of the more capable militaries in the region. Our NSFs and NSmen will be able to train well and, most importantly, must train safely. The Inspector-General for Safety has been recently appointed and the office expanded with more safety officers. A number of Members talked about safety – Mr Charles Chong, Mr Chong Kee Hiong, Mr Zainal Sapari. The Commanding Officers of individual units have also been charged with the responsibility and accountability of safety standards and outcomes. As a routine, the Commanding Officer will identify activities each day that pose higher safety risks to his servicemen and women, and satisfy himself that the safety response plan and mitigating measures for such activities are adequate. Safety is, more than ever, a command responsibility, but each soldier must play his role, too. And we are doing this so that we can have realistic training because, if you cannot train safely, you will be set back. Senior Minister of State Heng Chee How will address in greater detail the measures the SAF will take to achieve zero training fatalities. MINDEF has also decided to build a central facility to better respond to the needs of the NS community. A new NS Hub will be built. It will bring together different services which are now scattered across Singapore. For example, today, pre-enlistees take their Individual Physical Proficiency Test (IPPT) at, say, Toa Payoh Stadium, then go to Depot Road Central Manpower Base, and then attend medical reviews at the Military Medicine Institute (MMI) in Kent Ridge. The new NS Hub will take all these services scattered across the island and put them into a central location. Where is this magical central location? It will be opposite Cashew Mass Rapid Transit (MRT) station, with easy access. The NS Hub will be built as a smart complex using modern technology for a seamless, user-friendly experience. Opposite Cashew MRT station in MINDEF land. Do not worry, we will not take it from anybody. Construction will begin this year, and our NSmen can look forward to their NS Hub by 2023.[+6 sentences] Senior Minister of State Heng Chee How will elaborate on the other measures to enhance the NS experience. Mr Chairman, let me conclude. To develop such a capable SAF that I have just described, which can protect Singapore’s interests and keep Singaporeans safe for another generation, will require significant and steady investments. I make no bones about it. It will require resources and our commitment. I am grateful to Members of this House and Singaporeans for their steadfast and unwavering support towards a strong SAF. As I have previously committed to this House, we expect our nominal defence spending over the next decade to grow at 3% to 4% each year, to at least keep pace with inflation. This year's Budget represented a 4.8% increase over last year.[+4 sentences] The commitment that I have put over the next decade of 3% to 4% holds despite this year's increase. There were just certain projects or acquisitions that have matured and, therefore, we have to spend more. However, the overall defence expenditure will even out in subsequent years. Defence, especially for a small island like Singapore, is crucial if we are to safeguard our interests and deter aggression. Singapore is on track to build a modernised tri-service SAF – and perhaps even a quadri-service SAF, including the cyber force – that can meet security challenges both in the real and virtual worlds in the 21st century.[+2 sentences] If we continue our steady investments into defence and our NSmen maintain their commitment and resolve to defend Singapore, then our future will be secure for another generation. We can look forward to celebrate SG75 with the assurance that we have strong defences.
The Chairman7 words
[+1 sentence]Senior Minister of State Heng Chee How.
The Senior Minister of State for Defence (Mr Heng Chee How)2410 words
[+7 sentences]Mr Chairman, Minister for Defence Dr Ng Eng Hen has just spoken about the need for NSmen to train well and to train safely. Indeed, the strength of NS is contingent upon the fighting spirit of our NSmen. Our servicemen must undergo tough and realistic military training for the SAF to be an effective fighting force capable of safeguarding Singapore’s sovereignty. At the same time, a strong SAF that can defend Singapore must be built without compromising the safety of those serving. Mr Charles Chong asked about balancing operational readiness and safety. We understand the anxiety of our soldiers and their families arising from the recent training-related incidents. MINDEF and SAF take the trust, confidence and expectations that Singaporeans have in our NS system seriously. The SAF’s safety protocols are audited and assessed by independent professionals from outside SAF.[+11 sentences] This is done consistently. Allow me to share two examples. The External Review Panel on SAF Safety is a standing panel commissioned to assess the SAF’s safety management systems and help ensure that the SAF’s standards and processes are sound and aligned with industry best practices. More recently, the External Review Panels for Heat Injury Management and the External Review Panel for Combat Vehicle Safety were convened in 2018. They assessed the safety procedures to prevent heat injuries and to ensure the operational safety of vehicles. Where shortcomings are discovered, SAF has and will sharpen safety measures to further reduce the risks and to prevent recurrences. Just as a further point, the Army will strengthen training supervision and enhance safety equipment to improve combat vehicle safety. These and other specific measures that we shared in this House, we will implement them as soon as possible, and some have already been implemented. This demonstrates our unwavering commitment to safety. We will not only address individual incidents but will seek to enhance training safety at every level of responsibility. Senior Parliamentary Secretary Muhammad Faishal Ibrahim asked about how the SAF is strengthening safety culture at all levels of the SAF. As the Minister for Defence has highlighted earlier, an Inspector-General's Office has been set up to inspect and audit the safety practices across SAF.[+4 sentences] This Office, led by the Chief of Staff – Joint Staff, reports to the Chief of Defence Force and the Permanent Secretary of Defence to enforce safety procedures and to reinforce safety consciousness and culture from the highest level so as to ensure that command emphasis on safety is consistently applied. On the ground, SAF has renewed the focus of commanders on safety. Commanders have comprehensively reviewed safety management plans and the overall training tempo. They know that they must lead by example in driving safety as a topmost priority. The Army will also ensure 100% inspection of all high-risk and field training.[+16 sentences] We want, through concrete action, to reassure Singaporeans that training safety is a top priority for MINDEF and SAF. Ultimately, safety involves everything that I have mentioned, but it also involves more than sound systems and top-down measures. Safety must be part of our organisational culture, one that every soldier at every level has a role to own, to build and to foster. SAF encourages open reporting. Mr Charles Chong asked about this. What does it mean by open reporting? Open reporting means that any servicemen can, at any time, report risky behaviour or near-misses and safety breaches. And the servicemen know that they can do so without any fear of penalty. They can call the 24-hour safety hotlines for the Army, Navy and the Air Force, and caller identities are kept anonymous. There are other measures by which they can also surface the feedback. So, the open reporting is about wanting to engender and to ensure openness in the culture, that you are encouraged, indeed, to bring this up. On enlistment day, recruits are briefed by commanders on how they can report safety breaches. Prior to training, soldiers can identify safety risks using risk assessment checklists and raise concerns to their superiors in a small group setting. This encourages them to look out for their own and their buddies’ safety. Since last year, SAF has been developing an application called "SafeGuardian", which will allow SAF servicemen to use their mobile phones to report workplace hazards and instantly share them with other servicemen. So, when servicemen are in camp, if they notice, for example, some sharp wire fittings that could potentially cause injury, then that serviceman can take a photo of that using the "SafeGuardian" app and inform the relevant SAF safety officers, so that immediate action can be taken to remove that hazard and to remove that risk. Their buddies nearby will also be informed via safety alerts to their mobile phones. "SafeGuardian" can also provide access to safety checklists on-the-go, compared to the moment where these forms are only available in physical terminals within the camps. So, this app will begin its trial in our Naval Bases starting from March this year.[+17 sentences] It will be implemented in phases to the rest of the SAF as soon as possible. This effort will help enhance safety consciousness and reinforce the point that safety is "By All, For All". Miss Cheng Li Hui asked if we could recognise fallen servicemen, including erecting a memorial. SAF honours our servicemen and women who die in service. Every year, SAF observes a minute of silence at the SAF Day Parade to remember our fallen soldiers in the presence of our President or the Prime Minister as the Reviewing Officer. Individual units or formations also hold remembrance events to honour those among their ranks who perish during operations or training. We will never forget their sacrifice to keep Singapore free from those who want to do us harm. On this note, we also want to thank all our NSmen for their commitment and dedication. Allow me now to speak on how we will enhance the experience for our NSmen. Mr Zainal Sapari asked about the importance of NS to Singapore. Securing Singapore’s freedom is a sacred duty shouldered by our NSmen. It is only right that we continually think of ways to support them. Our NSmen have to balance personal and NS commitments, and we must strive to increase convenience for them by reducing administrative burdens wherever possible. This will help them focus on the training. We will also maximise the potential and tap into the abilities of our increasingly better-educated pool of servicemen, so that they can contribute even more meaningfully. Mr Baey Yam Keng had asked for updates on our efforts. Our operationally-ready NSmen (ORNS) are required to notify the MINDEF Notification Centre and Home Team Overseas Notification Centre of their overseas travel of less than six months' duration, which can currently be done via the NS Portal or by text. From 1 March today, we will remove this notification requirement.[+7 sentences] Servicemen just have to keep their contact details, including temporary contact information, updated on the NS Portal. Removing this requirement will not compromise operational readiness, because other exit control measures, such as the requirement to apply for an Exit Permit before traveling overseas for periods of six months or longer, will continue to apply. Control measures could be tightened if the need arises. Mr Pritam Singh and Mr Chong Kee Hiong asked how we intend to maximise our manpower resource with falling cohort sizes. How can we do more with fewer? Besides better technology, equipment, process and job redesign and training of the NSmen, many NSmen also have very relevant and important niche civilian expertise in fields that are relevant both to the civilian side as well as to the military, for example, in nursing or infocommunications. NSmen with such expertise can now contribute to defence with their civilian expertise earlier in their ORNS training cycle. Previously, they had to complete the full 10-year training cycle before conversion to a role that allows them to utilise their civilian expertise. Now, if they are found suitable, they can be deployed to roles, such as nursing officers and network communications officers, after completing two High-Key In-Camp Training stints and have served five ORNS years.[+10 sentences] Another example: pre-enlistees are screened at the SAF Medical Classification Centre prior to enlistment. They will then be assigned an appropriate PES grade, so that each person can serve the nation based on his capacity and capabilities, and this would include NSFs with disabilities. For instance, soldiers with hearing impairment or musculoskeletal disabilities, where found suitable, are assigned to support or administrative vocations, where they are deployed safely and are able to also contribute very meaningfully during their NS stints. We certainly also value the contributions from women to national defence. Since 2014, women have served in the SAF Volunteer Corps in areas that support the SAF’s operational and training requirements. Our pool of SAF volunteers comprises a good mix of males and females, with about half being women. Mr Arasu Duraisamy asked about our partnerships to support skills upgrading. NSFs from SAF and the Home Team dedicate two years to focus on full-time training. Today, certain soldiering, firefighting and rescue competencies are accredited under the Workforce Skills Qualification standard. To keep pace with the national focus on skills mastery, we seek to support the NSFs’ transition to higher education or into the workplace. A suite of initiatives called "SkillsFuture@NS" will be launched this year with public and private sector partners.[+3 sentences] What can our NSFs, therefore, look forward to under these partnerships? First, more resources for skills upgrading after full-time NS. Today, NSFs are granted $350 worth of e-credits for them to subscribe to about 200 online courses, that is, the course list, and these courses are offered by our local universities and polytechnics. These e-credits are valid up to one year after they complete full-time NS. We will extend the use of these credits to about 3,000 selected courses, up from the 200, and amongst these courses will be a good number of SkillsFuture Series courses that focus on emerging domains, such as data analytics and cybersecurity.[+9 sentences] We are also working with Institutes of Higher Learning to offer customised courses. NSFs may take these courses to obtain credit exemptions from relevant diploma or degree programmes after they complete their full-time NS. E-credits can also be used for these courses. For example, NSFs can use their e-credits to take a course on "Introduction to Cloud Architecture" that is offered by the Temasek Polytechnic (TP). Upon admission to TP’s part-time Specialist Diploma in Cloud Data Centre Technology and Management, participants who complete these online courses will be granted partial exemption from one module. This will go some way towards supporting our NSFs’ learning journey. Second, career discovery and exposure. This month, MINDEF/SAF will co-deliver a career orientation experience with SkillsFuture Singapore. This initiative is supported by our five Community Development Councils and the National Trades Union Congress Employment and Employability Institute (e2i). SkillsFuture Advice workshops will be customised at the quarterly Career and Education Fair held for NSFs.[+8 sentences] We conducted a pilot of this career orientation workshop at Jurong Camp. One of our combat engineers, 21-year-old Corporal Ritesh Kumar, said the workshop helped him understand the various pathways available after he completes his full-time NS. He felt that this gave him and his buddies more useful guidance about their next stage in life. We will take in our servicemen’s feedback and suggestions to refine and improve the SkillsFuture@NS effort in the years ahead. Next, strengthening support for NS. Mr Henry Kwek asked about our plans to engage the community on NS issues. First, I want to express our thanks to the Advisory Council on Community Relations in Defence (ACCORD) members for their valuable contributions towards the mission of working with educational institutions, businesses and community groups to strengthen community and total support for our defence and NS. One of the highlights through the good work of ACCORD in 2018 was the inaugural Women’s Boot Camp. One hundred and three women out of 1,000 were selected for the camp.[+15 sentences] So, 1,000 applied for 100 places. So, in the end, 103 were accommodated for this two-day one-night camp. So, it was an overnight camp. That camp gave the women participants, whom I understand have ages that range from 13 to 64. So, it was a wide range. Therefore, in there, there are daughters, mothers, sisters, wives, girlfriends, friends of servicemen, and what they got was a glimpse of military life. They came out seeing NS as tough, but necessary. One of them is 50-year-old Ms Koh Wee Min. She is a mother of one of our NSFs. When asked about her experience, Ms Koh said that it gave her a taste of some aspects of military life through participation in iconic NS activities, such as clearing the Standard Obstacle Course. She said, "I can now support my son emotionally and psychologically. It will also allay some concerns I have about training safety as I could see that safety is paramount to their training. It is reassuring to know that servicemen will get progressive training before they tackle more challenging tasks." This year, we will run another camp so as to continue to engage our community and also this very important constituency, namely, the other half of our population, the women, so that, together, we can strengthen this support for NS and for the defence of our country. Our servicemen have told us that sharing photographs of their NS experiences in camp would also help them build a stronger sense of community. MINDEF and SAF have been exploring ways to allow servicemen to share their personal NS memories and experiences online, while safeguarding security of sensitive information. We are now working on a digital repository called "NS Memories" that will give NSmen access to official photographs of themselves and their buddies.[+1 sentence] Over time, the repository will catalogue the experiences throughout the NS journey. It will allow servicemen to share these photographs on their social media. We will conduct a trial with an active infantry unit for "NS Memories" this year.[+4 sentences] If proven successful, we will expand the initiative. Mr Chairman, the success of NS is measured by the peace safeguarded and maintained, day in, day out, year after year. Every day of peace that Singapore enjoys is testament to the effectiveness of our deterrence, diplomacy and defence. With a strong and resilient NS system that enjoys wide and deep public support, we can continue to be confident about Singapore’s future.
The Senior Minister of State for Defence (Dr Mohamad Maliki Bin Osman)2114 words
[+7 sentences]Mr Chairman, Minister for Defence Dr Ng Eng Hen has spoken about the uncertain and volatile geopolitical environment that confronts us, and how a strong SAF is vital to help us navigate this landscape for Singapore. History has shown us that having a strong defence makes all the difference. This is why our long-term and sustained investment in the SAF and Total Defence is vital for Singapore’s continued security and prosperity. When Total Defence was first introduced in 1984, it was in response to a threat landscape where warfare was very much conventional. However, even then, there was a recognition that potential aggressors would target not just the military, but the entire population. As threats evolve, Total Defence becomes even more critical. Take terrorism, for example. The face of terrorism has changed, from kinetic attacks spearheaded by Al-Qaeda and Jemaah Islamiah in the early 2000s, to the Islamic State of Iraq and Syria's (ISIS’) more insidious attempts to radicalise and recruit followers through the use of technology and social media, to deepen distrust among the communities and sow discontent with the establishment.[+5 sentences] They even fund and instruct their members and sympathisers to launch terror attacks like suicide bombings in their own countries. ISIS may have lost ground in the Middle East, but links to our region remain alive. The return of foreign fighters exacerbates this threat. In this age of the Internet and social media, the resilience of Singaporeans will be tested through attacks from the digital front. This will be the new battlefront because of how connected we are, and how reliant we are on digital technology to communicate and to consume information. Singapore has one of the highest levels of Internet penetration in the world, and according to a study done by media company “We Are Social” in 2018, people in Singapore spent an average of two hours daily on social media, with WhatsApp, YouTube and Facebook being the top three most used platforms.[+15 sentences] Sir, our connectivity opens us to threats from the digital domain, which will confront and define this generation. Many examples in Singapore and overseas illustrate the devastating impact that these threats can wreak. The Digital Dangers and the Need for Strong Digital Defence. Sir, for example, Estonia was one of the first countries in the world to experience this in April 2007 when a cyberattack caused online services of their banks, media outlets and government to be shut down. Citizens could not access cash machines and online banking services; news could not be printed nor broadcasted. More than 10 years on, cyberattacks in various forms remain a tool for those who would do harm to us. Another example, in July 2018, more recently, the Alaskan borough of Matanuska-Susitna or Mat-su, was, as a British Broadcasting Corporation article describes, sent “back in time” by a malware attack which forced them offline, resulting in some borough staff having to bring out old typewriters just to keep services going. Another challenge is how quickly information – and disinformation – can spread over the digital domain. The recent riots that broke out at a Hindu temple in Subang Jaya, Malaysia, showed how the spread of rumours and fake news via social media just overnight could fan the flames of racial tensions, and incite social unrest. As Ms Joan Pereira noted, it is important for us to keep our Social Defence strong, so that we stay united against any attempts to divide us. All communities and faiths have worked hard to build our multicultural and multi-religious society today. We must not let falsehoods pit different social groups against one another. Many of these digital dangers show that complacency, ignorance or negligence on the part of individuals could pave the way for an attack with disastrous consequences. A January 2019 report by the North Atlantic Treaty Organisation's (NATO’s) Strategic Communications Centre of Excellence outlined how their researchers managed to track and trick NATO troops using open-source data primarily from social media. It was concerning how it was so easy for the researchers to identify troops, locate their battalions, persuade them to abandon their posts and reveal sensitive details about military manoeuvres. This example shows how much people take their online lives for granted and are unaware about how the seemingly innocuous information they post about their lives can be used for harm not just for themselves, but for the wider society.[+1 sentence] And Singapore is not spared. We know how hackers stole the information of 1.5 million SingHealth patients. We have also seen the spread of fake news on a wide range of matters, for example, plastic rice or Halal pork, to, more insidiously, false accounts of incidents that could inflame xenophobia, communalism and puncture social harmony. This is why we have strengthened Total Defence with a new Digital Defence pillar.[+8 sentences] Ms Joan Pereira and Dr Teo Ho Pin asked about our Digital Defence efforts. We want to bring across the message that every individual is at the forefront of Digital Defence, and this is not a cliché. It is of great significance and, as articulated in an editorial in The Straits Times, and I quote, “every citizen is a soldier in the digital war”, unquote. Only if everyone plays a part – the Government, businesses, communities and individuals – can we make Digital Defence a part of Singapore’s DNA and keep our defence total. As a whole-of-nation effort, MINDEF has been working with various Government agencies to fortify Singapore and Singaporeans against digital threats. The Ministry of Communications and Information and its agencies, the Cyber Security Agency, the Infocomm Media Development Authority and the National Library Board (NLB) have in place various programmes to empower individuals, businesses and the wider community, so that they can play a part by being secure, alert and responsible online. In the Ministry of Home Affairs (MHA), the Singapore Police Force has developed further its capabilities to deal with cybercrime and educates the public on staying safe in cyberspace. As Minister Ng Eng Hen spoke about earlier, we have strengthened our defence sector networks through setting up the Defence Cyber Organisation and ensuring that we have a strong core and pipeline of people with the right skills and expertise to do this work. We will also ensure that our Servicemen are prepared for threats from the digital domain. We are working with NLB to have all recruits going through Basic Military Training (BMT) attend an information literacy workshop to equip them to better recognise and deal with fake news and deliberate online falsehoods.[+3 sentences] For the rest of our personnel, MINDEF and SAF will inoculate them against hostile information campaigns and fake news, as well as strengthen cybersecurity awareness through enhancing our existing curriculum and learning journeys. We hope that, collectively, these efforts will help our Servicemen better understand the role of fake news in modern warfare, the steps that they can take in response, and strengthen cyber hygiene as a whole. For students, issues related to Digital Defence are already in the Ministry of Education's curriculum and will be reinforced through digital literacy and Cyber Wellness programmes. Ms Joan Pereira asked about how we are reaching out to our youths. We refreshed the “Guardians of the City” game card this year to include threats from the digital domain.[+4 sentences] Students who have played the refreshed game felt it helped them better understand these threats and how they can play a part. For example, the Institute of Technical Education (ITE) College East student Deshaun Lau shared with us, and I quote, “Playing the game helped me realise that when we face digital threats, we must stay together as a community, and remind one another to take steps to prevent these attacks”, unquote. Businesses, too, are putting Digital Defence in action. A workplace design company, Space Matrix, has not only invested in cybersecurity systems, but also trained their staff to keep these threats at bay. Digital threats hit close to home when someone impersonated their chief executive officer via email and asked the staff for a funds transfer.[+20 sentences] They did not fall victim, thanks to the vigilance of their staff, who recognised the false email identification. The company subsequently finetuned their systems to better protect themselves for the future. Keeping Singapore Strong Together. While we step up efforts in Digital Defence, the multifaceted threats of today mean that to keep Singapore strong, we need a collective effort where everyone plays a part and takes action across all six pillars of Total Defence. Mr Chairman, may I say a few words in Malay, please? (In Malay): Mr Chairman, the recent maritime and airspace disputes between Singapore and Malaysia have reinforced the importance of Total Defence for us. Our security agencies stand ready and vigilant to safeguard our sovereignty. Singaporeans also need to remain united and stand firm on our principles to protect our national interests. Therefore, it has been heartening to see how many Singaporeans have taken to social media to counter false claims and show support for Singapore’s position. One example is a post by Mr John Lam, who encouraged fellow Singaporeans to remain calm and civil when the maritime dispute between Singapore and Malaysia became tense. He used examples from Singapore’s past to show how we, as one people, have overcome our constraints, and came out stronger. For instance, when we were faced with the threats to cut our water supplies, we invested in water filtration and desalination technologies and developed our own NEWater treatment plants. When faced with a sand import ban, we developed innovative and environmentally-friendly ways of using less sand for reclamation. What Mr Lam and many others have done embody what Psychological Defence is about – our people staying united and resolving to stand up for Singapore. Members of this House, like Ms Cheng Li Hui, have acknowledged the importance of this as well. The recent bilateral tensions between Singapore and Malaysia have helped Singaporeans better understand what we stand for, and why it is so important for us to take these positions on upholding our territorial sovereignty and operating within a rules-based international order. Our small size and the volatility in our region show how crucial it is for Singaporeans to remain committed to our own defence, and having a strong Singapore Armed Forces. (In English): I spoke earlier about how the terrorism threat is here to stay. Security agencies will do all we can to prevent an attack, but, even if one takes place, it is important that every Singaporean knows what to do so that we can hold together, and bounce back quickly as a society. We commend ground-up initiatives that put Total Defence in action in this way, such as the example of the young Singaporeans who came together to develop the Bukit Panjang Emergency Preparedness Guide, with the support of Bukit Panjang Community Emergency and Engagement Committee, as Dr Teo Ho Pin had shared. To build emergency preparedness, we have put in place the Community Response Module that equips MINDEF and SAF personnel to be active community responders by teaching them skills to better protect themselves and help those around them in the event of a terror attack.[+2 sentences] This complements MHA's SGSecure effort, which continues to build vigilance, cohesion and resilience in the community to deal with a terror attack. MINDEF's Total Defence partnerships with organisations, such as the Singapore Red Cross and Temasek Foundation Cares, also equip people with the knowledge and skills that they can apply in a crisis. For example, the Business Psychological Resilience Programme, part of Temasek Foundation Cares' "Stay Prepared" initiative, trains employees of companies in skills like psychological first aid.[+1 sentence] MINDEF has also been actively reaching out to our youths and the wider community on Total Defence, and it is heartening to see how they have rallied around Total Defence. One example is our five students from Temasek Polytechnic – Benedict, Gabriel, Jed, Martin and Shing Hao. They developed a prototype Total Defence mobile application game, named "The Lion City".[+3 sentences] The game highlights how simple everyday actions can contribute towards building a strong and cohesive nation. The game's developers hope that by doing so, they can inspire their fellow youths to play their part and put Total Defence into action. Sir, in conclusion, Singapore has enjoyed peace and prosperity as we have a strong SAF, a strong NS system, and strong public support for defence and security. Thirty-five years on and after the launch of Total Defence, we must continue to involve all communities and faiths to play their part. As we commemorate the Singapore Bicentennial this year, let us strengthen our resolve to safeguard our future of Singapore and Singaporeans.
[+1 sentence]Chairman, Sir, my question is to the Minister of Defence. Is MINDEF at liberty to share whether the variant of the Joint Strike Fighter that is going to be procured, is it the conventional take-off and landing version or the short take-off and the vertical landing version?
Dr Ng Eng Hen27 words
Mr Pritam Singh would be aware that there is an aircraft carrier version, and I can confirm with the Member that we are not buying that one.
The Chairman7 words
[+2 sentences]Any other further clarifications? Mr Vikram Nair.
Mr Vikram Nair (Sembawang)41 words
[+2 sentences]I thank the Minister for the update on the complete renewal taking place for many of our equipment. I am interested to know how much and to what extent these modifications will be developed in Singapore through our local defence industries.
Dr Ng Eng Hen266 words
[+10 sentences]Mr Chairman, there is no change in that sense in our procurement policies where we get the best of class for our needs. Price is a significant consideration. But also, when I say for our needs, obviously, a key restriction is manpower. And if we look at, for example, our ships, the reason why we went to local production, first of all in our frigates, which we did with French DCN, and then we built our own. Even with that, we designed it from conception to operation. Because few other nations are able to have the SAF that we have that is able to defend a small island and have to do so with fewer people. So, for the ships, we went in that way. I think that has paid dividends. For Air Force, less so. From a maintenance point of view, we dealt with the issue by contracting it to some of our strategic partners, private companies. For the Army, some, we have been able to do on our own to develop indigenous capability for local needs. So, I would say that our procurement is still price-sensitive, best of class, but platforms that meet our needs. And where we can, we also recognise that we must develop a local industry to be able to respond because even developing that capability for private practice requires time and effort.[+3 sentences] And we do not leave it, for example, to the marketplace. You cannot. And that is why, over the years, a number of companies have been able to work with MINDEF and SAF to meet our defence needs.
The Chairman10 words
[+1 sentence]Mr Vikram Nair, would you like to withdraw your amendment?
Mr Vikram Nair132 words
[+4 sentences]I would like to thank Minister Ng Eng Hen, Senior Minister of State Heng Chee How and Senior Minister of State Mohamad Maliki for their responses in a wide range of areas, including giving us the assurance we will be safe for the next 25 years. NS safety remains a priority and we are investing to deal with cyber threats and terrorism. These are all important considerations and I thank the Ministry for being on top of it. Chairman, I beg leave to withdraw the amendment.