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2021-02-25

Debate on Annual Budget Statement

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31 topics305 turns 7 briefs summarised1,140 highlighted passages
Debate on Annual Budget Statement› Budget55 turns · 47,237w · 358 highlighted
budget-1574recorded 2021-02-24
Speaker not recorded57 words
[+2 sentences](proc text)] . (proc text)]
Mr Speaker7 words
[+1 sentence]Leader of the Opposition, Mr Pritam Singh.
Mr Pritam Singh (Aljunied)3030 words
[+2 sentences]Mr Speaker, as in recent years, Budget 2021 reflects not just the Government's priorities for the upcoming Financial Year but the Government's medium term direction as well. In my view, many schemes in the Budget are a continuation of the strategic agenda laid out in previous years or jigsaw pieces of a longer term plan fleshed out elsewhere.
The Government's agenda continues to be guided by the Committee for the Future Economy report released four years ago and by the more recently released Research, Innovation and Enterprise 2025 Plan, amongst others.
[+12 sentences] COVID-19, however, has accelerated some plans and thrown a spanner in the works of others. For example, digitalisation has found new impetus while the Changi Air Hub plans have been put on hold. Following Minister Lawrence Wong's comments at the recent Singapore Perspectives conference, I was looking forward to indications in the Budget of a reset of the Government's agenda in the areas Minister Wong highlighted. Of particular interest to me was Minister Wong's mention of a reset in our social compact to tackle inequality to keep society fluid and mobile. His discussion of a permanent shift towards stronger social safety nets, a commitment towards a greener Singapore, and a reset to strengthen solidarity in our people also made for a refreshing vision. However, the Budget did not sound like a reboot of ideas and the direction of yesteryear. To some extent, this is understandable as the country remains in the throes of a pandemic, along with talk of a K-shape recovery. With many uncertainties on the horizon, an instinct to stay the course and to adopt a nimble posture is not unexpected. I will speak on three main areas that address specific aspects of Deputy Prime Minister Heng's Budget speech. First, on emerging stronger with skilled workers and innovative businesses. Sir, in my opening speech in this parliamentary term, I cautioned about the lived reality of the Singaporean worker in light of foreign competition in his or her own country. Deputy Prime Minister Heng said in his speech that a balance has to be struck with the focus on the complementarity of local and foreign manpower, alongside the stepping up of industry transformation.
As such, I was surprised by the relatively small number of Singaporeans who have benefited from the Capability Transfer Programme, or CTP. Fewer than 970 Singaporeans have benefited thus far.
[+5 sentences] The CTP funds the salary and training for both foreign and local trainers and local trainees by between 30% and 90%. When the scheme was launched in 2017, about five years ago, MOM positioned it as a scheme that would strengthen the Singaporean Core of workers and enhance how local and foreign workers would complement rather than compete with each other. Considering that there are quite a few sectors in which there is a real need for talent transfer to Singaporeans, such as IT where a common complaint from employers is the lack of Singaporean talent, I would have expected to see many more Singaporean workers improving their prospects through the CTP. Similarly, with the establishment of industry clusters through the Industry Transformation Roadmaps, identifying improved jobs and skills prospects across 23 sectors as a key ITM deliverable, one would have imagined more CTP applications, with more than a fair share qualifying for the highest tiers of the grant. The example that the Minister highlighted in his Budget speech of a technical officer at SP Services learning new skills in network support for the rollout of advanced electricity meters, suggests there is significant downstream reach of the CTP, regardless of industry.
In extending the CTP until 2024, can the Minister share what has been achieved by the programme for the Singaporean worker thus far and how much money has been spent on it?
[+4 sentences] What skillsets have been transferred to Singaporean workers by sector, and which industry clusters is the Government earmarking for greater talent transfer through the CTP? I also seek greater clarity on the Minister's commitment of $24 billion to enable firms and workers to emerge stronger. Can the Minister detail what this multi-year allocation entails? More importantly, in view of the headline numbers, how does the Government plan to release information and account for the tangible and intangible outcomes of the money spent on these multi-year initiatives?
In a similar vein, Mr Speaker, the Minister shared that an additional $5.4 billion would be allocated to a second SGUnited Jobs and Skills package, on top of the $3 billion allocated last year.
[+23 sentences] Sir, from 11 August last year, MOM has been releasing weekly job situation reports providing updates on the SGUnited Jobs and Skills package. After the seventh weekly report, the reports stopped becoming weekly. Instead, periodic reports were released, focusing on the available opportunities in each sector on a monthly basis. The public sector opportunities are significantly funded by the Government. As such, the job situation reports need to be buttressed with significantly more detail. For example, while the reports state the number of successful placements and chart the salary range for major job roles in specific sectors, there is little detail on the salary levels and the age ranges of those who have been successfully placed, particularly those in long-term jobs. Sir, outcomes for our mature workers are an important bellwether for the Government's initiatives. Shortly before COVID-19 struck, the tripartite partners acknowledged the importance of strengthening support for older workers through a range of measures, including progressively raising the CPF contribution of older workers in the years to come. The public should be given greater insight into the effectiveness of multibillion-dollar initiatives that aim to improve job opportunities and outcomes for all our workers, but especially our mature workers. This is in light of the fact that a significant number of workers will also enter their 50s by 2030. The effectiveness of Government measures should be readily determinable. Without such scrutiny, a perception may crystallise of large sums of money being deployed to address an issue for which effectiveness is hard to establish. This follows on from my call in September for more and not less information from the Government. I encourage Singaporeans to look out for the reports of the Estimates Committee, a standing parliamentary Select Committee, one of whose roles is to examine the Government's Budget. If the Government were to consider a more aggressive reset in this regard, the establishment of an independent parliamentary Budget Office may well be another complementary addition towards the judicious use and accountability of taxpayer dollars. In fact, it would be in step with Deputy Prime Minister Heng's call for fiscal prudence and add an important element of public accountability and transparency in light of the massive drawdown of reserves to fight COVID-19. Sir, in response to the Minister's Resilience and Solidarity Budgets of last April, I spoke of the lessons of COVID-19 raising the prospect of sectors that could be manned by more Singaporean workers for better resilience and national outcomes. I spoke of what a living wage ought to be for those who man our critical infrastructure and keep the country's heart beating. Like many Singaporeans, a high point for me in Deputy Prime Minister Heng's Budget was the announcement of a hike in the salaries of our nurses and healthcare professionals. A crisis usually leaves lasting lessons about those you can count on and who are always there in one's most challenging times. Healthcare workers deserve their raise. I would urge the Government to look at reviewing the wages of other front-liners and, particularly, essential workers like our waste disposal workers, transport workers and many others who proved indispensable in this COVID-19 fight. The second part of my speech covers the Minister's comments on strengthening the nation's social compact.
My key query in this section pertains to the announcement of the disbursement of $100 worth of Community Development Council (CDC) vouchers to all households to be used at participating heartland shops and hawker centres.
[+5 sentences] Sir, the Singaporeans who have borne the brunt of COVID-19 are the low-income. Government schemes, ranging from SIRS to various COVID-19 grants, have certainly helped stave off hardship. But there are, nonetheless, serious concerns about the state of these families and households today. Beyond Social Services is a community organisation which reaches out to 64 rental blocks where more than 10,000 individuals live. This represents a fairly large and determinative sample of Singapore’s rental housing population.
Beyond Social Services launched its COVID-19 Family Assistance Fund in March 2020 and, in six months, had committed over $3 million to more than 1,900 families.
[+1 sentence] The organisation released a report earlier this month and some findings read starkly.
Post-COVID-19, the median household income from work fell from $1,600 to $500, a 69% drop. The median per capita income fell 74% from $425 to $113, and 35% of FAF applicants saw their income drop to $0.
[+4 sentences] I have to clarify that these numbers do not take into account the not insignificant COVID-19 financial assistance pumped in by the Government over the course of the last year. That said, according to Deputy Prime Minister Heng in his comments to CNA over the weekend, the inequality situation measured by the Gini coefficient has actually improved over the past year. It, therefore, appears that there is divergence in what the absolute data on inequality reveals and what the lived experience is on the ground in our rental flats. I hope the Government will look into this more deeply, to assess how COVID-19 has affected our low-income households and their employment prospects.
Moving forward, the disbursement of additional assistance through other vouchers and schemes from the Contingencies Fund targeted at households in public rental units should be seriously considered throughout the course of this financial year. This would also be consistent with the findings of the Government’s Emerging Stronger Conversations thus far which, after 88 conversations involving 4,400 participants, finds social support – covering issues like dignity of the less privileged, protection of vulnerable segments, and support for giving and volunteerism – ranked as the most discussed topic.
[+16 sentences] Sir, one major purpose of the CDC vouchers, as expressed by Minister Heng is to benefit heartland shops and hawkers. This cannot be objectionable and, indeed, given the revenue and scale of operations of some of these heartland shops, incentives to purchase the goods and services they offer would indeed be helpful for shop owners and proprietors. This use of CDC vouchers follows the intervention of the former Workers' Party Member of Parliament for Hougang, Mr Png Eng Huat, who, in his Unity Budget speech last year, queried whether the Grocery vouchers announced in the Unity Budget ought to have been allowed for use in neighbourhood mom-and-pop shops as well, rather than the bigger supermarket chains only. As a follow-up, may I ask the Minister to clarify the current scheme? The Minister’s statement does not say whether the CDC vouchers can also be used at Giant, Sheng Siong, Prime or NTUC FairPrice, for example. I would suggest that the current scheme be focused solely on heartland shops and hawkers, of which there is a broad range, such as local provision shops, Chinese sinsehs or traditional Chinese medicine providers, fruit sellers, barbers, hairdressers and so forth. There is a risk that if this is not done, the bulk of the vouchers would be spent at supermarkets, like NTUC FairPrice, and bypass the heartland shops. If the major supermarket chains are involved, the scheme could effectively mirror a cash top-up. My final query is with regard to the implementing agency of the scheme. The CDCs have come into the spotlight after the last General Elections because many Singaporeans are of the view that the salaries of Mayors are outrageous, principally because they are not perceived to commensurate with a Mayor's roles and functions today. Other Singaporeans of the view that the CDCs' functions can be carried out by other existing entities or by Ministries and Statutory Boards, including other organisations under the People's Association, particularly since the social footprint of each CDC is uneven and can differ greatly compared to another. Yet, others simply do not know what the CDCs do. Effectively, the need for full-time Mayors continues to be widely questioned and it would appear that there is scope for a serious review of the necessity of having full-time Mayors today. On the CDC voucher specifically, it is widely known that the representatives of Merchants Associations are commonly represented on the Citizens' Consultative Committees, and there is one for each ward or constituency. It would follow that these local bodies like CCCs are even more closely connected to the ground than the five CDCs, rendering the CDCs' role in the voucher scheme potentially superfluous. Sir, it would appear to me, as if the Government is trying to find some way to make the CDCs relevant, in view of their relative absence in the public mind share.
The Government allocated $20 million to the CDCs in the Unity Budget last year and this increased to $75 million a month later in the Resilience Budget. This injection is equal to all the reserves of the CDCs put together, according to the CDCs' FY2018 Annual Report. On the CDC vouchers, out of the $150 million being allocated to resource the latest initiative, how much is allocated for the scheme per se, and separately how much constitutes the amount allocated for the administration of the programme, as this is unclear in the Deputy Prime Minister's speech?
[+2 sentences] In the third and final area of my speech, Sir, I refer to where the Minister spoke of building a sustainable home for all. The science and environment correspondent of The Straits Times, in an article of 11 February 2021, observed that upon closer inspection, the Government's Singapore Green Plan 2030 was, and I quote, "more or less a compilation of existing sustainability initiatives" unquote, even as she acknowledged there were some new targets worth watching.
As such, the decision to raise petrol duties came like an ill-timed bolt from the blue.
[+15 sentences] The Government's move towards a future where electric vehicles replace internal combustion vehicles is arguably one central plank of the Green Plan, nudging Singaporeans to select more environmentally friendly vehicles. However, there is much frustration and unhappiness on the ground with respect to the timing of the hike in petrol prices to support this goal. The main reason for this is that the infrastructure and registration regime for a greater adoption of EVs has not even been rolled out in great numbers, but yet, the petrol duty hike was implemented immediately on Budget Day. Even the road tax rebate is slated only to kick in six months later. So, many Singaporeans are asking why do petrol duties go up immediately all at one go? Did the Deputy Prime Minister consider a phased and gradual increase of the petrol duties in step with the availability of EVs as a realistic consumer choice and a rise in their numbers on the roads in the years to come? Furthermore, given the economic environment and uncertainty, there is a real prospect of a simultaneous cost of living pain-point, with the Government committed to raise the GST well before the General Elections, and in my estimation at least, over a window that traverses 2022 to 2023, after the petrol duty subsidies ends. For middle class Singaporeans or the "sandwiched class" who do not qualify for the full extent of GST subsidies in particular, and for whom EVs may not be a compelling option in the short term, the next few years may well precipitate added cost of living pressures. Sir, I acknowledge the rebates the Minister has announced alongside the petrol duty hike. These are expected to offset the petrol duty hike of up to a year for taxis and motorcycles, and around seven to eight months for cars. Even so, I urge the Government to review this Budget announcement and implement a more thoughtfully phased in increase of the petrol duty in proportion to the actual growth of EV usage on the roads. The rebates proposed can be given out in a similarly phased manner. Such a move will be fairer for road users, as compared to the Minister's current plan, which is also implicitly contingent on a large number of EV charging points becoming available in 12 months' time when the subsidies end. In comparison, the Government's roadmap for 60,000 EV points has 2030 as its end date. With regard to the rise in petrol duty, I have two additional questions for the Minister.
First, can Minister confirm if any assessment has been carried out as to the inflationary effect of a rise in petrol duties and its impact on cost of living for Singaporeans, particularly in this economic climate?
[+5 sentences] Second, is the Government prepared to proactively look into the prospects of profiteering by unscrupulous businesses that seem to ride on this increase in petrol duties? To conclude, Mr Speaker, there remain many uncertainties about the pace and unevenness of an economic recovery across sectors. As a hub economy, until the aviation sector reopens in a significant way and the movement of people across our borders returns to some semblance of normalcy, a sense that the Singapore growth engine is not able to fire on all cylinders is likely to persist given our reliance on the global economy. But the opportunity for a reset in some aspects is clear. With a tighter fiscal environment in the years ahead, as stressed by the Deputy Prime Minister Heng over many speeches, closer scrutiny of expenditure should not be seen one dimensionally as political one-upmanship, but as an administrative necessity.
The scrutiny raises everyone's sense of ownership in Singapore. It should logically extend to the outcomes of Budget initiatives for Singapore and workers and their success in transitioning to high value-added jobs. They should be consistently reviewed especially since significant fiscal resources are being deployed across a number of years. The relevance of institutions whose roles and functions substantively overlap with other state agencies should also be reconsidered, with finite fiscal resources redeployed to support the low-income and needy.
[+1 sentence] Mr Speaker, notwithstanding my interventions above I support the Budget.
Mr Liang Eng Hwa (Bukit Panjang)2610 words
[+6 sentences]Mr Speaker, Sir, in these troubling times, Budget Statement speeches are really a source of reassurance. Deputy Prime Minister Heng mentioned last year that he addressed the House nine times over five Budgets and two Ministerial Statements. Well, we certainly needed that many doses of reassurances, support and interventions last year. Otherwise, the fall-out and impact from the pandemic would have been even more devastating for our businesses and for Singaporeans. We have put to good use the war chest and firepower that we have built up over the decades, and by any measures, we have achieved the intended outcomes. Interim assessment by MOF and MAS determined that the relief measures from the five Budgets have helped avert a deeper economic recession.
The economy contracted by 5.4% in 2020, instead of contracting an estimated 12.4% without the Government's support. The hefty $22.6 billion of JSS coupled with the $17 billion worth of financing schemes helped keep many businesses afloat and prevented massive job losses. Under the JGI, 110,000 jobseekers were hired and another 76,000 Singaporeans were placed under the SGUnited Jobs and Skills Package.
[+2 sentences] Households were also supported with various packages such as CSP, SIRS, CSG and TRF. These measures help mitigate the inequality during this difficult year.
On average, each household received $2,000 while the lower income households received up to $2,800. On the public healthcare front, a total of $13.8 billion was committed to protect and save lives.
[+30 sentences] Singaporeans felt safe and our fatality rate from COVID-19 is still among the lowest in the world at 29. Many schemes are still on-going and their effects are still working through the system and economy. But I can say that the strong and decisive interventions by the Government have made a significant difference in saving lives and livelihoods during this "crisis of a generation". Into 2021, the battle against the onslaught of COVID-19 continues on both the healthcare and non-healthcare fronts; and continues to require considerable amounts of financial resources to safeguard Singaporeans, families and businesses. Among the key highlights for Budget 2021 are the $11 billion COVID-19 Resilience Package and the $900 million Household Support Package, among others. These are necessary measures to tackle the on-going crisis and to strengthen social safety nets. Overall, Budget 2021 remains highly expansionary with total expenditures projected to grow by 8.8% from FY2020, which is a high-spending year, and 35% above pre-COVID-19 FY2019 spending level. Among the big-ticket items continue to be the COVID-19 related costs such as vaccination which amounts to $1 billion; testing, clinical management and tracing, which is likely to cost another $3.1 billion. Compared to the broad-based approach in last year's Budget, in this year's Budget we heard a lot more words like "targeted" and "differentiated". And with many businesses resuming either most or all of their activities, it is timely and prudent to start tapering down the assistances so as to manage down the overall costs of the support packages. However, the overall expenditure remains very high and notably higher than the revenue projected for the year; and hence, we would still have to count on our past reserves to fund the gap, albeit a much smaller amount this time. Sir, I support the draw on the reserves to fund the COVID-19 Resilience Package, given the still grim circumstances where COVID-19 related expenditures continue to be very high and necessary; while revenues may take some while to recover and to return. Sir, besides the on-going preoccupation with the pandemic, Budget 2021 steered our focus definitively to the future and to our longer term challenges. As the Deputy Prime Minister said, we must never stop thinking of the future. This is indeed the hallmark of our nation's success and what makes us an exceptional nation. We have ambitious plans to continually expand and strengthen our overall infrastructure and to build a sustainable home for all; under the Singapore Green Plan 2030. In charting our next future trajectory, we not only talk about the "whats" but the "hows" as well, including critically, how we can fund those investments at a time where our fiscal space is at the most constrained period. The Deputy Prime Minister announced the Government's decision to issue infrastructural bonds, the SINGA Bonds, to fund lumpy capital expenditure items such as rail lines and infrastructures to protect against rising sea levels and others. If these items are funded under the Annual Budget cycles, which is on a cash flow basis, it will put significant strains on our other Budget to other allocations. As these long-term infrastructures benefit current and future generations of Singaporeans, it is more equitable to distribute these fiscal responsibilities across generations, by way of a longer term financing structure. So, I support to partly fund these massive outlays through long-term borrowings via the SINGA Bonds; and especially during this current low interest rates environment. The $90 billion borrowing cap is a necessary safeguard in addition to the scrutiny from the President's office and Parliament. Also, having a wider variety of high-quality assets like SINGA and green bonds also helps develop our capital markets and facilitate better liquidity management among our financial institutions. Sir, the other exciting area in Budget 2021 is the $24 billion action plan to invest strategically for new growth and to emerge stronger. Even as we tackle the immediate challenges, we must not lose sight of our medium to longer term economic imperatives. COVID-19, while it has caused havoc to the global economy and our lives, has also triggered structural shifts on many fronts. Coupled with the accelerated technological changes and geopolitical shifts, the current forces at play actually open up interesting opportunities for Singapore. The Deputy Prime Minister highlighted a few areas, such as the how we can plug ourselves into the critical parts of the reconfigured global supply chain network – an interesting area to be in – rapid digitalisations where we can build new frontiers in digital connectivity or making available of capital tools to co-fund transformation and help our companies transform and grow, among others. Singapore needs to quickly adapt to the changed world and to be in the position to seize these opportunities and to build new competitive edges, and to do it among the early phrases of these new structural shifts. As the Deputy Prime Minister has elaborated, we need to decisively build three enablers: firstly, a vibrant business eco-system; secondly, make available a wide range of capital sources; and, thirdly, to develop our own future-ready human capital and talents.
In all, the Government will allocate $24 billion to invest in these three strategic enablers over the next three years.
[+16 sentences] I will speak further on these enablers during the COS debate for MOF, MTI and MOM. But just to state, these are exciting developments that will give our economy that pivotal lift and we should be among the early movers. But for now, for this speech, I would focus on the funding for these $24 billion investments to emerge stronger. The Deputy Prime Minister indicated in his speech that he expects the economy to recover, and the revenue projected will be able to support these expenditures for the investments. However, he also caveats that this is subject to the global health situation and economic outlook. And to use the Deputy Prime Minister’s words, there is still a "wide cone of uncertainty". There is also the potential downside risk to our revenues with regard to the on-going discussion to revise international tax rules under the Base Erosion Profit Shifting or BEPS 2.0 project. Notwithstanding, the Deputy Prime Minister said that even if the economic and fiscal conditions turn out to be worse than expected, we must still press on to invest in these areas and to ride on the opportunities presented by these structural changes. I agree with the Deputy Prime Minister that we must move now. Delaying or deferring these investments until our finances are back in good shape is an option but that will mean passing on the opportunities to provide an early boost to our capabilities and to stay ahead of the curve, while other economies are still grappling and coping with the crisis. The question then is should we draw on past reserves to support these additional spending? Deputy Prime Minister Heng mentioned in his speech that he has briefed the President on the potential draw in the next few years, if we are unable to generate sufficient revenue to pay for these investments. Sir, while we should keep that option open, we could also consider other alternatives. We have already drawn on our reserves in the last two Financial Years in a row and we should only consider this as a last resort. Reserves are our emergency backstop and we need to hold or grow the base amount to ensure a growing, if not a steady, NIRC. Each time when we draw on our past reserves, it also means divesting a part of our financial investments and, hence, we will lose out on the returns from these investments over the long term.
If the fiscal condition remains tight in this term of Government, and these are indeed time critical and worthy investments for the future, I submit that we can justify funding this emerging stronger-related investments through a special purpose borrowing. This could be a once-off bond issuance earmarked to specifically fund these economic investments. That way, we also take advantage of our very strong balance sheet and our high credit ratings where we can enjoy borrowing at zero credit cost as well as to take advantage of the low long-term interest rates.
[+15 sentences] As a prudent safeguard, we should also still set strict caps on such borrowings and it should be still subjected to the approval and the consent of the President and to Parliament's scrutiny. Sir, finally, I want to talk about the more difficult part of the Budget, which is the increase of the GST; likely to be between 2022 and 2025. The Deputy Prime Minister mentioned that no finance minister likes to talk about tax increases. Well, similarly, Members of Parliament would not like to debate such issues as well. We all like to talk about how much we can spend, where we can spend. We have debated intensely the justifications during the last three Annual Budget Statement debates. I agreed with the Government’s fiscal principle that recurrent expenditure should be funded by recurrent revenue. This is sound, prudent and sustainable. And, in particular, in the healthcare spending, we must ensure that it is adequately and sustainably funded to give Singaporeans the peace of mind that their long-term healthcare needs will be well taken care of and with certainty. Last year, I asked the Deputy Prime Minister as to who pays the biggest share of the GST based on past collections. He shared that foreigners residing in Singapore, tourists and the top 20% of resident households account for 60% of the net GST borne by all households and individuals. This is significant. We do want to collect more taxes from the top 20% households and the foreigners. The unique critical feature of our GST system is that it comes stapled with a series of permanent GST offsets to mitigate the impact to our low- and middle income households. As a result, the top income groups and foreigners contribute the main bulk of the GST while the low- to middle income group pay no or lower GST on a net basis.
In this Budget, Deputy Prime Minister reiterated the Government's assurance that should GST be raised, the $6 billion Assurance Package, which have already been set aside in the GSTV Fund, will kick in and help cushion the impact for the low- and middle-income households.
[+5 sentences] The majority of households will receive offsets to cover at least five years’ worth of increases, while the lower income Singaporeans will receive even much more. For example, those living in 1- to 3-room HDB flats will receive offsets worth about 10 years of increases. Sir, in Mandarin. (In Mandarin): What I am most concerned about in this Budget is whether the GST hike would affect the cost of living of the lower and middle income Singaporeans and the elderly. In the past few years, Government spending has indeed been growing rapidly especially in the area of healthcare.
Ten years ago, healthcare spending was $2.2 billion, now it has increased more than five times to $12 billion and will continue to rise.
[+7 sentences] On one hand, we need to constantly plan and provide more healthcare amenities. On the other hand, we need to ensure that there are sufficient, sustainable and diversified tax revenue to cope with these rising cost. We need to balance this expenditure and income, so that Singaporeans, especially older Singaporeans, will have a greater peace of mind and a sense of reassurance in healthcare. This is what a responsible Government should do, and we do not want the Government to cut spending on healthcare and social welfare because of fiscal imbalances. Personally, I still hope that the Government will continue to build more clinics, hospitals and nursing homes. I also hope that the Government will give Singaporeans more subsidies in healthcare, housing, education and transport, all of which require financial resources. All these expenses and subsidies need to have financial resources.
Deputy Prime Minister also reiterated that once the GST is raised, the Government will use the $6 billion Assurance Package set aside to help lower and middle income families to offset or mitigate the impact. Under the Package, each adult Singaporean will receive an average of $700 to $1,600 in cash rebates over five years. For example, a family of four with a gross household income of about $6,000 will receive nearly $7,000 in cash rebates.
[+2 sentences] Hence, most households will receive rebates to offset the impact of a GST hike over the next five years. Lower income households will receive more rebates to offset the additional GST cost over the next 10 years.
(In English): Sir, in conclusion, the last one year has been most challenging times in our fiscal management. We set new precedents in many areas: the largest budget deficit in our history, the largest draw on our reserves for two consecutive years and, of course, five Budgets and two Ministerial Statements all in one year to fight COVID-19.
[+9 sentences] This Budget also sets in place the framework to fund our long-term infrastructure with long-term borrowings to avoid situations of extremely large outlays in each Budget year and to achieve better inter-generation equity. This is a shift from our past approaches where we tend to cash fund all our expenditure with current budget allocations or using accumulated surpluses. We have to move with times in the way we manage our Government finances, just like how we have evolved the NIRC framework about a decade ago. But it is important to remain steadfast to the values of prudence and discipline, and to ensure that we operate on a balanced budget basis and also to jealously safeguard our reserves so as to continue growing it for our future generations; just like how the past generations have saved it for us. Sir, we are fortunate to be able to confront and tackle this "crisis of a generation" in a position of strength. It is always a good position to be there, to be in a position of strength. Otherwise, it will be terrible. So, let us keep thinking long term, continue to build new frontiers of growth opportunities, continue to strengthen our position of strength and to emerge stronger together from this crisis. Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Foo Mee Har.
Ms Foo Mee Har (West Coast)1639 words
[+11 sentences]Mr Speaker, Budget 2021 must be taken in the context of a nation emerging from the tumult of FY2020, during which no fewer than five Budgets were passed. The impact of COVID-19 on our economy might well have resulted in a deep and enduring recession, had it not been for the series of fiscal and monetary policy moves. Besides intervention in public health management, the wide-ranging support from the Job Support Scheme (JSS), the loan moratorium to rental waivers helped sustain jobs and businesses. Sir, we averted a GDP contraction that could have been over 12.4%, and there are already early signs of a steady recovery in our economy. Going forward, support will be targeted and loan repayments will need to resume. As we taper down the support schemes that have kept many businesses afloat, we should be prepared for the increased risk of business closures and lay-offs. For this Budget, I agree with Deputy Prime Minister Heng Swee Keat that switching our focus to transformation and growth will give us the best chance to secure the best opportunities for Singapore. We have to prepare ourselves for a post-COVID-19 world that is completely and forever changed, and secure a prominent role for ourselves in it. Mr Speaker, in this debate, I wish to speak on the need to sustain fiscal strength and discipline as well as supporting our businesses and people in the journey of transformation. Sir, the determination of this Government to emerge strongly from the pandemic is underscored by the extraordinary set of financials announced in this Budget. To sustain relief in the immediate term, Singapore will draw on the reserves for the second year running.
For Financial Year 2021 Budget, it will be expansionary, running up a deficit of $11 billion. Most significantly, the Government intends to borrow up to $90 billion to create fiscal space to press on with major and long-term infrastructure investment, despite the uncertain economic environment.
[+2 sentences] The Government has not borrowed since the 80s for infrastructure development. Using debt to fund large, long-term infrastructure will go some way to reduce the pressure of raising revenue and not crowd out important long-term infrastructure investment.
The Significant Infrastructure Government Loan Act or SINGA Bonds, which include green infrastructure bonds, will also support the development of Singapore’s bond market.
[+6 sentences] Given the prevailing low interest rates coupled with Singapore’s AAA credit rating, the cost of borrowing should not place undue burden on future generations. Sir, even as I support the use of debt, even as I do support, we must exercise great discipline in how much we borrow and what we borrow for. There is good debt and there is bad debt. We must guard against going down the slippery slope of other countries where the burden of debt repayment becomes a major component of the country's finances. It would not be sustainable to depend on borrowings to fund our recurrent spending needs, such as healthcare and education. It is in this spirit that we would not borrow money to pay for daily consumption.
We would, however, borrow to invest in our flat, to provide a long-term home for our family and an asset in our retirement. So, I would like to ask the Deputy Prime Minister how the $90 billion limit on debt issuance was set.
[+3 sentences] Would this limit be adjusted as GDP grows? How vulnerable would we be if interest rates move up? What is the expected repayment burden on future generations?
And how would Singapore's AAA credit rating be impacted with the borrowing?
[+1 sentence] Sir, I had previously called for measures to address tax leakage and a leveling of the playing field for local retailers.
I am therefore happy to hear the Deputy Prime Minister's announcement that GST will be extended to cross-border e-commerce transactions of lower value goods, which is expected to grow exponentially in the coming years.
[+30 sentences] I would like to ask how much revenue this tax is expected to raise? Mr Speaker, I had also spoken about wealth tax on numerous occasions in Parliament. The trend of getting the wealthy to contribute more is gaining traction globally. In fact, the wealthy themselves are stepping forward to give back in significant ways, with philanthropy featuring as a key agenda in their wealth planning. Argentina imposed a one-time levy on millionaires in December. Several other countries, including the UK, has brought wealth tax into the spotlight with an independent Wealth Tax Commission issuing their final report. Proposals to make wealth levies easier to administer, for example, include targeting a smaller group of extremely wealthy people, relying on advances in financial transparency and technology. From the various reports, a one-off wealth tax may seem economically efficient, structured as a one-off exceptional response to the pandemic. UK had introduced one-off "windfall taxes", including the 1997 windfall tax on privatised utilities. The construct of pandemic Excess Profit Tax, to extract higher revenues from businesses that are able to exploit the effects of the pandemic, has also surfaced. Sir, when you consider that selected entities and individuals may have enjoyed outsized windfalls because of COVID-19, it may not be unreasonable to expect that them to do more for the common good. I would like to ask the Government if wealth tax is being contemplated and what the considerations for such a tax would be? The COVID-19 pandemic has triggered major shifts in the global economic landscape. Singapore needs to urgently bolster its attractiveness as a regional and global hub. I welcome the slew of capital tools to co-fund transformation. The growing awareness of climate change is spurring businesses and countries the world over to embrace sustainability as an urgent agenda. The Singapore Green Plan 2030 is therefore well-timed to galvanise a national movement, not only to achieve sustainable development, but also to build "exportable" capabilities such as sustainable urban solutions. Our Green agenda holds much promise for our future. The issuance of green bonds will provide a substantial capital base for sustainable developments, not only in Singapore but also throughout the region. Singapore is well-positioned to serve as a living lab and testbed for emerging green technologies as well as a hub to foster collaboration and co-creation. It is critical that in our drive for sustainability, we fully leverage this opportunity to groom a new generation of green local firms, support them to build their green capabilities and position them to capture emerging opportunities. I would like to ask the Government to ensure development of green local firms be an integral part of the $25 billion investment under RIE2025, focusing on urban solutions and sustainability. Mr Speaker, I welcome the generous $5.4 billion being committed to support the hiring of locals through Job Growth Initiative and also traineeship and training opportunities. I expect that this will continue to sustain green shoots of recovery in the labour market and create opportunities for this year's cohort of graduates entering the workforce. However, whilst unemployment is kept at bay, we must be vigilant against underemployment. The mismatch of skillsets, which occur when workers take any available jobs just to stay employed, will cause their deep and hard-earned skills to "atrophy" over time, along with their motivation and commitment to their work. This issue is particularly pertinent amongst older PMETs whose careers are being disrupted, resulting in a reservoir of unused skills and experience. We must develop new models to support mid-career professionals transition to new careers. These should include some form of financial support that enables them to take time off to study and build new expertise, so that they can meet the financial commitments they incur at their particular stage of life. The COVID-19 pandemic has also provided employers an opportunity to relook at their reliance on foreign labour.
The foreign workforce was reduced by 16% during the pandemic, that is, in one year, 16%. JSS support was restricted to locals and rightfully so, and the closure of borders disrupted the supply of foreign labour.
[+6 sentences] Many employers have told me about their frustrations with foreign workers' demands for pay increases and their changing work attitudes resulting from a scarcity of workers. Together with costs resulting from workers' Stay-Home Notices and safe management measures, employers' foreign labour costs have escalated. By contrast, I have seen many businesses thrive by cultivating a strong local team who are committed to the long-term success of their employers' business, often by focusing on the right compensation and nurturing a healthy work culture. I think Sheng Siong must have received many job applications since announcing their bonus. So, there is no better time to build a strong Singaporean Core for long-term sustainability. Mr Speaker, the pandemic has impacted low-income workers disproportionately and we need to hasten the expansion of the Progressive Wage Model to more sectors.
To keep unemployment low, I think it is right that we focus our efforts on providing jobs and training rather than unemployment benefits. However, with greater disruption and uncertainty, it is imperative that we find ways to hasten the safety net for those who are still unable to secure employment. For gig workers, we should heed the recent ruling by the UK's Supreme Court, that Uber drivers be considered "workers" and not "independent contractors", entitled to certain protections over their pay and working conditions.
[+8 sentences] Sir, we owe it to these fellow Singaporeans to make urgent progress in these areas. Sir, in conclusion, I thank the Deputy Prime Minister and the MOF team for a thoughtful Budget. COVID-19 has shown the world yet again what Singapore is capable of. In a fragmented world where trust is sorely lacking, Singapore has much to offer as a "safe, trustworthy node", as Deputy Prime Minister said. The strategic value of our reserves has never been clearer. We have a clear roadmap to recovery. Let us press ahead together. Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Dr Tan Wu Meng.
Dr Tan Wu Meng (Jurong)1487 words
[+16 sentences]Mr Speaker, Singapore faces a burning platform. The world is on fire with COVID-19, with protectionism, with disruption to supply chains, trade networks, businesses. Climate change threatens all of us and is changing how companies and entire economies operate and compete. Climate change is also accelerating the onset of new pandemics that will threaten the world. And all these is a serious and grave challenge for small countries like Singapore, small, open economies which need to connect to the world to survive. So, even as we improve on existing capabilities, getting better at what we already know how to do, we need to go further. We need to move boldly, to do things which we have not done before, learning how to do things which we could not do before. Tony Blair, former UK Prime Minister, last month published an article on pandemic response in a COVID-19 world. One quote stood out: "The question which should be asked of policymakers in government is not what is possible, but what is necessary." "Not what is possible, but what is necessary." Our existing work is important. Builds our capabilities, maintains what we already know is possible. But beyond our report card, we must ask ourselves: "In a world on fire, on a burning platform, what is necessary for Singapore to continue to survive and thrive tomorrow?" Sir, let me outline three areas. There are more but I will speak on three topics today – vaccine development, R&D and commercialisation, and public sector recruitment. Sir, my first point on vaccines.
COVID-19 is a grave threat, but we must assume the next pandemic will be much worse. Imagine what researchers call "Disease X", an unknown pathogen more contagious than COVID-19, more deadly than SARS.
[+8 sentences] We have seen what happens amidst this pandemic, when countries are burning with fear, when the world and countries grow desperate. COVID-19 has shown us. We have seen what happens with PPE nationalism, where protective equipment is hoarded. In the early days of COVID, there were some countries that blocked the exports of PPE, even if the purchase contracts had already been signed, even if the bill had already been paid. Today, we see vaccine nationalism – certain countries placing export controls on vaccines for COVID-19. So, imagine when "Disease X" hits the world, it will be worse than COVID-19. To survive such a future, Singapore has to go beyond asking what is possible today. We need to ask ourselves and search ourselves to ask what is necessary for a more dangerous tomorrow.
The Government has spoken about "fill-and-finish" production and regional distribution for COVID-19 vaccines. "Fill-and-finish" means filling the containers, the vials with vaccine and then finishing the packaging of vaccine for distribution. We can and need to go beyond this and to go upstream. We need to be able to analyse new pandemics, develop new vaccines and new medications and to manufacture them quickly onshore – quickly, at speed.
[+4 sentences] We can, of course, continue collaborating with other centres of excellence around the world. But we should have the development and manufacturing capability onshore, in Singapore. Even before "Disease X", there is the chance that COVID-19 will mutate into new strains which no current vaccines can protect against. So, there are very real reasons to build this capability, in Singapore, onshore, today.
If Singapore can be among the first countries to develop a vaccine for the next pandemic, it will be good for our fellow Singaporeans, good for our economy and good for the world.
[+1 sentence] Sir, my second point on R&D and commercialisation.
We have a published strategy for Research, Innovation and Enterprise – RIE 2025.
[+26 sentences] We know what is possible, we know what is in the report card. But we can and must do even better, to meet the challenge of what is necessary. I remember an overseas meeting with the Chief Scientist of the national innovation authority from a small country with a reputation for innovating against the odds and punching above its weight. What this Chief Scientist from another country told me – he left a deep impression – he said that his national innovation agency wants to fund projects which the market would not normally fund. That the most interesting projects are not the ones where the outcome is guaranteed. That the potential breakthroughs are where half the experts say it cannot be done, while half the experts think it can. Sir, public money is precious. Research funding must be stewarded responsibly. But we must also be unafraid to try new things, to break new paths, blaze new trails. In the USA, there is an agency called DARPA. It brings together experts from industry and academia to work on urgent challenging problems facing the real world. Although the US military was the original customer for DARPA, its innovations have created and shaped many multi-billion dollar industries. Innovations such as today's Internet, carbon composites used in advanced manufacturing, the GPS navigation system that our smartphones use to operate, telepresence surgery which allows robotic surgery to take place. Even Siri, the iPhone personal assistant, is a spin-off from a DARPA artificial intelligence project. Research with real-world outcomes. Commercial outcomes. In the UK, there is a research foundation called the Wellcome Trust. They have funded a new R&D agency called Wellcome Leap – a DARPA model for human health. Some of their mission statements for projects are inspiring. For example, "What if we could develop a universal cancer vaccine to stimulate an immune response at the earliest sign of abnormal cells?"; "What if we could grow fully functional replacement human organs in a lab" – to help people with kidney failure, on dialysis? Some will say this seems far-fetched. But if a reputable research organisation like the Wellcome Trust is imagining this, aspiring to this, making the leap – it tells us something. Martin Wolf, Chief Economics Commentator at the Financial Times, recently wrote an op-ed, "Why once successful countries like the UK get left behind". He sees a need for greater government support for innovation in the advanced economies. There are lessons for us to avoid being left behind. Mariana Mazzucato, an economist, who has advised the European Commission, talks of mission-oriented research, bold missions which mobilise the public sector, private sector and academia.
Chasing challenging mission statements beyond what is capable today but thereby setting goals that can improve human health, improve the environment, improve sustainability and the economy.
[+1 sentence] Sir, today’s research investment is the infrastructure of tomorrow’s innovation.
So, I call on this Government: increase our investments in research, be even bolder in the projects we choose. Our ability to respond to COVID was learnt through the hard journey of SARS and the investments in biomedical research more than two decades ago. Our ability to battle Disease X and survive the next pandemic will depend on what we do today.
[+18 sentences] In short, again, "Not just what is possible, but what is necessary." Not just the report card on what we have achieved today, but what is necessary for Singapore tomorrow. My third point on public sector talent recruitment. During the past year, I met a number of Clementi residents who had returned from overseas jobs. Some had held very big portfolios. I had coffee in one of our Clementi coffee shops with a Clementi resident who used to manage a multi-billion-dollar cash portfolio for a MNC regional office. His regional role was relocated because of COVID-19 and he was not keen to uproot his very young family to relocate, especially in a pandemic. He told me about how he was looking at jobs in the public sector, now that he was based back in Singapore for the foreseeable. There are many more like him. Private sector. Non-profit sector. People sector. Research sector. International experience. And a breadth of experience from all over the world. Mr Speaker, COVID-19 is a generational opportunity for our public sector to recruit top private sector talent. There are highly qualified Singaporeans who because of COVID-19, are no longer keen to continue overseas. Some have young family, some have ageing parents back in Singapore.
These are candidates who previously because of their journeys would not have considered joining the public sector. We should not squander the opportunity to recruit and retain mid-career and experienced private sector talent from these diverse backgrounds.
[+5 sentences] All the more so amidst a burning platform for Singapore and other small open economies. Mr Speaker, in conclusion, we value what Singapore has achieved today. It is the report card of our people, our agencies, our society. But we must also ask ourselves beyond what is possible today what is necessary for tomorrow? What do we need to do that we cannot yet do?
We must be bold enough to make necessary dreams into necessary reality. And so I stand in support of our Budget – what it is today and what it can be tomorrow.
Mr Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)1622 words
[+5 sentences]Mr Speaker, Sir, in 2020, Singapore, and pretty much the rest of the world, experienced one of the most challenging years in human history. Economically, the COVID-19 pandemic battered our economy. Socially, we had to learn how to live with the pandemic by changing the ways we interact and socialise. At workplaces, companies had to pivot their operations and rejig their business models overnight. With the COVID-19 pandemic still raging on in many parts of the world, it is fair to say that we are far from being out of the woods.
While the Singapore economy is projected to make a recovery of between 4% and 6% this year, this recovery is set against the backdrop of a 5.8% contraction in 2020 and is from a relatively low starting position compared to pre-COVID-19 years.
[+7 sentences] Recovery is likely to be uneven, with some sectors of the economy perhaps taking longer to recover than others. I am thus glad to learn that the Government has made further commitments to ensure that the hardest hit sectors in our economy will continue to receive the support that they need. Today, with a relatively weakened financial position, Government support will have to be more calibrated and targeted and Budget expenditures be geared towards helping Singapore thrive in a post-COVID-19 world. While we continue to preserve the immediate livelihood of our workers, we need to keep an eye on the gaps that have also appeared and undertake systematic steps to close them. I would like to speak on enhancing the salaries of healthcare workers and nurses, Mr Speaker, in this first part of my speech. Many years after SARS, we were reminded once again during the COVID-19 pandemic about the tremendous sacrifices that our healthcare workers make on their jobs. Indeed, as a nation, we owe our healthcare workers, especially our nurses and allied healthcare workers, a deep, deep debt of gratitude.
The recent announcement that the Government will enhance the salary of nurses and healthcare workers is long overdue. Nurses and allied healthcare workers have traditionally formed the bulk of all medical workers in Singapore. I am thus glad to learn that the Government is planning to enhance the salary of nurses and healthcare workers so that their wages are, perhaps, more commensurate with the work that they do.
[+4 sentences] Apart from enhancing their pay scale, I hope that the Government will also continue to enhance the career prospects for nurses and healthcare professionals, especially those who desire progression. Under MOH’s classification, nurses are classified as "enrolled nurses" and "registered nurses". Registered nurses are required to attain a tertiary qualification and can specialise in different practice areas. They have a clear career pathway that enables them to eventually become, perhaps, even nurse managers.
This pathway of progression is generally different for enrolled nurses who typically are those who possess a Nitec in Nursing from the ITE. So, while we enhance the salary level for nurses as a whole, I hope the Government will consider putting in place a progression ladder similar to those of registered nurses by taking into consideration their experience on the job, providing them with skills upgrading opportunities through both formal and on-the-job training, and even more scholarships for those who desire to enter the nursing profession and to those who aspire to higher qualifications in the nursing profession.
[+5 sentences] Apart from salary and career progression, I urge the Government to also consider enhancing the work environment and conditions for nurses as well. Singapore has traditionally depended heavily on foreign nurses, as we all know, to supplement our pool of local nurses. And it is not for want for trying. I believe we have been trying consistently to attract more Singaporeans and PRs into the nursing profession. I believe the reasons as to why Singaporeans are generally unwilling to enter the profession, perhaps, go beyond just wages alone.
Perhaps, they are deterred by the long working hours, stress from having to deal manage difficult patients, their family members and expectations, as well as potential disruptions to family life arising from irregular work shifts. I hope the Government can consider doubling-down on the recommendations made by the Future Nursing Career Review Committee and enhance the attractiveness of the profession for local Singaporeans.
[+7 sentences] We could consider implementing mandatory leave and even possibly paid holidays as additional benefits for local nurses so that they can take a break from being on the frontline and recharge from time to time. As part of a longer term plan, I would also like to urge the Government to develop a mid-career conversion programme for those who wish to enter the nursing profession. Many Singaporeans were employed as temporary-swabbers or as allied healthcare professionals during the height of the COVID-19 pandemic. Many Singaporeans who, perhaps, have not worked in the healthcare sector or experience what our healthcare professionals and nurses go through now find themselves on the frontline, as it were, and have the experience that would be so critical to enabling them to succeed in this profession. So, I hope the Government can consider more options for these mid-career professionals to enter into the nursing and healthcare profession, perhaps, under a train-and-place model or other similar scheme that would enable us to recruit these people into the healthcare sector on a full-time basis. I would like to shift my next point, Mr Speaker, Sir, to the topic of the raised petrol duties that was announced by the Deputy Prime Minister in the Budget announcement. This is a topic that will be spoken about in the House and I have received much feedback from my interactions with many Singaporeans on the ground with regard to this.
I agree that in a concerted effort to push Singapore towards a car-lite society and to encourage the use of cleaner fuel and electric vehicles for sustainability, one would find it hard to argue against the rationale for supporting this green agenda. Now, the immediate rise in petrol duties, however, will no doubt have more of an impact on some groups than others, specifically those who need their vehicles for practical and professional uses, and they are unable to switch over to alternate mode of transportation – be it electric vehicles or other forms of public transport in the short to mid term.
[+3 sentences] I am speaking, of course, about those who need their vehicles to ferry young children, elderly or disabled family members around; and those who need their vehicles for work. As part of the Budget, I do note the Government has acknowledged that taxi and private hire car drivers who have been hit hard by the drop in ridership will continue to receive various forms of financial assistance support till the COVID-19 pandemic eases somewhat. So, it is part of the measures I spoke about earlier, of the Government targeting specific groups in the industry who needed more support.
Yet, the rise in petrol duties will impact this group significantly, and possibly negating some of the COVID-19 related assistance that they are already receiving elsewhere, as these drivers would have experienced an immediate increase in their daily operating costs. I know that to cushion the impact of the hike in petrol duties, the Government has announced road tax and petrol duty rebates for car owners, taxis and private-hire cars. However, while the price hikes have been immediate, I believe that the road tax rebates and the duty rebates may come somewhat later. The other point I would like to make, Mr Speaker, Sir, is, that while those who own their cars will receive their rebates directly, how can the Government ensure that taxi companies and car-rental companies pass on the savings to their drivers or hirers in as timely a manner as possible? Also, will the Government be open to extending the rebates for taxi drivers and private hire car drivers beyond the present period if required?
[+4 sentences] At a broader level, the hike in petrol duties could also be accompanied by a series of price increases downstream – that is something that I am also quite concerned about, Mr Speaker. For example, logistics companies could pass on cost increases to retailers and retailers could similarly pass the increase on to consumers; consumers who make online purchases could end up paying more for their delivery if these costs were passed on; school bus drivers might raise their fees. I guess there are many many other examples that could see companies and organisations raising their prices and fees, citing the rise in petrol prices as justification. I noted that the Government has also mentioned the measures to help households as a whole, manage increased costs of living and to deal with some of the financial challenges that they could face, not just in 2021 but in the future as well.
So, I hope that in this particular case, those measures to help these families will not be possibly offset by a rise in prices that some companies might choose to implement, citing the petrol price rises as a possible reason. So, I hope the Government can actually consider putting in safeguards to curb unjustified increases in fares, fees and prices to help protect a wider range of consumers and customers in this regard.
[+3 sentences] Mr Speaker, Sir, 2020 was a tumultuous year, but thanks to the strong support provided by the Government and to the resilience of our people, we were able to get through very, very difficult time. We are not sure what 2021 will bring, but I am confident that if we stay together, as one people, one Singapore, then we will be able to deal with whatever challenges come our way. My previous clarifications notwithstanding, I conclude my speech in firm support of the Budget.
Prof Hoon Hian Teck (Nominated Member)1577 words
[+9 sentences]Mr Speaker, Sir, preparing the Government's Budget in the middle of a pandemic has presented challenges not faced to the same extent in the preparation of past Budgets. The new element added is that of great uncertainty about the length of the adverse economic-health shock that is hitting the economy. The emphasis in my last sentence is on the words "uncertainty about the length". Singapore's recession in 1985 was deep and sharp, but its recovery was rapid. In the face of the shock from the 1997 Asian Financial Crisis, the recovery was also rapid. The Budgets could therefore be strongly expansionary in the short term to save jobs and businesses, and thus, fulfil the stabilisation function of the Government. Once out of the recession, subsequent Budgets could focus on structural transformation of the economy, gearing the economy to expand is productive capacity to create good jobs with good pay for its residents. This fulfils the allocation function of the Government. In contrast, in our current environment – even though the big storm that ravaged our economy and the rest of the world started more than a year ago – there is much uncertainty about when normal economic conditions will return.
Budget 2021 therefore, has to find a balance between using fiscal resources which are finite, to close the output gap; that is, to fight recession on one hand and providing fiscal incentives to spur structural transformation to achieve a medium to long-term productivity growth of say, 2% per annum, on the other hand.
[+6 sentences] The 2% growth rate is the rate at which advanced economies have been able to grow over the 20th century. At that rate, you double your standard of living every 35 years. If the slum is prolonged and becomes a multi-year affair, how does the Government balance between using its fiscal resources to fulfil its stabilisation function on one hand, and allocation function on the other hand? Mr Speaker, Sir, I would like to suggest three principles that might guide us in finding this right balance in the face of uncertainty. First, in crafting the Budget, we should make optimal use of the best information we currently have. There are some aspects of the nature of the slum caused by COVID-19 that are now reasonably well understood: a negative supply shock in a contact-intensive and travel-related sector – let us call it the affected sector – produces a negative demand shock which affects the whole economy.
The affected sector contracted output most obviously during the circuit breaker period, but even post-circuit-breaker, the non-arrival of international tourists means that businesses in the affected sector must cut back output and would have to lay off workers in the absence of wage subsidies given under the Jobs Support Scheme or JSS.
[+4 sentences] Massive loss of jobs in the affected sector will be socially costly for several reasons. As workers, especially low-wage workers, typically phase credit constraints so that they are unable to borrow against future incomes, they and their family members would face severe economic hardship. With a loss of income, there is also a contraction of demand for all goods, not just goods produced by the affected sector. Job retrenchments in the affected sector will also imply that there is a loss of firm-specific capital that workers would have built up over time during their employment with their current employers.
Should normal conditions return to the affected sector, firms – if the workers had been retrenched earlier – would have to incur costs once again to make new investment, to orientate new employees. Therefore, there remains a need to provide wage subsidies through the Jobs Support Scheme to enable firms in the affected sector to keep their workers.
[+7 sentences] I think Budget 2021 recognises the uneven nature of the COVID-19 shock, quite different from other shocks that tend to be aggregate in nature, affecting many sectors in the economy. Second, my second point about what we can recognise as we try to establish good fiscal principles with the dilemma of this shock that I mentioned. Despite the occurrence of prolonged slums, such as the Great Depression in the 1930s. In the US, it began in 1929, recovery began only in 1933, but it took much of the 1930s for the slum to end. Nevertheless, the study of today's advanced economies over the whole of 20th century suggest that economies do return to their trend growth path. Despite a prolonged slump like the Great Depression, nearly a decade in length, the economy resumed to grow at roughly 2% per annum over the 20th century. What does that mean for us?
Should the pandemic turn out to be prolonged, then, despite the argument I have just made, that fiscal resources be expended to keep businesses in the affected sector afloat and to avoid retrenchment, the consideration of efficiency dictates that fiscal stimulus be gradually scaled down.
[+4 sentences] This is so as to allow a process of creative destruction to enable entrepreneurs with good ideas to launch new businesses, even as other firms exit. It has been observed by many that onslaught of COVID-19 has led to a rapid adoption of digital technology and more generally of digital transformation that can position Singapore well as it seeks to raise the firm's productivity. Building a common digital platform with other countries will enable start-ups as well as SMEs to sell overseas and enlarge their market. As new business processes as well as new products and services are created to cater to a COVID-19 and post-COVID-19 world, there will be demand for workers with new skills.
An increasing share of fiscal resources should, therefore, on this principle that I have argued, be directed at supporting workers, including those previously employed in the affected sector, to reskill to fill these new job positions.
[+5 sentences] I am gratified that Budget 2021 keeps a focus on facilitating structural transformation, even as it meets the short-term needs I mentioned, to enable the economy to return to a strong trend path that will deliver good jobs with good pay over the longer term. Third, and my final point, given the uncertainty surrounding the length of the COVID-19 slump, there is a question of fiscal sustainability. Would a government that is required to maintain budget balance over its term of government have the required fiscal resources to achieve its stabilisation function in a prolonged slump? How do we prevent workers and their dependents, from suffering a sharp drop in consumption when fiscal stimulus is removed because the recession drags on for several years. It is not an easy problem, we have never quite had to encounter this problem, because past recessions were deep and sharp but recovery was rapid, possibly not this one.
The Contingencies Fund, which Deputy Prime Minister Heng referred to in last year's Fortitude Budget, sets aside an extra $13 billion, and that, goes some way to address the concern that I just mentioned.
[+2 sentences] Hopefully, this provides sufficient resources to meet emergency needs arising either from health or economic considerations. Nevertheless, in general, how do we think about this problem?
Self insurance and a national unemployment insurance scheme are alternatives for providing the needed cash should a resident be out of work after JSS ceases.
[+1 sentence] Faced with the prospect of being laid off, workers might increase their savings to insure against a drop in consumption, that is self insurance.
Self insurance, however, is not possible for hand-to-mouth workers. We, therefore, I believe, need to examine the costs and benefits of providing social insurance to cover the risk of unemployment.
[+3 sentences] To be very clear, this is not something to implement in the midst of the pandemic, but it is an option to be studied when this storm is past. Let me just end with a couple of comments about the tension in putting in place something like a national unemployment insurance scheme. It obviously involves a trade-off.
As extending unemployment benefits tends – other things being equal – to increase the duration of unemployment as workers are able to hold out longer before taking on a job, there is the prospect that introducing a national unemployment insurance scheme can raise the overall rate of unemployment.
[+5 sentences] On the other hand, having such an insurance scheme enables workers and their dependants to have access to cash to finance consumption when breadwinners lose their jobs for an extended period. Whether or not to have a national unemployment insurance scheme is not an easy question to answer because it involves trading off the benefits of providing liquidity on one hand and you have to match that against the cost of higher unemployment. Mr Speaker, Sir, COVID-19 is unprecedented in being a recessionary shock that comes with much uncertainty about its length. It poses a challenge to find a balance between the Government's stabilisation and allocation functions. In the near term, fiscal resources should still be directed to keep businesses afloat and save jobs in the affected sector.
If the slump is prolonged, efficiency considerations dictate that fiscal resources should be directed more towards facilitating structural transformation to raise the productive capacity of the economy. There may also be a need to study whether a national unemployment insurance scheme is warranted to provide workers with liquidity in the event of future, future long and deep recessions.
[+1 sentence] With attention given in this Budget to short-term needs, but also investing and steepening the trend growth path, while being open to policy ideas, I support this Budget.
Ms Jessica Tan Soon Neo (East Coast)2126 words
[+10 sentences]Mr Speaker, thank you for allowing me to participate in this Budget debate. Many business owners and leaders I have spoken to have shared that, while they are grateful that things are stabilising and improving, and their businesses are somewhat stabilised, what we now need is to grow. For many individuals, their jobs have been affected in one way or another. For some, while they are employed, many are under-employed and they can and want to do more. I thank Deputy Prime Minister Heng for a Budget that is trying to balance, that continues to support the workers and sectors that are still affected by COVID-19 but, at the same time, trying to balance and take a very decisive step and clear signal that we need to move forward and we need to invest in the future. In my speech today, I will focus on three topics: positioning for transformation and change – building resilience and deep capability in the Singapore Core to seize opportunities; number two, something that no one wants to talk about, is rising GST and to fund increased spending; and third, ensuring that no one is left behind. COVID-19 has accelerated the need and momentum for transformation. We need to position for transformation and change and the window of opportunity to do so is now. Relevant grants and support programmes are available from previous Budgets to build skills and support transformation. The extensions of these programmes announced in Budget 2021 builds on this.
The Jobs Growth Incentive (JCI) is aimed at helping people get jobs in the growth sectors by encouraging employers to create and hire early for these roles in these sectors. The SGUnited Mid-Career Pathways Programme which offers company attachments; the SGUnited Skills for mid-career individuals; SGUnited Traineeship Programme for fresh graduates.
[+4 sentences] These programmes help both mid-career workers and fresh graduate get into the industry or stay in the industry as well as prepare them for jobs. But beyond these grants and Government support, what we now need is an eco-system to drive and step up the momentum to build capability. We need to identify capabilities required to build the depth of expertise and knowledge for long-term resilience and competitiveness. These capabilities include technical, functional and leadership skills.
It was reported in a recent Straits Times article this month that employment for fresh graduates from our local Universities increased in 2020 from 2019. However, the number that started in part-time or temporary work has increased to 22.3%, up from the 7% the previous year with more than half indicating that they did so because they had no choice.
[+20 sentences] This was most likely attributed to the impact of COVID-19. So, as we open the economy, we need to pay attention to the conversions to full employment for these attachments and traineeships. The conversions are important. Traineeships and attachments provide the platforms for learning. Workers need to not only get the opportunity to learn but they need to also get deeper long-term commitment to develop and to build the required expertise. We are seeing new employment trends as well. People are moving and changing jobs more frequently. Employment models are also evolving with an increasing trend of companies hiring contract workers or freelancers, rather than full-time employees. With this pace of change and business transformation, the development of skills and capability is even more important. With increasing challenges in the workforce, retention and a growing proportion of non-permanent employees in the workforce, it will be increasingly more difficult for employers to develop build skills in their own workforce. So, while individuals must continue to own their own development, the scale will not be the same. So, with these trends and the pace of change, how can we continue to transform and build deep skills in the Singapore Core? We have witnessed supply chain disruptions with COVID-19 and the need to rethink our supply chains to strengthen and build resilience. So, this same analogy, if I could say, applies to that of capability building in our workforce and the Singapore Core. It is not realistic for us to be fully self-sufficient and I am not advocating for it. I do, however, feel strongly on the need for us to invest in the Singapore Core by identifying and investing in building deep skills in the areas that matter. This will enable Singaporeans not only to take on jobs in the emerging growth sectors but more importantly, innovate, lead and thrive. This is beyond the current and important work that our education system and our efforts on continual training is doing. If I can be so bold to say this, is that we need to invest in building deep skills and this is a big effort in itself and may require us to consider if there should be a body to synthesise, coordinate and drive this effort. This requires deliberate effort across the eco-system of companies, workers and the industry sectors.
Another point I want to highlight is the topic of skills and talent and the talent pool that women make up. It is indeed heartening that the number of women in science, tech, engineering and maths, or STEM as we call it, in our University cohort in 2019 was up to 41%, from 38% in 2017.
[+4 sentences] But data from IMDA does shown that representation of women in this sector is still not as high. It is at 30%. So, with the strong trend in digitalisation and the competition for talent, employers must leverage the talent pool of women in STEM or risk missing out on tapping on almost half of the talent pool. The inaugural Singapore Women in Tech list of Singapore 100 Women in Tech last year, I think is a very good initiative to encourage women to join the workforce to take on tech careers.
But I think that more needs to be done to understand what is it that it is going to take to attract more women to take tech careers. Now, let me touch on the thorny issue of raising GST to finance recurrent spending.
[+1 sentence] While Deputy Prime Minister Heng did say that GST will not be increased this year and he did confirm that GST will need to be increased between 2022 and 2025, and this is to finance increased recurrent expenditure especially in the area of healthcare.
Raising GST will impact Singaporeans, and as announced in last year's Budget, a $6 billion Assurance Package has been set aside to help cushion the impact of the GST increase on Singaporeans. What this equates to for a majority of Singaporean households is the offsets will cover at least five years' worth of additional expenses incurred because of the higher GST, with more going to the lower income households. Those living in 1-room to 3-room HDB flats will receive offsets equivalent to about 10 years of additional GST expenses.
[+1 sentence] Deputy Prime Minister Heng also said that the Government will continue to absorb the GST on publicly subsidised healthcare and education.
The question is: why raise tax, then give reliefs? I think Deputy Prime Minister Heng also said in his speech was the majority or 60% of the net GST borne by households and individuals is actually borne by foreigners residing in Singapore, tourists and the top 20% of resident households. The question I have is that, with the impact of COVID and the lower number of tourists as well as the impact of COVID-19 on foreigners working and living in Singapore, how does this affect that amount that was projected for the GST increase?
[+38 sentences] And will it be sufficient to fund the increase in healthcare spending? If not, then is the Government considering other forms of tax to fund increasing healthcare spending? And if so, I do hope that it would be calibrated and that we would not be implementing similar caps as we saw in Budget 2016 on total tax relief because at that time, I had feedback from many working mothers claiming the Working Mother's Child Relief, who were impacted and had to pay higher taxes. I know, if you need to spend more, something has to give, you have to pay it somehow. But it is affecting a big group of middle income. Now, let me touch on the point of leaving no one behind. COVID-19 has and made more evident potential gaps. Digitalisation and the need for and increasing reliance on digital, while not intentional, does increase the risk of alienating some segments of the population and increasing the divide. Let me just share a very simple story of a resident who came to see me and the pin really dropped for me then. He said he had a simple task to do. He had to get PMD inspected before he would be slapped to the penalty. And he was really at a loss. He came to see me and he said, "I received an SMS saying I had to go and do an inspection." And he tried to call, could not get through, went down to get his inspection done. And lo and behold, guess what? He could not get his inspection done because he did not make an appointment and he could only made an appointment online. So, he came to me and said, "Jessica, can you tell me what is an 'e-letter'?" He showed me an SMS and said, "What is an 'e-letter'?" And it really dawned on me that things we take for granted, things that we do daily and we think it is something that is a matter of fact in the digital world – I mean, he is the phone, he is using a smartphone but he did not know what an "e-letter" was. And then, I said, "Let me try and show you", because he said all the information is inside in this "e-letter". So, I tapped. And guess what? I realised he is not connected to data. And then, he did not have his SingPass! You get the point. So, basically, what happened was, we set it up and he is now being supported by a Digital Ambassador. The point I want to make here is that you can see from the story that while my resident was not tech savvy, the gap was not caused by a resistance to getting help, a resistance to use the digital. Rather, it shows that there are many moving parts. And it is not just about technology but the changes and how we do things, things that we take for granted and leads to a vicious cycle. So, what this shows, it takes a whole system's approach and change management to bring people along. We must all participate to ensure that while the progress and support are available, each of us need to make sure that we bring everyone along. COVID-19 has also accelerated the pace of disruptions and impacted jobs and employment. All segments of society have not been spared and the impact on jobs has not been seen only on the lower income or the low-wage workers, but also on the middle and the PMETs. While there are support packages in last year's five Budgets to help workers and families, for example, the COVID-19 Support Grant, the Self- Employed Person Income Relief Scheme, GST Vouchers, many in the middle income were not eligible given the criterion of annual value of the homes they live in. I do agree on the need for eligibility criteria for support schemes as funds are finite. However, some of these criteria may be too broad and may miss those that should be supported or result in a delay in the support reaching them, as the exceptions are being reviewed and approved. With the pace of disruptions or shocks like COVID-19, while individuals may have assets like their home, they do need short-term support to help them tide over. In some cases, the affected individuals do not own the properties they live in.
For means-testing for application and eligibility for short-term support to assist individuals and families to manage such disruptions, I would like to ask the Minister if consideration can be made to remove the criterion of annual value of the property of the home, for those who own one property or do not own the property they live in. I know this is a tough decision but I hope that some consideration can be made because we have seen the exception was quite large during this period because of the short-term needs.
[+2 sentences] Mr Speaker, as we continue to support workers and businesses still suffering from the impact of COVID-19, we must move from containment to decisively positioning for transformation and invest in the future in order to emerge stronger. I support the Budget.
Ms Janet Ang (Nominated Member)166 words
[+1 sentence]Mr Speaker, Sir, I would like to start by sharing a moment of gratitude on behalf of the business community for the leadership and support extended by this House since the COVID-19 virus hit our shores some 12 months ago.
In the recent national business study conducted by the Singapore Business Federation or SBF, about two-thirds of businesses reported that they were negatively impacted by COVID-19. And looking ahead, about one-third are unsure about the future of their businesses. And amongst those negatively impacted, 70% thinks that it will take more than a year to fully recover from the pandemic.
[+2 sentences] Last week, after Deputy Prime Minister Heng's Budget 2021 announcement, SBF organised a closed-door dialogue with some trade associations and chambers or TACs and myself. Participants all expressed gratitude for the strong leadership by the Singapore Government and acknowledged that Budget 2021 is balanced with realism and sensitivity to the on-going crisis, while at the same time, is forward-looking and projects a hopeful and exciting future.
Mr Speaker9 words
[+1 sentence]Ms Ang, would you like to remove your mask?
Ms Janet Ang2208 words
[+4 sentences]Sorry. I hope I could still have been heard. I apologise for that. Participants all expressed gratitude for the strong leadership by the Singapore Government and acknowledged that Budget 2021 is balanced with realism and sensitivity to the on-going crisis, while at the same time is forward looking and projects a hopeful and exciting future.
With the vaccination programme underway, there is optimism going forward and businesses are encouraged by the COVID-19 Resilience Package that will help safeguard public health and provide targeted help for the hardest hit sectors. The additional Jobs Growth Incentive with SGUnited Jobs and Skills to support employers to accelerate hiring of local workers will help businesses and employees move up the value chain together.
[+8 sentences] Many understand the prudence in the gradual opening up of travel but have expressed concerns that the continued restrain on the opening up of global borders will have its impact on recovery. It is hoped that the Government will continue to calibrate its risk management approach, to gradually ease the COVID-19 restrictions, both on the domestic front as well as allowing for business travel and tourism bubbles without Stay-Home Notice. That aside, the Government shifting investments and support in Budget 2021 toward enabling companies to accelerate digitalisation, seize new opportunities of growth in tech, in green and in the region, while continuing to uplift the skills of our workers, is applauded. The Enterprise Financing Scheme will add the capital boost needed to help our companies spur ahead. And, we believe that expert help from CTO-as-a-Service and Digital Leaders will help their digitalisation transformation. Businesses are also excited about the Singapore Green Plan 2030 which serves to give the Whole of Singapore a visionary goalpost to shoot for. A key challenge for many of them, however, is availability of manpower. They cannot find enough Singapore workers to take up the roles, especially when it comes to expertise and in-demand skills they need to recover and grow.
In the Manufacturing sector, the reduction in S Pass Dependency Ratio Ceiling (DRC) announced in Budget 2021 is worrisome for many of them, especially when Singaporeans may have expectation mismatches and not aspire to those jobs. Nett, my view is that the Budget 2021 has the critical elements of tech, plus skills, plus capital, plus vision.
[+7 sentences] So, what will determine success for Singapore to emerge stronger, is going to be how we execute and the speed of execution. COVID-19 has given the impetus for many of our companies to "pivot" to new business models, for example, e-commerce, to accelerate technology adoption and digitalisation, and to look for new revenue-generating activities. The time for companies and industries to push on with their transformation efforts, taking advantage of Government support and industry collaboration, is now. COVID-19 hit a global reset and I think it is an opportunity for us – workers, industry and Government – to review, rethink and re-imagine the way we execute. For today's speech, I would like to start the dialogue on three issues: skills for transformation; fair practice in the workplace; and organisations to re-think their stewardship responsibilities. Let us start with skills for transformation. I would like to put forward a few ideas to explore together.
One suggestion specifically to address the tech talent crunch is to encourage our companies to invest in Singaporean graduates, whether University, Polytechnic and ITE graduates for entry-level tech jobs, despite being able to hire experienced foreign developers at equivalent salaries.
[+24 sentences] In product development, for example, there is no substitute for experience. Experienced developers are able to start contributing quicker to the company's product development, and be ahead for advancement to take on higher level roles in project leadership and IT solution architecture. If our Singapore graduates do not start with those jobs, they cannot possibly take on those higher value jobs especially in tech. Perhaps the SGUnited Traineeship top-ups can help make the difference, and over time, we will have more Singaporean Core experienced developers who can move on to higher value jobs. Singapore has the aspiration to build more digital product companies and we need to have a deeper "Skills for Transformation" strategy. We need all hands on deck – companies, Government and workers. Point two, I urge the business community to continue to work with education institutions to ensure a ready pipeline of labour with the right skill sets. I believe there is opportunity for more collaboration within and across sectors to uplift the labour eco-system, as having a larger pool of skilled labour would benefit businesses in the long run. Nett, we are calling for companies to train more than what they need, or more than the number of skills that they need, and make it available to the rest of the industry. And as for in-demand skills like tech and digital, there are more jobs than there are Singaporeans with the skills and experience, and desire to take on those jobs at the salaries that companies currently are paying. For example, the construction and IT industries face challenges with hiring local talents with the right skill sets, while the nightlife, hospitality and F&B sectors struggle to fill critical "rank-and-file" roles with local employees. Foreign talents with the skills we need do complement our Singaporean talents. I believe that our Singapore workers are confident, determined and ready to work hard, and our companies should invest in them and give them the opportunities from when they graduate through their life-long professional learning journey. The Government is trying to help with the programmes and policies but in the meantime, some companies with contracts need the workers to fulfil their commitments, while other companies need to be sure that they can get the workers if they bid for the work. This is a catch-22 situation. The business community hopes that the Government could fine-tune manpower policies to strike a better balance with regard to hiring of local and foreign talent. Perhaps the Government can consider a differentiated intervention for different businesses and industries and skills, to support them to recover, and for them to recover, they need the manpower. My personal opinion having worked in the tech industry for more than 37 years, and having been a resident foreign talent myself – I lived three years in Tokyo and eight years in Beijing – we are in a global war for talent. We should attract the best foreign brains and talents to come to Singapore, and they add value by way of skills, experience, expertise and knowledge. The foreign skills also complement us in numbers where we do not have enough. We must remember that we are not competing for jobs amongst ourselves. Every day, we are coming out for jobs, competing for jobs, not just when the jobs are here in Singapore but globally. Let me switch to this next issue – fair practice in the workplace. Over the years, many Singaporean workers believe that they have not been given the fair chance for jobs that are created here in Singapore.
Fair practice in the workplace needs an urgent review.
[+8 sentences] I am happy to report that in January 2021, 29 trade associations and chambers or TACs, including the Singapore Business Federation have signed a joint statement in support of fair hiring and employment practices. I think that is a good first step. I believe it is time for a renewed dialogue amongst stakeholders – Singapore workers, businesses and the Government – to re-think the social compact and in so doing, create positive momentum for win-win-win. I was an IBMer for 33 years, and am very blessed to be a reasonably successful product of Singapore’s MNC or FDI strategy along with the likes of Mr Koh Boon Hwee who started with HP, Mr Russell Tham with Applied Materials, Mr Lee Kok Choy with Micron, Ms Teo Lay Lim with Accenture, our Deputy Speaker Jessica Tan with IBM and then Microsoft, DBS’ Ms Tan Su Shan with Citi and Morgan, and scores more. I hope my friends do not mind me calling them out. We were all trained and developed by foreign bosses. In those days, our foreign bosses were probably evaluated – and their promotions depended on it – based on how many Singaporean leaders they have developed, not only for Singapore but for the region and for the world. Skills transfer and knowledge transfer as well as leadership development are some of the key values in successful partnerships between MNCs and Singapore.
Our EDB is one of the best marketing engine you can ever find on earth; serious. And I would urge that, perhaps, this conversation of skills transfer, knowledge transfer, how many Jessica Tans and how many Russel Thams they are going to develop for us in Singapore, needs to be re-started in the board room – between the Singapore EDB and the MNC head honchos both at HQ and here.
[+4 sentences] My next point: organisations to re-think their stewardship responsibilities. During COVID-19, Singapore Business Federation Foundation together with seven TACs launched the Industry-Led Compassion Fund. I was so heartened to see the response by the businesses, who probably themselves are not having an easy time. They came together to set up the fund to support the employees in their own industry.
SBF Foundation matched the funds raised by the TACs and together, $1.9 million was raised and it is projected to help more than 3,000 employees in those industries.
[+5 sentences] This is very heartwarming to see – companies coming forward to help themselves and the employees who are affected in their own industries. During these trying times, there are also vulnerable groups trying to enter and re-enter our workforce. Employment is key to their independence. The best way we can help them is actually the dignity of work. Everyone has something to offer.
SBF Foundation, which is the social impact arm of the SBF, with support by Tote Board, has set up the Employability Fund and Empower Circles to work with and rally businesses to train and re-design work for these vulnerable groups, to provide job coach support linkages and so on.
[+8 sentences] Of course, we hope that the Civil Service can also join in. Talking about the vulnerable groups, those who are affected by COVID-19, now we take it at a little bit more macro level. Many around the world are waking up to the massive issue of growing inequality, and business leaders and civil society and even governments are calling for a re-thinking and re-framing of capitalism. How society can be better off for all and not just for a few? What corporate values need to be renewed and what are those that need to be reset? How can our companies reframe their purpose so as – to quote Konosuke Matshushita – "to improve human life through enterprise management?" What government policies are needed to drive behaviour and to support businesses in this effort? I believe that when business leaders come together and galvanise other business leaders, we can effect change for the vulnerable groups which include the marginalised or disadvantaged SMEs, amongst us.
Temasek has been a big champion in this movement. We can see in Budget 2021 where Temasek has come out with a $500 million match by Government to support the LLEs in Singapore to become true local champions.
[+3 sentences] Mr Speaker, these are but some of my thoughts and reflections. We need on-going dialogue amongst stakeholders to listen to each other, to better understand the issues and find the solutions together. I beg your indulgence as I close with my Singapore Dream.
I have a dream – of a Singapore where a culture of care and dialogue amongst all stakeholders for the common good for all and for the greater good of the economy, our health, the environment and society is part of our DNA. I have a dream – where citizens, residents, businesses, civil society and Government work together and take an integral development approach to tackle the issues at hand, always ensuring the poorer amongst us, the disadvantaged, the vulnerable families and SMEs are not left behind. I have a dream – that, in Singapore, we have diversity and inclusion in education, digital access, work opportunities, business leadership and politics – at all levels from workers to businesses and society at large; where we practise fair and just code of ethics which reflect our Singapore values; where we guard our racial and religious harmony; and that we, as a people, do not lose our strengths of being a caring and welcoming society. I have a dream – of a Singapore where our people and organisations are confident to embrace and lead in the innovation, development and application of new technologies and new ideas because we are a learning nation, strong in collaborating with the best minds in the world, and always restlessly re-inventing ourselves to stay humbly relevant in the global economy.
[+2 sentences] And I am so blessed that our Singapore Dream is already a work-in-progress. In closing, I challenge us with this quote by St Francis of Assisi: “Start by doing what is necessary, then do what is possible and suddenly you are doing the impossible”.
With this, I conclude with my support for the Budget.
[+1 sentence] Thank you, Mr Speaker and the House, for your kind attention.
Mr Speaker3 words
[+1 sentence]Mr Faisal Manap.
Mr Muhamad Faisal Bin Abdul Manap (Aljunied)2233 words
[+3 sentences]Mr Speaker, I welcome the Budget Statement delivered by the Deputy Prime Minister and Minister for Finance. I note that the theme for the Budget is "Emerging Stronger Together" and I believe all in this House share the Deputy Prime Minister's hope that we will, indeed, find a way to emerge from this crisis with greater strength and unity. There are three areas in the Budget Statement that I would like to speak on today.
First, I am heartened that the salaries of all our healthcare workers, including both our nurses and our support care workers, will be enhanced under the Budget.
[+3 sentences] I look forward to learning more details on the level of increment which our healthcare workers can look forward to from the Minister for Health. Our nurses have devoted their time and energy, as well as faced numerous risks, to keep our healthcare system going. It is past due that their remuneration is relooked.
The 2018 report by the Lien Foundation showed that, amongst the five advanced economies with ageing populations in the Asia Pacific region, the average monthly pay of nurses was the lowest in Singapore, at S$3,000. This is almost half of the average pay of nurses in Australia, at S$5,780.
[+14 sentences] Even though 2020 had been a challenging year economically, Singapore is still on par with the countries in this survey in terms of GDP per capita. It seems odd that the remuneration for essential healthcare workers would continue to be lower than those of their counterparts elsewhere. Inadequate remuneration could lead to other problems down the road as well. A shortage of nurses is not a new problem in Singapore. In the last decade alone, MOH has acknowledged this a few times as an issue to be addressed. Further, Singapore is not the only country facing a shortage of nurses. In April 2020, the World Health Organization estimated that the world faced a shortage of six million nurses. We have been able to attract nurses from other countries to come and work in Singapore. They make up for the shortage of local nurses. However, if remuneration levels are not considered adequate, you face the potential of our nurses being drawn to foreign shores. This will make it even harder for us to handle the ageing population. As such, I would like to propose that we consider either pegging the salaries of our nurses to a weighted basket of salaries from the countries of a similar economic status as Singapore. Another possibility is for us to use the salary scales of our uniformed services as a benchmark. Our nurses also put their lives on the line at work each day.
The second issue I would like to raise relates to the environmental policies which were announced during the Budget Statement, specifically, the immediate increase in the duties on premium and intermediate petrol by 15 cents and 10 cents per litre respectively.
[+3 sentences] There is no one who could disagree that we must take urgent action in order to address climate change and I appreciate that the Government intends to help all those affected by the increased duties by offering rebates which are expected to defray the increased cost for a year. However, I have to question why the increased rates had to take immediate effect. Such an approach creates a shock amongst vehicle users, especially for those whose livelihood depends on internal combustion engine vehicles.
Following the announcement, CNA reported that some drivers estimate that their costs will go up by about $60 to $100 a month.
[+17 sentences] Sir, private hire drivers have been adversely affected for more than a year now as we battle the COVID-19 pandemic. They have seen reduced demand and have struggled to make up for the loss of income. While the situation has improved, private hire drivers are a long way from stability. With practically no tourism and fewer people heading to their offices on a daily basis likely to be the prevailing scenario for the foreseeable future, the outlook for drivers is bleak. A TODAY news article from December 2020 captured the struggles of not only the private hire drivers, but also taxi drivers, many of whom have seen severe drops in their income even with relief measures, such as the Self-employed Income Relief Scheme (SIRS), the COVID-19 Driver Relief Fund (CDRF) and the vehicle rental rebates. The drivers interviewed for the news article related their efforts to stay afloat by taking on extra jobs, and some are considering leaving the industry entirely. However, not all drivers will be able to upskill and/or reskill themselves for other industries in the near to medium term because they are locked in contracts which were signed before COVID-19 became a global pandemic. I acknowledge the efforts by MOT and LTA to mitigate the suffering of our drivers. The new requirement for private hire drivers to be 30 years old and above and having Singapore citizenship, similar to the standards required for taxi drivers, should be described as a market correction that was timely. The announcement of higher payouts for drivers in the point-to-point transport sector to cushion the end of SIRS is also welcome news. However, the increased petrol duties could mean that the money that was meant to bring relief for our drivers would end up being redirected towards Government coffers instead. While it is important to set behavioural norms away from a reliance on fossil fuels, this is not an excuse to inflict unnecessary trauma on an already besieged group. By the time the rebates reach the pockets of the drivers, some of them may have resorted to drastic measures already, to keep themselves and their families economically afloat. I am also concerned that the increased petrol duties will lead to increases in the price of other goods, especially the daily necessities. It is inevitable that companies will pass the burden to consumers, at least in part. Will the rebates be sufficient to help families, especially the lower income earners, to cope with the increased costs of living? In January 2021, the Straits Times reported that while electricity, petrol and outpatient services were cheaper in 2020, the price of food, as well as public transport fares, went up.
In early February 2021, Beyond Social Services released a report which showed that the median household income of families who sought help from it fell from S$1,600 to S$500 a month. Similarly, the Department of Statistics (DOS) released figures showing that the median income of the bottom 10% of lower income households saw a 6.1% decline in real income, compared to 1.4% to 3.2% in other households.
[+2 sentences] I am aware that the Government has provided significant amounts of relief for lower income groups and will be setting aside more to continue assisting them. However, the increased petrol duties may have an indirect negative impact if, as a result, the price of consumer goods, especially essential goods, increase as a result of higher fuel and transport costs.
As mentioned earlier, most would agree on the need to take urgent step action in order to address climate change. However, the decision to increase the duties on petrol at this time is a case of "doing the right thing but with the wrong timing". Notwithstanding all this, Sir, I acknowledge, that the decision has already been made and implemented. Hence, I echo the call made by the Leader of the Opposition, Mr Pritam Singh, for the Government to consider reviewing the immediate hike in the petrol duties rates.
[+35 sentences] The third and final point I would like to raise is an extension of the second, and is related to the issues of sustainability and the environment. The Government has signalled that it will be making bold steps towards more sustainable and environmentally friendly practices. It was not too long ago that this House adopted a Motion declaring that the climate situation presents an emergency which needs to be addressed, and many of my colleagues have spoken on what can be done. The tone of the Budget Statement is also a welcome one. However, it has to be more than just the tone that shifts. Mr Speaker, Sir, the unsavoury truth that we have to accept as a nation is that our track record demonstrates that when it comes to making a choice between nature and modern development, it is always the former that is sacrificed. We have seen this with land reclamation, construction of highways, MRT lines and stations and other infrastructure. The latest incident whereby a patch of forest was mistakenly cleared was a tragic example of how we can get this wrong. The Government has recently launched Singapore Green Plan 2030. As mentioned by Minister Heng in his Budget speech, "This is an ambitious long-term plan that builds on on-going efforts to secure a green, liveable and sustainable home for generations of Singaporeans to come". Sir, I commend the Government for the plan and I am supportive of any efforts in making a more sustainable living environment in Singapore. Planning for future and continuity is critical and of paramount importance, and, as the saying goes, "If you fail to plan, you are planning to fail". However, Sir, at this juncture, I believe it is worthwhile for us to pause and consider the lessons which we can learn from the erroneous clearing of Kranji Forest which happened recently, before we move any further on our 2030 Green Plan. Sir, we should ponder, why have we planned to plant more than a million trees across Singapore over the next 10 years when, according to the Global Forest Watch, we have lost 2.22 kilohectares of tree cover, a 12% decrease which is equivalent to 580 kilotons of carbon dioxide emissions. We also should ponder if we should be working towards a more harmonious relationship with our natural environment in Singapore instead of imposing our own artificial solutions for sustainability. Sir, having said these, I welcome the Deputy Prime Minister’s statement that the Government will take the lead. There is a saying in Malay “Bagai enau di dalam belukar, melepaskan pucuk masing-masing”, a reference to a kind of plant that grows in the underbrush. Its meaning is a reference to a situation whereby narrow interests are prioritised over the greater good. For too long, we have prioritised urban development over the environment. The Green Plan is a major step in rebalancing our priorities. Sir, I will continue in Malay. (In Malay): The announcement by the Deputy Prime Minister, who is also the Minister for Finance, on the salary increase for nurses and healthcare sector workers is most welcome. Since the COVID-19 pandemic began, we have seen various efforts by every segment of society displaying strong support and expressing gratitude for our healthcare workers. Among the efforts undertaken include F&B businessmen providing free food and beverages, thank-you notes by students using home-made cards as well as simultaneous applause and cheers from Singaporeans. Sir, the various forms of community support play an important role in providing psychological encouragement and motivation to those who serve in the healthcare sector. However, financial support and rewards are equally important especially in the current situation where the cost of living is increasing. As I mentioned earlier, the announcement of salary increases for nurses and health sector workers is most welcome. The question now is, how much is the amount of increase that has been decided? As stated by Minister Heng, this announcement will be made by the Minister for Health at the Committee of Supply debates. Sir, I hope that the incomes or salaries of nurses and healthcare workers can be raised to a level similar to the salary of nurses and healthcare workers in developed countries in the Asia-Pacific region such as South Korea, Japan, Hongkong and Australia. This is because the quality and standard of our health systems and expertise are equivalent to these countries. Singapore's level of economic development is also similar to those countries. Therefore, the benefits given to our health sector workers should commensurate with their counterparts in these countries. Next, I would like to comment on Minister Heng's speech on the Government’s plan to balance the number of local and foreign workers. I would like to touch on this especially for the healthcare sector.
As we know, we have many foreign nurses in our healthcare institutions, especially in the restructured hospitals and polyclinics.
[+1 sentence] Sir, here I would like to reiterate my call to allow the wearing of tudung as part of the nurses' uniform.
It cannot be denied that there are some Muslim women who have to forgo their wish to serve as nurses because they know that they will not be allowed to wear the tudung.
[+1 sentence] By allowing the tudung to be worn as part of the nurses' uniform, perhaps more Muslim women can fulfil their wish to work as nurses.
At the same time, it will also increase the number of local nurses and make nursing in Singapore become more inclusive. (In English): Hence, my views and concern on one, nurses' remuneration; two, increase in petrol litre rates; and three, sustainable environment. The intent of my sharing is to contribute to our nation's on-going discussions and efforts to bounce from this crisis with greater strength and unity, emerging stronger together.
[+1 sentence] I look forward to more sharing from the respective Ministries on the issues mentioned in my speech.
Mr Speaker4 words
[+1 sentence]Dr Lim Wee Kiak.
Dr Lim Wee Kiak (Sembawang)1868 words
[+10 sentences]Mr Speaker, Sir, I would like to thank the Deputy Prime Minister as well as the men and women of MOF for delivering a Budget that will help us to meet our short-term challenges posed by this pandemic and the ravages it is doing to our various sectors of the economy, while catering to the long-term needs and keeping an eye on the future. This is indeed a very uncertain time and it is very difficult for the Minister to forecast with any certainty what are the possible scenarios as vaccination gains momentum in Singapore and globally. Viruses constantly change through mutation, and new variants will occur from time to time. Today, you have the UK variant, you have the South African variant, we also have the Brazil variant. I am not sure tomorrow, what will be the next variants. We also have to assess whether the current vaccination – are they effective against protecting us against the new variant? While we can postulate some of the possible scenarios and outcome, things are still very fluid and very unpredictable. I would like to take this opportunity to raise four issues which my residents have raised to me during my block visits as well as in a youth dialogue over the last weekend. The four issues are: first, the distribution of the CDC Vouchers; second, incentives for Singaporeans who opt in for COVID-19 vaccination; third, the issuance of the Green Bonds; and fourth, the Electric Vehicles. I shall start off with the CDC Vouchers distribution.
First, let me thank the Government for the additional $150 million grant provided to the CDCs. This will benefit 1.3 million Singaporean households who will receive $100 CDC Vouchers that can be used at participating heartland shops and hawker centres.
[+18 sentences] This will definitely boost our local consumption as well. The idea is good except that this distribution is by per household. And as we know, per household means that number of people within the household differs. This project will benefit those with small households rather than those with larger households because more people under one roof for larger households have to share the $100. Is it being considered when the concept of per household was being mooted? Why not adopt previous distribution method of all Singaporeans above aged 21 years and above? You can distribute about $50 per person and the total amount amount would still be about the same. Second, incentives for Singaporeans who opt in for COVID-19 vaccination. I would like to lend my voice and support to urge all residents to get COVID-19 vaccination done as soon as possible, if they are eligible. The faster we get vaccinated, the faster we can get ourselves protected and lower the risks of local cluster outbreaks. I know many are fearful of unknown future side effects of this new vaccine. I have faith in the science behind this development. All the data and facts have been carefully considered by MOH and our vaccine expert committee before approval for public use. In order to encourage more to opt in for the vaccination, I would like to suggest the Government consider giving some incentives to all Singaporeans who opt in for the vaccination. This can be in terms of additional CDC Vouchers or even CPF MediSave top-ups. Third, the issue on Green Bonds. Mr Speaker, indeed, many countries are putting focus on sustainability issues to jump start their economy. This is one problem which we know is pressing and it is more predictable than the second-guessing of virus mutation.
To finance this, the Government will issue new bonds, Green Bonds on selected public infrastructures, up to $19 billion of public sector green projects already identified. The issuance of Green Bonds will deepen market liquidity for Green Bonds attract green issuers, capital, as well as investors, and anchor Singapore as a Green finance hub.
[+4 sentences] But we are also worried. May I ask: how will this affect our Singapore bonds ratings as Government takes on more debt and the interests we need to bear for these bonds, will it increase? If Minister can share his thoughts on this The last topic is on electric cars. It is well and good to push our plans on Electric Vehicles (EVs), but we have to recognise it takes a lot to win over Singaporeans to move in this direction.
We have all heard how one of the areas of contention is that there is just not enough charging points for those who opt in for EV at this moment. I note the plans to have 28,000 charging points by 2030 and that commercial entities can be roped in to help build up this infrastructure.
[+6 sentences] Currently, how many charging points do we have, I mean, in the public, as well as how many EV to each charging points now do we have? That is, what is the ratio? Two things stand in the way of mass adoption of EVs now are vehicle economics and charging infrastructure availability. This is not unique to Singapore but global as well. Let me start with the charging infrastructure. Let us say 80% of our car owners switch over to EVs.
As of 2020, our car population was about 974,000 – which is near to one million – according to LTA data.
[+41 sentences] So, how many charging stations do we need to attract car owners to switch to EVs? That means giving drivers ease of mind to know that they do not need to desperately hunt for a charging point when their batteries run low. Plus, they do not need to go into long queues to wait for their turns. Singaporeans want to get things done fast and efficiently. The question is how many public charging stations do we need to have to cater for 800,000 EVs? Let us look at the scenario elsewhere. In the UK, according to a recent report by Auto Express, a weekly motoring magazine, there is less than one charging point for each six Electric Vehicles sold in the country in 2017. Another motoring publication, Autocar, said in total, the British version of low-speed electric vehicles, also known as quadricycles, electric motorcycles, and plug-in commercial delivery vans, every public charging point caters to 8.9 plug-in vehicles. That is "close to the European Union’s preferred maximum ratio of 10 vehicles per public charging point," it said. Let us look at China. The total number of motor vehicle population as of July 2019 is 340 million. About 5% of these vehicles are EVs. China is the country with the most EV charging points in the world – with 1.2 million in 2019. That is still 283 EVs to one charging point. And it is looking to add another 600,000 more charging points like a petrol station. Despite this aggressive building of charging stations, as of November 2019, 324,000 EVs in China do not have a charging facility alongside the space where the vehicle is normally parked. So, there is still a lot of room for EVs to grow and for charging stations to be built. Finding space for charging stations is just one hurdle. The stations have to provide fast and normal charging so that the turnaround can be faster. In land scarce Singapore, we now have to struggle to give space for charging stations all over the island, including HDB car parks. Residents would now be fighting for charging points and Members of Parliament will have a new wave of complaints. Batteries would be another problem. Battery manufacturers are still working out on producing better batteries with longer driving range, with longer lifespan and support faster charging. This is over and above producing them at competitive prices. After the batteries have outlived their lifespan, we also have to take a look at how do we dispose of these batteries? Will it be an environmental issue? There are also many other issues to be addressed. Around the world, EVs are still sort of an advanced stage of work-in-progress, in my view. Next, our repair workshops. Are our engineers, technicians and mechanics sufficiently equipped to handle EVs? There are many independent motor workshops would have to upgrade their skillsets to maintain and repair EVs. Overall, how cost effective will it be to use an EV versus an internal combustion engine vehicle? The amount of energy that we have to produce additional to power 800,000 vehicles on a daily basis. Do we have enough power supply to do that as well? And what is the cost to the whole country? Mr Speaker, I would like to raise the same question as to why is it necessary to raise the tax on petrol with immediate effect while we are targeting more charging points and EVs only for 2030, and the ARF and road tax reductions for EVs are only implementing next year? Why are motorists penalised or coerced to move to EVs when we have not got enough infrastructures in place? And the cost of EV is still high. With ERP resuming and the raising of petrol price, would it not cause inflation to rise? The cost of higher petrol cost will impact all sectors of economy from retail to manufacturing, to transport for office workers and students, as well as goods and services. While we want to support our lower and middle income households, no one would be spared from inflation.
The Government has announced that motorists would be given road tax and additional petrol duty rebates to help offset the higher costs but all these changes is only applicable from 1 August onwards this year all the way to 31 July next year.
[+5 sentences] May I suggest MOF bring forward the road tax rebates and the additional petrol duty rebates upfront to take effect, with immediate effect since the petrol increase is with immediate effect? This will help ease the cash flow for our residents. The last point is on COE. Currently, now, for internal combustion engine COEs, I can understand. As the car gets older, it becomes less efficient, it becomes more pollutive.
With EVs, can we now review this 10-year COE lifespan? Is it possible for us to consider a longer lifespan for COE for EVs since EVs are less of a pollution, and definitely, frequent changing of cars is not environmentally friendly?
[+3 sentences] We definitely want to conserve as much resources as possible. One last ground feedback is regarding the Government taking the lead to convert all public vehicles to EVs, including the Police, LTA, NParks, SCDF. And there should also be incentive to get the commercial vehicles to be converted to EVs.
Can the Minister also share with us overall how many new jobs can be expected to be created for the green industry in Singapore, under the Singapore Green Plan, when all the EVs plan is being implemented? How is the Government planning to provide the skill training to our workforce so they can take advantage of this new growth industry?
[+2 sentences] Mr Speaker, car ownership is an issue close to the heart of many Singaporeans and I hope those who are planning for policies on car ownership would think deeper and assess the implications before rolling out. With that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Ms Nadia Samdin.
Ms Nadia Ahmad Samdin (Ang Mo Kio)2065 words
[+2 sentences]Mr Speaker, Sir, growing up, my dad was the sole breadwinner. Although he did not a degree, he had the opportunity to work for a national carrier in the early glory days.
Over three decades, he took night classes, was loyal, worked hard and got promoted. But in 2003, SARS hit Singapore and many in his rank could not be retained.
[+14 sentences] My family was not spared. How tough it was for my amazing parents to put up a brave front for my brother and I to pick up something new. Fast forward to today, and families across Singapore find themselves in a similar circumstance due to COVID-19 and I find myself in the position of having a voice in this House, which was unimaginable to the teenage me 18 years ago. I understand deeply the worries that come with an uncertain view of one's future, the opportunity costs that come with dreams deferred. With this in mind and in heart, my speech today is in hopes for continued commitment to an inclusive, sustainable and equitable Singapore for all in Budget 2021. An earlier version of our pledge that was suggested by former Deputy Prime Minister S Rajaratnam in a letter dated February 1966 said, "We, as citizens of Singapore, pledge ourselves to forget differences of race, language or religion and become one united people; to build a democratic society where justice and equality will prevail, where we will seek happiness and progress by helping one another." The nuance of that last sentence is beautiful. In this pandemic, we have indeed seen Singaporeans seeking happiness in progress by helping one another – from keeping food on the table to keeping each other safe from the virus. Amidst the pandemic, we have yet again shown that this young nation can stay united in pursuit of common goals despite our differences, emerging stronger. Sir, it is for this reason that I have faith that Singapore can navigate the social and environmental perils that often rear its heads in a young and growing capitalist economy. Mr Speaker, I am heartened by the Budget's approach to economic recovery. There is stimulus to spur the growth of green industries and liquidity for local businesses to sprout and adapt to the future. Sir, these plans are meant to be good for Singapore and our people, but over the years, both locally and abroad, we have seen the exploitation of Government schemes by some businesses. It is for this reason that I ask we ensure that the potential for abuse remains low as we administer these funds so that the funds fulfil the intended purpose.
Among local businesses, there is worry that when wage support runs out, they may not be able to keep people employed.
[+4 sentences] In his speech, the Deputy Prime Minister spoke about the purpose of economic transformation, being to grow opportunities for our people to realise their full potential and aspirations. With stiffer competition from global talents as well as long-term wage support being untenable, I would like to touch on employment opportunities for two groups in particular. For a young person graduating today. The employment landscape is daunting.
The annual Joint Autonomous Universities Graduate Employment Survey last year found that 69.8% of fresh graduates from permanent full-time jobs down from 81.7% the year before.
[+10 sentences] This means that the future for our youths is less certain, less stable. Many are also required to support elderly parents. But there have been efforts to give our youths options and I recognise that. I hope these continue. For example, a push towards entrepreneurship to initiatives in Institutes of Higher Learning's accelerator programmes supported by corporates or even grants like the Youth Action Challenge, a programme I know from my days at the National Youth Council. And we also have the SGUnited Traineeship Programme. While these policies provide opportunities, I am also wary of the potential consequences that our fresh graduates may face in the medium or longer run. Grants do not translate to salaries and some may turn to temporary gig jobs to make ends meet and get stuck where they do not want to be. While the training allowance does help our graduates gain employment in the short run, I hope we also consider how employment might look like for them after six months. For example, under-employment issues and access to subsequent employment opportunities or wage growth after trainee allowances for these young entrants to the workforce.
Under the SGUnited Jobs and Skills package, there is some incentive for firms who employ mature local hires above 40 years old, persons with disabilities and ex-offenders.
[+6 sentences] How can the Government lead by example and how will our institutions, such as a Singapore Prison Service, be able to offer timely training opportunities in relevant industries? Do inmates have the opportunity to develop other job-ready skills, so that re-integration and ability to provide for their family upon release is a smoother transition? Beyond incentives, it is also about society, reducing stigma against this group of workers. Residents in my Meet-the-People sessions have shared how tough it can be to get a job except in, perhaps, certain industries, such as logistics or F&B. How are we going to ensure that they will be able to access the jobs that are currently being created? Mr Speaker, Sir, I welcome the announcement of the Singapore Green Plan 2030.
This is a chance for us to approach recovery the right way – to ensure that it is not growth at all costs.
[+1 sentence] The Green Plan has five pillars.
But did you know that in 2018, more than 100 people contributed to the third edition of the Blue Plan, which has six recommendations in protecting our marine environment?
[+10 sentences] I hope that our Green Plan can incorporate some of the recommendations of the Blue Plan. Our blue spaces are precious and generally multi-used for the volume of activities that it accommodates. We see more and more people appreciating our blue spaces, our oceans, through rising number of visitors in our Southern Islands, for example. And I hope for a stronger commitment so that our blue spaces are not left out of Green Plan conversations. For example, our Park Connector Network connects green spaces around Singapore. We also need to consider the protection of blue connectors in our marine systems, which connect open seas, seagrass meadows, reefs, intertidal habitats and are impacted by debris pollution and coastal development. I hope there will be resources for better management of marine species, for example, which will lead to healthier oceans. The community groups, such as Friends of the Marine Park is ready in to contribute to these efforts. Sir, I am also heartened by the Government's commitment to mainstream adoption of Electric Vehicles, or EVs. Aside from continued improvement to our public transport system, policies that encourage EV adoption is a way forward in giving our citizens the ability to participate in the reduction of their carbon footprint.
Based on reports, the number of EVs on the road makes up 0.2% of the cars in circulation.
[+1 sentence] EVs are a discontinuous innovation which requires significant behavioural change from customers.
Geoffrey Moore, who studies patterns of adoption suggests that there is a chasm of adoption between the early market and the mainstream market that sits between 15% and 18% of adoption rates and crossing that chasm will see widespread adoption, while failing to cross that chasm will see these technologies fail to make it to mainstream.
[+3 sentences] I do believe the financial incentives announced are welcome and will create visible change in the landscape of vehicles that we see on our roads in the coming years. And, in fact, EV sales have picked up in January. But we are a far cry away from crossing the chasm.
Many of the incentives have a stop date by 2023 attached to them and it may take us longer than that to cross the chasm. One of the biggest consumer concerns when it comes to EVs is reliable, convenient and consistent access to charging stations or better yet, supercharging stations.
[+8 sentences] The economics and infrastructure considerations of installing charging stations are complex, from how our AC power grids affect considerations for charging stations to policies that help keep charging affordable for consumers and profitable for partners interested in installing these stations. I hope the Government keeps the public informed on the mechanisms it intends to deploy on these and other factors so as to allay consumer concerns. And beyond land transportation, I hope more can be done to encourage cleaner energy and electric marine vehicles and boats in our waters The ability for all Singaporeans to share in the progress of the nation is a cornerstone in ensuring our collective success. As a younger male woman, I am conscious that in the Fourteenth Parliament, we have the fifth, sixth and seventh Malay women Members of Parliament in this House since the beginning of Parliament. Today, Malay women occupy spaces in advocacy, education, law, the arts, environmental issues, research and many more, and we will continue to progress with continued access to the opportunities to do so. I never thought I would have the opportunity to study law or become a lawyer and for some of the young women I have befriended and worked with during their time in prison and after release, I know that many of them do not dare to plan for a future or have the social capital to apply to someone, somewhere in hopes of getting a job. One girl had shared that she was awarded a bursary assistance to do a course and joined the Armed Forces – her childhood ambition. But due to bad company, being locked out of home by her family, she relapsed and offended again before she could even try to pick up the pieces.
When she came out, she worked in a warehouse as a pest fumigator.
[+1 sentence] Her dreams were gone.
I hope that efforts, through the M3 framework, such as FITRAH, Ciptasama and youth mentoring will be resourced, evolved and diversified to include particularly vulnerable groups, such as at-risk youths, and spouses and children of repeat offenders who may be stuck in cycles of not having hope, on a structural and consistent basis working in partnership with Malay/Muslim organisations, many of which are looking forward and are grateful for the announcement on support for charity sector.
[+16 sentences] I hope this work continues. In conclusion, I reference a portion of Senior Minister Tharman's interview with Stephen Sackur in 2015. He was asked if Singapore believes in the notion of a safety net for those who fall between the cracks of a successful economy. And, in response, Senior Minister Tharman spoke about the notion of a trampoline which we are familiar with. An economy that helps people bounce back is hard to argue against and I think that most people would agree with the visual narrative of people being able to bounce back higher with effort from the difficulties that we face. Particularly during a time like this when families who have never had to ask for help before, now find themselves in that position. I ask this House to visualise the diversity of people we see in Singapore in our house visits, in our Meet-the-People sessions and in our daily activities. Do some people have others around them that care enough to help teach them the best way to jump on the trampoline while others may not? For those who are unable to jump as high, is it possible that some of their trampolines need fixing? And is it possible that some of them do not have the physical or mental faculties to jump on a trampoline? I think for most of us, we would say yes to the above. So, how are we going to provide for access to opportunities for the different levels of people on the trampoline? What is the quality of life for those who, through no fault of their own, can no longer jump on? Mr Speaker, Sir, we need to plan prudently to get through the pandemic and today's Budget policies affect tomorrow's generations as our youth will inherit the world we are creating today. May this Budget and the ones in years to come help us find ourselves in a caring, compassionate and confidence society, long into the future. On that note, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Edward Chia.
Mr Edward Chia Bing Hui (Holland-Bukit Timah)1567 words
[+1 sentence]Mr Speaker, Sir, as we begin 2021, our battle with the global COVID-19 pandemic is far from over.
The unprecedented series of five Budgets, totalling around $100 billion last year, were pivotal in supporting our businesses and Singaporeans through this difficult period.
[+24 sentences] It is likely that our route back to growth will be slow and gradual as we are dependent on how the world recovers. Therefore, our continued resilience and resolve are central outcomes in this year's Budget and this has to include being even more targeted so that Singapore and Singaporeans emerge stronger amidst COVID-19 and beyond. I would like to propose: one, ways we can consider to be more targeted and calibrated on our support for businesses; and two, the structural shift that provides new growth opportunities for our businesses and economy. We have an opportunity to supplement our current classification of companies beyond just by vertical industry sectors. Since last year, as someone in business, I have personally seen: (a) the emergence of many new companies that are not only created by young technopreneurs but by a much wider profile; (b) the restructuring of many incumbent companies as they focus on their cost structures; and (c) the repositioning of traditional businesses to go beyond their current industry sector in search of new revenue opportunities. Added to this, many traditional businesses are family owned and how these businesses evolve and pivot across different generations of leadership determine their contribution to our economy. Such family inter-generation leadership changes require better understanding. A good example of a Singapore company that has evolved horizontally, not founded by a techonopreneur and repositioned from a traditional family business, is PBA Group. PBA was founded in 1987 by Mr Tony Yap as a hardware shop trading in ball-bearings, bolts, nuts and belts. Instead of sticking to the less risky business model of trading, Mr Tony Yap and his son Mr Derrick Yap pivoted PBA to a precision robotics manufacturer. PBA now provides businesses with precision and general robotics across verticals to allow them to scale up their operations. They developed and manufactured precision robotics for the semiconductor, electric vehicle battery, mobile devices, fibre optics sectors; collaborative robots for industries like construction, medical, the logistics sector such as SingPost's smart letterbox; automonous mobile robots to transport goods autonomously to replace forklifts for warehouses, and most recently, the COVID-19 disinfection robot, a first for Southeast Asia. Derrick also shared that a robotic arm cooking his favourite local food "bak chor mee" may also be on the cards. PBA used to stand for "precision, bearings and accessories". Fast forward today, PBA now stands for "platform for bots and automation". PBA's evolution as a business exemplifies how a traditional business pivots across verticals as part of its business life stage and cycle, and the heartwarming story of how a family business transcends across generations. In fact, as PBA sets itself up as a platform for bots and automation across verticals, it finds it challenging to navigate different rules, regulations, Statutory Boards, departments that are currently structured on industry verticals. I would like to propose that the Government include a horizontal frame or approach by way of life stage and cycle of a business to supplement the current industry classifications – from the start-up phase, to the early growth phase, to the scaling phase and even to the pivoting phase for many. At each of this phase, entrepreneurs face a different set of challenges. At the start-up phase, I believe we will see greater entrepreneurial efforts over the next two to three years and we may want to provide targeted help here, especially for those who can see this as another option to the traditional employment route. This is especially so amongst our youths. At the early growth phase, entrepreneurs and their firms' capability needs will face the challenge of time and resources. So, targeted help to get them to adopt training will have to go beyond financial support. At the scaling up or pivoting phases, both short-term financing and even financial restructuring could be essential for the company.
Here is one example: one condition to get credit often involves providing personal guarantees by the entrepreneur, despite risk-sharing by the Government. This puts smaller businesses at a disadvantage and those who really need help may not get the help needed. Therefore, the initiatives to provide more credit and financing needs to be calibrated and fine-tuned for SMEs who are in a specific stage of growth.
[+7 sentences] Being even more contextual is important for our efforts to be relevant. Different companies in the same sector, at different growth stage or at different part of the value chain, face different challenges and opportunities. The extent to which a sub-sector can automate differs too. We need to understand the nuances and be precise in our support. For instance, a hawker stall and a restaurant in the food services sector may grow differently, grappling with different issues. The consumers of hawker centres are more price sensitive and any increase in food prices will cause disappointment. Hence, hawkerpreneurs are less likely to increase the price of food, even as manpower costs or other operating costs increase.
We want our hawkerpreneurs to do well, and continue to provide affordable and diverse food options for our people. Hence, our measures for smaller businesses like hawker stalls needs to be specific and bespoke.
[+4 sentences] With targeted support and measures, all our businesses – small, medium, and large – will be able to restart, pivot and grow, resulting in job security and more good job opportunities for Singaporeans. I do believe that both WSG and ESG can provide a lot of expertise in this area. For example, training in the form of consultative training can take into account what the entrepreneur or the business owner needs to be exposed to and upskilled at the particular stage of the company's growth, to the workers skillset that is required, so that training can be more targeted and translate to a company's top line and bottom line growth. It is crucial that as we beef up workers' training, we need to also beef up training for business owners so that management can be more insightful.
Crucially, business consultancy should go hand-in-hand with training so that training for all level of staff within a business is tailored to match the business growth stage and journey.
[+4 sentences] This dovetails the investments in consultancy and training, and maximises on the return on investments. Even our manpower policy can be further calibrated by business growth stage and sub-sector classifications. This will enable a more targeted approach to optimise our lean manpower resource base. Secondly, Singapore is well poised to seize the opportunities of the green economy.
Deputy Prime Minister Heng's Budget initiatives to catalyse green adoption provides the necessary green beacon for us to rally on. I believe the Singapore Green Plan is an economic growth opportunity and positions our economy and businesses favourably as more investors and end consumers are demanding more from the products and businesses, based on their overall impact to the environment and society.
[+4 sentences] On a global level, investors, clients and end consumers are increasingly adopting the environment, social and government-recommended measurements to decide on which business to support. This is a structural shift. This is a structural shift. Hence, we can further seize opportunities in the social impact space in addition to green economy.
With a growing wealth management base in Singapore and more investors, especially family offices, keen on impact investments where investments achieve both economic gains and social impact, we need to position our entrepreneurs to ride this wave of new investors and end consumers consciousness. By assisting our local businesses to re-position their business models ensures: one, that our local businesses tap on the growing appetite of impact investments thereby creating opportunities for wealth managed to flow into our local economy; two, build greater resilience, greater resilience, as more clients and end consumers are shifting their purchasing preferences to value for money and value for good; and three, expands both economic value and deep societal value of an enterprise, transforming businesses into agents of societal change, that value adds to our society and improves our societal well-being. We really need to help as many businesses, especially SMEs to embrace the ESG mandate.
[+6 sentences] We need to create benchmarks and standards for our business to rally around this green beacon. I will share more about how the Government can play a role in establishing standards and a benchmark for our businesses to create the best eco-system for such a leap forward in my MTI cuts. In conclusion: one, I would like to propose that the Government include a horizontal frame or approach by way of the life stage and cycle of a business to supplement the current industry classifications; two, to be more contextual in recognising that different companies in the same sector, at different growth stage or at different part of the value chain, face different challenges and opportunities and will require more bespoke support; and three, position our businesses and economy to ride the wave of growing demand for products services based on environment and social impact, value for money and value for good. Mr Speaker, Sir, we will emerge stronger after this battle. Putting together precise, bespoke and updated policies will strengthen our Singapore business for a better Singapore. I stand in support of the Budget.
Mr Cheng Hsing Yao (Nominated Member)1167 words
[+9 sentences]Mr Speaker, Sir, first of all, I would like to declare that I am the Group Managing Director of GuocoLand Singapore and a Member of the National Parks Board. I would like to speak about the importance of a balanced and pragmatic approach for Singapore to emerge stronger. In my conversations recently with some astute overseas investors, who are also keen observers of Singapore, I have received many positive feedback. They felt that Singapore has continued to demonstrate the ability to identify challenges ahead of time and more importantly, has clear and concrete action plans to address them. For example, our plans for rising sea levels and raising our local food supply. They were also impressed with the way we handled the COVID-19 situation; not just in tackling the public health crisis, including mobilising the support and unity of our people, but also with the proactive and pragmatic approach taken to mitigate supply chain and economic disruptions. Against the backdrop of the pandemic, polarising geopolitical competition and the social unrests in some cities in the region, Singapore stands out even more. Our long-standing socio-political order, our commitment to a plural and multi-ethnic society, our strong legal system and our highly liveable city, are a few of the things that make us stand out. The question is, going forward, how will Singapore balance economic growth against challenges of domestic issues.
The current crisis is presenting us now with opportunities for growth. However, boldly seizing these opportunities will augment the K-shape economic recovery we are already seeing.
[+8 sentences] New sectors of growth will require talents with skills which the people from sectors in decline may not possess. In fact, our local talent pool may not even be sufficient in numbers or expertise to meet the growth demand of some of the sectors, such as technology. Our economy and labour market will undergo massive re-ordering. The division between the haves and have-nots will increase. Having said that, standing still is not an option. I hope as a society, we will not opt to level down and forego growth for fear of the challenges that it brings. I hope we will be pragmatic as we have always been, by seizing the growth opportunities, while working hard on addressing empathetically, the social and human challenges that will arise. Such as, how to reskill our workers and also how to better share the benefits of growth equitably.
After two consecutive years of dipping into our past reserves and being in a still highly uncertain economic situation, revitalising and growing the economy now is paramount.
[+1 sentence] I believe in a balanced and pragmatic approach for sustainable development.
I am very glad we are now giving climate change and social equity more emphasis. But we also have to remember, sustainable development has three key pillars: social, environmental and economic.
[+12 sentences] Balancing the three pillars is key to success. Continued economic success gives us more means to fulfill the needs of the other pillars. For example, with our ageing population, the associated health care costs will increase. To provide more support for the less advantaged families and individuals, we will also need more resources. Thus, growing our economy sustainably will enable us to do more good. We should seek balanced and constructive ways to move ahead and not get stuck in binaries which polarises. That also includes the things we say. Singaporeans and observers of Singapore take reference from what we say in public as indicators for the direction the country is heading. As we push for our personal subject of passion, we should strive to minimise any form of polarisation. To be constructive, we need to recognise the trade-offs the other side has to make. Sometimes, we have to make hard choices, but if we focus our energy on finding common grounds, we might end up with synergistic and creative solutions that make us collectively better off. Besides balancing the three key pillars of sustainability, in Singapore, whatever we do, we are always making a trade-off between the short term and the long term.
No matter how sick we are of hearing this, it will always be true that we are an island with limited resources and a little more than 700 sq km of land to accommodate the needs of a city, country and nation.
[+13 sentences] If we believe in SG100 or SG150, then our land use policies, for instance, cannot safeguard the needs just for the next 10 to 20 years. We have to think the next 50 or 100 years. Precisely because we cannot predict the future, we should be careful not to circumscribe the flexibility or options for the many generations of Singaporeans down the road. Because the planners in the 1960s and 1970s had the foresight to do so and safeguard future development options, we now enjoy the luxury of the choices we can make. Dealing with our resource constraints will not only solve our problems today, it can help us develop useful new capabilities for the future. Take the built environment sector for example, our drive for higher productivity in the construction sector requires bold moves, but the capabilities developed can enable us to find new opportunities overseas. And although the Singapore city is already held in high regard in terms of its infrastructure and quality of life, we can still do much better. For example, we can raise our green buildings standards even further; we can be a front runner in creating new economic infrastructure. How about a food-self-sufficiency urban system, or creating more biodiversity even as we are building? The list goes on. Private sector capabilities, capital and mindsets have much to offer. The public sector has a key role in opening up the space for the private sector to participate and innovate. Our future challenges are complex, in addressing them, more heads are better than one.
We should bear in mind that private companies that have a long-term growth plan in Singapore, also want Singapore to be successful. I applaud the Ministries and agencies that have the wisdom to take on the twin role of regulator and promoter for the sectors they are in charge of. Even as they regulate the sector for "common good", they also promote the sector’s growth and innovation.
[+4 sentences] If more government departments adopt the same, we will encourage more collaboration and creativity around us, and create even more engines of growth in the process. Private corporates, when called upon to act, need to step up and balance short-term pains with long-term gains. Private corporates have to broaden the mindset of just serving their shareholders to serving their relevant stakeholders better. To do so can in fact be good for business.
Indeed, there is already a clear trend among global corporates and investors that ESG – Environmental, Social and Governance –considerations are being factored more in their business decisions.
[+2 sentences] To emerge stronger, it will take many hands to work together and with a shared sense of purpose and ideals. Mr Speaker, Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Henry Kwek.
Mr Kwek Hian Chuan Henry (Kebun Baru)1686 words
[+10 sentences]Mr Speaker, Sir, the COVID pandemic has tested our generation – people, workers, business, and the Government – in many ways. It has also brought out the best of our Singaporeans in terms of teamwork, creativity and spirit of enterprise. Within months, we came together to re-energise, re-organise our society and re-imagine our economy. As we begin large-scale vaccination this week in Singapore, we can start planning for the post-pandemic future. We should also tap on this newfound teamwork that this generation has forged – especially between the Government and the private sector – for the betterment of our people. Today, I would like to speak about two ways to do so: one, accelerate government transformation by tapping on creativity and the capability of the private sector; two, accelerate the economy by beefing up our trade association and chambers in the matured parts of our economy. Beyond this, I will also speak about enhancing seniors’ livelihood through micro-jobs. Let me first speak about tapping on the private sector for government transformation. This is an issue close to my heart and I spoke about this multiple times in Parliament. I am delighted to see that over the years, the Government has taken on some of these suggestions, to inject private sector talent into the the Government and to tap on private sector insights to reduce business red-tape through the creation of the Pro-Enterprise Panel.
As such, I am heartened to hear the Deputy Prime Minister announce the Open Innovation Platform, which facilitates the matching of problems faced by companies and public agencies, with solution providers from the private sector. To accelerate this process, I would like to further propose that the Open Innovation Platform be opened up to the Pro-Enterprise Panel.
[+1 sentence] The Pro-Enterprise Panel, which is helmed by the Head of Civil Service and distinguished business leaders, understands the complexity of governance, especially including inter-agencies coordination, or interaction between agencies and businesses.
Many of these complexities can only be described as "wicked" problems. Now, if the Pro-Enterprise Panel is given the funding and access to the Open Innovation Platform, I strongly believe we can come up with even better and faster solutions to cut red tape while ensuring governance.
[+19 sentences] I also hope that in future speeches, we can hear from the Deputy Prime Minister about more success stories created by the Open Innovation Platform, because process transformation by the Government can do much to spark growth and productivity. Next, let me talk about strengthening the Government’s partnership with the businesses, especially mature businesses. At this point, let me declare my interest as Advisor to the Federation of Merchants Associations, which helps heartland enterprises transform and grow. Since 2016, Singapore has achieved much through our Industry Transformation Maps, and have sharpened Singaporean’s competitiveness. This can be shown and seen through the anchoring of many impressive inward investments, and through the rapid restructuring of industries affected by COVID-19. Many of these successful industries have enterprising leadership centered around their trade association and chambers or TACs. These TACs partnered with our economic agencies to imagine and implement their industry’s future. However, there are still many parts of our economy which are only seeing limited transformation. After much discussion with business leaders, I have concluded that the key to successful transformation is in the leadership, especially at the TAC level. The conventional wisdom is that TACs in certain industries are more likely to succeed, such as those with a small number of large and dynamic players, especially focused on manufacturing and exportable services; those in industries that Singapore is already competitive in, or those in new industries that the Government seeks to grow. However, we are beginning to see successful transformation in more matured part of the economy. Two prime examples are our food manufacturing industry, as well as our heartland enterprises. And in both of these, there are common critical success factors. One, they have a strong TAC with a capable secretariat comprising of seconded civil servants who have served in economic development agencies. Two, these TAC represents sub-industries rather than the broader business sector, and this gives the TACs focus and clarity in their mission. Three, there is strong Government support, especially from Enterprise Singapore. Therefore, now that there is a clear formula, I think it is the right time for the Government to replicate this success in the other parts of the economy. Unfortunately, the reality is that TACs are of uneven quality, because many of them have their roots in business networking. A large number of them do not have effective secretariat capabilities, let alone the ability to partner with our economic agencies to forge new grounds.
As such, I believe the Government should go big to upgrade various sub-industry TACs, including seconding capable industry officials there, and help them strengthen their relationship with the businesses they serve. And if for some reasons, these sub-industry TACs are not forthcoming to change, I sincerely hope the Government can proactively work with the established players to create a parallel TAC, one that can move the sub-industry forward.
[+6 sentences] We already pour in so much resources to help individual companies transform and to build broad-base efforts such as SkillsFuture. Therefore, the relatively minor investments to beef up the sub-industry TAC leadership is a logical and wise next step. Next, let me talk about improving seniors' employability through micro-jobs. Over the next quarter, I hope the majority of our seniors will be vaccinated and this will allow us to shift more focus on improving their livelihoods. When I speak to senior workers about their livelihoods, a number of them do not know how they fit into our future economy, or how they can overcome ageism. This is not due to a lack of effort by the Government.
Today, we already have forward-looking policies for our senior workers, such as the Special Employment Credit or the Retirement and Re-employment Act.
[+12 sentences] Yet despite regulations, it is hard for us to fully remove ageism, especially towards seniors above the age of 67. Many companies, especially in the midst of COVID-19, are unwilling to take on the risk of hiring or even retaining senior workers. This issue will get more serious as we continue to restructure, and as our workforce continues to age. I strongly believe the gig economy can help us combat ageism. In fact, two years ago, while doing PAP Senior Group’s engagement, I had the chance to be in the same dialogue as Nominated Member of Parliament Ms Janet Ang. I believe she shared that as seniors age, no matter how wonderful their resumes are, at some point many companies will have reservations. So rather than helping seniors polish their resumes for the next full-time job, we might want to consider identifying the portfolios of skills they have accumulated in their whole life, and these skills can be applied to part-time or micro-jobs within a variety of industries and not just the industries they serve the bulk of their careers in. In particular, creating micro-jobs for our seniors makes a lot of sense to me. On the one hand, a company may have reservations on the health and healthcare cost of the full-time worker. But on the other hand, consumers who rely on seniors for micro-jobs do not face much risk because what is at stake is only that one single service experience. And customers can rely on customer feedback or reviews. As such, customers using gig economy are less likely to discriminate against seniors compared to companies who are looking at seniors as full-time employees.
Our Government can take the lead to create a gig economy for our seniors by doing three things. One, creating micro-jobs for our seniors starting with those in social services sectors; two, creating a national digital platform and app; and, three, equipping our seniors to do micro-jobs through SkillsFuture.
[+2 sentences] Let us use the example of the delivery of home-based healthcare. Today, we sometimes send two nurses to visit patients, many of whom are bedridden or have mobility challenges.
Why do we not cut it down to one nurse instead and hire a trained senior living, perhaps, in a nearby block or street, to provide the necessary support, such as carrying the patients and assisting in wound dressing?
[+6 sentences] There are many seniors living in our midst who can qualify to do such micro-jobs. How can we page for these seniors? Through this gig economy app that the Government creates, perhaps by working with existing gig-economy companies. How do we prepare our seniors for these micro-jobs? Through SkillsFuture, of course. Let us imagine the vast possibilities.
Can we certify some of our able grandmothers to provide infant care services for a few infants in their homes, or retired teachers to provide after school care for a few students at their own home?
[+12 sentences] Can we equip our seniors to provide simple care-giving or respite care services to their neighbours? If we do all that, how many purpose-built infant care, after school care centres, or respite care centres can we not build? When I talk to civil service officers or social service agency leaders about these ideas, they get it. But they also confide with me that they cannot do it alone and that is why we need the Government to spearhead this, using social services as a start. Perhaps we can tap on the Open Innovation Platform and customise existing platforms from the private sector. Mr Speaker, Sir, let me conclude. While preparing for this Budget debate speech, I took the chance to look through all my past Budget speeches in the last term of Government. I am pleasantly surprised that so many suggestions have been translated into actual plans. Now, of course, in making these policy improvements, the Government hears from people from all walks of life, including Members of Parliament. But this realisation convinced me that our present Government listens, consults and engages. And as we continue to recover from the pandemic, I am confident that this openness to ideas will serve Singapore well, in our journey ahead. With that, I stand in full support of the Budget.
Mr Speaker3 words
[+1 sentence]Ms Hazel Poa.
Ms Hazel Poa (Non-Constituency Member)1101 words
[+12 sentences]Mr Speaker, Sir, the Deputy Prime Minister has pointed out in his Budget Statement that Singapore can expect a Budget deficit of $11 billion, representing about 2.2% of GDP. This can be attributed to the COVID-19 Resilience Package. As it stands, why $11 billion, and not, say, $22 billion is the prudent Budget deficit figure, can only be answered by a select few. Because the national reserves remain a national secret, we must take the Deputy Prime Minister's word for it. But in the interest of the nation, especially during these tough economic times, I must raise the question again, as many others before me have done so, and ask if it is time to make our national reserves part of our national conversation. Our Elected President carries the responsibility of safeguarding our reserves. But we still remember President Ong Teng Cheong's unsuccessful attempt to know the size of the reserve he was supposed to protect. I would like to seek a clarification from the Deputy Prime Minister. Is the current President aware of the exact size of our reserves when she made decisions on its drawdown? While I do not yet know the answer to that question, I do know that Members of Parliament are being asked to vote on a Budget that would require a drawdown on our reserves without knowing its size. Without knowing our nation's financial position, it would be difficult to make sound and prudent decisions, and certainly not informed ones. So, again, I ask that more transparency with regard to the national reserves be made, if not only that Singaporeans better understand the rationale for difficult decisions like the need to raise the GST to 9% in the future.
Last year, the Government committed nearly $100 billion through various packages to support Singaporeans and the economy through the COVID-19 crisis. In a report released by MOF on the impact of the COVID-19 Budget measures, it was stated that MAS estimated that the five Budgets in 2020 supported GDP growth by 5.5% in 2020, representing only about $28 billion.
[+1 sentence] Did Singapore get a bang for its buck?
MAS also estimated that the measures saved or created 155,000 jobs.
[+14 sentences] To put the numbers in perspective, if we were to pay 155,000 people $4,000 per month, it would cost us $7.4 billion per year. One hundred billion dollars is sufficient for 13.4 years of payment. Can MOF give a fuller accounting of the benefits of the Budget measures and an assessment of whether those resources have been used effectively and efficiently? Each transfer ended up somewhere. For example, the Job Support Scheme, or JSS, payments either saved jobs, or were paid as additional wages, or stayed in the employers' bank accounts. The wages paid out either ended up in consumption, which would contribute to GDP, or stayed in the pockets of employees. How much of the JSS went to benefit companies that were unaffected by the COVID-19 problem, with the same or more profits? In the MOF report mentioned earlier, it was stated that the transfers did not result in such a high spend on consumption because of safe distancing. More benefits would come later when demand returns. What is the forecast deferred impact from the transfers not spent on consumption or investment in 2020? One hundred billion dollars is not a small amount. We ask for a cost benefit analysis of each scheme put in place. We recognise that it is not easy coming up with measures within a short timeframe to deal with a pandemic. So, we ask not for a perfect solution, but an honest and transparent assessment and review.
Measuring the effectiveness of each measure will help us make better allocations in future – like should more transfers go to companies or to families and individuals in need? I believe that the latest $900 million allocated to help Singapore households ride out the COVID-19 crisis is inadequate.
[+13 sentences] With more business closures and unemployment expected to increase after March when many of the support measures start to taper off, more households will likely suffer financial stress. I hope the Government will consider increasing its support for the many who are likely to need it. Singapore has a small domestic market so our SMEs need help to grow and develop into a size that will enable them to compete globally. While the Budget has addressed the capital needs for Singapore businesses, the Government can do more. Let me quote the example of Israel. In 1995, Israel approved the "Preference for Israeli Products" regulation that stipulated that a 15% price-differential preference be awarded to Israeli manufacturers for certain items and for products with 35% Israeli content and with a value not exceeding $500,000. Israeli manufacturers in "National Priority Zones" even received an additional 5%-15% advantage. A "Mandatory Industrial Cooperation" regulation also required foreign suppliers that had won government or public tenders to engage in an offset procurement in Israel to the extent of 20%-50% of the contract value by local subcontracting, procurement of Israeli goods and services, cooperation in R&D and investment or assistance for an Israeli industrialist or exporter abroad. Have these regulations impacted Israel's competitiveness to a degree that it can no longer compete globally? Few would think so. The Progress Singapore Party or PSP urges the Government to consider similar preferential treatment for local businesses in Government procurements. In his Budget Statement, Deputy Prime Minister stressed that the focus on growing the economy is to benefit the people. To this end, PSP would like to suggest that the Government set a target for the wage component of our GDP to ensure that the fruits of economic development are enjoyed by its people.
According to SingStats, in 2020, wages formed about 43.6% of GDP while operating surplus of corporates and other organisations formed about 56.2% of GDP.
[+1 sentence] The operating surplus was 29% higher than wages.
In comparison, according to OECD Statistics, the German wage component of GDP was 54% while operating surplus was 37%.
[+1 sentence] Their wage component was 45% higher than the operating surplus component.
Similarly, in the UK, the wage component was 53% of GDP and the operating surplus, 39%.
[+1 sentence] In the US and Switzerland, the numbers also compare favourably.
If we want to ensure that our people enjoy the benefits of this economic growth, we should set an initial target of having the wage component form at least 50% of GDP. This should be an important KPI for the Government moving forward.
[+2 sentences] Only with the focus on an equitable solution to the current crisis will Singapore emerge stronger. Sir, I support the Budget.
Mr Chua Kheng Wee Louis (Sengkang)2336 words
[+7 sentences]Mr Speaker, the past year has been a tumultuous and rather peculiar one. Even as Parliament sits now, the recent Chinese New Year celebrations have been a rather quiet affair for many families and friends. While the on-going vaccination programme offers a sliver of hope that we might emerge from this pandemic sooner than later, the task of rebuilding for a new normal begins now.  More than that, we must be cognisant that there has never been a more opportune time to take firm action, to reform our economy and social compact, with the hope that we might be able to come out of the woods stronger than ever. Beyond the pandemic, we need to look at not just headline economic growth, but instead quality or inclusive growth; to sharpen our focus on how we can uplift our entire country and maximise the overall well-being of all Singaporeans in a sustainable manner, in the long run.  On this note, I would like to highlight three broad areas we should focus on in my speech. The first point I would like to make would be on the urgent need to restructure our economy.
Even prior to 2020, our five-year average GDP growth rate through 2019 is at 2.9%, lagging that of the global economy at 3.4%. If we use the public markets as a proxy to the state of corporate performance in Singapore, return on equity for the Singapore market, ex-financials, has also seen a steady decline, falling to a 20-year low of 5.9% in 2019. In the fourth quarter of 2019, 35% of firms listed in Singapore were already loss making, the highest since the 2008-2009 Global Financial Crisis.
[+8 sentences] And these were even before the effects of COVID-19 in 2020.  With COVID-19 comes a crisis, but also an opportunity for us to use this time to restructure our economy, focusing our growth in areas where we might be able to develop and maintain a competitive advantage. To restructure our economy, efforts should be targeted at the building blocks of our economy, our local enterprises and local workforce.  On local enterprises, I believe the initiatives announced by Deputy Prime Minister Heng to accelerate the growth of new digital capabilities are laudable. These include the emerging technology programme, CTO-as-a-service and digital leaders programme to help more businesses adopt increased digitalisation solutions, as part of their core competencies.  These are good solutions to support our local businesses, small or large. We should also, however, double down on efforts to better support SMEs to scale up and internationalise. While this could involve Government agencies facilitating access to global markets, while providing technical and financial assistance, could we better incentivise large local GLCs or even MNCs, to partner with our local SMEs in their internationalisation efforts?  
Today, SMEs represent 99% of companies in Singapore and employ 72% of our workforce. However, SMEs contribute just 44% to Singapore's GDP in 2019, having steadily declined from 50% in 2014.
[+29 sentences] A vibrant SME eco-system is thus imperative for our future economy, with SMEs' success key to driving entrepreneurship and innovation in Singapore.  Yet, while we look to support local SMEs' internationalisation efforts, our open economy and transparent business rules also mean that international MNCs can easily outbid local SMEs in domestic tenders, especially in price-based contracts. Looking around construction sites across Singapore, one cannot help but notice the large number of foreign conglomerates appointed as main contractor for building and infrastructure sites. In 2017, it was revealed in Parliament that while 80% of Government contracts in number are awarded to SMEs, only half by contract value is awarded to SMEs. Could more be done to provide greater opportunities to local SMEs, to give them the chance to scale up and build up a requisite track record in our very own home market?  Supporting our local workers should also go hand-in-hand with supporting our enterprises. With the shortening of business cycles and hastening of technological disruption, the threat of widespread job losses and rapid job irrelevance is only going to rise in future.  During this crisis, the Jobs Support Scheme, or JSS, has been an important policy measure to provide direct wage support. Given the uneven economic recovery, in what is called a K-shaped recovery, it is important to ensure that the hardest hit sectors and workers are given a fair chance of survival. While there remains debate as to the tiering of sectors and the adequacy of continuing support, the extended JSS support to tier 1 and tier 2 sectors is nonetheless a welcome relief to companies in these selected sectors. The launch of the COVID-19 Recovery Grant to directly support lower to middle income workers, presently experiencing involuntary job losses or income loss is also a timely and important one.  Whether or not COVID-19 is here to stay for the next few years, there will continue to be redundancies and job losses at any stage of the economic cycle. As the schemes borne out of COVID-19 such as the COVID-19 Recovery Grant are already designed and implemented, could they remain a more permanent feature of our financial assistance schemes to workers?  Ultimately, we may need to think of implementing automatic stabilisers instead of discretionary, ad hoc schemes to enhance the resilience of our workforce. An example would be unemployment insurance, which can provide workers with resources to alleviate near term anxieties associated with job losses, while reducing the incidence of under-employment. Further, in a working paper published by the Institute of Policy Studies on 9 February this year, the researchers highlighted if the Government issues debt to finance a programme in unemployment insurance, inter-generational equality could be improved. The paper further stated, and I quote, "children of unemployed parents have a greater chance of social mobility if their parents are supported by a Government provisioned unemployment insurance programme".   The second point I want to raise is a broader question on the appropriateness of our fiscal policies. Having recognised the challenging terrain that Singapore is in today, our Budget and financial policies should then be the key enabler rather than impediment, towards allowing us to chart our roadmap to success, and embark confidently on a journey towards truly emerging stronger from this crisis.  In October last year, I spoke about the continued need for an accommodative fiscal policy. Despite the hopes we pin on a successful vaccination programme, we are not out of the woods yet, and the economic recovery we are hopeful of, is a fragile one. We should thus continue focusing on policies that aim to stimulate and boost domestic demand and keep our economy going, keep businesses and consumer confidence high, while minimising the long-term scarring caused by the pandemic.  As we speak, the largest economy in the world, the US is looking to put through a $1.9 trillion stimulus package, equivalent to about 9% of GDP, on the back of a $3 trillion package in 2020. US Treasury Secretary Janet Yellen has highlighted the case for increased fiscal spending to avoid a "longer, more painful recession". She said and I quote, "the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time".  I believe Singapore is no different. In order to reverse the pains from this recession, we must be willing to devote more resources to supporting our businesses and fellow Singaporeans.  I recognise that Budget 2021 is an expansionary one, similar to Budget 2020.
The Government expects an overall budget deficit of $11.0 billion, or 2.2% of GDP.
[+1 sentence] But this has to be seen against the context of Singapore’s unique budgetary policies.
Had we taken the total estimated receipts of $103.7 billion, less the total expenditure of $107.2 billion, then the deficit would have been a more modest $3.5 billion or 0.7% of GDP.  If we extend this analysis and took the total receipts less the total expenditure over the last 10 years from 2011 to 2020, then the total surplus would have amounted to about $205 billion.
[+8 sentences] This would be vastly different compared to the reported cumulative deficit of about minus $32 billion over the same period from 2011 to 2020.  Such a calculation, while simplistic would also be broadly in line with official data from the Department of Statistics, where the Government cash surplus from 2011 to 2019, the latest available data point, is a cumulative $261 billion. In other words, we run on a recurring basis an average of $29 billion of cash surplus a year.  Why is this important? I recognise that the official Budget is based on revenues that the Government of the day can spend under the Constitution. Not all Government revenues and receipts collected can be spent by the Government.  But when we say that we need to raise GST sometime during 2022 to 2025 and sooner rather than later, that “without the GST rate increase, we will not be able to meet our rising recurrent needs”, and that “it is not tenable for the Government to run persistent budget deficits outside periods of crisis”, then these statements ought to be framed in the context of the Government’s recurring cash surplus every year up to 2019. Is the imposition of a broad based, regressive tax then truly justified?  
Further, I observe that in the official Budget, NIRC contributions are expected to continue its steady path of increase, from $17 billion in 2019 to $18.1 billion in 2020 and $19.5 billion in 2021.
[+5 sentences] Even amidst the crisis of a generation, the NIRC alone is expected to rise by $1.4 billion in 2021. With NIRC estimates supposed to be based off expected long-term real rates of return, and with a draw on the reserves amounting to a generation's worth of savings, what then has led to the increase, and is the growth in NIRC expected to continue accelerating?  The bottom line to me then is therefore that we must caution against being overzealous in strengthening our revenue position through multiple pathways, such as the impending GST hike, especially amidst the macroeconomic uncertainties of today.  This brings me to my third point, and that is on a countrywide level, while we talk about how much excess cash we truly have, and how much of our revenues are not revenues at all, on an individual level, Singaporeans are increasingly worried about their lack of a rainy-day fund, with many of our elderly residents suffering from retirement inadequacy.  Earlier this month, I filed a Parliamentary Question on the number and percentage of active and inactive CPF members who are able to meet the Basic Retirement Sum (BRS).
While the proportion of active members turning 55 who have been able to set aside the BRS improved from 62% in 2018 to 66% in 2020, there remains a third of active members today who were not even able to have $93,000 in their Retirement Accounts last year.
[+2 sentences]  Last year, Deputy Prime Minister Heng shared that 435,000 Singaporeans aged 55 to 70 have not been able to set aside the prevailing Basic Retirement Sum. This represents approximately 58% of Singaporeans in that age band in 2019.
Despite a lifetime of hard work and contribution to our nation, sadly more than half of our seniors do not appear to have sufficient funds to have the option to retire comfortably.
[+2 sentences]  We can choose to think that outside of CPF balances, our elderly residents are likely to have other means of provision, which the CPF Board has no sight of. We could also fall back on self-reliance through working beyond retirement, or family support.  
And I do recognise efforts by CPF to make it easier for members to top up their own or their loved ones' CPF accounts. However, this only seem to pass the problem to the younger generation, where they not only have to worry about having adequate CPF balances for their retirement, but they also worry for their parents' retirement as well.
[+1 sentence] All this while the rising cost of living, increase in property prices continue to erode the disposable cashflow of households, and therefore the ability of the sandwiched generation to contribute more to their own and their parents' CPF accounts.  
What can we do to ensure that we progress closer to the 100% mark that all Singaporeans are adequately prepared for retirement, with minimal financial stress on the younger generation?
[+7 sentences] With rising life expectancy and an ageing population, how can we devote resources to ensure that Singaporeans who devoted their lives building the country, can retire with a decent living standard and live their lives in dignity? Mr Speaker, allow me to conclude in Mandarin. (In Mandarin):  Mr Speaker, Sir, COVID-19 has undoubtedly brought about a crisis, but it has also brought about opportunities for change. There is no doubt that we should take this opportunity to restructure the economy and encourage businesses to transform, so as to ensure that our economy can ride out the storm. However, we should also bear in mind that in formulating policies, we should not just consider the economic aspects; we should give priority to the welfare of all Singaporeans and take care of the disadvantaged groups in society. As Deputy Prime Minister Heng Swee Keat has said, the focus of our next phase of work should shift from tackling the pandemic to emerging stronger in the post-COVID era. Similarly, while it is important to ensure the sustainability of our economy, the country’s sustainable development is also based on social sustainability.
The pandemic has highlighted the vulnerability of our society and reflected the many inadequacies of our social safety net.
[+1 sentence] It is a continuous effort to strengthen and expand our social safety net.
To encourage Singaporeans to face changes more bravely, to transform and accept re-training with more adaptability in the post-COVID era, we need a strong safety net to enable Singaporeans to face future challenges with greater confidence and ease.
Mr Mark Chay (Nominated Member)1312 words
[+4 sentences]Mr Speaker, thank you for allowing me to join in this debate. Before I begin, I would like to thank the Finance Minister for a comprehensive and forward-thinking Budget, which I believe addresses a wide range of relevant issues and concerns that impact Singaporeans today.  Twenty-twenty was a challenging year for many, including, the sports, fitness and wellness industry. Many businesses in this sector started to feel the effects of the pandemic as early as January 2020, when news of COVID-19 first emerged.
However, while the industry has partially resumed operations, albeit under strict social distancing controls, the industry has yet to really recover. There are an estimated 500 to 600 sports and fitness establishments in Singapore, serving over 500,000 members and participants through their programmes. Some establishments have recovered better than others, with big box gyms having been the hardest hit, with revenues up to 40% to 50% of the pre-COVID-19 level.
[+1 sentence] Some of these gyms have developed and implemented digital strategies offering online classes and programmes; however, more thought needs to be put in on how these gyms and academies can successfully monetise these online programmes.
Now that Singapore is easing into Phase Three, it is time to focus on the industry and rehabilitation efforts and how we can allow the sports industry, both sports enterprises and people participating in sports, to get back on their feet. I am heartened to hear that the Sports Resilience Package will be extended in FY2021 to support businesses and self-employed persons in the sector. I am also encouraged to note that an additional $45 million will be set aside for the Arts, Culture and Sports sectors to supply capacity building and sector transformation.
[+20 sentences]  Participation in sports and fitness in a broader sense can instil and develop physical resilience. Through the pandemic, we saw Singaporeans battle through several difficult situations, including social isolation and caring for their mental health. Physical activity has a considerable potential to enhance our well-being. A short burst of a 10 minutes' brisk walk increases a person's mental alertness, energy and positive mood, as shown in a recent study in the Journal of Behavioural Medicine. Participation in regular physical activity can boost self-esteem and can reduce stress and anxiety. According to an article by the British Journal of Occupational Therapy, it also plays a role in preventing mental health problems and improving people's quality of life.  Sports can inspire and unite people. We experienced it when our athletes take to the pool, track, field, or court and bring glory to Singapore. We felt the high when Joseph Schooling had his "where were you when it happened" Olympic gold medal moment; we remember our Lion’s glory and the Kallang Roar. In 2021, our Team Singapore athletes will have multiple opportunities to fly our flag high at the Olympics and Paralympics and Southeast Asian Games. I hope that our athletes and support teams harness the opportunity whilst protecting themselves as they train and prepare for their competitions. I want to acknowledge and thank the MCCY and SportSG, to make the COVID-19 vaccination available for athletes who need to go abroad for training and competitions. I would also like to ask that we should not waste the opportunity to elevate these moments to inspire and unite our nation. At this juncture, Mr Speaker, I would like to take this opportunity to recognise our past athletes. They have done Singapore proud in times when resources were scarce and inspired generations after them to take on the mantle and fly Singapore’s flag high on the world stage: Neo Chwee Kok, Tang Pui Wah, Tan Howe Liang, Wong Peng Soon and many more. These are some of the names I grew up hearing and inspired me to train and represent Singapore. I have no doubt these were household names for some of our fellow Members, too, and they perhaps inspired some of us to pick up a racket, stick, ball, or track shoes and compete. I believe that Singapore has the talent to produce world beaters if we provide the right environment for the enterprises and athletes to grow and develop. These sports icons have shown us it is possible; however, we must recognise our past achievements and be proud of our sporting heritage. A Singapore sporting heritage.
Perhaps, it is time to set up a Team Singapore Alumni programme that recognises the accomplishments of our Pioneers and allows retired athletes to continue contributing to the sporting eco-system.
[+11 sentences] Our National Sports Associations (NSAs) form a key pillar in our local sports infrastructure locally. The NSAs' developed their respective sports, whose programmes form great social significance by being the glue that binds communities together. The challenge for our NSA programmes in times of the pandemic is access to facilities and the ability to pivot during the pandemic. International Olympic Committee President Thomas Bach urged International Federations, not once but twice in 2020, to consider their sport in electronic and virtual forms. An example of international sports federations pivoting to virtual platforms is the F1 Virtual Grand Prix. I want to encourage the Government to work together with NSAs to develop their respective digital strategies. Use technology as an enabler, keep our athletes in the sport where they may not be physically able to participate, and keep them engaged as it is vital piece of our pipeline for athletes to continue participating in their respective development programmes. Needless to say, while the pandemic has negatively affected the sports and fitness industry in general; however, there were those who were able to thrive and were able to find new avenues of business. E-sports and gaming, for example, were sectors that grew during the pandemic. In a year where regular broadcast and scheduling of sports games have been affected, e-sports maintained most of its original programming. Players and leagues moved to remote broadcasting and content was streamed from homes or other remote locations.
E-sports' revenues in 2020 are expected to grow US$1.1 billion, a 15.7% year-on-year growth from 2019. Some of the biggest gaming firms, such as Tencent, Garena, Ubisoft and DEA are locating their regional headquarters in Singapore.
[+4 sentences] Singapore is in an excellent position to develop this industry, leading to good jobs for Singaporeans in the fast-growing industry. However, we must also not forget the other parts of the sports industry and sports enterprises whom the pandemic has adversely impacted. More could be done to help the private sports enterprises survive and to allow them to recover and grow stronger. The pandemic has presented a unique opportunity for Singapore to play a crucial role in international events.
In January, Singapore played host to the Mobile Legends: Bang Bang M2 World Championships; this week, Singapore hosts the ATP 250 tennis tournament, and other major international events that are on the horizon, such as the World Economic Forum in August. Singapore's stable and secure conditions make us an attractive destination to host events in the current global environment. Organisers that would not have thought Singapore previously are considering hosting their events here.
[+7 sentences] Singapore should consider taking on these opportunities, as there are many benefits to hosting these industry events here. They are reinforcing our role in the global sporting scene and add vibrancy to the local sporting environment. Mr Speaker, please allow me to conclude by saying that sports is an enabler to better heath, creates opportunities beneficial to our population and unites Singaporeans. Sport is relatable to many of us – we have yet to realise the full potential in maximising the opportunities. Sport is important to Singapore and Singapore can play an important role in global sports. I sincerely hope that this year's, and indeed future Budgets, will reflect the critical role that sports and athletes and sports business can, and do, play in our country, both economically and socially. With that, Mr Speaker, Sir, I support the Budget.
Mr Don Wee (Chua Chu Kang)1287 words
[+5 sentences]Mr Speaker, Sir, in Mandarin. (In Mandarin):  As the world continues to battle COVID-19, I am heartened that Singapore is positioned to plan for our future, thus with this Budget focusing on "Emerging Stronger Together". Earlier, Sengkang GRC Member of Parliament Louis Chua reminded the Government that while we rejuvenate the economy, we should not overlook the vulnerable group. This is why the Government has rolled out many schemes in a "kuih-lapis" style to support lobal businesses and the vulnerable group. I would like to make some suggestions about supporting SMEs and lower income families.
Deputy Prime Minister Heng has committed $24 billion over three years to enable our firms and workers to emerge stronger from this crisis.
[+3 sentences] This follows up on the changes started five years ago with the Industry Transformation Maps. To enable businesses to innovate, transform and scale up, the Government intends to co-fund businesses of all sizes at all stages of growth. I welcome the Government's decision to step up risk-sharing arrangements with capital providers through the extension and enhancement of the Enterprise Financing Scheme - Venture Debt programme.
For the Venture Debt programme, the Government shares up to 70% of the risk on eligible loans with Participating Financial Institutions and even increases the cap on loan quantum supported, from $5 million to $8 million.
[+22 sentences] This new measure broadens the existing scope of assistance schemes.  My concern is that many financial institutions may be so conservative that even bearing 30% of the loan risk is too much for them, resulting in smaller and newer firms not being able to get any loans. During this age of massive transformation, there will be new business models, products and services which are coming onstream. Some of these new projects can be very capital intensive and need expensive equipment, such as digital services and urban vertical farming equipment. Please allow me to continue in English. (In English): The senior executives responsible for approving loans at financial institutions will proceed with an abundance of caution because their objective – to preserve capital – is different from the perspective of our Government, which is to encourage innovation and new engines of growth. In addition, they tend to rely more on track records, proven business models, tried-and-tested products and services. In fact, the more experienced they are in the financial services sector, the more likely they will have deeper in-built preconceptions and biases. For this reason, venture capitalists fill the gap for funding start-ups. But many newer and smaller firms will have difficulty attracting venture capitalists. Without Government intervention, our small start-ups will find it hard to assess the Venture Debt programme. I would like to suggest that MOF considers drawing up a list of qualifying prescriptive criteria that will help to reduce subjectivity in the process of assessment. As long as a firm meets the criteria, it should be able to qualify for the programme. I would also like to ask if the Local Enterprises Funding Platform could be opened to larger SMEs as well. They may find this scheme useful as they do not qualify for grants nor are able to position themselves as regional or international companies. Another suggestion which I support is to require Large Local Enterprises (LLEs) selected for this scheme to make complementary local SMEs and start-ups part of their overseas expansion efforts. In other words, to hunt in a pack. Local companies employ more than 60% of Singaporean workforce, therefore elevating SMEs' capabilities also improves social mobility. And this brings me to talk about the support rendered towards the lower income families. Children are our future. For disadvantaged children, we must make every effort to assist them so that they will have the best chances of growing up healthy and living fulfilling lives. I am very glad that the Government will be boosting the provision of social services and holistic care for lower income families with children who are staying in HDB rental flats. 
They have been hard hit by the pandemic. I am delighted that the Community Link (ComLink) initiative will be expanded from 1,000 families to a nationwide programme to benefit 14,000 families over the next two years, in coordination with other schemes such as UPLIFT and KidSTART.
[+6 sentences] This will really help these vulnerable families. However, I would like to suggest that we make better use of data technology to reduce the administrative work and processing time for assistance applications. As I had suggested before in my maiden speech, the Ministry may consider allowing Social Service Offices' records to be shared with schools so that needy children do not need to apply for the Financial Assistance Scheme and school pocket money fund separately. Similarly, for vulnerable families, particularly those with adults who are unfit for work and thus unable to find employment, their medical records stored in the National Electronic Health Record can be shared with the Social Service Offices in a secured manner, with authorisation by the needy applicants. This will enable the deserving cases to be assisted expediently. Many of the applicants are frustrated as they have problems navigating the variety of programmes and initiatives.
For students from vulnerable families, will the Ministry guarantee them places in their own schools' Student Care Centres?
[+3 sentences] This will save them from having to travel from their schools to another centre. It is safer for younger students as well. At school-based Student Care Centres, we can help to ensure that needy children enjoy enrichment programmes and get nutritious lunches, even dinners.
As the recent Singapore Longitudinal Early Development Study funded by MOE had found, children from poorer homes have less healthy diets and suffer from food insecurity. Not only do their diets affect their health and development, poor nutrition is linked to, I quote, "aggression, delinquency, anxiety and depression".  Longer term impact from poor diets in the young includes potential obesity and weaker academic performance.
[+9 sentences]  I would also like to request for more resources and the deployment of Allied Educators to assist this group of students with their homework. Such an arrangement will benefit children living in less conducive home environments where crowding and noise, and the lack of supervision, books and IT equipment, prevent them from learning well. Will the National Library Board install book dispensers at estates with rental blocks which house many young families, such as Brickland and Hong Kah North constituencies, so that the children can have easier access to books? In addition, I would like to request childcare for shift workers to help parents who work night shifts who have no family support and cannot afford a domestic helper or sitter to keep an eye on young children. We need to ensure their safety and well-being. Last but not least, I urge the Government to expedite and increase assistance for vulnerable families with children with issues or special needs. These can range from those with milder to severe conditions, whether these are learning or behavioural issues, such as ADHD or autism, or other disabilities. I would like to ask if all these students are able to find a place at Special Student Care Centres. Is there any shortage of vacancies and if so, how many more places will be made available in the coming years?
Since July last year, MSF had increased the subsidies and broaden the income criteria so that more families qualify for the Student Care Fee Assistance scheme. With these changes, how many more families does the scheme cover?
[+3 sentences] Mr Speaker, it has been said of children with special needs, I quote, "sometimes, real super heros live in the hearts of small children fighting big battles". Let us send in more reinforcements and secure more victories. I support the Budget.
Mr Speaker45 words
[+4 sentences]Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 4.50 pm.  Sitting accordingly suspended  at 4.30 pm until 4.50 pm. Sitting resumed at 4.50 pm.
Mr Derrick Goh (Nee Soon)1451 words
[+3 sentences]Mr Speaker, Sir, Budget 2021 comes at a critical point for Singapore as we continue to navigate our way safely into a new and unfamiliar horizon. Thus far, we have collectively fared well relative to other countries in our battle against the COVID-19 pandemic. This has been largely due to the leadership of our Government and the trust and co-operation of our citizens.
Although this Budget will not provide as much in support schemes compared to the prior year, I applaud the Government for putting forward an expansionary Budget at $102 billion, representing an 8.8% increase year over year.
[+13 sentences] It is critical that our Government continues to take leadership by investing in key areas to help us seize opportunities to maintain our competitive edge even in challenging times like this. Not only does this Budget support Singaporean workers and businesses in need of assistance, it is also seeking to bolster Singapore’s position in the new post-pandemic world through capability building, along with strengthening safeguards. It is Deputy Prime Minister’s message about “Building a Stronger Singapore, Together” with the focus on "Ensuring equal opportunities for all and supporting the vulnerable segments of our society” that resonates with me. I support this Budget of pursuing a Stronger Singapore that is defined beyond the sole objective of economic vibrancy. The reason is that as we pursue transformation in 2021 and speak of a digital, innovation-driven economy, we need to keep focused that the key objective is meant to help our industries and our people to harness the power of data and technology, to be future-ready. The end objective is to improve the quality of our lives as well as create better opportunities for ourselves, including those amongst us who are less digitally savvy. If we are to achieve this, then our Government must stay ahead of the curve by putting in safeguards to assist and protect the different segments of the digitally vulnerable groups as we jump onto the transformation train. As the transformation train moves fast, it is critical that we manage digitisation risks to better protect our public and maintain public confidence so that we can make this transformation together, safely. There are specifically two areas that I would like to highlight. They are: (a) redoubling our efforts to help citizens strengthen digital muscles to improve cyber safety; (b) addressing the escalating cases of scams As we push for greater digital adoption and innovation, our citizens will find themselves empowered to do a broader range of tasks and services conveniently. In doing so, we need to help them build more digital muscles as they will each face not just opportunities but also challenges – the digital life ahead is fraught with challenges. An Institute of Policy Studies (IPS) study released recently in December 2020 noted that the levels of digital literacy in Singapore is low. More than half who are deemed savvy information-wise did not spot signs that information was manipulated.
The Cyber Security Agency of Singapore, or CSA, too, had similar findings, reporting in August 2020 that, of the people who know about phishing, only 6% in the survey were able to correctly identify all the phishing emails that were tested.
[+6 sentences] What is concerning is that many felt that cybersecurity incidents will not happen to them and that less than half installed security applications even though a majority of them know the risks of not doing so. It is good that our Government has rolled out many digital literacy initiatives through the Media Literacy Council, National Crime Prevention Council or the National Digital Literacy Programme in schools, or CSA initiatives, such as the cybersecurity labelling on all smart home devices, to name a few. So, perhaps some time is needed for these programmes to take effect and it could be worthwhile for a co-ordinating body to take stock holistically based on the learnings above. This is to shepherd our population towards greater digital discipline as well as build a deeper awareness, especially in areas that need attention, to strengthen digital muscles across our country. After all, in cybersecurity terms, it is often said that we are only as strong as the weakest link. A more fundamental issue at hand is that more Singaporeans are falling prey to online scams, losing large sums of hard-earned money.
On 9 February this year, the Straits Times reported that scam cases grew 65% in 2020 over the prior year. This is a record number where more than $201 million were lost across the top 10 scam types.
[+1 sentence] Of this, online scams made up 60%, of which, most were related to e-commerce and social media impersonation.
This topic strikes close to my heart as, in my resident’s case, it left him, an 80-year-old, in a despondent state. He lost over $400,000, most of this from his retirement savings from the sale of his 5-room flat.
[+10 sentences] He had released his bank’s ID, password and authentication token to a scam. The money, it seems, was transferred to Hong Kong and the Police had told him that he is unlikely to get his money back. My heart goes out to him and other citizens who are like him. It is tempting to say that “giving your ID, password and token is like giving away your house keys”. At one level, we need to continue to emphasise the need for individual responsibility and education. However, social engineering can be sophisticated, which is why even savvy people can be duped. The reality is that our citizens are faced with a full spectrum, from simple to sophisticated scams. I often hear people say, “What are the Police doing about it or what is MAS or the Banks doing about it?” However, at the heart of the issue is that the problem cannot be approached by focusing on a single or a few parts of the digital eco-system. We already know that it is impossible to secure an email or bank account if the mobile phone is not secure and it is also impossible to secure a transaction if the e-commerce website is also not secure and so on.
Hence, the interaction of so many digital hand-offs creates complexity.
[+1 sentence] So, we need a multi-layered, whole-of-nation approach.
I believe that while the Government is taking the lead, consumers wanting the convenience as well as companies seeking to profit in the digital economy must also bear a fair share of the burden in protecting the system.
[+5 sentences] Our solutions to scams – processes, actions, laws and regulations – need to reflect this holistic approach. On this point, I have five recommendations to further sharpen our approach. One, maintain our current stance on community education. This is an essential pillar for our multi-layered defence to strengthen awareness and accountability at the individual level. Two, like cybersecurity, we must always assume that scams will succeed.
Perhaps, we need to prioritise recovery so that we have a higher chance to get the funds back, target a national level response time for recovery of domestic fund flows and push for commitments across Government agencies and the private sector to act within the response times agreed. Three, with the target response times in mind, review whether our law enforcement and similar agencies are sufficiently resourced and fit for purpose, supported by effective regulations since digital crimes are very different from physical crimes due to anonymity and speed.
[+1 sentence] The economics are compelling enough – with the sizeable amount of monies lost through scams, we should allocate a proportionately higher expenditure to fight online scams head-on.
Four, relevant agencies should develop fraud prevention and detection standards with relevant private sector groups that they interact with.
[+1 sentence] MAS is very engaged with the banking sector, and perhaps we can do more with other sectors as well.
Given the knowledge of these criminal typologies, could MHA take the lead as the overall coordinator? And lastly, there is also a need to increase cross jurisdictional cooperation to come up with a more comprehensive plan to recover funds as more monies are being lost overseas.
[+3 sentences] Mr Speaker, Sir, the problem of online scams is but an inevitable consequence of pursuing a digital economy. As such, let us make sure that our digital economy has a multi-layered defence against cyber threats that necessarily includes a multi-layered defence against scams. In conclusion, Sir, I reflected on the Singapore's Budget Statement for 2021 and I recall my former boss once telling me that requesting for a higher Budget just means more work ahead.
So, I am heartened that this Government has shown commitment and leadership in putting forward an expansionary Budget to put more effort to help Singapore stay ahead and securing Singapore with the community.
[+1 sentence] Sir, I support this Budget.
Mr Speaker3 words
[+1 sentence]Mr Sharael Taha.
Mr Sharael Taha (Pasir Ris-Punggol)2103 words
[+1 sentence]Mr Speaker, Sir, thank you.
These are truly challenging times as our economy shrank by 5.8%, the worst recession since Independence.
[+2 sentences] This Budget, aptly named "Emerging Stronger Together", balances the following considerations: immediate needs to overcome the pandemic; investing in business and developing people to emerge from this pandemic stronger; strengthening our social compact; building a sustainable future; and maintaining financial prudence. Understandably, this year's Budget is in the deficit as we continue to assist our residents to overcome the pandemic while sending a strong signal on the need for transformation and supporting future growth.
For immediate needs, schemes like the COVID-19 Recovery Grant, the $900 million household support package and JSS sector-specific support will be a much-needed respite for those most affected by the pandemic.
[+9 sentences] Beyond addressing the immediate needs, I will touch on three suggestions as we work towards an inclusive, rapid transformation to secure Singapore's future. Firstly, how do we increase the momentum of real sustainable transformation in digitalisation? Secondly, the need to leverage on workplace transformation as our comparative advantage; and thirdly, to prepare our workforce for a successful transition to support our future economy, in particular, the Green Plan. COVID-19 is a catalyst for many workplace changes. In the past, there was no urgency to digitalise to bridge physical distances in a country like ours. However, the pandemic made it necessary for organisations to explore digital solutions, such as the use of Zoom, e-payment and e-commerce. We now better understand how digitalisation can help make our operations more convenient and efficient. The next step is to move from pockets of digitalisation, or "pilots", to fully adopting real and sustainable digital transformation. This will enable us to go beyond the superficial grafting of technology onto current processes and instead, leverage fully on digitalisation and create fundamental shifts to our business models.
Only then can we be fully poised to take full advantage of the opportunities emerging from the post-pandemic world economy. It is noteworthy that a recent McKinsey report indicated that 85% of ASEAN companies are still stuck in this digitalisation pilot trap.
[+5 sentences] How can MCI, MTI and MOM work closer together to support companies in driving real sustained digital transformation by stringing together cohesive programmes across Ministries to enable companies to build a coherent, successful growth strategy possibly through a clear Operations and Technology Roadmap from MTI supported by skilled manpower through MCI's Digital Leaders Programme and SGUnited Jobs and Skills training guided by experienced practitioners using MCI's CTO-as-a-service while training organisational’s capability to use data better through MCI's Better Data Driven Business Programme? Coming from the industry, trying to navigate transformation is difficult as this is not merely improving productivity but this is fundamentally transforming business models. Many companies, especially SMEs, may need help to navigate the multitude of different schemes available. To assist companies to fully leverage on the suite of support packages available, can the Ministries consider some form of over-arching business transformation support through a mentorship programme or hand-holding to help companies navigate the cross-Ministerial support for transformation? We need a more concerted approach to business transformation to help companies gain traction and better navigate the diverse cross-Ministerial support provided.
For investment in training, we plan to spend $5.4 billion in addition to the $3 billion already spent on SGUnited Jobs and Skills package for our workers.
[+5 sentences] Of the many upgrading courses available, many are on digital skills. These courses need to translate into real changes. How can we increase the efficacy of these trainings into driving real digital transformation? One suggestion is to move away from measuring success through course take-up rates to measuring transformation driven metrics. A tiered approach can be used, where applicable, to provide basic subsidy for attending the course and enhanced subsidy for achieving the improvement.
An example is the lean sigma course where a participant receives his certification only after showing $1 million operational improvement to his organisation.
[+29 sentences] The pandemic has taught us that for 60% of PMETs in Singapore, our jobs are able to be done anywhere and at any part of the globe. Workers are no longer confined to office cubicles and close physical proximity is no longer a prerequisite for collaborative work. Employers are trying to implement HR policies that strike a fair balance between work from home (WFH) and work from office (WFO). WFH and WFO represents both a boon and bane. We find the lines between work and home get increasingly blurred. Considering new working norms, MOM must ensure that the rights of both employers and employees are protected. Singapore must remain an attractive place to work and we must retain talent within Singapore. Fair workplace practices and good work life balance will provide us a comparative advantage as we shift towards new working norms. WFH has demonstrated clearly how jobs can be done anywhere in the world. While we debate extensively on foreign workforce quotas, let it not distract us from the fundamental question: how do we keep our workforce competitive and relevant in the global market especially when workforce quotas are losing relevance in protecting jobs? How can we prepare and upskill our workforce such that we remain relevant in the global economy and not only do jobs in Singapore, but also do jobs for other countries remotely? Hence, our workforce must be able to compete locally, as well as globally. And we must continue to focus on driving best added value with the right skillset, mindset and attitudes needed to thrive in a remote working environment. Remote working requires a different set of skills for both employer and employee. Clear work targets must be set in order to manage the output of the team. And targets based purely on clocking number of hours have become obsolete. Employees are expected to be more self-directed and not take advantage of the flexibility afforded to them due to remote working. While it is important to upgrade our workforce in terms of hard digital skills, we must also adopt the soft skills and a more suitable work culture for remote working. I do not think it is premature to consider how schools can better prepare our children for a future of remote working. Our industry transformation roadmap was designed pre-COVID-19 and remains relevant even in the face of this pandemic. We aspire to be a greener nation as expressed through our Green Plan and a successful transformation necessitates getting everyone on this journey. It is inevitable that certain industries, like petrol-based industries, face decline while others, such as cleantech, green financing and horticulture see an increase in demand. Bridging between the contracting and emerging industries will be challenging and it would be erroneous to assume that everyone can make the transition smoothly. Hence, we need to balance and manage this workforce transition, especially when most of the jobs that will be lost are those of the lower wage roles. While I applaud the cross-Ministry efforts for the Green Plan, we need to chart out our workforce requirement and our workforce transition plan. One suggestion is to have our Industry Transformation Roadmap be updated to specifically include transition strategies for low-wage workers, seniors and persons with disability. Our Industry Transformation Roadmap should purposefully feature this group of workers so that the industries can proactively redesign jobs for them in the post-pandemic economy. This would ensure inclusivity even at the point of job design. Mr Speaker, Sir, in Malay, please.
(In Malay): This year's Budget is in the deficit as it not only aims to help families overcome the pandemic, but also to send a signal about the importance of economic transformation and supporting future growth. I am confident that the $900 million allocated through the Family Support Package, where low-income families are given more support, will help many families overcome this pandemic. In addition, specific support for the worst affected sectors, such as the Jobs Support Scheme or JSS, for the aviation and aerospace industries, is very important as it ensures that we retain the talent and workforce available in this strategic sector, while preparing them for the future.
[+3 sentences] What is notable is how COVID-19 has transformed our world. Some industries will enjoy growth, although some will shrink. Our world continues to move towards digitalisation, industry 4.0, "electrification" and clean energy and we need to move in the same direction or we will be left behind.
The increase in oil prices may cause our cost of living to rise, especially for those who use transport to earn a living, but I am heartened that the 2021 Budget mitigates the impact of this price increase with road tax subsidies. The COVID-19 Driver Relief Fund also assists taxi drivers and private rental car drivers who receive $600 per month between January and March and a further $450 between April and June.
[+8 sentences] This rebate, together with the Family Support Package, to some extent reduces the impact of rising oil prices as we prepare for and weather through the challenges of a rapidly changing world. However, I hope that the Government can study which rebates and relief packages are sufficient or need to be re-evaluated. There is no right time to raise taxes and we also cannot impose high taxes in the future in the hope that people will quickly switch to electric cars. Perhaps this is an opportunity for us to start using vehicles with lower fuel consumption or hybrid vehicles first to enjoy cheaper road taxes and petrol usage while also starting to do our share to lower emission rates. I would also like to take this opportunity to elaborate on the two things that need to be addressed as we move forward. Firstly, transformation at work as an economic advantage. Secondly, preparing our workforce for the Singapore Green Plan. The pandemic has, undoubtedly, shown that we need not necessarily have to be at the workplace to do our job effectively.
In fact, many local workers, including 60% of PMETs, can perform their duties anywhere.
[+6 sentences] While we are debating extensively on the foreign manpower quota, we should not let this matter divert our focus from the basic question, which is, how we can maintain the competitiveness of our workforce in the global market, whereas the manpower quota is increasingly less effective in protecting our jobs. How can we prepare the workforce and expand their skills so that we can continue to play a role in the world economy, not only doing jobs in Singapore but also jobs in other countries? The first step in doing so is to change our mindset, because we can no longer sit still and try to protect our jobs with methods that are previously effective for that objective. On the other hand, we need to stand out and show the world how we give the best value to any organisation around the world. As we move towards a greener future together, we need to realise that some industries will enjoy growth, although some will shrink. For example, we aspire to reduce dependence on petrol and engines that use fuel, namely the internal combustion engine (ICE), while promoting the use of public transport.
Traditional jobs in the fuel economy is more likely to diminish. Our workers who are involved in this industry need to shift to industries that show growth potential and we need to manage this process carefully, so that no workers will make the wrong move and get left out. This is especially important because, usually, low-wage workers in the industry are also the most vulnerable to structural changes in the industry. We need to start this process now, so that we are able to take advantage and seize the opportunities available in the new green economy.
[+2 sentences] Our future generations also need to make wise decisions to seize opportunities in an economy based on future trends and not just make decisions based on choices that are easy or readily available. We need to place our community in a more strategic position so that we can seize new opportunities and transit more easily to a future workplace.
(In English): In summary, Mr Speaker, Sir, I have touched on three suggestions that we need to work on to seize the opportunity as we head towards an inclusive transformation for Singapore’s future: firstly, how do we increase the momentum of real sustainable transformation in digitalisation?
[+1 sentence] Secondly, the need to leverage on workplace transformation as our comparative advantage; and thirdly, to prepare our workers for a successful transition to support our future economy.
That being said, Mr Speaker, Sir, notwithstanding the arguments above, I stand in support of the Budget.
Mr Speaker3 words
[+1 sentence]Mr Shawn Huang.
Mr Shawn Huang Wei Zhong (Jurong)1514 words
[+5 sentences]Mr Speaker, Sir, before I begin my speech, I would like to respond to Mr Louis Chua's comment on GST. Is GST a regressive tax? Yes, it is. Standalone only without intervention. GST forms part of Singapore's overall tax and benefit system which is progressive.
The Government redistributes taxes, revenues through a progressive system of tax and transfers and one such example is the $6 billion Assurance Package that was announced at the Unity Budget last year. No matter when GST is implemented, the lower and middle income groups will be buffered for 10 and five years respectively. In addition, additional assurances were also made that when GST is increased on healthcare and education, these increases will be absorbed by the Government.
[+21 sentences] Mr Speaker, Sir, for the endangered Hawksbill turtle, life is mostly a journey faced alone. At the beginning of its life, it had to face its own battle for survival. Odds are not in his favour. Eggs are under constant threat by predators and harvested by people. After hatching, it would have to unbury itself and cross the open beach to reach the ocean, all without being eaten. Even in the ocean, life is never easy. What then, counts as a good life for the Hawksbill turtle? Perhaps to live pain-free, to escape plastic pollution and fishing nets? To find enough food in our depleted waters? Or perhaps to beat all odds to find a mate amongst the rare few that remains. Humans are different. We have become exceptionally good at survival. We are in the Anthropocene Epoch, where human activities have a significant impact on the planet’s eco-system. Humans thrive in societies of interconnected individuals who work collectively. And this collective culture that allowed us to progress far beyond other animals. By teaching, learning and relying on one another for resources, it has given humans the ultimate edge. But today, cities and countries around the world are facing a multitude of challenges. Here in Singapore, we are not spared. No one will spare us quarter, we have to fight for our lives and our future. This Budget will give us the strength to survive, pivot, and an edge to seize the opportunities of the future. Many have been severely affected by the pandemic.
The extension of the Jobs Support Scheme is well targeted to support our workers and businesses in this time of need and prepare them for a post pandemic future.
[+2 sentences] We must continue to support our workers, fight unemployment and embark on a massive scale of education, training and reskilling. We must help our low-wage workers and fight for those who are vulnerable.
SGUnited Skills as well as the Jobs and Skills package ensures that our human capital will continue to be agile to changes and growing capabilities.
[+34 sentences] Job growth incentive is one of the best ways in providing support to our graduates and mid-career jobseekers. However, more support is needed to quickly acquire skills that are relevant and deep in their new domains. We must keep our edge, sharpen the edge and ensure that we operate at the frontier with a trail-blazing spirit. Why is this edge important? This competition and innovative edge, driven by the same ability to connect, learn, collaborate and execute, is most poignant for survival and leadership. These attributes enabled the rise of global market leaders. The largest and most valuable companies from the 1960s to 2010s were General Motors, Wal Mart, Exxon, Ford and General Electric. The list remained largely unchanged. However, in the last 10 years, this list would have changed dramatically with Microsoft, Apple, Amazon, Google and Facebook taking on leadership roles. What had caused this dramatic shift? Artificial intelligence has enabled the exponential ability to learn, connect, collaborate and execute. It is self learning, it does deep learning, ever enthusiastic, ever curious and hungry for more data, ever analysing and tweaking for optimum outcomes and executing with flawless precision. In 2020, the total accumulated data in the world reached 44 Zettabytes. This is 10 times more than it was in 2013. You can have data without information but you cannot have information without data. The goal is to turn data into information and information into insight and with insight one will be able to have the ability to execute. Information is the oil of the 21st century and artificial intelligence is its combustion engine. Are we ready for this? Is Singapore ready for this? “Are we all going to be working for a smart machine, or will we have smart people around machine”. This question was posed some 30 years ago but this 30-plus years old question has returned with a vengeance because of Big Data. The Intelligent Age driven by Big Data has been accelerated by advances in emerging technologies and connectivity. In fact, we are living at a time where everything that you have seen, heard or experienced is fast becoming searchable. Machine Learning, a subset of the AI technology pillar, has been recognised as the engine of productivity and one that spurs economic growth. When incorporated into an organisation, it provides a 360-degree, multi-dimensional view of important metrics of the company and significantly improves the decision-making process. The analysis of large volumes of data reveals trends and bolsters the innovation of new products and services and generating new revenue streams. The granularity of data enables decision makers to drill-down to reveal insights into a variety of predictable behaviors and incidents. To cite an industrial advantage would be the manufacturing industry as they stand to gain the most from the digital revolution. Technology pillars such as the Internet-of-Things, 5G connectivity and Big Data Analytics are likely to transform the industry into a cyber-physical hub, capable of assimilating and leveraging on these technologies. The return-of-investments would be most evident in the long run, when AI would further cultivate automation, ensure robust quality control and possibly actualising a near-zero downtime manufacturing plant. Is Singapore ready for such a speed? Future software development will be automated through data. Deep learning will continue to develop future capabilities such as conversational computers, self-driving cars, and consumer apps such as Tik Tok. Tik Tok uses deep learning to push video recommendations and its success has outstripped many other first movers in the market.
Over the last two decades, the Internet has created over $13 trillion in value whilst AI has created $2 trillion in just 2020. The growth in the value of AI is expected to grow at close to 20% CAGR to surpass the value of the Internet by the next decade.
[+20 sentences] Is Singapore AI ready? In this Information Age, the distinction between market and society as a whole and market and individual has been substantially eroded. This is because human beings are fast becoming both the raw material and the customer. The interesting development is that the raw material in the Information Age is the "human natural resource", is no longer scarce, but readily available and free. Our behavior is being captured, stored and processed instantaneously. Services and products are being developed through us which has come to be known as personalisation. Essentially, this is a commoditisation of human behavior. This situation will continue to influence and impact human nature, the future of societies and new business models as we ourselves are fast becoming "human natural resources". This requires new ways of thought leadership, Government policies and laws. As Singapore hones itself digitally and in other areas, it can also aspire to be a leader in this space. Andy Grove once said, "technology runs 3 times faster than normal businesses and the government runs 3 times slower than normal businesses. So we potentially have a nine-times gap". There is some merit to this. What are the existing models, regulation, assumptions, norms today, existed because of the industrial age? Are they still relevant in the Age of Information? How shall we evolve? A recent example is Facebook and Google in Australia. AI, Machine Learning, Blockchain and Crypto are paragons of how transformational this revolution will and can be. In Mrs Lim Hwee Hua’s latest book "Government in Business – Leading or Lagging", provides poignant examples in a landscape of disruptive technology. At such a speed, will Singapore be displaced?
Unlike other sectorial, incremental innovations and creative ideas, unlike existing platforms and eco-systems, AI is a general-purpose technology that has the cross-domain capability to raise all sectors and all industries. It can be the tide that rises all boats.
[+5 sentences] Like fire, the spoken language, pottery, electricity, steam and internal combustion engine, it will affect the entire economy. And unlike its predecessors, this pervasive reach into the psychological, biological and natural world can and will alter societies. Imagine a world at the advent of electricity, to have a bulb and a plug ready. Ready to plug in and light up the world. Or remain plugged out like the Hawksbill turtle.
In the words of HG Wells in his book "A Short History of the World", written in 1922: "Adapt or perish, now as ever, is nature’s inexorable imperative." Mr Speaker, Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Dr Koh Poh Koon.
The Senior Minister of State for Health (Dr Koh Poh Koon)3680 words
[+2 sentences]Mr Speaker, Sir, the Labour Movement welcomes the Budget 2021 measures outlined by Deputy Prime Minister and Finance Minister Heng Swee Keat to help workers emerge stronger from this pandemic. The extension of Jobs Support Scheme (JSS) in sectors still facing headwinds and the Covid-19 Recovery Grant for severely impacted workers are welcomed by many of our sisters and brothers in the Labour Movement.
The extension of SGUnited Jobs and Skills Package will continue to support the hiring of 200,000 locals this year and provide up to 35,000 traineeships and training positions.
[+4 sentences] Together with the extension of the Wage Credit Scheme and the Capability Transfer Programme, these measures ensure that our workers have good jobs and job opportunities. Over the last one year, NTUC's key priority was on protecting our workers’ livelihoods. Through our NTUC Job Security Council and the Fair Retrenchment Framework, our unions have worked with management to cut costs and save jobs, as well as train and redeploy workers to sectors of need. Many of us in the House would know that the aviation sector has been severely impacted by the pandemic.
At the height of the crisis, Scoot’s parent company, Singapore Airlines, had to cut 96% of its flight capacity.
[+2 sentences] After Malaysia announced the Movement Control Order to control the spread of the COVID-19 virus in early March last year, many manufacturing companies had a manpower shortage as Malaysian workers who commute daily between Singapore and Malaysia were unable to come to Singapore for work. Many of my brothers and sisters in manufacturing sector had to pull extra shifts and put in extra hours in over time, just to keep up with the manpower shortage.
Scoot Staff Union together with another Union, the United Workers of Electronics & Electrical Industries (UWEEI) worked closely with NTUC's Job Security Council and our tripartite partners to match some 300 flight crew members from Scoot to jobs in the manufacturing sector.
[+21 sentences] Both unions worked closely with the companies’ human resource team to coordinate virtual job interviews and continued to keep in touch with these cross-deployed crew members to support their adjustment in the new workplaces. With many workers' jobs at-risk, our unions' actions helped to secure secondment, contract or part-time positions into other sectors of need. NTUC was able to leverage on our strong labour-management relations and our network of partners to make a difference in a dire situation. I salute our workers for their fortitude and resilience and their adaptability; and of course, our unions who have worked hard to support them in this time of distress. This year, as we prepare to vaccinate our population and emerge stronger from this pandemic crisis, NTUC will continue to pay close attention to vulnerable worker groups who are more severely impacted by the COVID-19 pandemic and who may also face additional pressures in the new economy. For today’s Budget Debate, NTUC's Labour Members of Parliament will be advocating for the various vulnerable worker groups. This is in the DNA of the unions and also, in the DNA of the PAP Government. We will also lay out NTUC's proposals to better protect and empower these workers in order to strengthen Singapore's social compact. Labour Member of Parliament brother Mohd Fahmi Aliman, Nominated Member brother Abdul Samad and myself, we will share more about NTUC's aspirations and ideas to expand Progressive Wages and Practices to uplift our low-wage workers. With an eye to our ageing and shrinking workforce, NTUC Deputy Secretary-General brother Heng Chee How will share about what “Emerging Stronger Together” really means for senior workers. NTUC Assistant Secretary-General brother Patrick Tay will advocate for boosting the employment and employability of PMEs, especially those in their 40s to 60s. And NTUC Assistant Secretary-General brother Desmond Choo will call to strengthen the structure of the gig economy and support for young workers. Labour Member brother Seah Kian Peng will raise concerns on vulnerable citizens who fall through the cracks. A second key thrust of our speeches is on protecting jobs through this pandemic and beyond. I will share our plans for more pervasive business transformation to ensure workers and businesses are future-ready via the Company Training Committees (CTCs) and the Operations and Technology Roadmapping (OTR) process. NTUC Assistant Secretary-General brother Melvin Yong will offer insights on how we should respond to the Work-From-Anywhere and the Work-From-Home phenomena developing in our workforce. And brother Patrick Tay will also call to strengthen the Singaporean Core while Labour Member sister Yeo Wan Ling will advocate for better choices, potential and protection for women in the workplace. Let me begin with the most vulnerable and disadvantaged segment of our workforce – the Lower Wage Workers. I will then talk about how the efforts of NTUC’s Training and Transformation Group in Training of our workforce and Transformation of businesses via the CTCs and OTR has been useful in our collective efforts to emerge stronger. Mr Deputy Speaker, Sir, this COVID-19 pandemic has brought to the consciousness of Singaporeans the important roles that essential services workers perform in our daily lives. Nurses and healthcare workers are not low-wage workers but they are perhaps the most visible and recognisable of all the frontline workers performing essential roles during the COVID-19 crisis.
As a doctor, as a political officeholder in MOH and as a unionist, I certainly welcome Deputy Prime Minister Heng's announcement in this Budget that the salary of nurses and support care staff will be enhanced. Unfortunately, many of our other essential workers have incomes at the bottom 20 percent of all wage earners.
[+22 sentences] Singaporeans questioned the gap between their salaries and their contributions to society. Singapore National Employers Federation (SNEF) and industry associations that the NTUC have engaged with, agree that lower wage workers should be paid a fair wage. Consumers have also shared that they are willing to pay more, if lower wage workers can directly benefit though higher wages. At the height of the COVID-19 crisis in June 2020, a survey commissioned by The Sunday Times showed that eight in 10 Singaporeans are willing to pay up to 10% or 20% more for essential services, if the money goes to the workers. This mirrors two separate surveys commissioned by the NTUC in late 2020. While consumers are willing to pay more for Progressive Wage Model, or PWM wages, we too need to guard against companies profiteering from these efforts. To do so, I suggest that a tripartite committee similar to the Committee Against GST Profiteering be formed. This tripartite set-up could investigate allegations of profiteering and ensure that any price increases flow into the hands of our lower wage workers. This reflects the desire of Singaporeans for a fairer and more inclusive society that cares about the dignity of those who are less privileged. Building an inclusive and compassionate society is also a key thrust of this year’s Budget. Indeed, Every worker matters and every bit of effort counts. Ensuring that those in the lower wage rungs get a fair wage must be a manifestation of a more inclusive society. There will always be a group at the lower end of the wage spectrum that we need to continually support. It is something that we will always have to keep working on. But starting at the "right" wage level is only the first step. If we just stop there, then we run the risk of wage and career stagnation over time. We must ensure that there is wage progression. We need to address the following four areas so that our sisters and brothers can start right and progress well in their careers. First, narrow the wage difference between the 20th percentile or P20 earners and the median income or the 50th percentile or P50 earners; second, enhance Workfare Income Supplement (WIS) to provide an immediate uplift; third, expand sectoral PWM faster to cover more sectors; fourth, implement "vocational" PWM to cover remaining lower wage workers in job roles that are distributed across multiple sectors. Let me elaborate on each of these four measures. First, on the narrowing of the wage gap between the P20 and P50, via the PWM. The Labour Movement first championed the PWM in 2012 to help all workers across different sectors achieve sustainable real wage increases in tandem with skills upgrading and increased productivity levels.
Since then, through the combined efforts of the tripartite partners, 80,000 workers in the three mandatory PWM sectors of cleaning, security and landscaping have seen cumulative wage growth of around 30%, compared to 24% for workers at the 20th percentile of wages over the last five years. Lift and escalator workers will also soon enjoy mandated annual wage increases in 2022 in the fourth PWM that will become mandatory.
[+2 sentences] I will share more on this later. Building on the impact brought about by these three mandatory PWMs, I suggest three further enhancements that tripartite partners can consider.
First, include in-house cleaners and security officers in mandatory PWM.
[+5 sentences] Currently, the mandatory PWMs for these sectors apply only to outsourced workers. Our sisters and brothers working as in-house cleaners and in-house security officers are not included in the PWMs. I propose that they should be included in the mandatory PWMs, so that those doing the same jobs should enjoy the same protection, progression and wages. This should be implemented as soon as possible because the framework and mechanisms are already there. Second, the wage gap between the P20 and the P50 must be narrowed so that the wage and social stratification will not be too stark and lead to social fragmentation.
Today, the P20/P50 ratio is about 0.54, indicating that the P20 salary is only about half that of the median income earner. But 75% of OECD countries have a P20/P50 ratio of 0.67 or better, indicating that the P20 salary is at least two-thirds of the median income earners in these countries, suggesting a narrower wage gap.
[+10 sentences] I can appreciate the different social economic situations and structures in different OECD countries that could account for these observed differences. But regardless of the reasons, NTUC hopes to see a greater range of salary increases for our lower wage workers over the next five to 10 years, so that cumulatively, our lower wage workers can close the wage gap with those earning median salaries in these sectors. Our sisters and brothers in the bottom 20%, should not become a social underclass. I hope MOM and the tripartite workgroup will study this possibility and work on a mechanism to uplift their wages. Third, repurpose the Wage Credit Scheme as transitional support for PWM implementation. Recognising that the current economic climate may be challenging for businesses and consumers to bear the costs of the faster rate of wage growth associated with PWM fully, NTUC calls on the Government to consider transitional support measures for companies coming on board the PWM to help with the increased wage costs. Many SME bosses I spoke to are concerned about the additional wage costs they must bear. Furthermore, it takes a longer time for outsourced sectors, like the Lift and Escalator maintenance to implement mandatory PWMs, because companies need time for current contracts to run out and renegotiate contract prices based on new wage costs with their clients. This means that workers would have to wait a longer period to get their salaries uplifted. I thus urge the Government to provide transitional support to companies, especially to our SMEs, who commit to paying PWM wages, to allow such workers to benefit from PWMs earlier, rather than later.
The Wage Credit Scheme has been extended in this Budget.
[+15 sentences] I suggest the Government further consider repurposing the Wage Credit Scheme as a form of transitional wage support to help companies in new sectors implementing mandatory PWMs. Next, let me talk about enhancing Workfare Income Supplement. While awaiting the wider implementation of the PWM, I hope that Workfare Income Supplement (WIS) scheme can also be expanded to provide an immediate uplift. I hope the Government will consider removing the differentiation of the payout by age groups and base the WIS eligibility purely on income. For example, a worker aged 40, earning $1,500 a month gets an annual WIS payout of $1,704. Another worker, 10 years older, aged 50, earning the same salary of $1,500 a month, gets an annual WIS payout of $2,496, an additional $792 more than the worker who is 10 years younger. The 40-year old worker is more likely to have younger dependants and would certainly benefit from a higher WIS payout to supplement his take home pay. I hope that every worker, every low-wage worker with similar earnings gets an equal uplift regardless of their age, to further strengthen our social compact. In addition to the above recommendations, I call on the Government to shorten the income assessment period for WIS eligibility. Currently, the recipients must fulfil the WIS income ceiling criteria in the preceding 12 months before qualifying. This delays much needed support for lower wage workers. Shortening the income assessment period for Workfare will ensure that we continue to support our low-wage workers in a timely manner, leaving no one behind. Thirdly, let me talk about expanding the coverage of PWM to more sectors. Sir, in 2018, the Government accepted the recommendations of the Lift and Escalator Sectoral Tripartite Committee to implement a PWM for this sector. My fellow Labour Member of Parliament, brother Melvin Yong, has been leading this effort since 2017.
Following a three-year transition period, lift technicians will be the fourth group of workers to come under the mandatory PWM and enjoy higher salaries in 2022. Over 2,000 lift technicians in this sector will benefit from a more structured career progression and an uplift to their wages.
[+17 sentences] I recall the story of brother Dickson Tong, my Union Leader in Metal Industries Workers' Union (MIWU). Brother Dickson is a senior lift technician with Hitachi Elevator Asia. He remembered being rather fearful after being stuck in a lift when he was just five years old. To his young mind, the lift technician who came to his rescue was like a superhero. Imagine in a dark lift and the door opens, this lift technician has a halo of light around him, coming from the outside. This has inspired him to join the lift maintenance sector. In the past 20 years, as a lift technician, he kept up with the technological advances in his area of work, ensuring that he had the skills to stay relevant. Now, with the recommendations of the Sectoral Tripartite Committee for Lift and Escalator sector, brother Dickson and other lift technicians can look forward to two career progression pathways: supervisory or specialist tracks, where skills are the benchmark for career progression with corresponding salary increases. The implementation of PWM in this sector will hopefully attract more new entrants for a more fulfilling career. Hopefully, we will have many more superheroes, amongst us, waiting to rescue anyone who may be stuck. NTUC wants to speed up the implementation and expansion of PWM into six more sectors. Last year, NTUC mooted for PWM for the Waste Management sector. Since the formation of the Tripartite Workgroup for Lower-Wage Workers (TWG-LWW) in October 2020, the Tripartite Cluster for Waste Management has been formed in January this year, to develop and implement a PWM for this sector. NTUC has also been pushing for a PWM in the Food Services sector since 2018. In my recent engagement with business owners and members of the Restaurant Association of Singapore, many expressed support to raising the wages of the lower wage workers and are supportive of the PWM for this sector. We certainly hope to make progress in this aspect over the next two to three years. The tripartite partners also see the potential in the Retail Trade sector.
PWMs in food service and retail sectors will benefit a potential pool of about 70,000 workers.
[+6 sentences] NTUC hopes that the Tripartite Clusters for these two sectors – food services and retail trade sectors – will be set up soon, with recommendations released by this year and implemented within the next two to three years. The next sector, Strata Management. While most workers in this sector are technically not low-wage, a PWM for this sector can be an enabler for better progression and better work prospects for them. This is because their wages can remain quite stagnant due to the outsourcing nature of this industry. This could potentially benefit more than 5,000 workers in the strata management sector. Another sector, Pest Management.
NTUC will begin discussions with the relevant sector agencies on the key milestones for this year to implement a PWM in the sector, which could potentially benefit up to 3,000 workers.
[+14 sentences] NTUC intends to submit our proposal to MOM by mid-2021. The sixth sector, Solar Technology. Following the launch of the industry-led Career Development Plan (CDP) for the Solar Technology sector in December 2020, NTUC has also started discussions with the relevant associations to develop this CDP further into a PWM. Again, while this is technically not a low-wage sector, we believe a wage-skills ladder linked to productivity and career progression will be useful for this growing sector. Let me talk about the fourth measure, which is a Vocational PWM to impact more job roles across multiple sectors. During my last Parliamentary speech on the topic of PWM in October 2020, I proposed that beyond a sectoral PWM approach, the tripartite partners should also look at a "vocational PWM" for lower wage occupations that cut across multiple sectors to improve their wage prospects. Expanding the PWM efforts beyond the confines of the sectoral boundaries will allow larger groups of workers such as clerks and logistics drivers to benefit from the PWM to uplift their wages. The skills framework for these vocations that has already been developed by the Tripartite partners together with SSG can form the basis for a "Vocational PWM" to be developed. This approach should also form a key outcome of the TWG-LWW discussions. One key tenet of the PWM is sustainability, ensuring that the higher wages are coupled with higher skills and productivity. Training of workers and transformation of business is key. Mr Deputy Speaker, Sir, I will now like to speak in Mandarin regarding NTUC's plans to actualise more pervasive business transformation to ensure workers and businesses are future-ready. (In Mandarin): The NTUC Training and Transformation Group (T&T) set up in September 2019 aims to address this need by supporting the formation of Company Training Committees (CTCs) between companies and the unions. NTUC partnered A*STAR in the utilisation of the Operations Technology Roadmap (OTR) which facilitates the companies' transformation process and develops mid- and long-term business strategies and workforce training plans.
To date, more than 600 CTCs have been formed with over 100 companies having already embarked on the OTR.
[+2 sentences] Approximately 25% of companies are SMEs. Last year, with many more companies seeing the need to transform and respond to the challenges and restrictions imposed by COVID-19, NTUC T&T developed a virtual/hybrid OTR in collaboration with A*STAR, leveraging on digital technology to assist companies in their transformation.
Close to 60 companies undertook the OTR via a virtual or hybrid approach and we expect more to do so in the months ahead.
[+2 sentences] Beyond engaging individual companies in CTC and OTR, NTUC T&T has embarked on Sector OTRs working in close collaboration with Trade Associations. An example of a sector OTR is with Waste Management sector between NTUC, the Building Construction and Timber Industries Employees' Union (BATU), the Waste Management & Recycling Association of Singapore (WMRAS) and the National Environment Agency (NEA).
Seventeen companies in the Waste Management Sector came together and developed a sector OTR in October 2020. Importantly, this sector OTR provided further impetus for the implementation of a PWM for the Waste Management sector last month, uplifting wages of 3,000 local workers.
[+1 sentence] Following the success of the sector OTR, NTUC T&T is engaging individual companies in WMRAS to form individual CTCs to develop their Company level OTR for customised action plans and deeper transformation of the companies.
In the next two years, NTUC Training and Transformation Group will reach out to more TACs and business groups to pursue Sector OTRs, including sectors like Food Services and Retail where there is a growing consensus to implement PWMs.
[+14 sentences] We look forward to working closely with the respective TACs to advance our mutual interest of Training Workers and Transforming Businesses. (In English): Sir, I will now conclude in English. Mr Deputy Speaker, Sir, a mandatory PWM or for that matter, a mandatory minimum wage will not guarantee employment for the unemployed because it is not a mandatory employment law that mandates employment. Upskilling and ensuring our workers have the skills relevant to industry needs is an important aspect of the PWM that ensures employability. The PWM is minimum wage plus, because to the Labour Movement, the minimum is just not good enough. Why stop only at the minimum? We want to see progression of wages over time through upskilling. A progressive wage is not about charity. A progressive wage is about recognising the dignity of our workers through their work. It is about paying a fair wage and ensuring that the wages of those in the bottom 20% keep pace with the rest of society. The PWM implementation must move faster and wider in line with the aspirations of Singaporeans to build a more just, compassionate and inclusive society where we leave no one behind – every worker matters. Together with our Training and Transformation efforts via the CTC and OTR, NTUC wants to make "Every Worker a Better Worker", make "Every Job a Better Job" and to match every "Better Worker to the Better Job", so that we can make "Every Company a Better Company". Only then, can we emerge stronger with a better economy and secure three wins all round for our tripartite partners and make Singapore a "Better Singapore for every Singaporean". Sir, I support the Budget.
Mr Deputy Speaker7 words
[+1 sentence]Mr Louis Chua, you have a clarification?
Mr Chua Kheng Wee Louis146 words
[+1 sentence]Thank you, Mr Deputy Speaker.
Just a short clarification on Member Shawn Huang's clarification earlier just now. I do recognise that the $6 billion assurance package does go some way to offset the GST increase for families up to between five and 10 years. But I think, thereafter, the reality of the higher GST will still hit them for the rest of their lives.
[+1 sentence] So, I think the starting point is then, there are progressive elements in our tax system and regressive elements.
As what another Member, Ms Foo also said, perhaps we could look at wealth taxes being another option if we really do determine that a raise in tax in necessary. But I think the broader point that I was raising in my speech is actually is the imposition of such a tax necessary in the first place, especially amidst the macro economic uncertainties.
Mr Deputy Speaker3 words
[+1 sentence]Mr Shawn Huang.
Mr Shawn Huang Wei Zhong76 words
[+1 sentence]Mr Deputy Speaker, I would just like to clarify on Mr Louis Chua's comments.
I do not debate with him on the timeline, on the implementation, but just to say that in Singapore, we need to see the entire tax and benefit system as a holistic system, and that in itself, GST, yes, it is a regressive tax. But when you look at the entire system, it is progressive because of the way it is redistributed.
Mr Deputy Speaker7 words
[+2 sentences]Let us move on. Mr Fahmi Aliman.
Mr Mohd Fahmi Aliman (Marine Parade)2569 words
[+12 sentences]Mr Deputy Speaker, Sir, this has traditionally been a time when as a country we outlined our direction and aspirations for the year ahead. It is especially poignant when the world is still dealing with the effects of COVID-19. I am encouraged by the "Emerging Stronger Together" Budget and I am certain that I speak for both myself as well as my colleagues in the Labour Movement in supporting the response of the Government in helping all sectors of society. As mentioned by our Deputy Secretary-General of NTUC Dr Koh Poh Koon, over the last one year, NTUC's key priority was on protecting our workers' livelihoods. Having said that, "Emerging Stronger Together" also means being aware of those with additional challenges, such as our lower wage essential workers and our foreign workers, and making sure they have the help they need so that we move together in unison. COVID-19 has undoubtedly changed how we live and work, and it has prompted us to question the norms that we have become used to. One of these norms in question is the value our society have placed on the work of our brothers and sisters in essential services such as cleaning and security. As we adjusted to our new normal, these everyday heroes stepped up despite the risks to their health and took on extra duties such as the additional sanitisation of high-touched surfaces and temperature screening, so that we can safely continue with our lives. The formation of the Tripartite Workgroup on Lower Wage Workers is a step in the right direction in acknowledging their contributions to our country. Representatives from various stakeholder groups have come together in the tripartite workgroup in recognition of the importance of uplifting our lower wage workers, and NTUC will continue to contribute significantly to this conversation and champion our lower wage workers as it has always done. The Labour Movement is sensitive to the concerns of these workers. We are cognisant, for example, that workers, especially those who earn lower wages, are concerned about their cash in hand to meet their daily needs.
The Workfare Income Supplement or WIS has been a welcomed step, but I would like to once again call for the Government to consider providing a higher WIS payout to workers in the essential services to acknowledge their social value and the hardship faced in their line of work.
[+4 sentences] NTUC is also acutely aware from our interactions with essential service workers that many of them face barriers when it comes to training. This could be due to factors such as time constraints, lack of support from employers and even language barriers. As part of the tripartite workgroup, NTUC is committed to finding ways for workers to overcome these barriers and look forward to working with our partners to ensure that any worker who wants to upgrade their skillsets to remain relevant will be able to do easily. I would like to call on service buyers and service providers to provide ample opportunities for their workers to go for further training and upskilling.
By providing adequate support to our workers, all of us will benefit from a more knowledgeable and professional workforce. We have seen and heard how the Progressive Wage Models or PWMs have proved successful in uplifting around 80,000 workers in the Cleaning, Landscape Maintenance and Security sectors with its holistic approach.
[+2 sentences] With it, workers have a clear sense of the skills needed to do their jobs and the skills they should attain to move up the career ladder. Companies have also benefited from better trained and skilled workers while service buyers benefit from a more professional workforce.
Despite this, we must acknowledge that the wages in these PWM sectors need to commiserate with the skills and the essential services provided by our workers. I applaud the announcement made by our Deputy Prime Minister recently to enhance the wages of our nurses and other healthcare workers such as the support care staff.
[+6 sentences] This move is to be commended and underlines the important work of our healthcare workers. On this note, I would like to call upon all the stakeholders involved in the PWM to take a hard look on the value of the jobs provided by our essential service workers and consequently increase PWM wages, so that all Singaporean workers are uplifted. The reality is that in increasing the wages of our essential workers, consumers may have to pay more for their services. This is never an easy call to make but it is an important step towards a fairer and more enlightened society, where we ensure that all workers can live with dignity. To ease the initial transition, I would like to call on the Government to consider a form of transitional support to help service buyers in the interim as we adjust the wages of our essential workers to adequately acknowledge the value of their work to our society. It is also timely that we look into other sectors where the PWM could benefit our workers.
Just last month, it was announced that the PWM has been expanded to the Waste Management sector. NTUC had lobbied hard for the expansion into this sector and had engaged the associations and the relevant Government bodies to make this happen. This is an important step in recognising the efforts of around 3,000 unsung heroes and as the Chair of the Tripartite Cluster for Waste Management, I look forward to continuing with stakeholders to deliberate a PWM for this sector.
[+6 sentences] NTUC is also constantly looking at other sectors to cover more workers under the PWM. In 2019, it was announced that the pest management sector will be subsumed under the Environmental Services Industry Transformation Map in the hopes of transforming and uplifting the sector to provide good and sustainable jobs to Singaporeans. This marked a step in the right direction in acknowledging the integral role pest management plays in safeguarding public health in providing essential services such as preventing the spread of dengue, rodent and pest infestations. Despite this, more needs to be done as the sector is faced with many of the same challenges as that of other outsourced sectors such as stagnating wages, lack of manpower and poor public perceptions. For the industry to meet the rising demand and expectation of service standards for services, there is a need to build a strong and skilled professional local workforce. In the Labour Movement’s interactions on the ground, we have also found that the workers in the Strata Management Sector take on the important and demanding task of managing estates and providing all with a conducive and safe environment for us to work and play, and their duties include the control, administration, maintenance and management of common property for the benefit of all.
In 2019, the Facilities Management Implementation Committee was formed, comprising tripartite representatives to develop and implement strategies to create a more dynamic and professional industry. The Facilities Management Skills Framework was launched in September of last year to provide the industry with information on the occupations, skills and competencies, and the possible career pathways available. The development of an FMC Accreditation is also underway, which will encourage higher management competencies and skillsets for workers in the industry.
[+19 sentences] The introduction of a PWM can uplift these sectors and their workers with a clear career progression pathway, coupled with the relevant skills, improved productivity and the commensurate wages. NTUC will continue to lobby for the expansion of the PWM into other sectors and will work with the relevant stakeholders to make this a reality for more workers. One clear step is to procure and support companies that have progressive practices. This admittedly may mean paying more, but we can and should be mindful of unethical companies who choose to undercut to win contracts at the expense of their workers. Workers in these situations can suffer by having their wages reset or their benefits cut at the onset of their employer taking on a new contract. Service buyers should also adopt outcome-based contracts or OBCs as a complement to PWM. OBCs prioritise the outcomes rather than simply warm bodies which allows service providers to use technology to make work safer and more efficient for workers. Besides, OBCs should incorporate clauses to minimise wages and benefit resets and abide by the principle of proportionality where liquidated damages should be proportionate to non-delivery of services. While we look at wages and work prospects, the welfare of our workers is equally as important. I would like to encourage service buyers to set up proper rest areas for their outsourced workers in accordance with the Tripartite Advisory on Provision of Rest Areas for Outsourced Workers that was released in 2019. Outsourced workers should have access to proper and reasonable rest areas for their well-being. Services buyers will also benefit from well-rested workers who would be productive. I would also like to take this opportunity to call on the Government to issue a Gross Floor Area waiver for areas stipulated as rest areas to encourage more landlords to adopt the tripartite guidelines. Another hard but necessary conversation that COVID-19 has sprung upon us is regarding our migrant workers. I will not be the first to thank our migrant workers for their hard work and their contributions to our country, all while working in difficult conditions far from their homes and loved ones. In working towards a more progressive and moral society, we must not forget our vulnerable brothers and sisters who have come here to do hard work so that we can continue to move forward. Via the Migrant Workers' Centre, NTUC mobilised together with our other stakeholders during the lockdowns at the dormitories to ensure that the migrant workers continued to have the necessities they needed and also reassured them that they had the full support of Singaporeans in tiding through the crisis. One of the issues that the crisis brought to light was the immediate need to improve the living conditions of our migrant workers. While many changes have been made to make the dormitories safer and safe-distancing measures have been put in place, there remains a need for us at this time to review how foreign worker dormitories are regulated, and if these regulations should be enhanced.
The Foreign Employee Dormitories Act or FEDA ensures that the accommodations of our foreign workers are regulated and must comply with a list of requirements to ensure the health and safety of their residents. However, FEDA only applies to larger dormitories that accommodate 1,000 or more workers.
[+5 sentences] I would like to call upon the Government to consider a review of this policy and increase the scope to dormitories that house lesser than 1,000 workers. This move would ensure that more or all the foreign workers in Singapore will be housed in accommodations that are regulated and meet the minimal provisions for their health and safety. During the lockdown, it was also brought to NTUC’s attention that many foreign workers faced difficulties in remitting money to continue to support their families back home, many of whom were in more dire straits due to the global pandemic. This was a distressing problem for our migrant brothers, despite the simple solution by ensuring that all migrant workers are paid electronically. This is not a novel solution.
Employers of S Pass holders, for example, are required to pay salaries electronically, start the electronic payments within three months of the issue of the S Pass and maintain a record of salary payments.
[+8 sentences] Extending this requirement to migrant workers would not only make it easier for these workers to manage their finances electronically, but also protect these workers from being exploited as all salary payments are recorded. NTUC has long looked after the welfare of our migrant workers. An example is NTUC's MWC working with MOM’s ACE to materialise the Settling-in Programme at the various onboarding centres. While this has been a challenging project, NTUC has stepped up and is ready and willing to work with MOM towards building a robust system for future new entries to protect the workers as well as the greater community. The MWC has also 5,000 ambassadors in the more than 1,000 dormitories in our volunteer network, and we are constantly looking for ways to scale up to support any new initiatives and programmes that can benefit our migrant workers. This network has helped us reach out to our migrant workers and we will continue to work hard so that we can push on in fighting for their rights and welfare. Mr Deputy Speaker, Sir, please allow me to speak in Malay. (In Malay): In summary, I spoke today about how the Labour Movement has always championed our workers.
We have worked even harder for them during the COVID-19 pandemic and we will continue working to overcome this crisis together. I have called for: (a) The Government to consider providing a higher WIS payout to workers in the essential services to acknowledge their social value and the hardship faced in their line of work (b) I have called on Service Buyers and Service Providers to provide ample opportunities for their workers to undergo training in order to enhance their skills.
[+1 sentence] By providing adequate support to our workers, all of us will benefit from a more knowledgeable and professional workforce.
As for the PWM, I would like to call upon all stakeholders to consider the value of the jobs and increase the PWM wages so that the lives of all Singaporean workers are uplifted. I would also like to call on the Government to consider transitional support to help service buyers as we adjust workers’ wages to commensurate with the value of their work. I have also asked for the PWM to be expanded to other sectors like the pest management and strata management sectors. In terms of workers’ welfare, I would like to encourage service buyers to set up rest areas for their workers in accordance with the Tripartite Advisory on Provision of Rest Areas for Outsourced Workers, and would also like to take this opportunity to call on the Government to issue a Gross Floor Area waiver for areas stipulated as rest areas to encourage more buildings to set up rest areas. I also spoke about migrant workers and would like to call upon the Government to consider a review of FEDA and increase the scope to dormitories that house lesser than 1,000 workers, to ensure that more or all the foreign workers in Singapore will be housed in accommodations that are regulated and meet the minimal provisions for their health and safety.
[+6 sentences] I also said that mandatory electronic payments for migrant workers will not only make it easier for these workers to manage their finances electronically but also protect migrant workers from being exploited as all salary payments are recorded. (In English): In conclusion, we have come a long way since the first few cases of COVID-19 appeared on our shores. There is still a long way to go and, inevitably, there will be challenges along the way. However, as a country, we have weathered similar storms and emerged stronger. The Government and NTUC are committed to helping workers every step of the way and will continue our fight for a fairer and more progressive society for all because every worker matters. Mr Deputy Speaker, Sir, I support the Budget.
Mr Deputy Speaker14 words
[+1 sentence]Mr Gerald Giam, you have a clarification of a Member who has spoken previously?
Mr Gerald Giam Yean Song (Aljunied)134 words
[+1 sentence]Thank you, Mr Deputy Speaker.
I have a clarification for Senior Minister of State Koh based on his speech just now. I believe Senior Minister of State Koh mentioned in October last year that after implementing the PWM for the cleaning, security and landscaping sectors, there will be a residual 100,000 workers who are still earning less than $1,300 a month. With the new six sectors added to the PWM fold, how many workers will still be earning less than $1,300 a month?
[+1 sentence] Secondly, how many workers will be covered under this vocational PWM that he has just proposed?
And are there any plans to include self-employed and daily-rated workers under the PWM? And lastly, what is the timeline for the rollout of the PWM to these six new sectors plus the vocational PWM?
Mr Deputy Speaker5 words
[+1 sentence]Senior Minister of State Koh.
Dr Koh Poh Koon167 words
[+8 sentences]Mr Deputy Speaker, I thank the Member for asking those clarifications. These are questions that we are also working out in the tripartite workgroup because each and every sector will require a discussion with the relevant stakeholders, both on the employers' side and the other agencies, to determine which particular job roles we want to include in the PWM. So, the numbers will not be something that we can tell offhand. There is a process to discuss, and also how, in the vocational type of PWM, we have yet to define what exactly are the vocations that we want to go into. It is not something that you can just say that we want to do so. But we need to get more data, working with the relevant stakeholders. So, give us some time. We will come back – I suppose at some point – to this House and, certainly, the tripartite workgroup will release a stronger recommendation with more details towards the end of the process.
Mr Deputy Speaker8 words
[+1 sentence]I will allow one more clarification, Mr Giam.
Mr Gerald Giam Yean Song56 words
[+3 sentences]Sir, I just want to get some sense of the kind of timeline that the NTUC and the Government are looking at to implement PWM across all these different sectors. I understand that things are still in the works, but what is the kind of rough timeline? Is it five years, 10 years or 20 years?
Dr Koh Poh Koon143 words
[+2 sentences]Sir, as I have said earlier my speech, NTUC hopes that we can get traction within the next two to three years and, certainly, we want to uplift and close the wage gaps for the P20 and P50, hopefully within the next five to 10 years. And for different sectors, some may be more ready to implement earlier, some may take a little bit more time because either the wage structure or the skills framework needs to be more tightly stitched together.
Also, for certain sectors, it could be the transitional period required because there could be contractual issues that we need to work with from the employers' side of the house. But, certainly, as I have mentioned in my speech earlier, for the six sectors, the majority of them, we hope to make some progress in the next two to three years.
Mr Deputy Speaker3 words
[+1 sentence]Mr Patrick Tay.
Mr Patrick Tay Teck Guan (Pioneer)1902 words
[+5 sentences]Mr Deputy Speaker, I rise in support of Budget 2021. I thank the Deputy Prime Minister for a 4F Budget. One that is Focused, Forward Looking, For businesses and, most importantly, For workers. I wish to make a special highlight for a segment of our workforce which the current downturn and the COVID-19 pandemic have impacted immensely. They are the Professionals, Managers and Executives, PMEs in short, in Singapore, especially those in their 40s to 60s.
Total retrenchment numbers have reached an all-time high of about 26,000 in 2020, compared with just less than 11,000 in 2019. It is noteworthy that in 2019, about 60% of those retrenched were PMETs and, in the latest Q3 2020 figures, about 50% of those retrenched were PMETs. By the same token, about 62% of the retrenched resident PMETs re-entered the workforce within six months of their displacement in 2019 whereas in the latest Q3 2020 figures, only about 55% of retrenched resident PMETs re-entered the workforce within six months.
[+2 sentences] The NTUC-SNEF PME Taskforce, which was formed end 2020, has started to engage PMEs to better understand their concerns and priorities in the past three months. We found that PMEs are particularly concerned with job security and employability.
A recent survey conducted by the taskforce with 3,500 PMEs across varying ages, professions and gender revealed that six in 10 PMEs felt that they needed protection against job losses, and seven in 10 expressed the need for more support in employment opportunities.
[+4 sentences] The taskforce also conducted a series of Focus Group Discussions, which are still on-going, with various segments of PMEs from the young to the not-so-young, including our union leaders. The PMEs we met highlighted the concerns of unfair hiring practices, workplace discrimination, career progression, as well as health and mental wellness issues. Many also shared their personal anecdotes on difficulties in getting employed due to their age, inability to land a job despite undergoing training, as well as coping with disruption and the next normal. Despite that, it was encouraging to hear that many of our PMEs recognised and acknowledged the importance of continued upskilling, reskilling and multi-skilling to ride the wave of disruption and to stay relevant in the labour market.
In fact, 81% of those surveyed attended training over the last three years and 98% agreed that companies should proactively send their employees for training to stay relevant.
[+18 sentences] Against the current economic climate and the challenges that COVID-19 has brought about, I cannot help but emphasise the need to put Singaporeans at the heart of our policies and programmes that impact their employment and employability – in short, their lives and livelihoods. For a start, more must be done to better protect vulnerable PMEs who are in their 40s to 60s. We need support from both Government and employers to ensure that they are not discriminated at workplaces, have fair access to PME roles, as well as training and progression opportunities. It is, therefore, timely to review, expand, extend and tighten related schemes, laws, policies and programmes which can better protect and support PMEs in the areas of employment and employability to ensure fairness and inclusivity. In this regard, I have three suggestions. One, tougher measures to strengthen the Singaporean Core. While many of us recognise the contribution of foreign PMEs to Singapore’s economy and reasons why we need them, there remains a ground concern that the reliance on foreign PMEs has led to an unnecessary increase in competition in the job market and employment. To safeguard the Singaporean Core and curb discriminatory hiring, we must ensure that Singaporean PMEs have access to a level-playing field for jobs while balancing companies’ manpower needs in the intermediate and longer term. The qualifying salaries of both the Employment Pass and S Pass holders were recently raised in 2020. But this needs to be regularly reviewed and raised in line with rising median wages of PMETs. The problem is that some PMETs view the increase in qualifying salaries as "raising" minimum wages for foreign talents. There are also ground concerns pointing to employers who raise the salaries or repackage the compensation and benefits of their foreign PMETs to comply with the rules, and not give similar pay hikes to the Singaporean PMETs who work alongside these foreign PMETs performing similar or even same jobs. This results in serious parity issues. We also hear that there are employers who "downgraded" their Employment Pass holders performing the same job functions to S-Pass to "comply" with the policy changes. We therefore need to look at ways to further strengthen the S Pass criteria and conditions to prevent such a back-door approach. This also means we need continued stricter enforcement against errant companies with a weakening Singaporean Core, especially those who continue to be "triple weak" – companies with highly disproportionate number of foreign PMEs, weak commitment to nurture and strengthen the Singaporean Core, and weak relevance to Singapore's economy and society. Besides administrative and penal sanctions that are already in place and can be enhanced, I have lobbied before in this House and am highlighting again that enforcement can come in the form of revealing or publishing the "triple weak" watchlist which Ministry of Manpower and Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) maintain, so that the potential reputational loss would serve as a deterrence. We can also impose mandatory audits and penalties, such as removing preferential tax and other benefits, including curtailment of the award of public sector contracts on companies with discriminatory hiring practices and high proportion of grievance cases if no improvement is made within a stipulated time period.
To strengthen the Singaporean Core, employers must ensure locals have fair access to PME roles and progression opportunities.
[+8 sentences] I agree and support when Deputy Prime Minister highlighted the principle of "complementarity" when it comes to hiring of foreign manpower. Often, employers bring in foreign PMEs to fill skills or knowledge gaps in their current workforce. As such, it is imperative that we monitor and ensure concerted, structured and institutionalised skills and knowledge transfer from these foreign PMEs to our local PMEs within a stipulated and agreed timeframe. Employers must also have clear development plans to grow the Singaporean Core and build a pipeline of locals to fill roles at all levels of the hierarchy including the top. Anecdotally, some companies increase the hire of only the entry-level Singaporean PMEs to increase the workforce size to circumvent the issue of a disproportionate percentage or number of foreign PMEs. Besides employers and businesses, employment agents and agencies operating locally and also overseas, and hiring for PME roles in Singapore must also be closely scrutinised to ensure they keep within the boundaries of the law and eradicate unfair recruitment practices. Two, anti-discrimination legislation. By the same token and in the spirit of strengthening the Singaporean Core and cases of preference for foreign PMEs, which is a form of nationality discrimination, we also continue to hear anecdotally of ageism, especially from the mature PMEs we speak to, as well as other forms of discrimination impacting workers, such as in relation to gender, disability and race and so on.
Perhaps, it is time for us to seriously deep dive and consider, beyond mere tripartite advisories, guidelines and standards, to promulgate anti-discrimination legislation to give a stronger set of teeth to existing institutions like TAFEP which has done well in educating, promoting and encouraging fair and progressive hiring practices since its set-up.
[+3 sentences] Such a legislation could send a stronger signal than the current tripartite standards and guidelines, to send a clear deterrence, give TAFEP wider powers and eradicate all forms of discrimination and discriminatory practices at workplaces by employers as well as employment agents or agencies. Third, transitionary insurance, also known as unemployment insurance. As we have seen in 2020 amidst the COVID-19 pandemic, many sectors and workers have been affected.
In fact, the Government had to set aside a budget of $100 billion to save businesses and save jobs and to provide income relief and assistance to those affected by retrenchment or severe wage cuts. In this regard, and having gleaned from the various recessions and downturns, including this current downturn, it may be timely for us to consider introducing some form of transitionary insurance, commonly referred to as unemployment insurance, to help workers affected by retrenchments and job loss.
[+7 sentences] I agree with Prof Hoon Hian Teck and I am cognisant that there is a need to do a deeper dive and examine the mechanics and the actuarial viability and sustainability of such a scheme. There are important considerations, such as the trigger event, premium amounts, duration and amount of payouts, whether it should be made compulsory to avoid self-selection, how we price the risk, the need for a critical mass or universality and whether it is to be implemented by any of our tripartite partners or all three partners together or by a private sector entity or a social enterprise. Notwithstanding, we have seen such a scheme work well in countries like Germany and in some of the Scandinavian countries without causing excessive burdens on governments, employers and employees alike. There could also be a possibility to explore and seed fintech or an insurtech start-ups to come up with such a scheme but with strong support from tripartite partners especially the Government in the form of seed funding and support as well as co-funding. Mr Deputy Speaker, in Chinese. (In Mandarin): Mr Deputy Speaker, this year's budget is a targeted, forward-looking Budget, designed to help businesses and workers. I am most concerned about our mature PMEs.
When implementing the schemes and roadmaps, I hope that we can, first, build a workforce with a Singaporean Core; second, promulgate anti-discrimination legislation to eliminate workplace discrimination; third, explore the possibility of unemployment insurance so that workers can have some basic protection when unemployed.
[+9 sentences] (In English): We recognise the growing need to ensure PMEs are adequately protected, have access to good jobs and are equipped with the relevant skills. As we prepare for the next normal, it is important that we continue to entrench progressive and fair practices at workplaces and extend schemes to support local PMEs, especially the vulnerable workers because every worker matters. The Labour Movement and our unions can support local PMEs by working closely with employers to put in place multi-faceted support and strategies to enhance one's job security and skills security through our Company Training Committees and Job Security Council. However, it continues to be crucial to level the playing field for our Singaporean PMEs, strengthen the Singaporean Core, eradicate all forms of discrimination through tougher measures and targeted legislation and support PMEs and workers in general, to transit effectively and less painfully between jobs. In conclusion, the tripartite partners, Government, employers and the Labour Movement need to embrace the changes and disruptions with the right attitude and right mindset to see this period not as a threat but as an opportunity to re-invent and transform and test new boundaries and innovations. To put it simply, we need to prepare ourselves with new skills, pivot to new industries and jobs and persevere amidst the next normal. I thank our fellow workers who had stood strong, united and remained resilient in the past year. I hope we will upturn the downturn this year, build back better and emerge stronger. I support this Budget.
Mr Deputy Speaker4 words
[+1 sentence]Deputy Leader, Zaqy Mohamad.
Debate on Annual Budget Statement› Budget13 turns · 12,236w · 86 highlighted
budget-1576recorded 2021-02-24
Mr Deputy Speaker3 words
[+1 sentence]Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Radin Mas)1676 words
[+1 sentence]Mr Deputy Speaker, I rise in support of the Budget, which seeks to help all segments of our economy – workers, businesses and households – to rebound strongly from the devastating impact of the prolonged COVID-19 pandemic.
In particular, I support the Government's proposal to set aside $11 billion under the COVID-19 Resilience Package to support workers and businesses, especially for sectors that are still under duress. The extension of the Jobs Support Scheme and the COVID-19 Driver Relief Fund, for example, will go a long way to assist our brothers and sisters in the aviation, tourism and point-to-point transport sectors.
[+33 sentences] But while we continue to provide support to affected sectors, we need to also address new macro trends that are developing in our workforce and at our workplaces. I will focus on two of them in my speech today. They are the phenomena of Work-From-Anywhere and the Work-From-Home. In his speech, the Deputy Prime Minister spoke briefly about workplace trends and hinted how in the not-too-distant future, Singaporeans will be able to work from anywhere in the world, with just a laptop. I cannot agree more with the Deputy Prime Minister. In fact, I would argue that the Work-From-Anywhere trend is already happening today. This ability to work from anywhere is both an excellent opportunity, as well as a serious threat for Singapore and Singaporeans. How so? Competition for jobs will increase and this will no longer just be limited to talents located in Singapore. Instead, competition can come from literally anywhere in the world. What kind of jobs will be at risk? With seamless connectivity, supported by 5G technology, every job is at risk. But Singapore has never feared competition, even in the darkest of times. Instead, we learn, we adapt and we always strive to do better than the competition. To prepare Singapore for the eventuality of global competition, we will need to re-think our key manpower policies. Will our Work Pass and Employment Pass regime remain relevant when companies no longer need employees to be physically based in one location to perform the work? How long will this conventional system of balancing our local-foreign workforce mix continue to serve us? But it is not all bad news. The ability to work from anywhere will bring the world closer to Singaporeans. A good example is James Kwa, a Business Development Manager at Asia Market Entry, a consultancy company that partners with the Economic Development Board to bring investments into Singapore. Prior to the pandemic, James had to travel up to three times a week to meet and attract technology companies to set up shop in Singapore. But his company had to innovate due to the global shutdown in air travel. James now hosts overseas companies virtually through a suite of video content and video conferencing tools. When the pandemic is over, James and his company intend to continue hosting clients virtually, as the time saved from travelling allows them to showcase Singapore to even more clients. Mr Deputy Speaker, we must not underestimate the pace of transformation. By 2035, technological advances will have a major impact on the social and economic foundations of society. Today, we are already seeing an increase in the popularity of online project management tools, such as Asana, which allows managers to remotely manage team members based anywhere in the world. As technologies like 5G and autonomous robotics begin to proliferate, governments will have to confront a major dilemma – how much of the country's key economic activities will be permitted to be run by companies and operated by a growing workforce domiciled elsewhere? Our public officers will need adapt in the face of such major developments. But how many of our public officers today are ready to take on the challenges for tomorrow? Are our public service schemes ready for the day where life expectancies in Singapore reach well over 90 years? I will speak more about the pressing need for our Public Service to take the lead in remaining adaptable during the COS debate. We also need to invest in the right public service infrastructure to seize the opportunities of tomorrow.
While I am heartened that the Government will commit 1% of our GDP, or about $25 billion, over the next five years to invest in research and innovation, we need to ask ourselves: is this ambitious enough? According to the latest list of the world's top 500 supercomputers, the processing power of Singapore's fastest supercomputer is ranked at 390th in the world.
[+4 sentences] Contrast this to January 2017, just four years ago, when our first supercomputer, the Aspire 1, was then ranked 115th in the world. Have we lost pace in the development of deep technology infrastructure? What can we do to catch up? There is also an urgent need to re-look at SkillsFuture.
Since its launch, less than 24% of eligible Singaporeans have utilised their SkillsFuture Credits.
[+12 sentences] Clearly, we have hit a point of marginal returns. We need to thoroughly review the SkillsFuture Credits programme and tweak the objectives of the programme to equip Singaporeans with future-ready skills. Mr Deputy Speaker, training for jobs of the future is not as daunting as it sounds. During my multiple visits to our Autonomous Vehicle (AV) trials locally, I met Ken Chia, a member of the National Transport Workers’ Union. Ken is a bus captain who is now a certified AV operator. When the AV is in operation, Ken’s responsibility is to ensure the safety of his passengers, and to take over manual control of the vehicle when needed. Instead of a conventional steering wheel, Ken uses a small hand-held console comprising two joysticks. He jokingly said that it was easy for him, as he played plenty of video games during his teenage days. But in reality, the initial training was anything but easy for Ken. More comfortable with the Chinese language, he had a tough time understanding the original training content, as it was taught in English by a French instructor! But the company stepped in and the training materials were translated into Chinese for him. The lessons were also adapted to provide more hands-on training.
Ken is a good example of a worker who is already performing a job of the future.
[+1 sentence] Every worker matters.
And the Labour Movement is committed to helping every worker transform and be ready to take on the jobs of tomorrow, Mr Deputy Speaker, COVID-19 has caused a fundamental shift to our workplace culture, with many companies allowing their employees to telecommute; and local banks, such as DBS and UOB, have already committed to make flexi-work arrangements a permanent policy post-pandemic.
[+5 sentences] Working from home, however, has brought along its own set of challenges, relating to space and care-giving needs. First, being productive while you work from home requires sufficient space. Parents will know what I mean. Without a dedicated area to work, we are easily distracted with our children and by other things in the house that need our attention. Unfortunately, space is increasingly difficult to come by.
In the 1980s, a 4-room HDB Model "A" flat would come with a floor area of between 105 to 108 sqm. Today, new 4-room HDB flats have a floor area of 90 sqm.
[+13 sentences] HDB flats have shrunk in size, understandably, due to the reduction in our average household in size. But with more working and learning from home, is it time for us to return to building bigger HDB flats once again? An extra 15 sqm can provide Singaporeans with a study room that can also double up as a home office. Second, let us provide better support to care-givers. For many, working from home also means juggling work with care-giving needs. These informal care-givers are often disadvantaged in their careers and retirement adequacy. But we have an opportunity to change this. According to a Straits Times survey, eight in 10 workers in Singapore prefer to work from home or have flexible work arrangements. With this new normal of working from home, we need to encourage more employers to adopt flexible work arrangements. This will allow care-givers to concurrently work and care for their loved ones, without having to make the difficult decision to choose one over the other. In Radin Mas, we are building an eco-system to support our residents with care-giving needs. Last year, we brought some of NTUC's most experienced career coaches to the community centre to help those who need career guidance and job placement services. This has been particularly helpful for care-givers who had left work for a period of time and were struggling to return to the workforce.
Today, I am happy to announce the new Jobs Closer to Home programme. This is a pilot partnership between the NTUC and the Singapore Manufacturing Federation, to help residents in Radin Mas find jobs closer to home – more specifically, within a 5-km radius of the constituency.
[+9 sentences] Residents with care-giving needs often tell me that they cannot afford a long commute to work. With this initiative, we hope to plug this gap and help match our residents with nearby companies. Most jobs on offer today are just a short bus ride away. Mr Deputy Speaker, Budget 2021 will be the first time in our history that we are drawing on our reserves for a second consecutive financial year. This is an unprecedented move that befits the unprecedented crisis that we are facing. As we tackle the twin challenges brought about by the pandemic and the macro global trends affecting our workplaces, I am confident that the resources set aside in this Budget will spur transformation among our workers and our businesses. The extension and enhancements made to the Jobs Growth Incentive will help all segments of workers, including mature workers, persons with disabilities, as well as ex-offenders, to transit into jobs in growth sectors. The Labour Movement stands united with the Government in helping Singapore emerge stronger together from the shadows of the pandemic and tap on the opportunities that the future holds. With that, I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Abdul Samad.
Mr Abdul Samad (Nominated Member)1645 words
[+1 sentence]Mr Deputy Speaker, I will be speaking as a union leader and a workers' representative.
First, let me begin by stating that I welcome the Budget as it supports businesses and workers to adapt and grow in a post-COVID-19 world. I am especially heartened by the additional wage support through the extension of Jobs Support Scheme (JSS) to support our workers in the hard-hit sectors.
[+6 sentences] I would like to also express their hope that the JSS will be extended further should the situation not improve. I would like to touch on three topics, namely: Strengthening Singaporean Core; Workforce transformation through training; and expanding the Progressive Wage Model (PWM) to other sectors, beyond those sectors where there are a higher proportion of low-wage workers. Singapore's only natural resource is our people, and safeguarding jobs for Singaporeans must continue to be our key focus. I am encouraged by the various measures in the past and current Budgets to strengthen the Singaporean Core. While we keep our economy open and have foreign workers to augment our local workforce, we must create more employment opportunities for our locals and continue to strengthen our Singaporean Core at both the sectoral and company levels. I would like to share some good examples.
In my engagements with fellow union leaders from NTUC's Oil, Petrochemical, Energy and Chemicals cluster, we do have a strong Singaporean Core in the sector's unionised companies, with a 70% local workforce.
[+1 sentence] The local and foreign talent complement has also resulted in high reliability standards that the sector is known for.
In specifically the power sector, we have a stronger Singaporean Core with a local workforce of more than 90%.
[+17 sentences] In Singapore Power (SP) Group, where I am working, there is a local workforce of more than 95%. The employment practices in this sector to build the Singaporean Core can be a learning model for other companies to emulate. Here, I would like to call on all employers to make the local workforce your employee of choice and ensure skills transfer to the local workers to moderate reliance on foreign labour. Perhaps, our Government can consider putting in place policies or incentives to recognise companies who build a stronger Singaporean Core and develop their local workforce across all levels, through positive differentiation among companies who do not. There are many manpower policies that are at the disposal of MOM to achieve this intended outcome of developing a Singaporean Core. My next topic is about workforce transformation through training. Having a strong Singaporean Core includes ensuring that their skills remain relevant. This brings me to my second point which is about the importance of training has shifted from equipping workers with today’s skills to preparing the workers for the jobs of tomorrow. Unions are committed to work with employers to help our workers build their capabilities, upgrade their skills and transform by setting up Company Training Committees. For instance, the Union of Power and Gas Employees where I have the privilege to be the General-Secretary, has collaborated with SP Group in their mission to develop future skills roadmap to enhance the employability of the workforce. Launched in 2018, Project Fusion, which stands for "Future Skills in Everyone", looks at how will current jobs change, what are the new jobs, what are the future skills, and how can our workers learn these future skills. It is a holistic approach to future-proof the workforce. I urge employers to take the lead in the development of workers to meet the evolving needs of your industry by identifying relevant future skills and taking advantage of the economic downturn to train and transform your workers. NTUC can support by working with the companies to facilitate an Operation Technology Roadmap workshop to identify strategic technological changes and training needed to help the company transform. Skills upgrading must go hand in hand with productivity improvement and career advancement to ensure sustainable wage increases. Workers who are performing higher value-added jobs should look forward to better wages, welfare and work prospects, in line with the productivity gains. This can be achieved through the PWM, which leads to my third topic for today.
PWM was launched in June 2012 to enable workers to achieve sustainable wage increases through the acquisition of better skills and higher productivity.
[+9 sentences] While it has thus far been implemented in low-wage outsourced sectors, including cleaning, security and landscape, the PWM is applicable to all sectors and PME jobs as well. In fact, many of the unionised companies in the Oil, Petrochemicals, Energy and Chemical industries have a structured career development plan for their employees that is mapped to skills and salary ladder. This is akin to the PWM's value proposition and has allowed many workers to achieve sustainable wage growth through upskilling and career progression. I believe every responsible employer has a career development plan for their workers. Beyond having that career development plan reside in the individual company, I would like to echo NTUC’s aims to have PWM in more sectors and call for sectoral agencies to work with employers, unions and professional associations to implement the model, beyond the existing mandatory sectors. The sectoral level PWM will allow workers to have the visibility of the career pathways and salary progression in tandem with the skill upgrading and productivity improvements. Workers will have sight of the career and salaries that the sector has to offer them as well as the required skills and training. This will provide a useful roadmap to attract fresh graduates, mid-career switchers, develop and retain locals in the sector. During downturns, the visibility of the sectoral PWM’s skills will facilitate cross-function, cross-company and cross-sector mobility for workers from restructuring companies to companies that are hiring.
As shared, NTUC is in talks with the relevant stakeholders to develop a PWM for the Solar Energy Sector. With Singapore aiming to achieve almost five times the current solar usage by 2030 and together with the industry career development plan for Solar Technologists, a PWM for this sector would provide a clearer career development and wage progression plan as this sector develops a Singapore Core.
[+2 sentences] With all the above effort and examples, I hope to see more sectors come onboard and implement the PWM! Let me now say a few words in Malay.
(In Malay): The extension of the Jobs Support Scheme or JSS into the aviation, aerospace and tourism sectors is truly welcomed by the trade unions in those sectors. They also hope that it can be extended further if the economy remains sluggish.
[+11 sentences] In fact, they also hope that the Government constantly monitors this situation and continues to implement measures to reopen the sector with international partners, so that the industry can resume its activities. On this note, the Labour Movement wished to express their appreciation to all companies that retain and support their workers through the Jobs Support Scheme. As far as possible, please avoid any retrenchment because when a worker loses his job, it will impact the whole family's finances, and not just the worker's. Make use this time instead to send your workers for training to upgrade their skills and to identify new skills that you will need, so that your workers are better equipped for any new job in the future. Among the skills needed right now and in the future are the various technology-related skills such as digital skills, data analysis, artificial intelligence and so on. Employers need to identify the type of skills required from their employees when identifying the type of training required. We always hear about workers having difficulty or refusing to undergo training. That is a misconception. Please do not blame the workers entirely on this issue of training. Actually, our hope is that such training will enhance our status as workers in order for us to have good careers, better welfare and a better working environment. In fact, we also hope that, after undergoing training, our salaries will increase in line with improvements in our productivity.
Besides training, the labour unions call on the Government to encourage employers to build a strong Singapore core in their workforce not just in terms of numbers, but also in term of skills and capabilities as well as competitiveness. It will be even better if the Government can incentivise employers with a strong Singaporean core in their workforce.
[+10 sentences] Having a strong Singaporean core will encourage and motivate Singaporean core workers to upgrade their skills and compete hard to secure employment opportunities. (In English): I would like to close my speech by making two key points. First, NTUC will continue to help workers of all collars, ages and nationalities achieve gainful employment through better jobs and a better living through higher wages, so that they can live a better life. We call on the Government to continue formulating and implementing labour policies that aim to develop a globally competitive workforce and a great workplace, for a cohesive society and a secure economic future for all Singaporeans. To our employers, who are tuning into this Budget debate, we hope that you will do your part to transform your business, enhance productivity and competitiveness and upskill your workers for future jobs. This is Singapore’s Tripartism Model! Finally, this pandemic has been with us since early 2020 and there is still no sign it will go away anytime soon. As a union leader and on behalf of all my fellow sisters and brothers in the Labour Movement, I would like to take this opportunity to express our utmost appreciation to all my fellow essential service workers, be it in healthcare, cleaning, security, transport, telecommunication, nearer to my heart – power and gas, even water. Thank you, thank you very much for your unwavering commitment, dedication and resilience to serve our country and our people during this pandemic. Mr Deputy Speaker, I support this Budget.
Mr Deputy Speaker7 words
[+1 sentence]Senior Minister of State Heng Chee How.
The Senior Minister of State for Defence (Mr Heng Chee How)2895 words
[+3 sentences]Mr Deputy Speaker, thank you for allowing me to join this debate. The impact of COVID-19 on the world and on Singapore has been tremendous. While we in Singapore have kept fatalities to a minimum, the devastating effect of the pandemic on the economy and on our livelihoods is obvious.
In order to buffer the impact, the Government rolled out five Budgets last year and spent close to $100 billion to help businesses cut costs and to help workers save jobs. If not for that decisive and massive action, the GDP drop last year would not be the minus 5.4%; it would be something more like minus 12.4%.
[+10 sentences] And it is not just the percentage points; that will convert into jobs loss, families impacted. So, I think it is important for us to recognise what that massive action has helped stave off, in terms of suffering, for fellow Singaporeans. For 2021, whilst we must continue to look after our jobs and businesses, and contain the negative impact of the pandemic, we cannot just do that. We must, at the same time, look at how to get back on track for the future. And this is the theme of this year's Budget, "Emerging Stronger Together". "Emerging Stronger Together" is not a slogan. It is not a nice-to-have, it is crucial. Why? Let me break it down into why it is important to emerge stronger and why it is important to emerge together. First, why is it necessary to emerge stronger.
The $100 billion from our reserves, once it is spent, it is spent.
[+39 sentences] We all know that we cannot count on an endless $100 billion. Never mind what size of our reserves but we would not have an endless $100 billion to keep on spending time after time to block pain. We must also assume that there will be future downturns that will come our way. In what way, in what form, what triggers it, we do not know, but come they will, one day. Therefore, we have to find sustainable ways to replenish our national kitty. Our reserves are like the airbag in our car. If we used it, we have to refill it. Otherwise, the next accident, we may not survive so well. Second, the global low interest rate environment is likely to persist for some time. Major economies will use fiscal and monetary policies to keep their economies going to avoid the recession, amid a tepid inflationary environment. Now, what this means is that the returns we can expect from investments are likely to stay low. As we all know, we already used a good proportion of our NIRC to fund Government expenditure. And if the outlook is so, then we cannot just plan on the basis that what we do not want to spend out of our reserves, should the need be that we will naturally get it from increased investment income. We cannot plan on that basis. Third, whereas on the revenue and the money side, we have to more careful, but the need for the Government to spend more in upgrading our infrastructure, as so many Members have explained, in the different sectors is clear. And so is the crucial need to continue investing in our people and taking better care especially of our ageing local population and our workforce in an increasingly volatile environment. That need will only go up. It is a reality that we cannot escape, be it structural. To do that spending, we have to find the money somehow. These reasons and factors converge to make it imperative that we go back into maintaining a laser-sharp focus on transforming our economy and to get growth going again. Otherwise, Singapore will be hard pressed to find or to create the resources that we need for that national journey ahead. That is why we must emerge stronger. Why must we emerge together? As we seek ways to emerge stronger, we must also ensure that we do so together. And I can think of two reasons, at least. First, we must plan on not leaving any group behind as we emerge stronger. When we say in the Labour Movement "Every worker matters", that is Labour Movement. For Singapore, every Singaporean matters. This is key to our national, social cohesion and stability. Second, we must enlist the contribution from every group, every segment and every individual toward emerging stronger and staying resilient and self-reliant. The more we can do so, the more we will strengthen national resource creation and moderate the rise in Government welfare expenditure or the need to bring forth more taxation. How to emerge stronger together in the context of the senior worker – that will be the focus of my speech today, Mr Deputy Speaker. With regard to senior workforce, I would like to propose five measures in order for us to emerge stronger together. First, continue to save jobs and create jobs. Sir, I thank the Government very much for the Jobs Support Scheme (JSS), the Jobs Growth Incentive (JGI), the SGUnited Jobs and Skills Package, the enhanced Wage Credit Scheme and the Senior Employment Credit Scheme. I name all these because sometimes they get lost as we look at the overall Budget. But I just want everybody to remember that all these schemes were rolled out purposefully in order to make a difference to the employment and employability of all our workers, senior workers included. They have given much breathing room to firms in 2020 and have helped thousands of workers keep jobs. This has enabled the overall employment rate for our senior workers to remain stable last year.
In fact, for the age band 65 and above, the employment rate last year went up by 0.9-percentage points, compared to 2019.
[+1 sentence] I therefore fully support the fine-tuned extension of these schemes in this year's Budget to continue to save jobs and lighten the load on firms.
At the same time, Mr Deputy Speaker, I must also point out that for the distressed sectors such as aerospace, aviation and retail, senior workers have experienced significant impact through non-offers or non-renewals of re-employment contracts as the firms downsized.
[+6 sentences] It would not be easy for such displaced senior workers to find new work. I therefore urge more Government support in order to step up specific, industry-focused efforts to help senior workers in these distressed sectors to keep their jobs, or if not, then to proactively be retrained and placed into jobs in other sectors and industries. Two, press on with agreed timetable to raise statutory retirement and re-employment ages and CPF contributions. The tripartite partners have taken to legislation to ensure older workers have the opportunity to work longer by raising the retirement and re-employment ages. After all, being employed is the best safety net and companies need workers. The Labour Movement called for tripartite discussions on this subject in 2018.
The Government responded positively to our call and set up the Tripartite Workgroup on Older Workers, which then reached consensus to raise the Statutory Retirement Age from 62 to 65, and the re-employment age ceiling from 67 to 70 progressively over the coming decade, starting with a new retirement age of 63 and a new re-employment age ceiling of 68 from July 2022.
[+3 sentences] This schedule was first put in place by the tripartite partners to enhance the retirement and re-employment framework, strengthen older workers’ retirement adequacy, and to further promote progressive workplaces that value older workers. Many companies and organisations have proven that this can be done. NTUC, for example, we walked the talk.
As an employer ourselves, we have taken the lead. We have raised the organisational retirement age and re-employment age ceiling by one year from 1 January 2021.
[+3 sentences] This was earlier announced. Our social enterprises will do so from 1 July this year, also as earlier announced and this is a year ahead of the national timeline. The public sector has done likewise.
The Civil Service announced in 2019 that it will raise the retirement and re-employment ages of its officers by one year to 63 and 68 respectively in July this year – again, a year ahead of the national schedule.
[+6 sentences] Outside NTUC, outside the public sector, when we look within the unionised sector at the private sector employers, we have been encouraged. We have seen more than 100 employers in the unionised sector who have voluntarily either upped the retirement age within the company or increased the re-employment age within the company, or both. This number, compared to the number that we saw in 2019, it basically doubled. And it covers companies across different sectors – we have companies who are in the attractions area, the hotels, food manufacturing, childcare and there are many other sectors. So, it is fairly broad-based. To help workers enhance their retirement adequacy, we also called for sustainable increases in CPF contributions for older workers over the years.
Unfortunately, COVID-19 disrupted our whole economy, forcing the planned CPF enhancements to be deferred by a year, to 1 January 2022.
[+6 sentences] The Labour Movement deliberated hard but we supported that deferment because we understood that in the depth of that pandemic, in the depth of that disruption, the most important thing is employment. We do not want our older workers to be put at unnecessary, greater risk of losing their jobs. Yet, Mr Deputy Speaker, while we do that, I want to remind this House and everyone out there, that we must be careful to keep pace with our original intent and purpose of helping older workers enhance their retirement adequacy, given our longer lifespans, on average. This was the purpose for that workgroup, for my calling for it in 2018, for the consensus that was developed for that agreement. It was not done haphazardly. It was for a strategic purpose – in order to secure our national objectives and to make that as many of our older workers would have better retirement adequacy, which is a point that is shared by both sides of the House.
Therefore, we must be careful not to kick the can down the road further because if we negatively impact on retirement adequacy, that will come back to bite us earlier and harder. I am therefore calling for the planned raising of the Statutory Retirement and Re-employment Ages in July 2022, as well as with the agreed deferred improvements to the CPF contributions now due in January 2022, to be proceeded with, without further delay.
[+12 sentences] At the same time, I also urge the Government to help employers defray the cost of their enhanced CPF contributions through the CPF Transition Offset, which was also within the plan prior to the deferment. Three, strengthen adoption of Flexible Work Arrangements. In Budget 2019, I pointed out that if we can implement flexible work arrangements more systematically and pervasively, we will be able to retain significantly more local workers, and allow more middle-aged workers to undertake care-giving without having to quit work, and to return to work post-care-giving. I was very pleased that Mr Melvin Yong has made specific arrangements within his Radin Mas constituency in order to bring this forward. And it is important that we do so, because it would be a pity if our workers have to choose between work and family, just because companies do not offer enough flexible work options. Here, COVID-19 has done something good. It has forced the employers to re-assess how work can be conducted in non-traditional ways. In other words, not necessarily at the workplace, not necessarily full-time. Certain roles can be done from home, at least a good part of the time or part-time work might be actually doable in combination, or to implement, for example, staggered starting times. So, the way in which you can maximise the use of your manpower and tap manpower sources can be a lot more flexible. COVID-19 has opened the eyes of both employers as well as workers too to that possibility. And both have learnt and adapted.
We must build on this insight and make gains, and not just lapse back into the status quo and go back into the same-old, same-old of must be here at the workplace and must be full-time. I therefore urge Government to strongly support the more pervasive adoption of Flexible Work Arrangements.
[+17 sentences] This can significantly improve employment outcomes for senior workers, for the middle-aged older workers who might otherwise have to leave work in order to look after older family members and then, cannot come back. Four, strengthen skills building for senior workers. When COVID-19 struck, businesses started to pivot more to technology and individuals also had to quickly pick up new skills in order to be able to cope well within that new situation. Nowadays, using our smart phones, laptops and tablets to order food, scan QR codes for services, to conduct meetings online and leverage e-commerce platforms have now become very normal, second nature to businesses and many individuals. Senior workers had to adapt and many did. What has that taught both employers and our senior workers? That lifelong learning for lifelong employability is completely achievable, can be done, has been done. COVID-19 forced us; a lot more amongst us have done so. Therefore, once again, just like my call on that flexible work arrangement insight not to go to waste, we must also not let the progress achieved through this painful adaptation during the pandemic with regard picking up new skills, using of new technology, we must not let that be wasted and must not allow old mindsets and prejudices and old practices to return that would only stymy us. Otherwise, with these fast-changing business models and technology, we can only expect even more and faster displacement of our senior workers and that would lead to all those negative scenarios we really dread and want to avoid – chief among which would be retirement inadequacy. To do so effectively, there must be specific mechanisms within industries and workplaces to operationalise the intent. Here, what do I mean? It means that it is not only about policy. Policies are important. It is not only about funding. But funding is important. It is about who is supposed to get together with whom in the company to discuss what is needed, who is supposed to be sent for what and then, to execute that.
Only that action will give us the results that we need. I therefore urge further integration between the jobs-skills ladders of the Industry Transformation Maps (ITMs) and the work of Company Training Committees (CTCs), including the sectoral versions. The CTCs are equipped to help companies undertake Operations-Technology-Skills road-mapping. I think we should do more in order to resource them so that they can propagate even faster.
[+8 sentences] They can then be our machinery to ensure that purposeful skills building takes place in the economy, and that workers of all ages – and here, I have a particular emphasis on senior workers, for reasons that are quite obvious to us all, that they are vulnerable to be left out and therefore, we must not let that happen. CTCs will be the machinery where we can better ensure that they are not forgotten but that they are included and they are part of this progress. Five, strengthen health of senior workers. For many years now, workplace health has focused on wellness and chronic disease management – diabetes, high blood pressure and the like. All these remain valid. At the same time, COVID-19 has taught us something else, that we cannot say that we are not vulnerable to infectious diseases. And depending on what we are talking about, these diseases can indeed pose a severe threat to individuals, corporates and even to our whole economy and society. Where such infectious diseases can be prevented or be better managed with vaccination, it must be to the advantage of workers, firms and the state to assess which are the most cost-effective, science-based ones, to vaccinate against.
MOH established what is called the National Adult Immunisation Schedule (NAIS) in November 2017 – that was pre-COVID-19 – in order to provide guidance on vaccinations that persons aged 18 years or older should adopt to protect themselves against vaccine-preventable diseases. In the light of the COVID-19 experience, I think the usefulness of this schedule has become much more salient. I urge Government and the tripartite partners to work together to see how best to leverage science-based cost-effective vaccination to enhance business resilience and senior worker health.
[+6 sentences] This will also help forestall potential discrimination against senior workers’ employment or employability on account of real or perceived higher risks of infection and the impact that might have on company operations. Mr Deputy Speaker, in conclusion, if COVID-19 has taught us anything, it is that the perceived barriers to employing older workers can be overcome and that older workers have once again proven their value and adaptability. The Labour Movement will continue to do our utmost to work with tripartite partners and senior workers to enhance their employment and employability. We must also ensure that the right HR practices are in place to tap the potential of senior workers and to recognise their contribution because every worker matters, our older workers matter. This is what emerging stronger together really means for senior workers. Mr Deputy Speaker, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Mr Seah Kian Peng.
Mr Seah Kian Peng (Marine Parade)2090 words
[+6 sentences]Mr Deputy Speaker, thank you for allowing me to join the debate. In the coming Committee of Supply (COS), most of my cuts will be on social and family development issues, covering our social safety net, social service delivery, partnerships with community, building resilient families and also, how we can further make lives better for our women. So, I will not dwell on these here. Deputy Prime Minister and Finance Minister’s Budget is a careful rendering of the bread and butter of our national life. It takes care of all the big moving parts – health, housing – and the big items – defence and education. Sir, last year, we blew all our savings that we took 10 years to accumulate in one large cushion.
Imagine if I tell you now your last 10 years of your own savings or you had to use it all up in one year.
[+1 sentence] It shows the magnitude.
But the $100 billion that the Finance Minister used, was it well used?
[+30 sentences] As Deputy Prime Minister Heng said, and I quote him, "We averted the worst and prevented deep economic scarring and permanent impairment of our economic strengths." We saved jobs, spent on healthcare and now we are making sure all of us are protected. This is the clear and visible, the immediate and vital policy goal. But there many things that are invisible and they take generations to grow. Our sense of identity, what kinds of persons we are and how we relate to each other. Increasingly, this is not just a matter of real life interaction, but also a matter of online culture – how we speak and write to each other when we cannot see each other face to face, when we think of the "other side", not as a human being with feelings, a sense of dignity and to whom we owe duties, but as faceless digits. It is then that we feel free to insult, to complain, to load with vulgarities, expletives and crass innuendos. Sir, the digital world is now an empire, far reaching and powerful. To live the good life there, we need to develop a good online culture. A debate on the Budget may seem like an odd place to speak about this because I am speaking of things that money cannot buy – grace, civility, integrity and simple good manners. These are things that we cannot tax into oblivion or incentivise into existence. But together, they form the culture of our public life and we can only cultivate these by mutual agreement and collective effort. Increasingly, this means paying more attention to the way we live online. For many of us, using cash has become a rare occurrence, as we move more and more to tap our cards, or to scan with our phones. But online payments require not just a smartphone but also reliable wifi or broadband – bare essentials to some, but expensive for others. We need to do more to make these available to the lower income. In an increasingly digital world, these must not be seen as luxuries but as basic transport into a life of dignity and ease. Providing the basics of a digital life is as much a public duty as it is providing national defence and education. In one of my cuts to MCI later on in COS, I will speak about the trend of rising online scams. We have already put in place a few piece of key legislation in terms of disinformation and falsehoods. One missing piece I think in our policy to protect Singaporeans against scams and to grow their digital literacy is to identify who among us is vulnerable. Can the Government put together a simple online literacy assessment, or give guidance on a specific set of information that all of us should know so that we can see where our weak spots are? This is a simple "scan", like the way we would scan our computers, so see where our weak spots are, or a health check-up so we can see if our cholesterol or blood pressure is too high. I think MCI would be best placed to see this through and provide different scans to different age groups. MOE is already providing the necessary hardware for all students to learn. In the pandemic that we are going through, the move to online learning and the use of technology has been very quick and much faster than originally planned. Today, low-income families can already apply for subsidised computers and free broadband through the IMDA's NEU PC Plus programme. But "owning a PC" is not enough. We need to make sure that families have devices that are functioning at a high enough standard for good online learning. More important, children from lower income homes are struck much harder.
Research on a representative sample of Singaporeans has shown that 44% families who lived in rental units, they did not have a connection, and another 44% lacked a computer or a laptop at home. And which is why when my hat as the Group CEO of NTUC Enterprise, at our NTUC First Campus, just two months ago, we launched a scheme to loan iPads to more than 2,000 low-income families and their children attending our My First Skool centres to help them bridge this digital divide.
[+1 sentence] I hope more can be done on this front by Government.
I think it may be worth looking at this more closely. So, of all the families who are living in rental flats with school-going children, how many do not have a PC, and how many do not have broadband connections?
[+3 sentences] But hardware is only half the story. Since 2014, the Home Access programme has provided many low-income households with subsidised broadband and cheaper devices. Today, there are hundreds of families who have access to free broadband.
I think this is a very useful and helpful scheme that can be greatly expanded. So I urge the Government to consider giving all low-income households, especially those with school-going children, free broadband connections.
[+7 sentences] I think this will be a great equaliser. The above are some things that money can buy. Now, I want come to things that money cannot buy. First, I call attention to the rising culture of negativity in the way we relate to each other online. We have had, for many years, ambitions towards a kinder, a more caring and inclusive society. While there has been good progress, there is much scope for further improvement. So, first, I suggest we turn our good intentions into action.
Deputy Prime Minister Heng has announced that a $20 million fund will be set aside to match the Community Chest (ComChest) donations raised through spontaneous acts daily.
[+9 sentences] The is under the new Change for Charity Grant that he announced. Corporations and public alike should give it full support to make it work and to bring cheer to the disadvantaged in our midst. Hopefully, this could become a regular feature and part of the Singapore way of life in future. Again, wearing my NTUC Enterprise hat, we are already doing some of this but I have asked my colleagues to see how we can participate and support this programme in a stronger way. Last, something simple. Can we ourselves to be more considerate before we demand others to be so? Can we cut everyone some "slack" especially when they get it right most of the time? Can we be less entitled? Let me give you an example.
SIRS, as you know, is a COVID-19 assistance programme which provided self-employed people with three quarterly cash payouts of $3,000 each in May, July and October and it is opened to those who earned a net trade income of up to $100,000 and live in a property with an annual value of no more than $21,000.
[+20 sentences] I had a resident staying in a nice $6 million house, that is my estimate of the worth of the house. She complained and demanded to know why she was unable to get the SIRS payout. A second example. Another resident of mine who, without fail, will, on a regular basis, send me photographs of how a particular staircase in his block would be littered with tissue paper here and there. Fortunately, for both him and me, this problem has been solved. Sir, having spoken out against complaining, I must say that I am not now complaining, but there are examples of where I feel we can improve in our public life, to reduce this culture of negativity. This culture is leading to a certain type of online persona, where cynicism, anti-establishment, is a shorthand for intellectualism and political sophistication. In this trend, general negativity towards all things Singaporean is taken as proxy for moral courage, especially when it includes a dose of disdain and disrespect for public institutions. This is a poor reflection on us, at a time where we have done so much that we can be proud of. So, what can we do? First, we need to recognise that being a nation of champion complainers is not all there is to being Singaporeans. This indeed, is a part of us. We cannot help it, and taken in moderation, complaints are a vital part of public life. We must notice mistakes, we must raise our voices and we must hold each other to the highest standards. I do not want to be a Pollyanna about our political landscape. There is indeed much to improve on. But I ask today for us to consider whether we have gone too far in the other direction, to feel every pin prick as a broken bone, to raise our voices and abuse our fellow countrymen, especially those in the public services and in the frontline, as if they are in our debt. Building a culture of unity and a strong sense of identity has always been a challenge in Singapore, a country that is too small to count on its own domestic market, but an ambition too large to be denied, too diverse to take our nationhood for granted but united enough to agree, over 50 years, on things which have torn many other countries apart – race, religion, language, politics. Before I end, I want to highlight my strong support and thanks to Government for the continued enhancements and incentive schemes for organisations to build and to strengthen their local core and the strong support for mature workers, as what my colleague Senior Minister of State Mr Heng Chee How has just talked about. Wearing my NTUC Enterprise hat, this is close to our hearts.
We are proud that we have a very strong local core at all levels – management as well as rank and file. And look at the demographics of our workforce at our largest social enterprise, NTUC Fairprice, our mature workforce speaks of our value system and we see it as a strength: 66% of our staff, that is about two-thirds, are more than 40 years old; 46% are more than 50 years old and 22% more than 60 years old. And we have quite a few who are over 70 years old. These statistics all outperform the national workforce demographics.
[+1 sentence] Yes, the more senior in age staff, they may be a tad slower, less physically agile but they make up for it with their patience, their dedication, their competence and their reliability.
All said, every worker, young and old, every worker matters.
[+7 sentences] As a country, we must welcome diversity. We must look out for each other and always make sure we bring people along in our transformation journeys and leave no one behind and most importantly, we must accord respect to all. These threats towards fragmentation and polarisation have become ever more important, as the reach of the digital empire grows. To combat the dark sides of this empire, we must recall what we owe each other, an obligation and a duty to respect each other. We must recognise the role each of us play in our public life and join together in this journey with maturity and common purpose. For my fellow Labour Members of Parliament and the many union leaders, like Nominated Member of Parliament Abdul Samad, and many other Industrial Relations Officers working hard on the ground, NTUC led by our Secretary-General Ng Chee Meng, will continue to walk the talk, will continue to push for workers' interests, always striving to do better with our actions amidst the complaints. Sir, I support the Budget.
Mr Deputy Speaker4 words
[+1 sentence]Ms Yeo Wan Ling.
Ms Yeo Wan Ling (Pasir Ris-Punggol)2122 words
[+3 sentences]Mr Deputy Speaker, 2021 is a very exciting year for me and many fellow women, as this has been earmarked as a year for Celebrating Singaporean Women. Indeed, there is much to celebrate! Our sisterhood in the union is stronger than they have ever been, with our sisters being represented in leadership positions in every single union, and indeed, even in Parliament, the female voice is strong.
Out of the 93 seats for elected Members of Parliament, 29% of the elected seats belong to women, compared to just four seats two decades ago.
[+19 sentences] As I look upon the women in my life, whether it is my mother and sister who are always there for me, the ladies in the taxi unions who would make passionate points about the need for self-care; the young ladies at my Edusave Awards who would beam at me with such pride when I tell them to shine bright for other little girls; the women in my constituency who comes to me with tired eyes because of their relentless care-giving duties. I cannot help but think that there are miles to go before we sleep, that there are miles to go before we sleep. Indeed, while we live in a contemporary society that promotes equal opportunities in school and proactively creates level playing fields at work for both men and women, the work must continue to hum along to allow women to: one, reimagine their career and livelihood pathways; two, protect women when their decisions impact their livelihoods; and three, to ignite women to fully achieve their potential as they reach for the stars and beyond. Mr Deputy Speaker, Sir, perhaps it is because I am a female Member of Parliament and a Labour Member of Parliament at that, that I have been meeting with many women who have come up to me with their dreams and their aspirations of being able to contribute to their family and, at the same time, to be part of Singapore's economic recovery. Even as we weather the storms of crisis, where households incomes have taken a hit, women have once again risen to the occasion. In World War II, as men were called to the frontlines, women held the fort by stepping up to the plate at home, in industry, in healthcare, to carry families and nations through, in times of great crisis. Today, it is no different. Our women warriors are gritting their teeth and putting on their battle gear as they enter, or re-enter the workforce, take on multiple jobs, or keep at it with their unwavering work ethic to maintain their family's livelihoods, while keeping the nation's economy vibrant and diverse. COVID-19 blew into existence, a strong and wicked storm that devastated many livelihoods and brought many to their knees. This same storm also brought with it, strong tailwinds that created the opportunity for reimagining the impossible. For decades, companies had struggled with the notions of flexible work arrangements vis-a-vis company productivity and bottom line. With COVID-19, overnight, most companies had to deep dive into work from home arrangements and many companies are now considering making this the default in their new normal. Indeed, the same forces which kept our women workers out of the workforce – long working hours, long work commutes – are now being resolved, and there is now a wonderful open opportunity for a different narrative on redesigning jobs for a more inclusive workplace, not only just for women, but also for workers who need flexible work arrangements such as PWDs, seniors and well, people who just prefer such progressive work cultures. Indeed, we must make use of this opportunity to continue to let women reimagine their many possible livelihood options. Women can be anything they choose or desire to be: a career in STEM, a professional crane operator, a plumber, a harbour pilot! Our career choices are limited only by the imagination, and the union will work with our Labour Movement companies and associations to redesign and reimagine jobs. In turn too, I hope that the Government would be able to place more resources to encourage companies to have a relook into their work processes and to support companies through their job redesign strategies. Every woman warrior needs to be equipped with armour so that they can go the distance. I recently met with our female union leaders of our taxi driving sisterhood and they made a very passionate point about how the recent petrol duties hike would impact their livelihoods in adverse ways.
The petrol duties increase effectively means that for our drivers, they pay another 10 cents per litre of petrol that they need for their livelihoods. While the urgent need to go green for national security is definitely something that is not lost on our sisters, this 10 cents per litre, means that they would need to spend more long gruelling hours driving their taxis, this made all the more challenging with street hails at a low due to the dearth of tourism and night spots remaining closed.
[+2 sentences] This impacts the careful balance between their caregiving duties at home, self-care for their mental wellness and the time spent on their livelihoods. Indeed, it might be worth noting that many of our female cabbies are single parents and thereby just makes the balance even more challenging.
The community appreciates the six-month $3,150 COVID Drivers Relief Fund (CDRF) and is heartened by the close tripartite relationship that brought along the expedited disbursement of the tax and additional petrol duty rebates. But our community is still worried that the COVID-19 situation will stretch beyond six months and would like to know what would happen once the support ends.
[+11 sentences] True to the protective gear that the union would provide for all our workers, our unions would take the feedback and work with our tripartite partners – LTA, the taxi, private hire platforms, taxi platform in coming up with further support to ease the transition into the higher duties and also other COVID-19 related difficulties. I met with a rather distraught constituent who was very stressed about managing her care-giving responsibilities at home. Her husband suffers from OCD. She has three young ones and her youngest one has special needs. After speaking with me at length about her issues, she actually heaved a sigh of relief and said that she would now go over to the nearby KFC. She explained that once a week, she goes to KFC for 45 minutes for a coffee break. She spends this time all by herself and she will watch a quick episode of a Korean drama, which, incidentally is also 45 minutes. I was intrigued and I spoke with my friend, who is a clinician about this. She smiled and brought up that, indeed, studies have shown that women need 40 to 45 minutes a week for themselves to recharge before going back to the marathon of life’s responsibilities. Mr Deputy Speaker, Sir, considering how many hours are in a day, all this woman needed was a fraction of it, for herself to rest – 45 minutes, an episode of a K-drama, a meal, a nap. If we see our pots boiling over on the stove, do we not remove the lid a little to remove the pressure?
As we recognise the pressures faced by our women warriors, I put forth that there might be a need to provide support for respite care that might alleviate the burdens of our women workers. An in-community registry of professional care-givers, who could help with eldercare, childcare, and even cleaning services could be made publicly available for women to access short-term care in community easily.
[+6 sentences] An important figure in this whole eco-system to support the movement of Singaporean women returning to work are actually our foreign domestic workers (FDWs). Many women workers I know have shared with me that they see their helpers as an extension of their own families, and form close ties with these "aunties" who help look after the elderly and young in the family as if they were their own relatives. Although it is regretful that recent spotlights have been cast on negative practices between employers and their FDWs, I believe that the general undercurrent is optimistic. Together with the NTUC’s Centre for Domestic Employees, my team over at the Women and Family Unit conducts a monthly advisory and legal clinic for employers and FDWs. I was delighted to observe that the vast majority of people who came to our clinics were here to ask for pro tips on how to best relate to the people who were living with under the same roof. I believe that with mutual respect, understanding and awareness of each other’s needs and boundaries, FDWs and their employers in Singapore, can be good model examples of exemplary employer-employee relations.
Over the next few months, the unions hope that with the support of the Government, we will be able to promote more wide spread awareness to better employment practices and understanding the expectations and aspirations of our women employers and their hired help. However, although respite care options are available, they might not be affordable for certain families that already carry the burden of expensive medical bills and daily expenses. Thus, it presents itself as necessary for there to be additional subsidies to help primary care-givers relieve the financial burden of seeking assistance.
[+18 sentences] As we support women with their responsibilities at home and eagerly beckon them into the promised land of the workforce – work must be done to ensure that the land of opportunity does not turn into the land of the opportunistic. Workplace harassment spares no gender, but women undoubtedly bear the disproportionate portion of such incidences. Plenty of women go to work every day, looking forward to maintain a livelihood, support their families and fulfil their career aspirations – yet are forced by "necessity" and "conventional wisdom" to occasionally look over their shoulders in case of practices, actions or even speech that threaten to muddy the professionalism of their workplaces. However, Mr Deputy Speaker, Sir, we must enquire whether these narratives of "conventional wisdom" that suggest harassment is a mainstay to be expected, the default way of things, should still stand. Surely, I do not think this is how things are meant to be. Coveted honours of being a "great place to work" must always play second fiddle to the bare necessities of a "safe place to work". And this is the assurance our workforce needs. Indeed, a safe place to work also extends to good fair hiring practices, good work-life harmony and progressive retention and employee development policies. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): Amidst the hustle and bustle in Singapore, is a 40-minute break considered long or short? At a Meet-the-People Session, I met an angry middle-aged woman. Honestly speaking, her aggressive and angry look was very intimidating indeed. We spoke for a while, gradually her anger subsided and turned into a stream of endless grievances and helplessness. To a woman in her 30s, troubled by endless family problems such as annoying children, no income, no food for the next meal and so on, a 40-minute break has unknowingly turned into a kind of luxury, a desire and an out-of-reach oasis. We must provide care-givers with respite service as soon as possible. Respite service is a short-term service provided with the aim of alleviating the burden of care-givers. We must raise people's awareness, build an inclusive and empathetic society together, and reduce the worries of care-givers. (In English): Mr Deputy Speaker, in English please.
Looking at the world through the lens of our women, their dreams, aspirations, grievances, and indeed, their humanity, has led me to dream up the possibilities created by having a Singapore Centre for Working Women. Imagine, a single resource centre for women, covering everything I have spoken about in the past 15 minutes and more, where women can come to explore new livelihood options, air grievances, seek mentorship, access best practices, apply for support, seek redress, form alliances and of course, to assist and guide along other women. It is my hope for our women warriors to have a safe space to be themselves amidst other women warriors – a place where women can be unabashedly themselves, unashamed to seek help. And in these connections, be empowered to be the best versions of themselves. It is by capturing the diversity of the concerns and aspirations of our women warriors that we may best release their potential.
[+1 sentence] Sisters, every worker matters.
The Labour Movement will be here to walk with you on your journey, protect you, and help you reach for the stars.
[+1 sentence] I support the Budget.
Mr Deputy Speaker3 words
[+1 sentence]Mr Desmond Choo.
Mr Desmond Choo (Tampines)1776 words
[+15 sentences]Mr Deputy Speaker, thank you for allowing me to join the Debate. The world is still mired in COVID cases and lockdowns. We are now seeing shoots of growth in key economies as vaccination efforts continue to expand. While the worst of the pandemic has seemingly been averted, future recovery is far from certain. It must not be lost on us as we conduct the debate that we had narrowly averted a much deeper recession and that the next cliff can be just the next cluster away. While we need to deal with the current pandemic and recession, problems that come with it, it is equally important to plan for the nation’s future in a post-pandemic world. We must tackle structural changes such as accelerated digitalisation, the new normal of remote working and reconfiguration of supply chains. These are existential challenges. We must retool, reskill. We must transform. First of all, we must continue to support Singaporeans through difficult times by enhancing and shoring up local hiring demand. Protecting the Singaporean Core is a key priority for both the Government and the labour movement. Our labour market has shown a marked improvement. Resident employment has, in fact, returned to pre-pandemic level at end of 2020. This is the result of the Government’s initiatives in protecting the Singaporean Core, and the sacrifices of workers and companies.
The Jobs Growth Incentive (JGI) has seen extremely promising results – with more than 110,000 local hires last year. This is clearly an important measure in shoring up local hiring. I fully support the extension of the JGI.
[+21 sentences] While some companies have progressively started to hire, many are still hesitant. The JGI extension helps to bridge this hiring gap. I also suggest that the Government can consider enhancing JGI for our workers above the age of 62 through added subsidies. These workers are more prone to cyclical and structural changes. Furthermore, they are likely not to be re-employed as companies reduce costs. This will help companies to hire older workers even during uncertain economic times. Next, the Job Support Scheme, or JSS, is one massive life jacket. It kept businesses afloat and workers in their jobs. Some industries have since stabilised, others have grown. The Labour Movement supports the extension of the JSS to companies and workers in sectors that are still hard-hit. The unions and workers in the aviation, aerospace and hospitality sectors register their appreciation. With the global border restrictions, these sectors will need longer recovery timelines as they reconfigure their business models. These sectors need workers and companies to be ready to capture rebound opportunities when the world is eventually opened for business. Next, we need to provide additional assistance to our younger Singaporeans to adapt to the new economy. The pandemic has accelerated the growth and demise of many industries, jobs and skillsets. But many younger Singaporeans could now find themselves on the wrong side of the growth curve and are unable to take advantage of the new growth opportunities in fast-growing industries. To do so, I have three suggestions to make. Some studies have suggested that students graduating in recession years earn less than their peers graduating in non-recession years, and the effects persist for a few years. For some younger Singaporeans, they need to pivot to other sectors that are growing. I suggest that we can help to provide subsidies and loans for their second diplomas, or degrees. Not only would this improve the economy structurally, but this would also complement the lifelong learning attitude we wish to instil in all Singaporeans.
Second, I support the Government's move to extend the SGUnited Traineeships until 31 March 2022. In the annual Joint Autonomous Universities Graduate Employment Survey, SGUnited Traineeships made up 16.9% of graduates who found employment.
[+17 sentences] This shows the importance of the programme in helping our graduates get skills and opportunities even during the pandemic. Could the Ministry consider the provision of incentives to encourage and support host companies to convert these trainees to full-time hires? This will help companies hire these graduates ahead of time. Third, we must enhance the mental well-being support for our workforce. The economic outlook has understandably caused much stress across the workforce, especially that of our younger Singaporeans still hunting for full-time jobs. To better support the mental well-being of our youths, could the Ministry consider training youth care ambassadors equipped with the requisite adjunct support skills to help fellow peers? The labour movement, especially that of the Young NTUC, will work towards extending our support for the Government's initiatives in providing peers with emotional and employment support. Mr Deputy Speaker, my last point relates to supporting the gig economy. The key attraction of the gig economy is in its flexibility. It gives workers the autonomy to choose when, where and how they want to work. As of 2019, there were about 200,000 residents who did freelance work as a regular form of employment. With the creation of new business models, this segment of the workforce is expected to grow. It is already an important and permanent part of our workforce. And the measures must recognise that and support that growth. The pandemic has unearthed structural problems within the current state of protection for the platform workers. SIRS was instrumental in supporting these workers during the crisis. Going forward, it is timely for us to review the regulatory framework to protect these workers.
This is especially important as workers dependent on large platform companies or organisations as their primary source of income. There are three salient issues to be tackled: platform workers are unprotected by key employment legislation, there is insufficient social protection and the lack of incentives to upgrade this segment of the workforce.
[+9 sentences] First, the lack of protection for platform workers under the Employment Act and the Industrial Relations Act has provided significant power to platform companies relative to the workers. This has left platform workers on the shorter end of the stick without statutory recourse such as medical benefits. This is understandable as the Employment Act and the Industrial Relations Act are premised on an employer-employee relationship. And platform workers are not employees. Yet, most of these workers are lowly-skilled and wholly dependent upon the platform companies for their livelihood. The lopsided bargaining powers also means that companies can unilaterally change the terms of their service and incentive structures. Moreover, as workers are classified as independent contractors, they lack the ability to collectively bargain and negotiate wages or change working conditions with these companies. The Labour Movement's recent formation of the National Delivery Champions Association is a positive step forward. But their hands might be tied by legal restrictions on collective representation for service or employment terms.
I believe that more can be done to level the playing field between workers and platform companies to ensure that parties are treated fairly. I suggest that we can consider either allowing the Union to represent these workers collectively or to provide these workers with some level of statutory protection under this Employment Act.
[+4 sentences] Next, on the lack of social protection for platform workers. The crisis and rapid growth of e-commerce have provided a livelihood for workers performing work for platform companies. This is seen in the food or goods delivery, especially during the circuit breaker. Yet, this can be a problem in the long run.
Because there are no CPF contributions from both employers and employees, the state will have to shoulder social support eventually.
[+10 sentences] There is a pressing need to review the social protection of these workers if we want this sector to thrive. Ideally, platform companies should voluntarily commit to the protection of their workers' social security. On the other hand, if there are such contributions, this might reduce the take-home pay for such workers. The current nature of regulation towards these companies is rather light touch. As with many other countries, many platform companies enjoy employer-type of powers without similar and few responsibilities. There can be more room for companies to commit to the protection of our workers, without curtailing the industry's viability. In this vein, can consider looking into subsidies and or disincentives to further encourage platform companies to commit to the longer-term social protection of our workers? Lastly, because these workers are considered independent contractors, there are no incentives from companies to train them. Yet, there are long term impact on Singapore's workforce productivity. To ensure that these workers can thrive as an essential part of the workforce, workers must work continually upskill for greater employment security.
Can the Government look into cost-sharing schemes with platform companies to encourage training support for these workers?
[+10 sentences] There are difficult trade-offs in developing the gig economy, especially for the gig workers. This is a big piece of work that the country has to work on and the Labour Movement stands ready to support the Government's initiatives to better protect gig workers to ensure the development of the gig economy as a permanent fixture of our workforce. Mr Deputy Speaker, the Labour Members of Parliament before me have spoken at length on behalf of our workers. We have advocated for the greater protection and empowerment of vulnerable groups including lower wage Workers, Professionals, Managers and Executives, Self-Employed Persons, and mature workers. We recognise that many of these challenges, the cyclical ones are still before us and we also deeply recognise that many of the challenges, the structural ones are existential threats to Singapore if we do not manage them carefully. It will take strong tripartism to tackle them. Therefore, we must work even closer to re-tool, reskill and transform. We will and must continue to work with the Government as partners to support workers through job re-design, training and workplace support. Our message is a simple one – "Protect Vulnerable Workers, Protect Jobs". The Labour Movement will continue to work closely with the Government and employers to do right by our workers.
Over the course of the five Budgets in 2020, according to MOF, $27.4 billion in grants were used to shore beleaguered companies; 155,000 jobs were saved or created.
[+7 sentences] We shaved 1.7% from the rise in unemployment. I think that is putting workers at its core. I believe that similarly, this Budget reflects the People's Action Party's Government and NTUC's DNA that Every Worker Matters. So, we must work together. Because tripartite partners have worked closely together and Singaporeans singularly united, did we avoid a deeper recession. So now, we must work together to emerge stronger from this crisis to ensure that workers continue to enjoy better wages, welfare, prospects in the years to come. Mr Deputy Speaker, I stand in support of the Budget.
Mr Deputy Speaker8 words
[+1 sentence]Deputy Leader of the House, Mr Zaqy Mohmad.
Debate on Annual Budget Statement› Budget79 turns · 51,977w · 375 highlighted
budget-1580
Speaker not recorded57 words
[+2 sentences], (proc text)]   . (proc text)]
Mr Speaker4 words
[+1 sentence]Mr Gan Thiam Poh.
Mr Gan Thiam Poh (Ang Mo Kio)1408 words
[+4 sentences]Mr Speaker, Sir, every Budget Statement attracts suggestions on how the money may be spent differently, depending on the causes one is championing. This year, I received feedback from some Singaporeans about measures to restore our national reserves. Instead of the usual range of suggestions on spending, they are thinking of ways to add to our coffers. I find it most encouraging and comforting that despite the hardships, people are aware of how our predecessors’ savings have helped our generation through this crisis and want to do the same for future generations.
On the other hand, there are some who suggest that we reduce expenditure in areas such as education, public amenities and even defence, so that more money can be given out as cash assistance.
[+9 sentences] I understand and empathise with the predicament of residents who are cash-strapped but I am afraid I cannot support this kind of suggestion. Education and healthcare, especially for our children, are too important to our future to be compromised. The defence of our little island is too critical for us to cut corners. The world does not become a safer place during a global crisis. We just have to work harder and smarter to earn the funds we need. Thus, it is important that we continue to attract quality investments and see to the realisation of such investments to create quality jobs for Singaporeans. With a vibrant economy and job market, we will be able to rebuild our national savings slowly but surely. We must continue to upgrade ourselves to stay competitive and future-ready for many more years to come, as more jobs are at risk in the face of disruptive technology and the advancement of AI and big data. There are also potential new sources of tax revenues in the new economy.
Just a few hours ago this morning, Australia's government had reached agreement with media tech companies to collect tax on news while European countries have imposed tax on goods sold online. We can work with tech companies to look at possible sources of tax revenue, such as advertising revenue, whilst we continue to welcome and incentivise their investment here.
[+28 sentences] At the same time, we need to relook at our economic model. New technological developments are benefiting owners of capital and enterprises. We need a harder push towards a more innovation-driven economy so that more Singaporeans are on the side of capital. This may be the only way to reap the benefits of technology developments and scale up to reach markets beyond our shores. It is also timely to explore new economic sectors. The agri-food cluster is a good initiative to boost a new industry – one which we were not developing as much in the past due to concerns over land constraints. Today, new tech enables vertical farming and new ways of fish farming. I am excited by these prospects. We are very much a people focused on property gains. Many Singaporeans dream of being a landlord with at least two properties – one to live in and one to rent out – or making capital gains from selling properties. There is nothing wrong with this dream. But I hope more Singaporeans will consider the other pathways to wealth creation – to create a new product or service, or a new type of business. Some have already started on this journey and hence, more needs to be done to engage and help small enterprises and the self-employed, so that they can grow into bigger entities or continue their trades into their senior years. At the same time, we have to ensure Singaporean’s love of properties will not drive up property prices beyond the reach of the majority of Singaporeans. Let us remember that residences are primarily meant to be lived in as homes. On the other hand, we have to be mindful not to be trapped by our properties, or some would say, be a property-slave, which is another way of describing an asset-rich, cash-poor property owner. Some are in genuine difficulties due to sudden job losses or illnesses. They are willing to consider right-sizing their homes but need time for the sale of their properties to go through. But there are others who request government assistance though there are alternatives available to assist them, such as right sizing, renting out rooms and signing on Lease Buyback Scheme which do not even require them to move out of their homes. Government resources are finite, and financial support and assistance must be targeted at low-income groups who do not have the option of monetising assets. Mr Speaker, in Mandarin. (In Mandarin): No matter how difficult our economic situation is, I hope that the Government will continue to support our elderly and senior workers through financial, healthcare and workplace support measures. For this most needy group, I hope that in addition to the Government, our entire society will continue to give them more care and love, and donate money or commit time to help them. (In English): This Budget is commendable for the continuous support for the vulnerable groups through financial reliefs and various rebates and vouchers. Notwithstanding, there is room for improvement. More proactive measures to address the hardship cases of the unemployed would have been helpful. I understand from some residents they were unable to receive their financial assistance as quickly as they would like. For example, I heard that a number of participants under the training programmes did not receive their monthly allowance on a timely basis.
Some of them had to wait for more than three months.
[+1 sentence] During this period, every delay would have caused financial strain to the participants.
Government agencies must put in place measures to ensure that all these schemes to ease hardship be swiftly and effectively administered. I welcome the extension of job growth incentives to support the employment of Singaporeans, especially the seniors and people with disabilities. I appeal for further extension of job credits and wage supplements, which have been well received by Singaporeans, to support senior workers and low-income workers.
[+1 sentence] We must continue to help middle-aged and senior workers who had lost their jobs to reskill and move on to new careers.
The SGUnited Jobs and Skills Centre should continue to reach out to new graduates in the next three years, so that they, too, will have certainty in the post-COVID-19 world.
[+5 sentences] I would suggest the Government also look into incentivising companies with support to upskill their workers regularly, yearly, such as setting aside a minimum number of days of paid leave for the workers to upskill. To resume our economic activities, we need to get our people vaccinated quickly so that we can work with other countries to keep our air hub open to encourage business travellers and tourists to visit Singapore, with all public and safe health measures in place. We need to ensure Changi Airport continues to remain the leading transport hub internationally. COVID-19 has accelerated industry and market transformation. It has brought forth many changes, enabled by digitisation and high speed networks.
Examples include online food delivery and online conferences. I support GST on purchases made online to level the playing field.
[+1 sentence] On the other hand, we need to help local enterprises to export and do online sale to overseas markets.
The supporting measures for electric vehicles are timely.
[+3 sentences] My concern is that it will be difficult to get more charging stations set up in existing carparks, including HDB carparks, private condos and office buildings. Many building owners are not keen to install them as the investment cost versus the demand for EV cars are still not well-matched. Incentivising the continued investment to improve the technology are as important as incentivising car buyers to switch to EVs.
Last but not least, in view of the pandemic, I appeal for extension of childcare support leave for working parents who do not have family support to look after their children.
[+5 sentences] For example, if a young child falls sick, he is given at least five days' medical leave by the doctor due to COVID-19 conditions. At least one parent has to take leave to look after the child. If the same child falls sick again, the other parent will have to take leave. Working parents with young children struggle to manage the demands of bringing up a kid with employment demands. With that, I would like to conclude with my support for the Budget.
Mr Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera (Aljunied)3217 words
[+18 sentences]Mr Speaker, Sir, "the times, they are-a-changing", as the old Bob Dylan song goes. The COVID-19 pandemic has thrown longer term trends into sharp relief, increasing inequality between industries and workers, with some industries basking in the sun even if sunset falls on other industries; some slowly, some more quickly. For example, fossil fuel-related industries will feel the long-term pressures from global decarbonisation, especially with the new US administration reinserting the world's largest economy back into the Paris Climate Change Agreement. In my speech, Sir, I shall speak about the changes going on in the world with industry transformation – a theme I have talked about in recent speeches in this House – and what are the strategies we should adopt to help our workers, firms and fiscal institutions adapt to these changes and use them to our advantage as a country. Let me begin by bringing out several devices. This is my first Blackberry phone, which I obtained in the early 2000s and this is my second Blackberry. I loved these old devices. It took me a very long time to switch to a different device because I was comfortable with them, because they worked fine, because it meant I did not have to learn how to use a new device. It was far more attractive to stay in the comfort zone. I only switched when things reached a point where I was concerned about being able to continue using the devices I had grown so attached to. I use this example because it tells us a lot about our relationship with technology, but also the economy. So it is with many of us. When things are going well, we like to stay in the comfort zone. Even when you can see change on the horizon, even when you know you cannot go on in the same way forever, you say, "Well, why change today? Why not tomorrow?" But how do we nudge people out of the comfort zone to embrace change and face the future, even when things are, for now, going reasonably well? This is a policy challenge. It is also a national challenge for all stakeholders.
The World Economic Forum (WEF) Future of Jobs Report 2020 noted that accountants, auditors, bank tellers and HR specialists were at the highest risk of redundancy.
[+3 sentences] Many workers in delivery industries and doing driving work will see their jobs displaced by drones and autonomous vehicles. However, for all these jobs, things are all right now. To take another example – discouraged workers are workers who have given up looking for work because they feel their job search would not yield results, perhaps because of a lack of employable skills or confidence.
Discouraged workers made up 0.7% of the resident labour force in 2020, surpassing the previous high of 0.6% in the 2009 GFC recession; 0.7% is not yet a tsunami by any means but it is a sobering bellwether.
[+6 sentences] Sir, how do we prepare for the storms of change to come, amidst the pockets of sunshine? Let me address this by making some suggestions for how our policies can be enhanced to make our companies, our workers and our fiscal institutions more future-ready. I will start with companies and as I do so, I declare my interest as the CEO of an international research consultancy. A look around the world shows that many companies and industry sectors, ironically, did well out of COVID-19 and grew financially as well as in terms of market position. Industries like FMCG, online retail, ICT and biomedical, on the whole, did fairly well. However, has corporate Singapore, on the whole, fared as well?
In 2020, when the Straits Times Index was severely weakened due to COVID-19, the US NASDAQ went up 42% and the wider S&P 500 was up 15% at the end of 2020.
[+1 sentence] In fact, during this COVID-19 period, the Straits Times Index (STI) under-performed the broader MSCI Asia-Pacific Index, setting aside US markets.
As my Parliamentary colleague Mr Louis Chua mentioned yesterday, return on equity for the Singapore market, ex-financials, has also seen a steady decline, falling to a 20-year low of 5.9% in 2019, before COVID-19. In the fourth quarter of 2019, 35% of firms listed in Singapore were already loss making, the highest level since the 2008/2009 global financial crisis.
[+13 sentences] Many, not all, but many of our larger firms are facing headwinds due to being in traditional sectors or not yet being able to innovate their way out. Even a number of homegrown companies have decided to go public on foreign exchanges rather than Singapore. This calls in question why there are so few examples of local firms drawing on entrepreneurial talent rooted in Singapore, who have succeeded in becoming globally competitive? Is the environment conducive to start up and scale up? Or is the talent and motivation not forthcoming? In past speeches, I have talked about the role of education in fostering an entrepreneurial mindset. Today, I would like to focus on the environment to start up and scale up. It is an important national imperative to cultivate the core of locally based firms that have the DNA to be globally competitive to balance our dependence on MNCs, who may be fickle and buffeted by the winds of global economics and domestic politics in their home countries. Have years of schemes, like the Productivity and Innovation Credit (PIC) in the past, as well as host of other SME development schemes brought us closer to this goal? I would argue that we need regular published audits for our SME schemes to establish what causal effect such schemes have had on the long-term growth and competitiveness trajectory of local firms who use them. Only then would we understand the return on investment from such schemes and only then would we be able to design better schemes. For example, what is the evidence that the PIC scheme substantially catalysed productivity growth and innovation among the SMEs who were beneficiaries of the scheme? A KPMG report from 2015 stated and I quote, "while take-up rates have gone up, the scheme's impact on productivity has been muted".
To take another example, despite concerted policy efforts to digitise, more than 60% of employees and managers in Singapore firms in a 2019 survey said that they were unimpressed or undecided about Government policies in preparation for the impact of Artificial Intelligence on jobs.
[+27 sentences] Major investments in schemes intended to generate economic outcomes – or in fact any outcomes – should be accompanied with regular measures of success. Not just numbers of companies helped, but how did the schemes move the needle in terms of productivity or other indicators? And these measures should be published to support public scrutiny, accountability and debate, so that we can meaningfully speak of genuine participation in policy-making. Before I leave the subject of supporting the development of local firms, I would like to suggest one new approach that can be experimented with in incentive design. We currently award incentives to MNCs and local SMEs. These incentives are tied to fulfilling certain conditions like meeting total business spending, headcount and/or fixed asset investment targets. Can some of the incentives to MNCs be designed in such a way as to avoid a more generous degree of incentivisation if the MNC works with local partners to share know-how and gives the local firm a stake in the new investment? This approach is not novel and has been attempted in other countries. There are risks associated with this as it might be seen as pursuing an nativist agenda of grooming local champions to compete with the MNCs, thus deterring MNC investment into Singapore. But, Sir, those risks can be managed, by only awarding such a conditional incentive in fields where there are sufficient local firms who could make reasonably good partners to the MNC while not being involved in a domain that is substantially competitive with the MNC. It is worth experimenting with such an approach. Incentivising the development of MNCs and SMEs need not be a zero sum game. Of course, there are various schemes in place to encourage MNCs to work with local firms. But this approach of building a local partnership conditional element into the incentive package to secure new MNC investments, is currently not being used, to the best of my knowledge. Next, Sir, I would like now to talk about how we can help our local workers better adapt to the winds of change that will blow from industry disruption. As I shared earlier, it is never easy to rally the energy to change when things seem fine. Many of our workers are in jobs that are at-risk from industry disruption in five to 15 years' time. There are a number of programmes in place that aim to address this like the Professional Conversion Programme, or PCP. However, for workers in at-risk sectors, for example, drivers were at risk from autonomous vehicles in the next 10 years, can we do more to educate them about the need to consider reskilling and switching industries lest they become unemployed in their 40s and 50s? For example, can MTI's economic agencies support and catalyse future-ready industry groups in fields like solar, urban farming and AI, for example, to form trade associations and chambers, or TACs; and then, can these TACs be nudged and supported by Government to run campaigns to encourage workers from sunset industries with relevant skills to reskill and consider joining their industries. Government agencies can also use social media tools to target reskilling social media ad campaigns specifically at workers and such at-risk industries. Existing programmes require workers to seek them out. We need a national effort that is more proactive rather than reactive to nudge workers who are at risk to start thinking what their future career journey and how they can mitigate those risks. This effort is needed even in industries that are cyclically doing well under COVID-19 but face longer term existential threats. For example, while some sectors of the retail sector have done very well during COVID-19, wholesale and retail has been identified as the sector most vulnerable to displacement in Singapore due to automation, according to a 2018 study. Next, Sir, I would like to ask whether our education system is producing the skills the economy demands, and if not, what is being done to revisit our educational or economic planning? In 2020, Polytechnic fresh graduates found it significantly harder to land good jobs.
Six months after graduation, around 12% were unemployed and over 30% were in part-time or temporary jobs. Minister Vivian Balakrishnan said last year that there will be 60,000 new jobs created in the infocomm sector over just the next three years, but our education system is only producing 2,800 infocomm graduates yearly.
[+5 sentences] This barely supplies 5% of the demand. We should carefully review our efforts to ramp up capacity in our education system for high demand skills and encourage students to consider these. Next, sir, let me touch on internships and training attachments. This is a subject that is of current concern. Given the current state of the job market, many graduates of IHLs have taken on internships, traineeships and part-time work for their first jobs, partly, one assumes, because of the relative lack of attractive, full-time positions.
More than one in five fresh graduates from our four local Autonomous Universities were in part-time or temporary employment in 2020. As a proportion of the newly graduated workforce, they more than tripled from 7% in 2019 to 22.3% in 2020.
[+3 sentences] Recent Government efforts have seen the creation of programmes such as the SGUnited Traineeship and SG Mid-Career Programme. Private firms like Google have also launched special trainee programmes during COVID-19. I have filed a Parliamentary Question on whether our IHLs can help our students gain sufficient access to internships in future-ready, disruptive industry sectors.
Here, I would like to speak about how our economic agencies can possibly engage companies in disruptive industry sectors who have no physical presence in Singapore as yet, to take on Singaporeans for traineeships and internships such as the SGUnited Traineeship.
[+4 sentences] Sir, for years, I used to think of my job in terms of putting on a tie and travelling into a physical office. But in this day and age, to work in a company, you need not report to work in a physical office. You can be an intern or trainee in a company by taking part in online meetings, undergoing online training, engaging with customers, suppliers and stakeholders virtually and so on and so forth. And there are companies abroad at the cutting edge of their industries who do not yet have a physical presence in Singapore.
Can we consider including some of these companies in such programmes?
[+3 sentences] We should select only the most promising companies for inclusion. The benefit to Singapore would be that Singaporeans would get the benefit of training, the skills, knowledge and culture that resides in these cutting edge firms. Another benefit is that the company, if it finds the quality of workers it engages as trainees and interns high, would consider locating a physical presence here.
Before I leave the subject of skills training, I would like to repeat my call to enable SkillsFuture credits to be transferable among family members, a subject on which I have filed a Parliamentary Question previously.
[+13 sentences] I have received feedback from a number of older constituents who are keen to transfer their SkillsFuture credits to their children, nephews or nieces, to help them navigate the turbulent waters of the current job market. Next, Sir, I would like to speak about the localisation of jobs. There has been much discussion on striking a good balance between foreign workers and local Singaporeans. We know that in many industries, such as construction, for example, we are more reliant on foreign manpower than other developed countries are. There is a need to ensure a strong core of skilled, capable Singaporeans in key industries. It is also desirable to foster skills transfer from foreigners to locals. On localising jobs, I would like to speak about working conditions for lower wage workers. The Government has said that the progressive wage model will be rolled out to more industries. But, in some jobs, even if we manage to raise wages through some policy device or other, we may find that Singaporeans may not want to take up those jobs because of the conditions of work. Are workers in that role provided with adequate tools, protective gear and training? Are working hours and mandated break times sufficient? Are conditions of work made as physically comfortable and safe as they are in other countries? Is the culture in the workplace sufficiently respectful of the worker?
My point is that even if we increase pay, Singaporeans may not want these jobs if they perceive that conditions of work are not good. I would suggest that in sectors where we struggle to find enough Singaporeans, particularly low-wage sectors, the MOM and MTI benchmark conditions of work in other developed countries where there are more locals employed at higher productivity levels in that sector, to understand what the gaps are in conditions of work, and take steps to work with industry bodies to plug those gaps.
[+6 sentences] There is a lot at stake in this drive to raise pay and productivity in low-skilled jobs. Low-skilled workers are especially vulnerable. Workers in such jobs are often one unfortunate accident away from destitution. One man I spoke to on my house visits did everything right, he and his wife saved up, worked hard, lived frugally, only for him to be injured at his job and be plunged into relative poverty. Before I leave the subject of workers, I would repeat the call I made earlier in relation to company incentives – for programmes that aim to address job market weakness, promote reskilling and so on, like Skillsfuture, SGUnited Traineeships and so on, let us undertake rigorous audits of outcomes that are made public, to ensure return on investment and facilitate course corrections or enhancements. Lastly, Mr Speaker, Sir, I would like to speak about our fiscal stance.
Many have questioned the timing of the hike in petrol duties and the levying of GST on small-value imported items, given the fragile state the economy is still in.
[+11 sentences] The Leader of the Opposition has shared some concerns about the petrol duty hike, with which I agree. I would like to make the point that before broad-based taxes are hiked that could have an inflationary impact more generally, maybe even opening the door to profiteering, could the Government consider raising taxes on transactions in the property sector by way of taxes such as stamp duty and additional buyer's stamp duties, but only for more expensive properties. Such a fiscal move would be progressive and would impact the capital gains made by sellers in the higher end of the property market. Hence the impact on the broader economy may be less than say a broad-based tax hike. A tax on such a class of capital gains will not run the risk of unintended inflationary effects and will not damage work incentives. Of course, such a move may not raise as much revenue as a broad-based tax hike such as hiking corporate tax or GST for example, but the former can be considered to reduce the need for and extent of a broad-based tax hike. In conclusion, Sir, as we face an uncertain future, as the COVID-19 pandemic winds its way to what is hopefully its end, as industries get disrupted and uncertainty casts its shadow over our workers and companies, let us bear in mind a few important truths that I have tried to flesh out in this speech. Let us always anticipate foreseeable change rather than react when change hits, even when things may be fine now. The proactive will succeed over the reactive. Let us nudge our stakeholders to recalibrate the balance in our economy towards local firms and Singaporean workers, but in ways that still embrace the role of MNCs and foreign workers where they add value. It is not a zero-sum game.
And it is useful for all of us to bear this in mind – not only in Government. There are win-win approaches to drive towards these outcomes.
[+2 sentences] Let us bear in mind that it is cultures and mindsets that are critical for change to happen. But at the same time, let us not treat cultures and mindsets as some rigid monolithic entity or a black box.
Existing cultures and mindsets, existing behaviour patterns are there for a reason.
[+2 sentences] They are usually not simply irrational. Let us investigate those reasons.
Such as, work conditions for jobs that Singaporeans shun that I spoke about earlier, and try to fix them with the tools that we have, so as to catalyse change in cultures and mindsets. Lastly, Sir, let us never allow schemes to become black boxes into which fiscal resources get poured. Let us rigorously audit the impact of our policies and budget and plan for such measurement and publish the results to support informed public debate, consensus formation and genuine policy co-creation.
[+1 sentence] We need to score an "A" for outcomes, not only an "A" for effort.
Mr Speaker4 words
[+1 sentence]Mr Joshua Thomas Raj.
Mr Raj Joshua Thomas (Nominated Member)2137 words
[+8 sentences]Thank you, Mr Speaker. Sir, I am heartened that the Deputy Prime Minister included in this year’s Budget a section titled “Strengthening our Social Compact”. The Deputy Prime Minister shared that many persons who took part in the Emerging Stronger Conversations expressed their wish for a fair, equal and caring society, with more support for vulnerable groups, such as low-wage workers. One particular group of vulnerable workers are outsourced workers like cleaners, security officers, landscape workers and maintenance staff, whom I will be speaking about today, and, in particular, with regard to their working conditions. Incidentally, Member Mr Leon Perera had addressed this as one of his points earlier and he has kind of stolen my thunder a little bit. But I am glad that this is an issue that has raised widespread concern about. Before I go on, Sir, may I declare, my interest as the President of the Security Association Singapore and the Director of a security company. Sir, by way of definition, outsourced workers are workers who are employed by a service provider, for example, a cleaning company, but deployed to a service buyer’s premises, for example a shopping centre or condominium.
Under the Workplace Safety and Health Act (or WSHA), a service buyer at whose premises outsourced workers are deployed, is treated as an employer, with all of the duties and responsibilities incumbent on an employer under the Act. In other words, service buyers and service providers share responsibility for outsourced workers at site. However, because outsourced workers do not work at their employer’s premises but that of the service buyers, their conditions of work are determined primarily by service buyers.
[+8 sentences] Service buyers have control over at least four broad areas at their premises. First is the actual work area of outsourced workers. Workers should not be expected to work for extended periods of time in the sun, for example, or at places that are inherently dangerous without safeguards, like locations at height. Guardrooms should be adequately ventilated. The provision of a proper work area concerns infrastructure and this is, in most cases, the sole preserve of service buyers who are the building owners. Service buyers, therefore, need to do their part to ensure proper work areas in their buildings. Even better, such provision should be made at the design stage of new buildings. Second is the provision of proper rest areas and facilities, including washrooms.
In January last year, Sir, I was alerted through the Security Association that at an ultra-luxury condominium along Grange Road had refused to allow outsourced workers to use any toilet in the condominium.
[+17 sentences] The MCST had, instead, installed a portable toilet in a secluded area of the basement carpark for the workers to use. I visited the site myself and I took some photos. The area where the portable toilet was located was not well lighted and abutted a forested area. Even worse, there was no water pumped to the toilet on the weekends. Workers had to scoop water from a dustbin outside the portable toilet to bring in with them, in order to flush the toilet and to wash their hands. This arrangement arose because residents had complained that outsourced workers had dirtied the condominium toilets. As we were in the process of engaging the managing agent and the MCST on this matter, the pandemic set in and the workers were then allowed to use the gym toilet during the circuit breaker. The gym toilet was, in any event, closed during this period. I do not know what the situation is now. This example, is of course, an outlier. When Senior Minister of State Zaqy Mohamed launched the Tripartite Advisory on the Provision of Rest Areas, he did so while visiting Ikea, which provides excellent rest areas for all their workers, that outsourced workers could also avail. Ikea is, unfortunately, also an outlier and the reality at most sites is somewhere in between. Sadly, the norm is nearer to the portable toilet example than the Ikea exemplar. The launch of the Tripartite Advisory on rest areas shows, however, that MOM and the tripartite partners are alive to the issue and have been quite gregarious and proactive to address it. But the advisory is not mandatory. We continue to see cleaners taking their breaks at basement carparks of shopping malls, and resting and eating their meals at bin centres at condominiums, or having no areas to rest at all, or even to place their belongings. I imagine, Sir, that resting, and eating at bin centres or at cooler pump rooms would have an effect on our workers’ health and safety, not to mention their dignity.
Senior Minister of State Zaqy announced in Parliament last year that a workfare grant would be launched in 2020 to support building owners and employers to provide rest areas for outsourced workers.
[+11 sentences] I would like to ask MOM, Sir, the status of this grant: how much of it has been given out and how many building owners have availed of it and, if details are available, how many workers have benefited from it? Senior Minister of State Zaqy also said that the grant would be launched with a view to eventually legislating this requirement. Sir, I urge that we hasten the enactment of legislation to make it compulsory for all property owners to provide designated rest areas for their outsourced workers. The third area is proper rest times and working hours. The work that outsourced workers do can be strenuous, and break times should be planned for in their schedules, during which they should be undisturbed. In an article on outsourced workers by The New Paper in November 2018, an elderly cleaner was quoted as saying that people who saw her resting would complain to her superiors despite that she was resting in between her work slots. In the security association, we receive from time to time complaints about security officers sleeping – only to discover, after investigation, that they were doing so at their designated rest times. And there should be no doubt, Sir, that if it so pleases workers to sleep during their designated break times, they are entitled to do so because it is their personal time. Related to my earlier point on the provision of rest areas, because most building owners do not provide a designated rest area, outsourced workers have to find some nook or cranny to rest, or have to do so at their actual workplace, like the guard rooms, in full view of the public. As regards working hours, I would like to highlight, in particular, the working hours of security officers. The norm is for officers to work 12-hour shifts.
Up to the beginning of this year, officers generally would work six-day weeks. From this year, officers have a possible work permutation where they can work two 5-day weeks and two 6-day weeks in a month.
[+13 sentences] So, four days are off. But they still work 12-hour shifts. Taking into consideration roughly two hours of travelling to and fro and eight hours of sleep, officers have around just two hours of personal time per working day with their families and for themselves. If they need more personal time, they would have to cannibalise their sleeping hours. So, all these complaints of security officers sleeping on the job, of course, Sir, they are sleeping because they have not had enough sleep. Sir, when I was running a security agency, I would join my officers from time to time on their 12-hour shifts at site. I would wear the security officer’s uniform, like an undercover boss. Of course, my officers knew who I was – I was undercover not to check on them but to look at the working conditions on the ground. Sir, the job is not easy. It can be exhausting. There are many things to do – from dealing with public enquiries to patrolling, to marshalling traffic and ensuring paperwork is up-to-date and, sometimes, these must be done concurrently. And then there is dealing with difficult members of the public, which I personally encountered while I was on shift with my officers. It is difficult, Sir, to remain focused and alert as a security officer for the entirety of a 12-hour shift.
My view is that it is more reasonable to have eight to 10-hour shifts – eight hours for the day shifts, which are generally more busy; and nine to 10 hours for the night shift.
[+7 sentences] This will, of course, translate to higher costs for buyers as it necessitates an additional shift of workers. Buyers have, therefore, been averse to this. However, such long hours on a long-term basis would undoubtedly affect officers’ health – physical, mental and social. We must, therefore, take a stand and do something about it. Buyers must bite the bullet. If they want security, they must be prepared to pay for it and our workers should not suffer to save their costs. Likewise, security service providers must also take responsibility for their own workers and insist on reasonable working hours and they must also ensure that higher prices that buyers pay translate to higher wages for their employers.
In this regard, I call on the tripartite partners to work towards regularising working hours of security officers towards eight to 10- hour shifts.
[+14 sentences] The PWM for the security sector moving forward should incorporate this reduction of shift durations, to make sure that it does not lead to a concomitant drop in officers’ gross wages. Importantly, the Government must take the lead and should move procurement of security manpower services towards eight to 10-shifts. Fourth, buyers should ensure that outsourced workers at their site are required to do only the tasks for which they were deployed and that they are trained for. Often, buyers treat outsourced workers as general workers or odd-job labourers and call on them to carry out tasks that do not fall under their scope of work, for example, cleaners being asked to perform electrical works. The unfortunate incident in 2015 of a security officer falling into an elevator shaft while he was trying to prise the lift doors open is a case in point. This was not something the officer was trained to do, nor was it within his scope of work. He was asked to assist and he was being helpful. Sadly, he succumbed to his injuries. Sir, as is apparent in each of the four areas I have outlined, service buyers are the prime movers in ensuring proper working conditions of outsourced workers. Therefore, in order for us to deal with these longstanding issues, we need to introduce measures that mandate and encourage buyers to make provision for proper work conditions for outsourced workers. In this regard, I propose, for consideration by MOM and the tripartite partners, that a consolidated Tripartite Advisory be issued for buyers of outsourced services on the provisions they should make in the above four areas. This would incorporate and go beyond the existing advisory on the provision of rest areas. I have thus proposed three measures that build on existing mechanisms and/or positions already announced by the Government: legislation making the provision of rest areas for outsourced workers mandatory; the regularisation of security officer working hours in the security officers PWM; and the promulgation of a consolidated tripartite advisory for buyers of outsourced services. May I also say, Sir, that I support Mr Fahmi Aliman’s proposal that rest areas not be considered as commercial GFA.
By my estimates, based on publicly available data, Sir, these measures will apply to, and benefit, around 120,000 workers.
[+10 sentences] At this point, I would like to thank our essential workers and our outsourced workers: our cleaners, security officers, waste collectors and maintenance staff, who continued to work to keep Singapore going during the circuit breaker and who continue to be on the frontlines. Sir, an important part of our social compact has to be a commitment to take care of the people who take care of us. It must become part of our culture. It must become part of our workplace culture. When we have built this, Sir, we will no longer see people looking at a tired worker resting and think that this is something that they should complain about; we will not see rich residents demanding that outsourced workers not be allowed to use their luxurious facilities. In fact, what we will see is them crying foul that workers are only allowed to use a portable toilet. We will see building owners willing and happy to use up precious GFA so that workers can have proper breaks. We will progress towards a fairer, a more equal and a more caring society. And, Sir, we will emerge stronger, together and we will do so at all levels. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Hougang)2843 words
[+7 sentences]Mr Speaker, Sir, earlier this month the House debated the issue of sustainable development at length. It declared climate change a global emergency and recognised the role that multiple stakeholders will have to play to sustainably develop Singapore. Last week, we also heard about the Singapore Green Plan, with the Deputy Prime Minister highlighting the building of a sustainable home for all as one of the key thrusts of this year's Budget. In my speech, I will be talking on the need to protect our natural capital before talking about promoting green transport, as well as about the proposed petrol tax. I will then touch briefly on making progress in our manufacturing and construction sector and the support Singapore should give for climate change at the global and regional levels. Mr Speaker, Sir, a key area addressed by the Singapore Green Plan is, of course, our greenery. One aspect of the Plan is the one-million-tree movement which aims to plant a million trees by 2030.
In response to our Parliamentary Question I filed earlier this year, Minister Desmond Lee shared that the one million trees to be planted under the Plan will sequester an estimated 78,000 tonnes of carbon.
[+1 sentence] While I do welcome this measure, a glaring omission under the Singapore Green Plan is a lack of commitment to provide greater legal protection for our secondary forest.
Under the Plan, the Government aims to set aside one thousand hectares for green spaces of which 200 hectares will be for new nature parks.
[+10 sentences] It is important to note that even though NParks oversees the management of activities within nature parks and that activities which may damage trees within nature parks are regulated by a Subsidiary Legislation under the Parks and Trees Act, the mechanisms by which these activities are regulated, as well as the penalties for contravention, are much less robust than those applicable to areas designated as nature reserves in the same Act. Moreover, the fate of other secondary forest spaces, which are not currently used as nature parks, hangs in the balance as they may be cleared for development. The Workers' Party thus reiterates its call on the Government to commit to providing more secondary forests with greater legal protection, with some of these areas regulated as nature reserves, while simple recreation areas could be allowed in other areas, but with more stringent rules and penalties than is currently enforced in public parks. By legislating to this end, Parliament will send a clear signal to not only future generations, but to various actors, including contractors, Ministries and Statutory Boards, and the Government itself, that the destruction of forest areas will come at a cost. The reason erroneous clearing of forested spaces in Kranji woodlands is a prime example, where the Jurong Town Corporation (JTC) said that it was caught unaware of the clearing of plots of land earmarked for future use and for which an environmental baseline study was reportedly being carried out. Thus far, the contractor has only gotten away with stern warnings despite clearing forests, while JTC has not faced any legal consequences. As we await the Government to explain to the House its findings on the Kranji woodlands case, I hope that the Government will also commit to begin providing greater legal protection for our secondary forests and green spaces. Next, I touch on promoting green transport. In order to move towards a more sustainable future for Singaporeans, we should also take a critical look at how our people move. Greening our transport infrastructure is an endeavour that, like other goals in sustainable development, must not only meet our need for environmental sustainability, but must also meet our social needs in an economically viable way.
Transport is the third largest sector from which our greenhouse gas emissions from fuel combustion are derived, accounting for about 15.7% of our emissions. Of these, the biggest contributors are the use of diesel, accounting for roughly 63% of transport emissions, and the use of petrol, accounting for 33%.
[+2 sentences] Next, I move on to Electric Vehicles (EVs) and battery swaps. In my Budget debate speech last year when I commented on the then target of 28,000 charging points, I said that even assuming a 30% conversion from the current vehicle population to EVs, we would still only end up with one charging point for every 10 EVs by 2030.
I had asked whether we should even be contented with this ratio. I therefore welcome the Deputy Prime Minister's announcement in his Budget speech last week that the Government now plans to increase the number of charging points for EVs from the original target of 28,000 to 60,000 by 2030.
[+29 sentences] This is going to be a step-up from the over 1,900 charging points, 1,400 in public carparks, which we currently have as a January 2021. In my Budget debate speech last year, I also urged the Government to consider the alternative of battery swap stations which have the advantage of speed, ensuring the load on our power grid can be managed well, while providing ready infrastructure for battery recycling. I said that this has really been tested in China and should be a key consideration here. Later on, in March 2020, in response to my colleague, the hon Member for Aljunied, Mr Leon Perera, the Government said that it was studying the potential of battery swapping as a complement to charging and that this consideration will influence the final design of our EV network. Can the Government provide the House with an update on its findings on the potential use of battery swapping technology in Singapore? I now move on to EV chargers, charging points and carpark designs. While it is important to have a good number of charging points, we should also bear in mind that these numbers will be insufficient if we do not get the other details right. For instance, will these points enable fast charging? What is fast charging? Can we do in one hour as opposed to eight or 12 hours perhaps, which we can expect from the domestic charging rate? But even at half an hour or one hour, will this be too slow and inconvenient for consumers who are used to spending five to 10 minutes in the petrol station. And assuming that these charging points are all fast charging points, if we want an efficient system, we will still need to ensure EVs have correspondingly quick-charging capabilities as different EVs may have different capabilities. As the charging technology improves over the coming years with the proliferation of EVs all over the world, we should also bear in mind the possibility of older EVs operating together with newer EVs may slow down the efficiency in the use of chargers. Another factor to consider is the critical number of charging points required in all residential, commercial car parks and other public carparks, as well as the design of the carparks vis-à-vis the locations of the charging points. Imagine a situation where you have 100, 200 cars coming back after work to an HDB carpark, with each taking, for the sake of discussion, say 20 minutes to charge their car. Given the present design, will we have bottleneck issues to address? After all, Singapore is not like the US or Australia where most people live in landed homes and have the luxury of charging their vehicles in their own garages overnight. Fast charging is of course critical, but until we reach the stage where every or most of the carpark lots come with a charging unit, most of the present HDB, public and commercial carparks products are not adequately designed to prevent bottlenecks or congestion caused by more than a few cars waiting for the current few charging units available at each carpark. The design of hundreds or more of our existing carparks will need to be evaluated to avoid the likely congestion scenario I have described. I look forward to the Government's assurance that these concerns are being looked at and if so, to share details of any stepped-up plans to address them. I remember a conversation I had once with a driver in China waking up to queue for his car to be charged at 3.00 am to 4.00 am every morning. We cannot allow such scenario to happen in Singapore. We cannot afford the loss of productivity this will entail. Given the transformation of vehicle population internal combustion engine (ICE) vehicles to EVs and the resulting proliferation of large numbers of EV charging points in time to come, it may be timely to ask about its likely effect on our electricity generation infrastructure. While there may be an electricity supply glut now, the Government needs to plan for the additional electricity generation required for EVs in the years to come such that a step-up usage will be smooth and importantly, sustainable, and will at the same time not pose any strains on our power system at all times. And in answer to the House in January this year, Minister Tan See Leng alluded to how EVs were one of the drivers to increase electricity demand in the future. To this end. I hope the Government will give an update to this House on its current plan to step up the electricity generation specifically for use by EVs in the coming years. Next, I touch on the phasing out of ICE vehicles.
Previously, the Government has said it aims to phase out all ICE vehicles by 2040. This endeavour is by no means a small one given that I believe we have more than 900,000, almost a million vehicles, on our roads.
[+1 sentence] Can the Government therefore provide the periodic milestone it aims to reach in this regard in the run-up to 2040, including Malaysian ICE vehicles on our roads, which I brought up last year too.
Further, while the Government announced last year that all newly purchased public buses will be electric or hybrid in nature, when does it envisage that our entire bus fleet will be fully electric.
[+2 sentences] I next touch on petrol tax. Mr Speaker, Sir, another aspect of a sustainable future transport landscape must be the provision of affordable and reliable transport options for our people and small businesses.
Deputy Prime Minister Heng announced in this year's Budget that he is going to increase the petrol duty.
[+7 sentences] He gave the basis that, I quote, "usage-based tax has helped shape consumer behaviour towards a more efficient use of fuel or environmentally friendly alternatives". However, as I mentioned above our EV infrastructure is currently far from ready to allow large numbers of car owners to switch immediately to EVs. So, aside from the Government wanting to raise tax revenue from this source, I think raising the petrol duty this abruptly on a basis of shaping consumer behaviour towards an environmentally friendly option, is in some sense putting the cart before the horse. Why was this hike not phased in with advance notice? Just two years ago, in my Budget speech, I spoke against the diesel tax increase, highlighting that it would increase cost of doing business and cost of living. I think the increase of petrol duty may also increase cost of living which may be in these difficult times. As for rebates offered, unless the increase is only for a limited time like a year or two after which it will be adjusted downwards, such rebates are really short-term measures, and ultimately, owners, and even business owners, will have to face the full effect of the price increase later on.
So, I hope while this abrupt increase may not be what we say in Chinese: 落进下石, it is certainly 雪上加霜 for many. So, I repeat the call made by the Leader of the Opposition, the hon Member Mr Pritam Singh, for the Government to review this hike and to phase in the petrol tax hike in proportion to the actual growth of EV usage on the roads.
[+2 sentences] Next, I move on to progressing in our manufacturing and construction sector. In his Budget speech, the Deputy Prime Minister also reminded the House that the Government announced its Long-term Low-Emissions Development Strategy (LEDS) in 2020.
In Singapore, our manufacturing and construction industries account for about 38.8% of total greenhouse gas emissions, the second largest sector after our energy sector which contributes about 41.87%.
[+9 sentences] While the decarbonisation of our electricity grid is but one way in which the manufacturing and construction sector will be able to reduce its emissions, what findings have the Government made so far in the study of emerging technologies under the LEDS which can help us decarbonise industrial processes in this sector to move us closer to our updated periscopes? Next, I talk about providing support at the global and regional levels. The Deputy Prime Minister also mentioned that Singapore will continue to play an active role at the UN Framework Convention on Climate Change (UNFCCC) negotiations. As a key node in our globalised world economy, we are well-positioned to work with other countries to reduce global emissions. The threats of climate change, which this House will be familiar with, require us to do more actively in a similar vein. We also need to work more closely with our neighbours in ASEAN to curb regional emissions. While the growth of emissions has slowed down for some of our neighbours, this has increased for others, and more work needs to be done. Can the Government thus provide the House with specific future plans to work at both global and regional levels to mitigate climate change? Before I end, I want to touch on two other issues beyond climate change.
First, Deputy Prime Minister Heng announced in his Budget speech that the Government will partner the Community Development Councils (CDCs) to give all Singapore households $100 worth of CDC vouchers to be used at participating shops and hawker centres.
[+10 sentences] He said he hoped that the vouchers would bring more business to our heartland shops. I am glad that he thinks that our heartland shops could do with this help. I agree that more can be done to help our small businesses in our heartlands. It is challenging times for many such businesses. Recently, a resident who own a mini-mart in a heartland shared with me about his business challenges. Besides challenges from the supermarkets in the area, he also lamented on the challenges from Fairprice on Wheels. He wishes that the Government can consider how to give more space to SMEs, especially when it comes to competition from Government-linked businesses. Next, I move on to the issue of commercial and industrial rents. Let me declare that I am a proprietor for my own law firm business. I have previously spoken about the concerns SMEs had with rentals during the debate on the Resilience and Solidarity Budgets.
To its credit, the Government stepped in to provide up to $900 million in cash grants to landlords for rental relief. In addition, the landlords also receive $1.8 billion dollars in property tax rebate.
[+3 sentences] But this does not tell the whole story. In a Straits Times article, it was quoted that many SMEs did not want to go through the process of confronting their landlords for fear of making things worse. As SMEs have comparatively less cash buffer compared to large enterprises, SMEs may find it hard to pay the rental on time.
This only slows down the recovery for SMEs and could have the undesirable effect of entrenching the positions of multinational corporations (MNCs) and Government-linked Corporations (GLCs). I call upon the Government to see if there is scope to have tapered support for SMEs in rentals over this period.
[+8 sentences] In the medium term, the study of the commercial and industrial rental markets, as it stands, is necessary, with it studying offerings of low rent commercial and industrial spaces managed by HDB and JTC respectively. Mr Speaker, Sir, in conclusion, acknowledging the building of a sustainable home for all in Budget 2021 is a timely move. When we look at the threats of climate change today, when we look at how much further we must go to protect our natural capital, to promote green transport and manufacturing, to provide more support to our people as we sustainably develop Singapore, it is clear that we have much work to do. At the debate on the climate change Motion earlier this month, Minister Grace Fu stressed that "sustainability has always been a part of Singapore's DNA because we have always pursue a balance between economic growth and protecting our environment since our early years". But it merits mention that this pursuit while leaving us with good economic growth over the decades was also what left us with the limited green space today. Our understanding of our environment today has become much more sophisticated than in the past, in part due to advances in our understanding of climate change. Likewise, our notion of sustainability must also advance with times. We must do much more to address these threats we have never seen before.
Ms Tin Pei Ling (MacPherson)2265 words
[+11 sentences]Mr Speaker, Sir, a crisis tests the mantle of any society and generation. It can tear us apart or rally us together. COVID-19 is our test.  Around the world, we observe social and political fractures, caused or exacerbated by the pandemic. In the UK, more than half of Britons surveyed by thinktank Demos resented lockdown rule breakers and people who do not wear masks, much more compared to only 33% of non-Brexiteers resenting the Brexiteers. In the US, wearing a mask was so politicised at one point that it becomes a symbol of which political party one supports.  In big western cities, attacks were launched on Asians. A Singaporean student was attacked in London last year at the beginning of the pandemic. Some elderly Asians also reportedly suffered violent attacks in California, a problem that was simmering since the pandemic began. Both were reported to be racially motivated.  Women in many countries were hit disproportionately compared to men.
In Latin America, women were 50% more likely than men to lose a job in the pandemic’s first month. McKinsey also reported that female job losses is 1.8 times higher than male job losses in the US and India.
[+13 sentences]  Seniors in some countries suffer greater income reduction or job losses. A consequence of this is poorer or loss of healthcare benefits. Seniors in countries with government-funded medical benefits or insurance may still have access to basic services, but those in countries without would naturally suffer. We see how societies can fracture further and deeper along political, racial, gender and age lines when under pressure. Singapore is not spared from this same pressure brought upon by the pandemic. Thankfully, we have not observed the same fractures or of the same extent here. Yet, we must do our best to prevent them.  How we respond to this crisis of our generation is important. Will Singapore emerge stronger and feel stronger as a people? Or will we look stronger but feel more apart instead?  Therefore, I echo the importance of strengthening social compact, as highlighted in this Budget.  In this speech, I will talk about empowering our seniors and women in the workforce, so as to enhance overall well-being and strengthen our sense of togetherness.  On empowering seniors. 
Over the past years, much has been done to better support senior employment in Singapore, with Government initiatives such as the Special Employment Credit and Retirement and Re-Employment Act introduced. CPF contribution rate increment for workers above the age of 55 was also announced in August 2019.
[+16 sentences] Yet, we still encounter seniors who want to work but struggle to secure suitable and adequate employment.  Most recently, while visiting the Geylang East Market and Food Centre in my constituency, I met an "auntie" who was in her late 60s. We greeted each other warmly before her tone took a turn and asked me, "MP, is there any Government rule or law that prohibits a person from working beyond a specific age?"  I told her of course not. Curious, I asked her what prompted her question.  She replied, "I want to work. But my employer said that I am old and wanted me to be redeployed to a job with less scope and less pay. And after I reach the end of the re-employment age, I will have no job. But I am still very fit, I can still do my original job. I need the income too." "Auntie’s" predicament is not unique. In serving our residents, we would have met other seniors who face similar challenges. They are often the first to go and last to be hired. Ageism is unfortunately rather rooted in Singapore. Despite an ageing workforce, ageist mindsets can be found in many workplace settings.  Negative stereotypes about older people – that they are slower, weaker, more rigid or less productive – can significantly hinder the deployment of precious human resource and discourage development even as we promote lifelong learning.  
Recruitment agency Randstad reported in a 2020 survey on ageism in the workplace that 57% of Singaporeans feel training opportunities get fewer as they grow older and 64% of those aged 55 and above feel this way.
[+25 sentences]  Such perceived loss of opportunities affect morale and career prospects, and eventually impact self-esteem and the sense of togetherness with the rest of Singapore.  We must proactively combat ageism in the workplace and recognise the value that senior workers can offer. Moreover, our ageing workforce means that employers have to accept the reality of an increasingly mature manpower supply. Hence, our default thinking should be to find ways to leverage senior workers’ strengths and not find ways to undermine or get rid of them.  To this end, I would suggest the following.  Push companies to review HR policies and encourage them to make it an SOP to hold conversations with senior workers on meaningful re-employment or re-deployment. To be fair, there is a need for renewal so that younger workers have a chance to rise up and accumulate their own experiences. But where senior workers are still fit and keen to work, companies should discuss options that allow senior workers to preserve their work and compensation. Let us not automatically filter them out. Two, the world is always changing and firms constantly have to change with corresponding strategies. Similarly, firms can adapt its working environment, job design and processes to be enabling for senior workers. Technology enablers are available, productivity does not have to suffer. Moreover, the jobs for senior workers of tomorrow will be increasingly intellectual and less backbreaking. So, the earlier we get ready for an ageing workforce, the better. Third, for senior workers who have to leave or wish to give a shot in a different endeavour, have in place a centre that focuses on matching these seniors to new jobs or opportunities that allow them to contribute socially, for example, volunteerism. This can help redirect precious senior human resource to areas where there are unfulfilled needs. And lastly, continue to encourage our seniors to stay positive and embrace learning. In Mandarin, please. (In Mandarin):   A crisis tests the mantle of any society and generation. COVID-19 is our test. Around the world, we observe how societies can fracture deeper along political, racial, gender and age lines when under pressure. Although Singapore has yet to experience similar or severe social fragmentation, we cannot afford to take it lightly. Hence, I agree with the importance of strengthening social compact highlighted in this Budget. Discord will lead to fragmentation whereas staying united will allow us to emerge stronger. Here, I would like to talk about empowering the elderly in the workforce, improving their overall wellbeing and strengthening our sense of solidarity.
Over the last few years, Singapore has introduced measures such as the Special Employment Credit and Retirement and Re-employment Act to support the employment of older Singaporeans. The Government also announced in August 2019 an increase in CPF contribution rates for workers aged 55 and above.
[+25 sentences] It is heartening to hear many examples of re-employment and the elderly staying in the workforce on media platforms from time to time. Just now I shared the story of an 70-year-old auntie whom I met during a recent visit to Geylang East Market and Food Centre in my constituency. Auntie’s predicament is not unique. In serving our residents, we often encounter elderly people who faced difficulties in finding or staying in work. They are often the "first to leave, the last to be hired" group. Unfortunately, ageism is rather rooted in Singapore. Despite an ageing workforce and active government promotion, ageist mindsets can be found in many workplaces. It can significantly hinder the deployment of precious human resource. The employees feel that loss of opportunities can affect morale and career prospects, and eventually impact self-esteem and their sense of togetherness with the rest of Singapore. We must proactively combat ageism in the workplace and promote the idea of "active ageing". We should think hard on how we can leverage older workers’ strengths, rather than try to get rid of them. I have a few suggestions: First, push companies to review their HR policies, encourage them to make it a SOP to hold conversations with older workers on re-employment or job redeployment. If they are fit and keen to work, companies should discuss options that allow older workers to preserve their work and compensation, not automatically filter them out. Second, companies can adjust their work environment, design and process to meet the needs of older workers. Companies can make good use of technology to help them. Moreover, future jobs for older workers will be increasingly intellectual and less backbreaking. Hence, it will be much more effective to prepare for an ageing workforce early. Third, for older workers who have to leave or wish to try other jobs, the Government could consider setting up a centre to help them match with new jobs or opportunities. For example, with their years of experience, they can serve as a consultant to provide guidance or become a volunteer. This will redirect valuable human resource of older workers to areas of need. Finally, we should continue to encourage the elderly to stay positive and embrace lifelong learning. (In English): Singapore is firmly set on our path towards a digital economy and Smart Nation. We must spare no effort to prevent inadvertently creating new gaps or exacerbating existing gaps as we transform. Digital empowerment is important. We need smart women for a Smart Nation.
A 2016 Accenture report found that digital fluency can accelerate the closing of gender gaps, as countries can achieve gender equality some 25 to 40 years faster.
[+4 sentences] Digitally empowering more women will also help to address the pressing digital talent shortage worldwide and generate greater economic growth.  Looking ahead, we can anticipate that the strive towards a future economy would mean that there are more job opportunities, better career prospects and wage growth in the tech and innovation sectors. If we do not help women to capture these opportunities, they risk falling behind further.  In Singapore, while there is no significant change in the employment rate of women before and after pandemic at its peak – thanks to our very sound and supportive and progressive Government system and the workforce in Singapore – there remains a need for us to still step up in digitally empowering our girls and women.  
Based on a study conducted by the Boston Consulting Group (BCG), Singapore’s woman representation in technology is about 41%.
[+1 sentence] Though this percentage is higher than that of neighbouring Southeast Asian countries like Malaysia, Indonesia, Philippines and Vietnam, it is lower than the overall women representation in Singapore’s workforce.
Notably, however, Singapore female university graduates who studied technology lags behind other Southeast Asian countries at only 29%.
[+10 sentences]  We have hidden gems within our women population, waiting to be discovered or for the opportunity to shine.  A dear friend of mine, Nurul Sharafudin, is to me a great example who had an amazing journey as a young Singapore woman in tech. Nurul started out as an MOE Arts teacher – she was happy and well loved by her students. But driven by her passion for learning and trying new things, she took a courageous move to switch career path. She applied for an entry position in Oracle. She stayed curious, acquired new digital skills, sought out her own mentor. And today, in just a few years, she is responsible for Oracle’s Business Operations Organisational Strategy and Programmes in Japan APAC. Today, Nurul is a confident woman, a regional leader in an American tech MNC, and a mother of two no less, making her mark in the tech sector and giving back by mentoring many others.  Nurul’s journey shows us how digital empowerment can make a positive big difference. It opens new doors and offers many more opportunities.
But Nurul's experience is perhaps not a common one, yet. Now and then, I still receive requests for help or hear of stories from residents who completed courses and tried hard to switch to a career in tech but were unsuccessful.
[+1 sentence] We must help them.
To be fair, Singapore has, in recent years, stepped up our effort to promote women in tech with initiatives, such as SG Women in Tech by the IMDA and the Women Luminaries Programme by PayPal and our four local Autonomous Universities. But, we can do more to: one, introduce more scholarships and education awards to encourage girls to study technology and related subjects in school; two, continue to emphasise public commitment to cultivating girls and women in tech in Singapore; three, drive board agendas and have companies set goals to recruit and cultivate more women in tech roles, and create environments that are enabling for talents, both men and women alike, with family commitments; and four, create and facilitate more peer-networking and mentoring platforms for women or aspiring women in tech.
[+1 sentence] In conclusion, I fully agree with the theme of this Budget – to emerge stronger, and a strong social compact is critical.
The Government's effort in addressing gaps, ensuring fair distribution of resources and opportunities and engendering an inclusive society cannot be understated. But I believe we can still do more to help Singaporeans emerge stronger and feel that they are stronger, not weaker.
[+3 sentences] When Singaporeans feel that they are progressing in tandem with the nation, there will be a stronger sense of togetherness, a stronger sense of pride and fulfilment. With a strong national psychological resilience, I am confident we will weather any crisis, come what may. I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Leong Mun Wai.
Mr Leong Mun Wai (Non-Constituency Member)2165 words
[+2 sentences]Mr Speaker, Sir, I welcome Budget 2021 announced by the Deputy Prime Minister and Finance Minister on 16 February. The Budget, which allocates about 20% of our GDP, has provided continued support to fight the COVID-19 and the resources to accelerate our socio-economic transformation to a new and sustainable model.
The basic deficit of $31 billion is attributable to $11 billion for the Resilience Package and $24 billion spread over three years for the emerging stronger initiatives. This basic deficit can be easily covered by the NIR or Net Investment Return earned from our total financial assets of more than $1.35 trillion. This NIR is estimated to be $39.2 billion for FY2021. However, since the Government's policy is to only use half of the NIR for spending every year, we can only use $19.6 billion to offset the basic deficit, which gives us an overall Budget deficit of $11 billion for FY2021.
[+12 sentences] If there is a need to help Singaporeans to survive and to do better, we think we should not hesitate to spend more, even up to the total NIR we earn every year. For the foreseeable future, we do not see any shortage of fiscal revenues. Needless to say, we must ensure that the money spent will have a lasting effect on our people and give them the confidence to take ownership of and build their own futures. It is in this regard that I think Budget 2021 has fallen short. Firstly, like the Budgets of previous years, many of the measures are short term, ad hoc and come with confusing names. Just like the Household Support Package, as an example. We have the GST Voucher Special, U-Save Special, Service and Conservancy Charges rebate, Edusave Top-ups, CDC Voucher and more. With such a confusing array of schemes, it is difficult for Singaporeans to find any lasting reassurance or peace of mind and create long-term plans for their futures. A true Resilience Package must contain long-term transparent and predictable schemes which Singaporeans will automatically qualify if they fall below a certain threshold. In this way, every Singaporean would know where they stand financially in every stage of their lives and how they can work towards a stable financial position. Secondly, the Budget measures did not tackle the root cause of the problems of job security and a rising cost of living which still afflict Singaporeans today especially the middle class. There is an urgent need to rebalance the local-foreign worker mix in our job market.
Mr Yeoh Lam Keong, the former GIC Chief Economist and one of the founders of FOSG or the Future of Singapore Group, has pointed out that, and I quote, "our most fundamental economic weaknesses stem (from) our structural excessive dependence on foreign capital and foreign labour." So, in preparing for a post-COVID-19 future, should we not seize this opportunity to reduce our reliance on foreign labour? I was disappointed that the Budget only adjusted the S Pass quota for the manufacturing sector for managing the local-foreign worker mix.
[+6 sentences] Currently, foreign workers account for, on the average, 40% of our workforce at all levels, whether Work Permit, S Pass or EP holders and many of the foreign workers have even taken the helm of our local companies. The growing numbers of displaced PMETs joining the ranks of the private hire drivers and gig workers is the best final evidence of the shortcomings of the current employment and immigration policies. The other urgent problem is the high cost of living and the heavy indirect tax burden of middle class Singaporeans. Housing prices has continued to surge during COVID-19 period. Other costs, like electricity, ERP and now, the petrol tax, are also increasing. For Singaporeans above 50 years old, the worries over retirement and healthcare is worsening by the day.
In 2021, Singaporeans will not only have to pay up to 35% more in MediShield Life premiums, but will also have to start paying CareShield premiums.
[+14 sentences] Seemingly, oblivious to all these pains of the middle class, the impending rise of the GST was brought up again during the Budget speech despite the Government agreeing that the GST is regressive in nature. When the top quintile income earners contribute more than 80% of personal income tax revenue but only 60% of the GST revenues, I hope the Government would also admit that a tax system relying more on GST revenue will burden the middle class most, namely, those who do not earn enough to hit the higher income tax brackets, but do not qualify for GST Vouchers. These are also the people who have young families with children, spending most of their income on essentials. Adding on social stress like the unnecessarily competitive Primary school education system and the yearly commitment of in-camp training for male Singaporeans, it is not difficult to understand how stressed middle class Singaporeans are. However, without the participation of the middle-class, the economic transformation is doomed because there will not be enough players to create healthy competition in the market if only the top quintile Singaporeans are innovating. Perhaps, it is because of an impoverished middle class that we need more foreigners. Hence, a good Budget must tackle the root cause of the problems with long-term, predictable policies and schemes, and it must aim to build a secure foundation of financial stability and social dignity for our Singaporeans. With that objective in mind, we would like to make three major long-term policy recommendations to nudge the Budget in the correct direction. The first recommendation is to introduce a living wage for the low-wage workers. The Singapore Progress Party (PSP) strongly believes that a Singaporean who has put in a day's work should be compensated sufficiently to allow him to live with dignity. And we firmly believe that honouring our fellow Singaporeans must take priority over all other economic arguments and we should not wait for the Government to take another decade or two to slowly review the wages of the low-wage workers, sector-by-sector, through its Progressive Wage Model. In 2019, Asst Prof Ng Kok Hoe and his team from the Lee Kuan Yew School of Public Policy had conducted a minimum income standards study on what older households need to meet their basic needs. The study postulated that single elderly households aged over 65 needed $1,379 per month and single households aged 55 to 64 needed $1,721 per month. While not definitive, this provides a good benchmark to design a living wage policy.
Using this benchmark, we propose a living wage of $1,500 take-home pay for all local workers which translates into $2,055 in gross wages for a start. The Government could pay the main portion of the increase from 2021 to 2023 to allow businesses time to adjust. We estimate this will increase operating expenditure by about $1.6 billion in each of the next three years.
[+8 sentences] The living wage will lift the wage share of the GDP, something that my colleague Ms Hazel Poa has recommended yesterday. There is a consensus in this House that we should care for our essential workers who are also often low-wage workers. We think the best way to achieve that is to have the living wage. Low-income Singaporeans will be able to have peace of mind with a living wage rather than those usual ad hoc, short-term and unpredictable schemes offered by the Government. The second recommendation is to level the playing field for our Singaporean talents in our very own job market. While it is understandable that we need foreign workers to complement us, it puzzles me why the Government has allowed a wage disadvantage against the Singaporeans for the longest time. This wage disadvantage against our local workers has arisen from the fact that foreigners are not included in the CPF system. While this disadvantage has been slightly reduced in the case of the Work Permit holders and the S Pass holders through the levy system, it is not the case for the EP holders.
It has often been highlighted that this is a loophole for employers to exploit to the disadvantage of our Singaporean workers. Hence, in order to level the playing field, we recommend imposing a $1,200 monthly levy on all EP holders immediately. The $1,200 amount is based on the employer's contribution and part of the employee's contribution. This is estimated to generate new operating revenue of $2.7 billion per annum.
[+10 sentences] If the Government needs more revenue, this is a good option to consider. This levy will differentiate the true foreign talents, who are high salaried and less affected by the $1,200 levy, from the foreign talents who are simply cheap labour that compete unfairly with our Singaporeans and whom our economy has become overly dependent on. The third and last recommendation is to strengthen the social security for Singaporeans by having the Government pay for all the MediShield and CareShield insurance premiums. Base on our financial projections, most middle class Singaporeans cannot afford the MediShield and CareShield premiums in their old age. And this is not clearly explained to the people. The average Singaporean can accumulate about $1 million in savings in his CPF account, if he had contributed continuously from 25 to 65 years old. With the contributions compounded at the CPF interest rates of 2.5% and 4% per annum for the Ordinary, Special and MediSave account respectively. Ostensibly, all Singaporeans should have adequate retirement resources in their CPF account. This is the reason why our CPF system is rated as one of the best retirement schemes in the world. But like the many other accolades that we have received, it only tells half the story.
In reality, about half of the CPF members do not have enough money in their CPF account, even to satisfy the Basic Retirement Sum of $93,000.
[+13 sentences] This is because in addition to retirement use, the Government has designated two additional uses for the CPF monies, namely purchasing HDB flats and topping up the MediSave account. The MediSave account is designed to pay for all the MediShield and CareShield premiums and out-of-pocket medical expenses of a Singaporean and his dependent family members, including his parents. Yes, he or she is responsible for all his family members as far as medical expenses are concerned. We estimated that the total premium paid by an average family of four, up to 65 years old for the parents, and 25 years old for the two children before they become independent, will cause a drain of $110, 000 from the parents' CPF resources. Considering that those premiums, if not withdrawn from the CPF account, they could have earned a compounded annual return of 4% over the years. In other words, if the family did not need to pay the MediShield and CareShield premiums, he would have an additional $110, 000 for retirement. Furthermore, if the premium increases by 10% every five years, which is highly possible, given that MediShield premium is going to go up 35% this year. The drain on the CPF account will be from $110, 000 to $246,000. The MediShield and CareShield schemes are thus a big drag on the retirement resources of Singaporeans. And the current social security plans are highly unsatisfactory. The reason why CPF rules have to be tweaked frequently, it is not because that the Government had lost the CPF money in bad investment, like some fake news have it. Rather, it is because the Government knows that most Singaporeans do not have enough funds to cater for all the three uses. Hence, it is restricting withdrawals.
So, we recommend that the Government funds, the insurance premiums of the MediShield Life and CareShield scheme for all Singaporeans and PRs. This will increase operating expenditure by adjustable justifiable some of $2.6 billion per annum, which is only 0.5% of our GDP. By taking away one of the sources of drain on the CPF funds, most Singaporeans will be able to satisfy the basic retirement sum of $93,000, and also not to have to worry about the unaffordable premiums in their old age. This means that two social security problems of Singaporeans are resolved by one policy. And if we relax, the withdrawal limit for MediSave at the same time, because more cash is now available in the account, we will resolve another financial problem for Singaporeans.
[+3 sentences] Managing healthcare cost is an on-going and complex matter, which requires many more policy and system changes. However, we believe our recommendation is a significant first step in the correct direction. Sir, in total, the three recommendations will incur a net additional spending of $1.5 billion.
The Government can decide whether it wants to reallocate existing resources to these recommendations, or allow the additional spending to provide more stimulus for the recovering economy.
[+3 sentences] We believe our recommendations will go a long way; helping to secure a foundation of financial stability and social dignity for Singaporeans. Only with this secure foundation, can we really emerge as one people. Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Gan Siow Huang.
The Minister of State for Manpower (Ms Gan Siow Huang)434 words
[+2 sentences]Mr Speaker, I would like to make a clarification following hon Member Mr Leong Mun Wai's speech. Mr Leong Mun Wai, in his speech, suggested that foreigners are taking the helm of companies in Singapore at the expense of locals, and he suggested that there should be a levy on all EP holders.
The Singapore Government reviews the EP qualifying criteria constantly.
[+2 sentences] We just did that last year as well. We do that so that there is constant rebalancing of the foreign and local talent mix in Singapore, and the intent is to strengthen the Singaporean Core. 
A blanket levy on EP holders is a signal to foreign investors that we do not quite welcome them bringing in their own talent.
[+7 sentences] I also recall that in his earlier speech during the debate on the Motion of Thanks to the President, he lamented that DBS was still without a Singaporean CEO, and even after hearing the clarification that the CEO of DBS is indeed Singaporean, even though not born in Singapore, he maintained his position. I cannot help, but come to the conclusion that Mr Leong and PSP do not believe that Singapore should be an open city connected to the world, having locals and foreigners complementing each other. And he wants Singapore to close up, for the top jobs to be given to Singaporeans only. Mr Speaker, we have seen in many other mature democracies where anti-foreigner sentiments are being played out and politicised and we also know that many countries are grappling with the challenges of globalisation. So are we. But we must try to strike a balance between globalisation and building our own identity in Singapore, welcoming foreign talent and building our own talent at the same time. And our future depends on it.
If we start telling companies that they can invest but can only employ Singaporeans for the top jobs, we will end up chasing some of them away and thousands of good jobs for Singaporeans will be lost as well.
[+6 sentences] And going by Mr Leong's logic, Singaporeans who are working overseas then, would not be given top jobs outside Singapore. In my maiden speech in Parliament, I spoke about strengthening the Singaporean Core and being very proud of Singapore as an open and multi-cultural society. We must do our best to equip our Singaporeans with the right skills and also the attributes to thrive in a vibrant and open economy. Singapore is a global city state. Global companies with a presence in Singapore require a diverse team of foreign and local talent. Mr Leong and PSP must know that.
Mr Speaker7 words
[+1 sentence]Do you have a response, Mr Leong?
Mr Leong Mun Wai305 words
[+5 sentences]Yes, thank you, Speaker. I also thank the Minister of State for the comments. May I respond? PSP is in total agreement to the fact that we are an open global city state. So, we are in favour of having foreign talents or foreigners to come in to compliment us.
However, what we are pointing out, as in my maiden speech in September last year, we need a rebalancing, and we think the rebalancing is going on too slowly. Now, with more than 40% of the foreigners in our workforce, many of them have taken over the top positions.
[+8 sentences] The fact is that taking over the top positions in our company is not the problem. The problem is do we have enough policies to ensure that Singaporeans have a fair treatment? Today, I have pointed out again that for the longest time why the Government had allowed the wage disadvantage against the Singaporeans? With that, obviously, the employers would favour the foreigners over the Singaporeans a lot more. And during my maiden speech, I brought up the issue of the CEO of DBS Bank not because it was meant to be a personal attack, but I am trying to emphasise, why is there no succession planning, again, being done over the course of the 20 years? And recently, another of our local bank has employed another foreigner to be the CEO. So, what is MAS doing? In my maiden speech, I have said that during my time in the 1980s and the 1990s, localisation is almost a must in our financial sector.
Today, it does not seem to be even a KPI for the MAS officials.
[+1 sentence] So, that is what PSP and I are concerned about – the rebalancing and we have to do the rebalancing as soon as possible and as fast as possible.
Mr Speaker4 words
[+1 sentence]Ms Gan Siow Huang.
Ms Gan Siow Huang90 words
[+4 sentences]Mr Speaker, PSP is entitled to take that position and a segment of Singaporeans will in fact support that position. And this is part and parcel of having diversity of views in the Chamber. But I thought that I should just register that the Government has a different view, which is that, this is a difficult balancing act. We are constantly working on it and that we will try our best to manage, do well to build a strong Singaporean Core in order to benefit Singaporeans for the long run.
Mr Speaker4 words
[+1 sentence]Mr Ong Ye Kung.
The Minister for Transport (Mr Ong Ye Kung)253 words
[+12 sentences]Thank you, Mr Speaker, Sir. Mr Leong and I had this exchange during the Motion of Thanks to the President's Address. I gave a full speech, recorded in the Hansard, the efforts that MAS has taken all these years and decades, opening up Singapore, establishing ourselves as a financial hub, creating many jobs, allowing many of our young now to go to University, receive a good education and enter the financial sector; how Universities have now become a very good hunting ground for financial sectors to hire very good talent. And they know that Singaporeans are able to do the job. And how Singaporeans – because we are now a regional and international hub – are now able to take up international roles overseas in other financial centres around the world, and then holding our own. But competition is tougher. Of course, we always wish there is a manual that says we get all the jobs, but yet no competition. But I am sorry, there is no such manual. The manual is to open up, allow for more competition, but we build capabilities so that we can seize more opportunities. All these, we have gone through during the Debate on the Motion on the President's Address. So, I am a little bit disturbed when I hear Mr Leong grandstanding, saying that all these building up, growing our own timber, localisation, building our own talent is not in MAS' KPI. I think that is grossly unfair and ignores everything that we have discussed earlier.
Mr Speaker2 words
[+1 sentence]Mr Leong.
Mr Leong Mun Wai133 words
[+4 sentences]I thank the Minister for the comments. I want to apologise. Maybe MAS does have the KPIs, but I think the KPIs are not showing enough results. Even the data that was quoted in Minister's clarification in September last year, I think I and a lot of Singaporeans still have doubts.
Like for example, the senior executive positions in the retail banking sector in Singapore, why should there still be 30% to 40% of foreigners?
[+5 sentences] After all, retail banking is about our own domestic market, right? Can it not be 80% to 90%? Are we satisfied with a 60%, 70% percentage, for example? Secondly, I would also like to pose a question related to my speech today. Has the Government created a wage disadvantage by not having foreigners contribute to CPF in Singapore?
Mr Ong Ye Kung105 words
[+1 sentence]Thank you.
Why are 30% of retail bank managers still foreigners?
[+1 sentence] Because we are a global financial centre.
We are 70% and a much larger pie with a larger share. That is the essence of being an open and international financial centre. So, I think I have also come to the same conclusion as Minister of State Gan Siow Huang that actually the PSP's position is that you want Singapore to close up and protect the jobs.
[+1 sentence] Which is fine.
It is entitled to that view, but I think the Government and MAS have a different view.
[+2 sentences] But thank you for the apology. Apology accepted.
Mr Speaker4 words
[+1 sentence]Asoc Prof Jamus Lim.
Mr Leong Mun Wai7 words
[+1 sentence]Speaker, let me have my last say.
Mr Speaker12 words
[+2 sentences]No, we are moving on, thank you. I think enough was said.
Assoc Prof Jamus Jerome Lim (Sengkang)1905 words
[+10 sentences]Mr Speaker, I had previously spoken in my speech to this House on the application of the Government Securities Act and Treasury Bills Act to raise the debt ceiling of the merits of debt and deficit financing, at least at this particular juncture in our economic cycle. And I am as happy as a clam, to hear that Minister Heng has outlined in his Budget, a fiscal strategy that reflects the number of elements that I had previously raised. I just wish today, to develop a number of additional points in greater detail. First, I will offer some further thoughts about borrowing when interest rates are low, then I would discuss some of the benefits of not prematurely removing Government expenditure support at the time of macroeconomic weakness, while spelling out some of the key signals to keep an eye on in deciding on the eventual withdrawal. And finally, I will close with suggestions on broadening the usage of funds financed by long-term debt issuance. Back in January, I shared about how, since governments are bound by very different time horizons and budget constraints, as compared with households and firms, as they have both the ability to finance expenditure through money creation, but also a fiduciary responsibility to evaluate the benefits of debt-financed fiscal policy, if macroeconomic conditions so warrant it. Even if this point may be a subtle one, the takeaway is remarkably straightforward: if real interest rates are low, as they are today, incurring additional debt, especially when directed toward investment, could give rise to higher growth and potentially improve national welfare. Now, if we accept this premise, how then should we execute such borrowing? MOF has yet to detail the forms by which bonds issued via the Significant Infrastructure Government Loan Act, or SINGA, would take. If I may, I now venture a few suggestions that may be helpful.
First, while the maturities of existing Singapore Government Securities run from two to 30 years, we should not rule out the possibility of further extending the maturity of debt issued under the auspices of SINGA, to 50 or 100 years. This would lock in the currently very favourable low rates for a much longer period as befitting truly long-term projects.
[+5 sentences] If we were to do so, we would hardly be alone. Other advanced economies, including Austria, Belgium and Ireland have already done. Even several emerging economies such as Brazil, Chile, Israel and South Korea and perhaps preposterously Argentina, have gone ahead and issued century bonds as well. And corporations such as Coca Cola and Disney have likewise done the same. Closer to home, Temasek has also issued half centuries.
Second, it is important to benchmark the speed of debt issuance against prevailing growth conditions.
[+7 sentences] There is evidence that when the growth rate of debt is too rapid, economic growth can suffer. The last thing we want for such voluntary debt insurance is for it to become a detriment to growth performance, a bane rather than the boom for our economy. And finally, we should be clear about when we may no longer wish to roll over this debt but instead choose to extinguish it. On its face, this decision is a rudimentary, an accounting exercise. We will cease that issuance when the present value of expected returns from the investments toward which this debt is deployed, no longer exceeds the equivalent stream of interest repayments. All this is standard cost benefit analysis as any consultant worth their salt can easily attest to. But it is possible to simplify this argument even further to a set of key warning indicators, all supportable by theory.
One is that if the interest rate begins to routinely exceed the growth rate, we want to pay attention.
[+10 sentences] A second warning sign would be if long-term inflation expectations remain benign, but interest rates nevertheless face upward pressure. A third amber signal is when the short-term interest rate begins rising inexorably even as the economy has clearly exited recessionary conditions. Mr Speaker, may I suggest that we pay particular attention to our continued borrowing if any of these conditions present themselves? Minister Heng has also explained that SINGA Bonds would be directed toward investment in physical infrastructure. To be clear, I am thoroughly supportive of this. Indeed, in my January speech, I explicitly indicated that investment in domestically-oriented infrastructure projects – such as sustaining MRT line expansion – represented examples of Government investment expenditure that would likely generate significant bang-for-the-buck. The other suggested expenditure area, tidal walls, likewise represents a domestically-oriented infrastructure project that promises to yield significant, in this case existential benefits. I, therefore, applaud the Government's decision to take this bold step of prudent, debt-financed investment. I will further concede that this approach is entirely consistent with this Government's general principle toward capital raising – that long-term sources of finance be directed toward long-term projects. My remaining reservation here is directed toward our interpretation of "long-term infrastructure".
Undeniably, the examples cited above are excellent examples of hard capital, which extend the promise of raising productivity and growth. But, why would we limit our investments to only bridges and train lines and airports and seawalls, and not consider the equally important long-term investments we could direct toward soft capital, namely the capabilities of our people?
[+3 sentences] In our effort to boost productivity and growth, investments in human capital are low hanging fruit. Not only that, they are also consistent with our stated goal of re-invigorating our post-pandemic economy, and rebooting it into a knowledge-based, information-centric 21st century powerhouse. Let me elaborate.
One important area where we can afford to spend more is in terms of research and development expenditure (R&D). We currently only devote a little less than 2% of our income toward R&D efforts, behind leading innovation nations such as Israel, Japan and South Korea.
[+2 sentences] I will develop this proposal in greater detail in my Committee of Supply (COS) cut directed at MTI, although I will just declare here that I work for a research-intensive educational institution. Another area where our human capital will benefit enormously with wise spending is in our Primary and Secondary schools.
Our classrooms, at 33 students across most subjects, are a full 10 children in excess of the average class size of our industrial economy peers.
[+4 sentences] I will likewise elaborate on how we can channel more resources toward reducing class sizes in my COS cut for MOE. And finally, we should not forget the large mass of workers who will have to be reskilled and redeployed as we continue to transform our economic structure. The existing Professional Conversion Programme and SkillsFuture programmes can be better weaved into an end-to-end jobs safety net that not only provides support following retrenchment, but proactively channels displaced workers into new jobs. I will discuss this proposal in greater detail in my COS cut for MOM.
To that end, I propose that the amount to be authorised for total borrowing under SINGA, either be increased by $60 billion or to be carved out of the proposed $90 billion.
[+1 sentence] These are to reflect provisions for potential increases in R&D, educational expenditures for smaller classes and an initial redundancy insurance risk pool.
Importantly, even if we take the $60 and $90 billion together, this would represent a little less than a third of our GDP, an eminently sustainable debt burden, especially at low rates and when earmarked for investments with high long-term payoffs.
[+17 sentences] All that said, I believe it is incumbent on us to also consider the deployment of at least some of these funds toward cyclical needs. This is because of the material risks surrounding premature fiscal retrenchment. This uncertainty has, indeed, been recognised by others in this House, including Minister Heng himself. While it is generally impossible to define a precise set of conditions whereby we can be certain that the economy has returned to its long-run potential, it is also fair to recognise that we are likely to remain below our previous trend over the course of 2021. We must bear in mind that, at the moment, the economy is very much like Swiss cheese. By which, I mean that, while it may look solid, it is, in reality, still riddled with holes. Our economy contracted by 5.4% in 2020. If we grow to attain the midpoint of the 2021 forecast by MTI of 5%, we will remain two-thirds of a percent below our pre-pandemic level of output. And even if we exceed expectations and grow by the upper bound of MTI's forecast, we will still remain more than 2% below the level that would have prevailed, had we grown at the 2019 growth rate through till 2021. More sophisticated methods suggest similar conclusions. It is also useful to remind ourselves of the relatively recent experience of a number of countries in Europe, which made the fateful decision in 2010 to embark on austerity programmes, as a means of shoring up their weakened fiscal positions, following the region's sovereign debt crisis. The end result of that episode was that many of those economies went into a double-dip recession, prolonging the economic pain just as households and firms were in the process of pulling themselves out of a massive hole. The bottom line, Mr Speaker, is that we should exercise an abundance of caution in any decision to taper the financial assistance that we have been offering to our families and companies. To be clear, there are those who will argue the opposite, that if we take too long, we run the risk of over-stimulation, stoking the flames of inflation. But I, for one, would err on the side of over-extending, rather than undershooting, short-term support for our beleaguered economy. But, with all due respect, this is not about calibrating a response that neatly threads the needle between two possibilities. This is about how an error or premature austerity could translate into real economic pain for thousands of worker and businesses.
Minister Heng had suggested that our short-term spending plans will include an extension of GSS support Tier-1 corporations for another six months and certain Tier-2 corporations for another three.
[+8 sentences] However, if we truly buy into the merits of controlled, short-term deficit financing, we should not allow traditional fiscal prudence metrics to preclude even greater support for our businesses, especially small and medium enterprises, that continue to struggle, and companies that will experience a more protracted recovery path, such as our national airline, even in the short run. Importantly, our key considerations should not be whether any given firm falls into Tier-1 or Tier-2 or elsewhere. Rather, the metric for our evaluation should be whether the corporation would remain a going concern in the absence of the global pandemic conditions. Accounting and finance firms routinely gauge whether firms face temporary liquidity or more fundamental solvency issues. Our Government support programmes should do the same. Thankfully, our reserves buffer also means that we are comparatively less constrained in our use of the debt instrument as part of our overall fiscal strategy. This means that we can always cease our deficit financing exercise once conditions for doing so – a number of which I had earlier suggested – are no longer optimal. But in the meantime, let us continue to support our struggling workers and businesses as much as we can.
Notwithstanding these additional suggestions and those that I plan to raise in the Committee of Supply, I support the Motion.
Mr Speaker4 words
[+1 sentence]Parliamentary Secretary Rahayu Mahzam.
The Parliamentary Secretary to the Minister for Health (Ms Rahayu Mahzam)2593 words
[+9 sentences]Mr Speaker, the true measure of a good Budget is how it impacts people. I would, therefore, like to start by sharing the story of people, in particular, three women. The first person I want to talk about is Mdm Joey Lee. Joey is one of the directors and owners of Bread Garden, a family-run bakery business which has an outlet at my constituency, Bukit Batok East. Like many other businesses, Joey’s business took a hit as a result of COVID-19 and the circuit breaker. Events which were planned had to be cancelled. She had several Malaysian employees who could not come back to Singapore. Sales and revenue dropped and Joey and her team had to quickly pivot and learn ways to enhance their online business. All these happened amidst their plans to open another outlet.
The Jobs Support Scheme and the Rental Relief Framework were thus very crucial in helping Joey sustain her business.
[+1 sentence] Joey employs many Singaporean workers.
Because of the support she received, she was able to continue running her business and open up a new outlet as planned. She managed to retain all her workers and has not had to retrench anyone yet.
[+24 sentences] The pandemic is not over and the challenges with regard to manpower and sustaining the business are still present. Joey is, therefore, keenly interested in the extension of support to small and medium sized businesses like hers, as well as the plans on economic recovery. The second story is that of Mdm Faraliza Zainal, a founder of MIJ Special Education Hub. Fara has a son with special needs and she left her high-flying job at Dow Jones to set up the education centre with the hope of providing support to those in situations similar to hers. She is deeply committed to ensure that early and meaningful intervention is given to children with needs. She would like to see society become more inclusive and embracing of people with different abilities. She, therefore, welcomes the announcement made by Deputy Prime Minister Heng on the Inclusive Support Programme that will integrate the provision of early intervention and early childhood services to help children with special needs. She also looks forward to the new Singapore Together Alliance for Action to support care-givers of persons with disabilities and hopes that, through this, more enhanced support can be considered for families with children with special needs. The third individual I want to tell you about is Mdm Rajoo Meenachiammal, one of my volunteers. Meena is a dedicated volunteer who enjoys serving the community. She lives with her 73-year-old mother and is the primary care-giver. She works in the security industry and does the night shift so that she can spend time in the day to take care for her mother and bring her for her medical appointments. Meena is grateful for the financial support she will be receiving like the S&CC and U-save rebates, and the CDC Food Vouchers as these help her alleviate her monthly expenses. Joey, Faraliza and Meena are strong and resilient women who are passionate about what they do and care for the people around them. There are many women out there like them and I want to take the opportunity in this debate to share and talk about the Budget from a woman’s perspective. COVID-19 cast a gloomy shadow over many women who struggle to overcome their challenging situations, but it also provided opportunities for them to show strength and become everyday heroes. It is imperative for the Budget to help navigate the people through these difficult times. Our women, like their male counterparts, are very much involved and vested in our economic recovery and social development. While we may not typically see the Budget presented in a gender-centric fashion, the reality is that, there are many aspects of this year’s Budget measures that benefit women. In fact, all the Budgets announced in the past years have had measures that impact women. This year’s Budget is building on past efforts to transform the economy and support Singaporeans through various changes. In this regard, I would like to share my thoughts on the top three things about this Budget that matter to women. Firstly, many of the Budget measures this year impact sectors where there is a high representation of women. There are many women working in hard-hit sectors, like tourism and hospitality.
In many countries, proportionately more women have dropped out of the workforce. However, in Singapore, the workforce participation of women was not just maintained but, in fact, showed modest growth even in 2020. At the height of the pandemic, the employment rate for females remained at about 73.2%.
[+9 sentences] The extension of the Jobs Support Scheme and Jobs Growth Incentive, therefore, have had a significant impact on keeping many women employed. If these women were forced out of the workforce, like what we see happening in other countries, there would have been severe repercussions to their income, careers and even their retirement. Many of our healthcare workers are also women. They have made sacrifices working in high-risk environments during the COVID-19 pandemic while balancing their other roles as mothers, wives and daughters. They have been working hard even before the pandemic, but showed true commitment in our battle against the virus. To quote Deputy Prime Minister Heng, our healthcare workers have, over the years, been working hard to provide us with the highest quality of care. The announcement that the Government will enhance the salaries of our nurses and other healthcare workers, such as support care staff, is, therefore, welcomed. At this juncture, I feel that we should also recognise women who have been at the leading edge of infectious diseases and public health, guiding our efforts in fighting COVID-19, such as Assoc Prof Lim Poh Lian, Director, High Level Isolation Unit, National Centre for Infectious Diseases and also Head, Travellers’ Health and Vaccination Clinic, TTSH. Assoc Prof Lim is also a member of the Expert Committee on COVID-19 Vaccination.
We also have Prof Leo Yee-Sin who is the Executive Director of the National Centre for Infectious Diseases. She had led Singapore through multiple outbreaks, including SARS in 2003, pandemic influenza in 2009 and Zika in 2016.
[+11 sentences] In 2020, she was the fourth Singaporean to be recognised by the BBC in their annual 100 Women list. I should also mention Assoc Prof Ong Biauw Chi, Chairperson of the SKGH Chief Medical Board, who worked tirelessly on the frontlines, managing the dormitories outbreak. We, indeed, have a lot to be proud of, having our women at the forefront of this battle against the pandemic. Secondly, the Budget addresses some of the women’s immediate concerns and their concerns about their families. The Household Support Package and the COVID-19 Recovery Grant, for example, matter to women and their families. Women are often contributing to the family finances or managing their families’ financial commitments. In some families, the economic situation has led to some loss of income. Financial support is necessary to help families tide over this challenging period. Another major area of concern is care-giving. Both men and women can be care-givers, and the Government’s support for care-givers is not specific to any gender. Nevertheless, it is clear that, in many circumstances, women tend to take a disproportionate load of the care-giving role.
MOH launched the Caregiver Support Action Plan (CSAP) in 2019 which focused on providing better support to care-givers of seniors and their families. The CSAP included enhancements to: (a) care navigation, (b) financial support, (c) respite care, (d) workplace support, and (e) care-giver empowerment and training.
[+10 sentences] Various initiatives were rolled out under the CSAP, such as respite care pilots and the Home Caregiving Grant in 2019, to alleviate the community cost of care-giving. MOH also worked with community partners to set up care-giver community outreach teams. These teams support care-givers in self-care through health and wellness activities and also provide counselling services where needed. The Government remains committed to supporting care-givers and more plans will be shared at MOH's COS Debate. There are many other aspects of this Budget that would have a great impact on women. Women care about the environment, too, and certainly look forward to further details of the Singapore Green Plan. Women care about their jobs and the economy and would be keen to see the roll-out of the SGUnited Jobs and Skills Package and the Jobs Growth Incentive. Thirdly, the Budget builds on earlier Government policies and the work is not done. We have seen how policies and schemes have evolved over the years. In 2016, the Silver Support Scheme was introduced.
About 65% of the recipients are women who had low earnings throughout their lives and now have less in retirement.
[+2 sentences] In 2019, we saw the Government announcing the Bicentennial Bonus CPF Top-Up. Six in 10 of the citizens who benefited from the top-up are women in their 50s and 60s.
From 2021 to 2025, the Government will also provide a dollar-for-dollar matching grant of up to $600 annually under the Matched Retirement Savings Scheme (MRSS) to older members with lower CPF balances and cash top-ups to their Retirement Account.
[+13 sentences] One-third of those eligible for MRSS are inactive CPF contributors, including full-time care-givers, with about 2.5 times as many women as men among them. There has been increasing awareness about women who have spent a large part of their lives not in formal employment but toiling to care for their families. Over time, there has also been conversations around the uneven distribution of the care-giving load and equal opportunities for women. Indeed, there are gaps that we need to work on. Gender bias and stereotypes and the disparity between men and women continue to exist. That is one of the reasons why the Conversations on Women’s Development was started – to encourage a whole-of-society discussion on this to nudge behaviours and call for changes that benefit not just women, but the whole community. The efforts are still on-going and there is still much to be done to meaningfully change mindsets and systems so that our boys and girls in the future have equal opportunities to pursue their full potential. My colleagues, in their speeches, will address some of the issues that continue to be of concern to women in Singapore and share their views on how we can build on our existing efforts to support and empower women. Ms Yeo Wan Ling spoke yesterday about challenges faced by female cabbies and also raised the possibility of introducing respite care to alleviate the burden on women workers. Ms Tin Pei Ling spoke earlier about digital empowerment of women. Ms Jessica Tan and Ms Nadia Samdin will be talking about jobs, encouraging more women into certain sectors in the workforce and providing support for women to pursue their aspirations. Miss Cheryl Chan, Ms Joan Pereira, Ms Carrie Tan, Ms Hany Soh and Ms Ng Ling Ling will be covering various aspects of the women’s care-giving roles. Miss Cheng Li Hui will speak on assisted conception.
Minister of State, Ms Sun Xueling, will address how Budget 2021 builds on continuing efforts in supporting women in care-giving, supporting vulnerable women, and supporting women in their career aspirations.
[+13 sentences] Their insights will show the broadness and depth of all the issues that matter to our women; reflecting how a Budget debate will always take into account the concerns of all women as our interests and development are intertwined with the development of this nation. Mr Speaker, in Malay, please. (In Malay): COVID-19 has brought many challenges to our community. It is important for this year’s Budget to ensure that there is steady support for the public and robust plans to improve our economy. Women, just like the men, are impacted by COVID-19 and are very concerned about economic recovery and social issues that emerge in our community. We seldom discuss Budgets through the lens of women, but if we think about it, there are many aspects of this Budget that benefits women. In Singapore, year after year, we see a lot of opportunities and support being given to women. These enable our women to progress at a better level than women in other countries. However, we need to continue to increase support to help develop the potential of women. Women in Singapore have made many sacrifices and contributions to their families, society and nation. In some of my interactions with women comprising professionals, business owners, home-based business women and housewives, I have been very impressed with their resilience. Although the COVID-19 pandemic has affected their lives, they remain positive. They also continue to play an important role in strengthening family institutions, becoming valuable assets in their organisations, improving the country's economy and becoming a role model for other countries to celebrate the achievements, progress and potential of women.
Recently, Berita Harian highlighted the story of Ms Shirin Hamid, an outstanding corporate woman, holding the post of Director General and Chief Information Officer of the Asian Development Bank (ADB), based in Manila, the Philippines. She led the IT department of the bank that has 45 global offices. Prior to that, she played a role as Chief Technology Officer at the United Nations Development Programme or UNDP in New York for 10 years. This is the highest non-political appointment at the UN.
[+21 sentences] Her achievements in the field of technology, which currently does not have many women from the minority groups, is something to be proud of. Many of us may also know Ms Fatimah Mohsin, designer and founder of Fatimah Mohsin The Wedding Gallery. Due to the spread of the COVID-19 virus, many functions and events had to be cancelled or postponed. This has affected her business, but she has not given up hope. Ms. Fatimah has modified her company's strategy and has opened a new restaurant. In fact, despite her busy schedule, she also managed to sew and distribute 600 face masks to frontline officers as a token of appreciation for their sacrifices. Ms Fatimah also rolled up her sleeves to help small businesses during the physical Ramadan Bazaar last year. She invited them to place their products in her shop. Her never-say-die attitude, willingness to innovate and concern about the plight of other business owners are traits that we should emulate and admire. Indeed, women have much potential to help Singapore emerge stronger from this pandemic. I urge the whole community to have an open mind and provide unfettered opportunities for women. Do not underestimate the roles, responsibilities and contributions of women. As the saying goes, “the hand that rocks the cradle rules the world”. (In English): Mr Speaker, the pandemic is far from over. Its impact will be felt for years to come and there is a lot more to be done. We also need to remain committed to our long-term priorities and amongst other things, continue to look at areas where we can address gender bias and disparity between men and women. We are not done building this nation and will have to carry on our efforts to build a fair and just society for all. And I have no doubt, the women in Singapore will stand tall alongside the men, doing their part for this country. It is apt that we are also Celebrating SG Women this year. There is indeed much to celebrate as we are celebrating the great leaders, the pillars of strength within the families, the everyday heroes, who inspire us to emerge stronger together. Mr Speaker, I stand in support of this Budget.
Mr Speaker4 words
[+1 sentence]Ms Ng Ling Ling.
Ms Ng Ling Ling (Ang Mo Kio)1700 words
[+11 sentences]Mr Speaker, Sir, first, let me declare my role as a consultant in healthcare transformation. Sir, the COVID-19 pandemic is a crisis of a generation unparalleled to any that Singaporeans have faced in recent history. Vaccines are giving us hope to get through the challenges soon, and as we brace ourselves through probably another year of an adjusted way of life, we must continue to look out for each other. I spoke with residents in my constituency in Jalan Kayu after Deputy Prime Minister Heng had announced Budget 2021. Many felt that it is a balanced Budget that builds on the efforts to support Singaporeans and businesses to stay afloat, to ride the reviving of the economy and, more importantly, to ensure that the vulnerable amongst us are also well taken care of. I would like to call attention to three more vulnerable segments of our population who will need continued efforts to safeguard and improve their welfare under this Budget. The three groups are: one, persons with disabilities; two, women who are care-givers; and three, seniors living alone or with their spouse only. First, support for persons with disabilities or PWDs for short. In Singapore, children with disability can attend special education up to 18 years old and in some vocational track, up to 21 years old. Armed with knowledge and skills, young adults with disabilities and abilities can have almost five decades of work capable years ahead of them. Deputy Prime Minister Heng assured in his Budget speech that employment and training for PWDs will be supported by various initiatives such as those under SG Enable's Open Door programme and the Enabling Employment Credit.
The Minister for Social and Family Development, Mr Masago Zulkifli also recently announced that about 1,200 job and training opportunities will be created for PWDs by the end of this year. When we look at the data from MOM, as of June 2018, 28.6% of resident PWDs aged 15 to 64 are employed, compared with countries like New Zealand where the employment rate for disabled was 38.7% in 2020.
[+14 sentences] We know that we can and must do more to push for a higher level of inclusion for PWDs in the workforce in Singapore. I believe that we should not merely offer employment to PWDs in quantity, but also in quality that will allow them to optimise their full potential. Recently, a young lady, resident of mine, shared with me that her job scope was limited because of her physical disability. Although she has a desire to interact directly with clients, her employer has assumed that a role in a backroom will be more suitable for her. While she is thankful for the job, she was discouraged that the assumption of her limited ability will limit her career progression. This example goes to show that as we have more employers willing to offer jobs to PWDs, we need to minimise stereotyping jobs roles and have in mind that they have abilities that can be stretched. I urge the Government to work with the employers, Social Service Agencies and PWDs themselves to factor in the aspiration of the PWDs even as the number of jobs will be bolstered. Complementing existing efforts under the Open Door programme, I recommend for the Government to consider the following suggestions. One, add a develop-and-grow type of programme that will help employers identify, design and develop career growth path for PWDs within their organisations. This will enable employers to build the confidence of the PWDs that their potential will be valued. Two, develop a holistic outcome-based measurement framework for the employment of PWDs, covering end-to-end, from skills training, job placement to career development and growth. Such a framework could integrate the tracking of training outcomes, employment placements, remuneration as well as progression data over multi years to provide a basis for the Government to continually adjust policy and programmes with employers. And three, incentivise and reward more employers to attain the Enabling Mark by SG Enable so that more workplaces can implement best practises for inclusive employment. Next, the group that I would like to bring attention to are the care-givers, especially the women.
The report on labour force in Singapore showed that in 2019, about 133,500 of resident population indicated care-giving responsibility as the main reason for them to have to leave the workforce.
[+1 sentence] And of this, almost 90% were women.
Majority of these women were aged 40 to 59 years old and almost seven in 10 were out of the workforce for more than five years.
[+3 sentences] Some of the most common problems that women care-givers experience is a setback in their own health and career. In a report entitled "Explaining the gender gap in care-giving burden of partner care-givers" in the Journal of Gerontology published in February 2019, it shows that women care-givers also experienced greater burnout on healthcare due to multiple stressors such as relational, financial problems and problems integrating care-giving with social and work activities. Women care-givers also struggle with uncertainty over their future and financial adequacy in their older age as a result of their absence from the workforce.
The need for women care-givers' re-integration, re-employment and retirement adequacy and their own health cannot be understated. I am glad to hear from Deputy Prime Minister Heng in the Budget speech that the National Council of Social Service and SG Enable will form an alliance for action on support for care-givers for PWDs.
[+5 sentences] I would like to recommend for this alliance to expand to women care-givers, to emphasise more on women care-givers, given that they are likely to be the majority and also to cover those caring for seniors with acquired disabilities or health issues. Holistic actions to support care-givers must address the social, health and employment needs to provide comprehensive and robust support. On this note, I would like to recommend expanding the partnership to include Agency of Integrated Care (AIC) and Workforce Development Agency (WDA) in the alliance for action. Mr Speaker, Sir, in Mandarin, please. (In Mandarin): Mr Speaker, Sir, in the Budget, I hope that the Government can pay more attention to women care-givers.
The report on labour force in Singapore showed that, in 2019, about 133,500 people indicated care-giving responsibilities for children, the elderly and disabled as the main reason for leaving the workforce.
[+1 sentence] Among them, 90% were women.
Majority of these women care-givers were aged between 40 and 59 years and have left the workforce longer than five years.
[+6 sentences] Some of the most common problems that women care-givers experience is setback in their own health and career. The need for women care-givers’ re-integration, re-employment and retirement and their own health cannot be overstated. I am glad to hear from Deputy Prime Minister Heng in the Budget Speech that the National Council of Social Service and SG Enable will form an Alliances for Action on support for care-givers of persons with disabilities. I hope the Alliance will emphasise more on women care-givers, who make up the majority, and also cover those caring for seniors with disabilities. I recommend that Agency of Integrated Care and Workforce Development Agency be included in the Alliance so that we can look after women care-givers’ health and employment needs holistically. (In English): The third group I would like to speak about are the seniors who are living alone or only with their spouse.
While I am glad to hear that about $200 million increase in budget allocation will be given for the Senior Worker Early Adopter Grant and Part-time Re-employment Grant from Deputy Prime Minister Heng, care for seniors must also extend to supporting them to age in place. According to the Department of Statistics (DOS), the number of households headed by persons aged 65 years and above living either as a couple without children or living alone has increased from about 100,000 in 2015 to 167,000 in 2019.
[+2 sentences] These numbers show that we need to continue to improve the living environment of our seniors to help them age in place as far as possible, especially in mature estates where more seniors reside. The BTO launch of the first Community Care Apartment Harmony Village @ Bukit Batok is an innovative and meaningful pilot for our seniors.
What stands out from this pilot is the unique design features, innovative use of technology and complementary care services package. This BTO project, which was over-subscribed by 4.2 times shows that there is a demand for such kind of apartments.
[+11 sentences] However with the number of households with seniors living alone and senior couples living without children increasing so rapidly, it might not be possible for the supply of such Community Care Apartments to catch up fast enough with the demand. I hope that MND can consider integrating some of the success factors of the Community Care Apartments into the Enhancement for Active Seniors (EASE) programme where more seniors can apply too. For example, in addition to incorporating technology for elderly monitoring and alert system, perhaps telecare, providing remote health monitoring devices supported by care providers could also be considered as part of EASE. As of 2019, the EASE programme has benefited about 200,000 households. MND shared in a 2018 Parliamentary Question response that HDB regularly reviews EASE by engaging healthcare sector stakeholders to develop and review the list of improvements that can be added to the programme. I hope that MND can consider technology enhancements in the EASE programme, including telecare packages that can be delivered through technology by care providers to reap similar benefits like the Community Care apartments to more seniors. Mr Speaker, please allow me to conclude my speech with a word of encouragement for the year ahead. I rise today to speak about our efforts to support the vulnerable among us because as we recover as a nation, we must bring along everyone and leave no one behind. As our country moves towards the path of recovery, we must not forget those among us who are vulnerable and who can benefit from innovative ideas to continue improving their lives. Supporting one another should continue to be part of our Singapore spirit. On that note, I support the Emerging Stronger Together Budget 2021.
Dr Shahira Abdullah (Nominated Member)2229 words
[+21 sentences]Mr Speaker, I am humbled to be given this opportunity to participate in this debate. I would also like to thank the Minister for Finance for a Budget in which it is evident that the country tries to take care of the community as a whole for the present while at the same time is cognisant of the challenges we may face in the future. A Budget, to me, is like a blueprint for the future. With the Budget, people are able to see the priorities that a Government has for the country – its vision, its plan and its ideas. When I was part of the Singapore Youth Action Plan as a panel member, that was what we were trying to find out. What do youths envision for Singapore in 2025. Or more simply, what is the Singapore that they are striving for? I am happy that the five key values that youths felt were important for Singapore – inclusiveness, fairness, care, sustainability and progress – came out strongly in the Budget. But what would our Singapore youths think of Budget 2021? Does it really address their concerns? What do they think is really important for the future, especially with a pandemic happening in the background? According to the National Youth Council, youths are those aged between 15 and 35 years old. I have worked with youths for a long time, with Mendaki Club and National Youth Council. Even in my daily work as an orthodontist, I see mostly youths as patients. But with such a wide age range, it is evident that different issues may resonate with different age groups. An old youth, aged 33 like me, may have different priorities compared to someone who is 23. But a common thread that runs between all youths is that they care. They care about what is happening to the people around them, the spaces around them. They care about what is happening in Singapore and what is happening outside of Singapore. And they can be fiercely protective if they think an injustice has been done in some way. Some may be a little more indifferent than others, but in such a highly plugged world like today, it is hard for the youths not to have an opinion on a variety of issues.
From my interactions, the issues they care deeply about, during this COVID-19 pandemic are jobs and the economy, the support of vulnerable groups in the community, environmental sustainability and mental wellness.
[+13 sentences] Firstly, due to the pandemic, many youths are concerned about their career. They wonder if they are able to remain nimble and adapt to the ever-changing economy. Due to increasing digitalisation, they are worried about competition for jobs from within and beyond Singapore. Job security becomes less guaranteed. For low-income youths, the problem is infinitely worse. A lot of these youths have lost their jobs and employment opportunities. Many are supporting their families. Adam, a community worker and lead for "Youth Want Work" for Beyond Social Services, was able to share more. "Youth Want Work" is a youth-led, youth employment initiative that aims to provide workshops and the necessary skills to prepare them for the workforce. In his reflection, he shared about the uphill struggle low-income youths face in employment and the importance of understanding, inclusivity and sensitivity in the workplace. And I quote: “People often think that if an individual tries hard enough, they will get the necessary opportunities, but they don’t understand the struggles these youths face at home. For example, there was a very smart youth who was offered a degree position, but she had to turn it down due to her care-giving responsibilities for her grandmother and younger brothers. We also met youths who decided to enter the workforce early because they don’t see the benefit of further education, especially since they always felt ostracised in school for their circumstances.
Some of them even had Secondary school teachers telling them that they won’t make it, so you can’t really blame them for not feeling very motivated.” Therefore, even though I think it is a wonderful step to extend the SGUnited Skills and the SGUnited Traineeships, it seems like, to help especially the low-income youths, underlying issues need to be addressed as well.
[+1 sentence] There are also many youths who are engaged in delivery and ride-hailing jobs.
The introduction of the petrol duty hikes, though needed for the good of the environment, maybe a bit too abrupt for many to adjust to, especially if they are from low-income families.
[+6 sentences] Though it may also serve as a disincentive for these youths to continue in the unskilled gig economy, would a gradual introduction be less disruptive and give them more time to adapt? I would urge the Government to closely monitor the effects of this. Other than the low-income group, youths are also concerned about other vulnerable communities and want an inclusive society where no one gets left behind. To do so, we need to ensure that the national conversations we have are actually inclusive of all the different voices that make up Singapore. Singapore is a melting pot of races, cultures, religions and more. How do we ensure that all the voices are brought forward, from the people with special needs to the person with disabilities?
There may be inherent systemic, structural barriers that make it difficult for them to contribute their voices, so we must make a conscious effort to recognise those barriers and break them down so that their voices are heard. Therefore, I welcome the pilot Inclusive Support Programme to allow more children with developmental needs to be more meaningfully engaged alongside other children. When inclusivity is integrated into the psyches of the children from young, we will be able to understand each other better and celebrate our differences; not just tolerate each other. I also truly feel that the Alliances for Action on support for care-givers of persons with disabilities is a step in the right direction and echoes what the youths have been seeking.
[+11 sentences] I look forward to hearing more details about it in time to come. The other issues facing the community and the wider world that youths are concerned about is sustainability and mental wellness. When it was made known that there would be a potential clearing of Dover Forest for potential BTOs, youths took to social media to create awareness. When Kranji woodlands was erroneously cleared, there was uproar on social media among youths about it. It shows that issues about the environment do strike a chord with them. I do appreciate that the Government is playing an active role to engage with environmental youth groups in a bid to combat climate change. I am glad that there is a Green Plan for Singapore and I look forward to the upcoming debates. However, I feel as though more can be done to encourage careers in sustainability among the youths. This will be elaborated further in my Budget cut. It has also caught my attention that there is no mention yet of any mental wellness initiatives in this current Budget. A CNA article in February 2021 states that calls to mental health helplines have increased since the start of the pandemic.
According to the Samaritans of Singapore, the number of suicides rose 10% in 2020, with suicides among boys aged 10 to 19 at a record high. This is worrying, as according to mental health professionals, stresses relating to the social and economic impact of the pandemic may have an impact on mental wellness. I welcome that the Government has set up a COVID-19 Mental Wellness Taskforce to tackle the pandemic’s impact on mental health. However, I would like to know if there are any updates or if a budget is allocated to take this further moving forward.
[+1 sentence] I also would like to speak about something that is close to my heart – the Malay/Muslim youths.
The Malay population has a relatively higher youth base with 32% of its population between ages 15 and 34, as compared to national at 26%.
[+13 sentences] According to the 2018 Future-ready Conversation Series report by Yayasan MENDAKI, our youths also reflect an altruistic notion of wanting to be of "service to society". They see themselves as members of the wider community and believe it is a privilege and responsibility on their part to contribute. And there are ready examples in the community. One case in point, Mendaki Club, run by youths, is launching the Young Women in Leadership Dialogue Commemorative Book with support from the Singapore Muslim Women's Association. Titled “Unprecedented – To the Beat of Her Own Drum”, it features 20 young Malay/Muslim women who overcame tough odds and achieved success in various forms throughout their lives. This book launch also serves as a fundraising effort for Casa Raudha, to support its shelter for women and and children who have been victims of domestic violence. At the same time reading those stories, I am overcome by a sense of awe by what these women have achieved for themselves while giving back to the community. Take Nurhajah Haron who overcame difficult family circumstances which saw her family being homeless and having to sleep in void decks. She nonetheless graduated from ITE as a valedictorian with a perfect GPA and as the top nursing graduate. She is now giving back to the community as a nurse. Or Azurah Khalid, a national silat representative and rugby player for the national team. She is the owner of Lokalfeed a podcast and online platform for content featuring inspiring women, and Wilder Café, an eatery that practises sustainable cooking. Being a woman may bring about its own set of challenges but the stories of these inspirational women gives me great hope for the future.
As such, we need to tap on our promising Malay youths. I believe the Budget should try to further leverage on this, by providing more platforms to develop their leadership potential and volunteer with the community.
[+19 sentences] Mr Speaker, Sir, youths have a lot to say and contribute. More often than not, much of what they think and feel strongly about comes out on social media. For example, after the Budget announcement, we see youths trying to create awareness about it, while others take to their accounts to comment and give their take on it. Admittedly, though, some are not interested at all. However, it also seems like many would like to see the Government take note of their views and opinions, acknowledge that they have listened and show how their participation has helped to shape future policies. Are the voices of youth too idealistic? Are their recommendations too impractical to consider due to their lack of life experiences? In my humble opinion, I beg to differ. I feel that that is the beauty of it. Because they have had fewer life experiences, they are unencumbered by them. More than a few times, in my role as a consultant for the Youth Action Challenge, a platform for youths to provide solutions that tackle community issues, I have been amazed by the ingenuity of the ideas proposed. Moving forward, I feel we should engage them further on the Budget. Any ideas can be further developed by connecting them to experts and people on the ground. With a richer understanding of what has been done before, what has worked and what has not, these synergies can result in workable solutions for the greater good. As President Halimah said in her Opening Address of the 14th Parliament, “Singaporeans must come together, in partnership, to pursue the greater good, united by a belief in Singapore and a desire to turn our vision into reality.” Lastly, I have a personal message to the youths who are listening. It all starts with you. Each one of you holds the key to your own individual story. And each individual story forms a unique thread in the tapestry of the Singapore Story.
The intention you have in your heart, the values you embody and the choices that you make form who you are and what we become as a society. If you choose to be kind, compassionate, inclusive, fair and brave, then that is the Singapore you will build for the future.
[+1 sentence] And honestly, that is the Singapore we can all look forward to.
Youths, the Budget is about the kind of future that you want. It is about the kind of country that you believe in. So, sit up, take note, understand it, use your voice.
[+6 sentences] For it affects you and everyone around you. Let me end off this speech with a few stanzas of a Malay song, that is a personal favourite of mine. "Ilham Pujangga", Inspiration of a Poet, is a song performed by Singaporeans Mr Ismail Haron and Cikgu Zaharah Salleh in 1972. The song talks about the value of the youth in the wider society, encouraging the youth to contribute to the country and the world. And at the same time, do so with underlying love for all human beings. (In Malay): To all the young people, Lend a helping hand To your motherland The new age is here Do not delay any longer Love humankind As much as you love yourself As how each individual beholds the community And as how the community beholds each individual (In English): Thank you.
Mr Speaker3 words
[+1 sentence]Ms Joan Pereira.
Ms Joan Pereira (Tanjong Pagar)860 words
[+19 sentences]Mr Speaker, Sir, the past year had been difficult. But fortunately, with the availability of the vaccines, we are beginning to see some light at the end of the tunnel. The signs of recovery are here and we will be, as Deputy Prime Minister Heng had said, "Emerging Stronger Together". All of us contribute through our different roles in society. Today, I would like to speak for the care-givers amongst us, particularly the women who form the majority of care-givers in Singapore. How we can provide more support to our care-givers? Care-givers are not homogeneous. Some take on the role to provide more customised care for their loved ones. Others accept the task due to particular circumstances. Their needs are very complex, which also depend on whom they need to care for – children, elderly, differently-abled, or a combination. Care may be multi-faceted and their time requirements may not be neatly parceled out. As my resident who is a care-giver told me, "I am the housekeeper, cook, babysitter, nurse, accountant, concierge, courier and driver, and many many more." This work is onerous due to the wide range of responsibilities and the need to be constantly available, often on standby 24/7. Overwork and burnout are common amongst care-givers. Through the years, as we go through the feedback, the word "respite" has surfaced over and over again. Our care-givers simply need a break. I am proud to note that as a community, we are constantly improving in how we support our care-givers so that they can have their breaks, or even find the time to pursue interests and careers. Childcare. For care-givers looking after children, affordable, accessible and good quality childcare services are increasingly available. 
The Government will raise the proportion of Government-supported pre-school places to 80% in four years' time.
[+2 sentences] Fee caps will be lowered too. Elder and Respite Care. 
Similarly, a range of affordable and quality elder and respite care services will be made more accessible to lighten the financial and physical burden of caring for our elderly. For the elderly who are more frail and have less family support, there will be more places in residential care facilities, such as nursing homes, to provide them with the appropriate long-term care.
[+1 sentence] Care for the Disabled. 
I am heartened that the National Council of Social Service and SG Enable will form a Singapore Together Alliances for Action (AfA) to look into bolstering support for care-givers of persons with disabilities.
[+2 sentences] Support for care-givers of those with mental health conditions. For care-givers of those with mental health conditions, they need better access to information and guidance with care navigation. 
With our rapidly ageing population, we will also encounter more age-related mental health cases. I urge MOH to make more provisions to assist care-givers of this vulnerable group.
[+24 sentences] With all these support services in place, what more can be done? First, we need to raise public awareness about the availability of all these services. This can be done through public messaging through free-to-air TV channels and radio, social media platforms, and contact points such as clinics, hospitals, community centres, Residents' Committees and Neighbourhood Committees. I have come across care-givers who are very worried about costs. We must encourage them to start exploring these options and work through the financials with the relevant Government agencies. Second, the Government needs to continue monitoring the quality of care services. SOPs must be adhered to. Regular inspections and enforcement are necessary to uphold standards. Such measures are already in place but vigilance is necessary to maintain confidence and trust in the system, so that care-givers can have peace of mind. Third, we must provide career counselling, guidance and training for care-givers who would like to start or return to work, including part-time and flexi-work. In addition to self actualisation, work is important to one's sense of dignity and identity. Earned incomes contribute to household finances and retirement adequacies, and improve the quality of life for their families. Last, I hope MOH will train and upgrade more mental healthcare professionals to support persons with mental wellbeing issues as well as to help maintain the care-givers' own mental health. Like physical health, there are ways and strategies to keep our emotional, psychological and mental states in good condition. We need to raise the level of general knowledge and expertise in this field among our people. Sir, in Mandarin. (In Mandarin):   Our country has many care facilities and services which can lighten the heavy responsibility of care-giving. We can raise public awareness of such services through the media, health institutions and grassroots organisations. The Government must ensure that the quality of services are good, so that care-givers can have peace of mind. We must also provide career counselling, guidance and training for care-givers who would like to return to work. Lastly, I hope the Ministry of Health will train and upgrade more mental health professionals. They will support persons with mental health issues and also to help maintain care-givers' own mental health. We need to raise the level of general knowledge and expertise in this field among our people. (In English): Sir, I support the Budget.
Mr Speaker4 words
[+1 sentence]Dr Tan Yia Swam.
Dr Tan Yia Swam (Nominated Member)1825 words
[+12 sentences]Mr Speaker, Sir, may I start my speech in Mandarin? (In Mandarin):   I have been wondering why I want to be a Nominated Member of Parliament. Some friends criticised that Parliament already has so many doctors and does not need another. Some even commented at an online forum, “why choose a neh-neh* doctor?” I was feeling angry and amused at the same time. I told my children about this and they kept laughing. My mother is a housewife and my father a retired policeman. I went to Woodsville Primary School and was fortunate to attend Raffles Girls' School later. I have some very special memories. In the first few weeks of Secondary school, the English teacher stayed behind after work to teach me the correct English pronunciation so that I would not sound like I was lagging behind the other students. Another teacher noticed that I did not take part in some elective activities because of the additional fees and told my father how to apply for a bursary. These stories illustrate the importance of equal access to education, resources and opportunities.
I am now a private breast surgeon and married with three children. I am the first female President of the Singapore Medical Association.
[+24 sentences] All these are not achieved through my personal efforts alone; instead I am able to do it with the support from my family, friends, colleagues and mentors. I remember when I was a teenager, there was a Xinyao song called "xiao ren wu de xin sheng” (Voice of the Little People). One sentence touched me particularly – “Perhaps I cannot achieve a great accomplishment by myself, but I contribute as much as I can, as best as I can”. This is what I hope to do now, to express my views from my multiple roles and represent the people around me.  Education is a strong foundation for personal growth. I am not just talking about formal education, but also education from parents, families and daily living experiences. My children look up to me and emulate my words and behaviours. For example, wearing a mask and returning dishes after a meal at hawker centres are good examples. There are bad examples too, such as using vulgar language. Unfortunately, people learn bad examples very quickly. Now in English. (In English): Education plays a huge role in healthcare as well. We teach medical students and trainee specialists. All doctors undergo compulsory Continuing Medical Education to keep up with the rapid advances in healthcare. In this era of shared decision making, the role of a doctor is as much a teacher as healer. In each consultation, I educate my patients on their conditions, so that they can make informed decisions. Sometimes, it is a challenge when they are misinformed by what they read from the Internet. As Dr Google becomes ever more popular, we need to help people be more discerning. We need to learn how to fact find, how to distinguish myth from facts, and how to identify reliable websites. Good health education is critical in empowering people to take charge of their own health. For those of us who are middle aged now, we have to do our part in keeping healthy. This includes health promotion efforts like eating right, exercising, to help in disease prevention, and screening for early detection of disease. I have immediate family members who need care for serious medical conditions. One is a citizen and the other, a foreigner.
I saw for myself the differences in healthcare subsidies, and I appreciate that every Singaporean has access to affordable and quality healthcare. I am glad to see an increased Budget for healthcare in 2021, to cater for patient subsidies in primary care, namely the three new polyclinics and another restructured hospital, Woodlands Health Campus. I may be stating the obvious, but healthcare subsidies are finite, and those of us who can afford to pay for private healthcare should consider doing so.
[+11 sentences] Interestingly, I have friends who are not quite sure how to navigate the healthcare system here and think that the process starts with going through polyclinics, or that they need to go to the Accident and Emergency department. I will take a minute to summarise for everyone's benefit. Unless you actually needed to see a doctor, you might not quite realise how the whole system works. Briefly, the restructured hospitals are team based, and patients get referred through a polyclinic, and will be seen by various doctors, nurses and allied health during the course of their treatment. A patient may choose a particular doctor in a restructured hospital, but he/she will need to pay private rates. However, due to the sheer volume of patients, the waiting times for doctors, scans and operations will be subject to variable waiting times. In a private hospital, most private doctors run their own practices and use the hospital facilities as needed. Waiting times are usually much shorter and the patient would typically have their chosen doctor attending to them at all times. There are pros and cons to each system. I have worked in both, and also been a patient under both systems. If you have the means and can afford a private insurance plan, it is good to have more options.
Otherwise, I am confident that our restructured healthcare system is robust and can provide adequate care for all citizens. Those of us with the financial ability to have bought an Integrated Shield Plan will need to keep up to date with the changes to the terms and conditions.
[+1 sentence] Recently, in a Forum letter to The Straits Times, dated 19 February 2021, the writer asked many pertinent questions.
There have been on-going discussions between various stakeholders on some of these issues. I list three main ones for thought, and will further speak on these during the Committee of Supply debates. One, is it fair for insurers to make unilateral changes to existing policies that affect policy holders? Two, is it restrictive to have panels, keeping in mind that some panels have only one or no doctors in an area of speciality? Three, how do the insurers choose their doctors to sit on their panels – is it truly based on quality and merit, or are there financial arrangements which are not disclosed?
[+13 sentences] For those of us who are parents, we also have the duty to teach our young on keeping healthy – both physically and mentally. However, having both parents working full-time means that the contact time with our children is often limited, and this is a challenge faced by many young families. I always thank my kids' teachers for being their other parents, in imparting values and lifelong habits for learning. Thanks to all teachers who have worked very hard in the past year. To switch to online learning during the circuit breaker and then to keep up a curriculum in the classroom, as well as being ready to resume virtual teaching should the need arise. I also thank their efforts in keeping our children safe by reminding and enforcing the importance of masks, face shields and hand hygiene. I am in the generation who grew up before the Internet and came of age when the Internet became widely accessible. I read with horror about cyberbullying and I am dismayed at how vicious online and often anonymous comments can be. Minor incidents sometimes get blown out of proportion by thoughtless, insensitive comments. Cyberbullying, internet trolling is an ugly phenomenon in our modern world, for which many of us have no protection against. My eldest child is starting to explore the world wide web. As parents, we have done our part to restrict settings, and so on, but we cannot protect him forever. We are learning so that we can equip him with knowledge on how to protect himself and not get hurt too badly.
A previous written response stated that reported cyberbullying incidents remain low over the past three years.
[+14 sentences] I note that it is "reported incidents" and wonder how many unreported ones could there be? While the Protection from Harrassment Act and the Protection From Online Falsehoods and Manipulation Act (POFMA) exist, the average citizen may just fume, rage and cry helplessly, when reading horrible comments by commenters who are anonymous, and we have no resources to track down the offenders. While it is best to ignore and not read these comments, we do have a younger generation of people who live and interact virtually and we have to think ahead on how to teach them to be responsible users and not weaponise digital shaming while being empowered to protect oneself. I acknowledge and agree with part of what another Member of Parliament said previously, "that civic education is the correct way for a society to recognise falsehoods". Let us teach resilience and learn to accept those who are different. Humans like to categorise and place labels. We classify people by race, religion, nationality, physical appearance, intellectual ability, mental illness, gender identity, sexual orientation. We tend to identify with those whom we feel are "same", and feel that those who are different are just "not one of us". I do not have a global solution – all I can do is to teach my kids to be kind, to think before they speak, and not to fear those who are different. Charity starts at home. Every parent wants to teach their child the right values. How can we, as a Government, best support this? I am hopeful that Singaporeans and those staying here will continue to care for each other in this COVID-19 recovery period. Last year, in the initial weeks of COVID-19, the healthcare community was very heartened by the generous support from many groups.
Our frontline healthcare workers, particularly those in the restructured hospitals received gifts and care packages, such as coffee, chicken rice, chocolates, vouchers and thank you cards. I support the Government's Arts and Cultural Resilience Package: doctors heal the body, religious leaders heal the soul; the arts heal our spirit.
[+6 sentences] The Arts is without boundary and can communicate to all people. The Singapore Medical Association started an Instagram hashtag #sgartforhcw which allowed people to share their support for healthcare workers through artwork. Many heartwarming reports surfaced on social media of neighbours helping each other and even random strangers showing kindness. I hope that we will all continue this spirit of caring and I urge the influencers on social media to use their power to keep this flame going strong. Let us all be decent, be kind, and do the right thing. While I recognise the need for the Budget to focus on jobs and re-building the economy, I hope that we do not neglect to nurture the softer aspects of our society, to unify and build social cohesion – only then, can Singapore "Emerge Stronger Together".
Mr Speaker3 words
[+1 sentence]Ms Carrie Tan.
Ms Carrie Tan (Nee Soon)34 words
[+1 sentence]I would like to request a few moments of silence just to let the House have a mental reprieve from the many messages that have been shared so far, before I start my speech.
Mr Speaker9 words
[+1 sentence]I will deduct the minutes from the break later.
Ms Carrie Tan1818 words
[+15 sentences]Okay, laughter is good too. Mr Speaker, Sir, 2020 was a tumultuous year for all. Through our nation's first ever circuit breaker and almost a year of job losses across many sectors, we have pulled through, thanks to the multiple Budgets and support provided by the Government. We know from looking back on the 2008 Financial Crisis and what happened in the United States and other democracies around the world, that the most concerning effects of major economic downturns, are political and social. Inequalities worsened by the financial crises led to fertile ground for populist movements and more pronounced political and social division. We cannot be naive in thinking that Singapore can be spared. While it is critical that we innovate and invest in transforming our economy to keep Singapore relevant globally, the Government also has an imperative to help our people recover, psychologically and socially, from the impact of a large scale crisis. What is the state of well-being of our people, amidst this historic disruption to lives and livelihoods? We are lucky for Government that has cushioned us well. But, is it really sufficient for only a national care hotline to support our people through what is worldwide, the worst global recession since the Great Depression? At the same time that we ramp up investments and efforts to drive industry transformation, reskilling, career shifts and so on, we need to be mindful that not everyone can catch up so easily to this "turbo-charged" momentum. Are those amongst us who are least resourced able to catch up? Last week, an opinion piece in The Straits Times talked about "tightening class circles". The writer Grace Ho discussed network diversity and the side effects of meritocracy. While it was a necessary and effective foundation to build Singapore society on for the past decades, it is not perfect and we now need to address its side effects.
According to a survey commissioned by my esteemed colleague Dr Janil Puthucheary, class segregation and class division is emerging as the biggest fault line in Singapore.
[+24 sentences] A fault line that threatens our social cohesion and national unity. This is likely to be made worse by the effects of the COVID-19 recession. And yet, we face the challenge of balancing support with prudence. How do we lift up the most vulnerable, during and beyond the current crisis, while conserving our country's reserves? That is a critical question that our Budget needs to address. I believe the answer lies in the word "optimising". In other words, we need to, "spend less, yet achieve more". I know, it sounds easier said than done. Emeritus Senior Minister Goh spoke years ago about individual action, by those who have more, to reach back and help others behind us to climb the ladder and it is wisdom that is relevant today. When I was a child, I remembered being told by adults whenever I was given a treat or a snack, to share it with others. My mom or dad would always tell me to offer it to someone else first: "Jie Jie, Aunty, Uncle, would you like to share this with me?" And this reframe became a habit, even now, as an adult, for me. The virtue of sharing that many of us learnt as children, needs to be "Turbo-charged" with the Government's will and support, so that there is a national strategy for sharing and optimisation. Because "Sharing is Caring", we can achieve better outcomes with less resources. But how do we share? And what do we share? I would like to propose sharing in at least three key areas of care: we can optimise public rental housing by sharing; we can optimise the workforce by sharing; we can optimise care and potential of the most vulnerable amongst us by sharing. My hon colleagues, Ms Tin Pei Ling, spoke about the potential of seniors, and Ms Ng Ling Ling spoke about the potential of persons with disabilities. I would like to propose, that we can also optimise the potential of our low-income and rental housing community. First, on public rental housing. We have an amazing public housing system to tap on to optimise social outcomes for the poorest families. Currently, rental flat residents face social stigma, poor living conditions and lack of care resources – barriers that prevent them from breaking out of poverty. Yet, we have an opportunity that the aging society has given us, that is, an increasing number of isolated elderly in purchased flats. Ms Ng Ling Ling spoke about this earlier.
In 2019, there were almost 67,600 people above the age of 65 living alone, with 86% of them wishing to live in the same flats that they raised their families in.
[+2 sentences] Such homes owned by the elderly living alone may be under-utilised, as some rooms go unused. The elderly who live alone are more likely to be socially isolated and at increased risk of adverse health outcomes.
At the same time, almost 10% of all rental households have more than four members and many have care-giving needs that cannot be fulfilled by existing care channels. A simple solution then exists, to encourage more elderly homeowners to share their living space, by renting out their spare rooms to low-income families at appropriate rates subsidised by HDB.
[+1 sentence] Low-income families can then live in better environments, with care and support for the young, and elderly living alone, will no longer be alone and have social interaction on a daily basis.
Such a housing sharing strategy will help to mitigate class silos and reduce the need to build more. I call this the "Share to Care" strategy.
[+12 sentences] Second, our workforce. Against the backdrop of falling birth rates, Singapore faces a workforce crisis in the coming decades. Burnout and stress rank high amongst working age Singaporeans, making Singapore top the ranks in an international study for stressed-out Generation Z. A recent study showed that Gen Z makes up 24% of the workforce and millennials 50%. Mental health struggles and declining local workforce due to low birth rate amongst these two generations is putting us in the path of a human capital crisis. We need to take this seriously. But what can we do? I suggest we look into the Sharing of Care. Number one, to share the load of care through progressive workplace policies to relieve stress for sandwiched families; and two, to relief the burden of care, by sharing the cost savings from institutional healthcare, with low-wage stay-home care-givers. I will speak more about these Sharing of Care strategies during the Committee of Supply debates. Lastly, our Careforce. What is a Careforce?
It is a whole sector of people who work in caring for our underserved communities. I am very thankful and encouraged by the Budget announcement that the 250% Institute of Public Character, or IPC tax-deductions for donations will be extended to end 2023. I am also very grateful to the Deputy Prime Minister for initiating the $20 million Change for Charity grant to encourage those who can afford to spend, to spend towards charity.
[+2 sentences] Such encouragement certainly goes a long way to increase the pool of financial resources being channelled to the most vulnerable. However, beyond distributing cash support directly in the form of support schemes, I would like to encourage the Government to further develop our capacity for care.
In the current Budget, $11 billion have been allocated for structural economic policies in the COVID-19 Resilience Package, with another $24 billion committed over the next three years. Much of it focuses on equipping businesses and workers for industry transformations and future-ready capabilities.
[+5 sentences] What seems to be missing, is an investment in preparing and professionalising the work of care amongst the social services sector. I have some suggestions to build a more effective social safety net and strengthen the trampoline for the vulnerable. Beyond surviving, we need to set them up to thrive. ComLink is a good start. We need our social services sector to consist of experts who are skilled at discovering and building up the strengths and assets of our underserved communities.
So that we can avoid, in the future, heading down the slippery slope of a welfare state. I seek the Deputy Prime Minister to share the $11 billion COVID-19 Resilience Budget with our Careforce – the social services sector to make this happen.
[+24 sentences] We need to share our resources towards care and to capacity build care. I will speak more about this again during the Committee of Supply Debates. In conclusion, Speaker, Sir, I would like to emphasise the importance of care for our people. At the same time, that forces beyond our control compel us to drive our people harder. The tragic case of the foreign domestic worker Ms Phaing Ngaih Don suffering abuse that led to her death, it makes us questions ourselves – how might we have prevented it? It shows that we have a long way to go, in paying attention to the people who work around us, who care for those around us. Some of these people are in precariously vulnerable circumstances and how are they being cared for? In our busyness and eagerness to keep Singapore relevant and competitive for survival, are we paying sufficient attention to the care and well-being of people? Not just our own people. But also those who enable us, the silent everyday heros and heroines including our foreign domestic workers and our migrant workers. Whilst the support packages in the Budget are helpful to reduce some day-to-day burdens of Singaporeans, we need to innovate and invest in transforming our social support structures, in order to achieve more with less, in the long run. Sharing is more sustainable. Sharing builds trust. Sharing fosters bonding and social cohesion. We must create Sharing policies in the system, sooner rather than later, to care better. More than ever, we need to put Sharing on steroids, with Budget allocated to build capacity into our system and to create for better long-term outcomes for the vulnerable and the under-served. In doing so, we then have hope of bridging the gap. Some of the ideas I suggested may seem daunting and fraught with challenges, and for this, we need courage, trust and collaboration. Although some extent of inequality is inevitable in modern economies and societies, the least we can do and we certainly can, and we certainly must, minimise it. Our identity as a country, as Singaporeans, must go beyond being the strongest, the fittest and the fastest in economic terms. The greatness of a nation can be judged by how it treats its weakest member. Perhaps, by slowing down to take better care of the weakest and to enable them better, it can take us further. Our national unity, counts on it an our identity as Singaporeans, count on it, if we are indeed to emerge stronger together. With that, I support the Budget.
Mr Speaker3 words
[+1 sentence]Ms Hany Soh.
Ms Hany Soh (Marsiling-Yew Tee)1856 words
[+7 sentences]Mr Speaker, thank you for allowing me today to speak on the Budget. I would first like to declare that I am a practising lawyer and the Co-Chairperson of the Law Society’s Community Legal Clinics’ Committee. I have previously shared with this House before about my G.E.L mission in Woodgrove – where "G" pertains to green living initiatives, "E" is about embracing parenthood and "L" is in relation to law awareness. I intend to speak more about these three aspects today as I propose some suggestions on the Budget. During the recent debate on the Motion to Accelerate and Deepen Efforts against Climate Change, I spoke about the role of the 3Ps – the Government, corporations and our people – in promoting sustainability, as well as the initiatives that the Woodgrove community intends to implement and participate in. I am, therefore, heartened by the recent launch of the Singapore Green Plan 2030. As I had mentioned previously, Woodgrove intends to work closely with the 3Ps to embrace a greener living lifestyle for the better well-being of our future generations.
In the City in Nature element of the Singapore Green Plan 2030, it details that we target to double our annual tree planting rate to plant 1 million more trees across Singapore, while increasing the land area of our nature parks, such that every household will be within 10-minutes’ walk from a park.
[+16 sentences] I welcome these initiatives as these new targets promise a natural infrastructure that not just cools the environment and improves air quality, but also provides more places for families to stay active and bond together. With that said, I believe that there is a dire need for us to ensure that our parks and the facilities within them remain a safe environment of all users. I therefore suggest that we adopt a mindset of maintainability and sustainability as we attempt to preserve nature and undertake landscaping within our built-up environments. Some suitable measures include: the selection of suitable trees and plants; siting the planting areas away from high human traffic areas; and the adoption of strict maintenance regimes to check the health of trees periodically. At the same time, I would also hope that NParks will work closely with the grassroots committees to organise more awareness workshops, sharing tips on how to recognise potential hazards in parks and what to do when a park-related accident occurs. Together, we can work as a community to prevent any unfortunate accidents from happening. I agree with Deputy Prime Minister that to strengthen our social compact, we must work together to address the challenges faced by the more vulnerable members of our society. However, I believe that another group that also requires more support and have not been mentioned in this year’s Budget are the first-time parents expecting or raising their new-born children. As a mother of a two-year-old daughter, I can still remember the uncertainty and stress that I had experienced during my pregnancy and within the first few months of her birth. Because I wanted to ensure that I was on the "right track" during my pregnancy, I devoted extra time outside of my busy work schedule to research and attending workshops. Later on when my daughter was born, I encountered more unforeseen challenges in caring for her, which became another mental weight that I had to handle as well. I eventually shared my experiences in more detail on several occasions, like the PAP Women’s Wing Dialogue session. Each time, fellow mothers would write to me afterwards to share their own personal stories of overcoming difficulties in parenting. Like myself, they had all faced tremendous stress and feelings of helplessness during pregnancy and after the birth of their child. I have since realised through their shared experiences that most of the care and concern afforded by society tends to surround the health of the child, but we may have neglected the well-being of the mother as a result. In order to ensure a healthy, nurturing environment for the baby, I believe that it is important to take equal care of the mother as well.
In light of this, I would therefore like to propose to develop a "Mummy’s milestone booklet", to be provided to expecting couples. In Taiwan, it is called "the Maternal Health Handbook – 孕妇健康手册". This milestone booklet would be akin to a baby's health booklet, but instead would help to track the expecting mother’s physical and emotional development. At the same time, it would also contain pertinent information by health practitioners regarding the necessary preparations for each stage of pregnancy, parenting best practices and as well as a list of the support systems available to all parents for the first few years of their journey into parenthood. Some examples of what I envision would be in the booklet include items such as a checklist of vaccinations required for expecting mothers, recommended dates to sign up for pre-natal classes and a checklist of items to prepare for the arrival of the baby, along with tips on how to spot signs of labour or post-natal depression symptoms, and where to seek support in this regard.
[+15 sentences] I agree with the Deputy Prime Minister that children with special needs require more support from us. Apart from providing the necessary financial assistance, it is also important to seek more awareness and understanding from the community. As members of society, each of us can and should play our part to make it as inclusive as possible by increasing awareness and empathy towards select groups in our communities, particularly for our youths with special needs. This will not only allow them to achieve their fullest potential in life, but will also help us to foster a more tolerant environment for everyone. During one of my coffeeshop walkabouts at Woodgrove, one resident shared with me that her daughter suffers from Selective Mutism, which is an anxiety disorder that prevents her child from speaking in specific social settings out of fear, such as in school or public areas. People who suffer from Selective Mutism may also exhibit other defensive behaviour such as disobeying instructions or shutting down entirely in stressful social situations, all of which can affect academic performance and social relationships with people outside of the home environment. On another occasion during one of my e-townhall chit-chat sessions with residents, the parents of a child with autism took the opportunity to apologise to their neighbours for one of their child’s outbursts during the middle of the night. While they have consistently taken steps to minimise disruptions, such episodes can still happen occasionally. In cases like these, some awareness and empathy from the public can go a long way towards mitigating the effects of such conditions, allowing the affected youth to not only focus on their studies and vocations, but also to integrate better within society. Apart from providing financial support to vulnerable groups, we must also look into ensuring that the assets of these vulnerable groups are better managed. I share the same sentiment as my parliamentary colleague, Mr Derrick Goh, as what he had shared yesterday, that one of the prevailing concerns at the moment is the prevention of individuals from falling prey to scams. I, therefore, urge for continuous efforts and collaborations between the relevant Ministries, banks, Consumers Association of Singapore (CASE), and the Law Society of Singapore, to conduct more outreach activities regarding consumer rights, in order to educate individuals – particularly our senior citizens – on how to identify possible scams such as fraudulent investments or purchasing dubious goods. With more knowledge available to them, we will be able to safeguard more people from such practices. Another area that we should look at, is how to ensure that underprivileged households may continue to be well taken care of in the event that sole breadwinners are suddenly unable to provide for their families. A spouse may become mentally incapacitated one day due to a sudden severe stroke, or an only working child who is tasked to support the aged parents might have encountered an untimely death.
Apart from the grief of losing a loved one abruptly, their families will also eventually need to deal with the aftermath, including the issue of finding a new way to secure their livelihood. I humbly suggest that we consider setting up an estate planning portal online, with support from multiple Ministries, to start educating families on essential legal knowledge and encourage them to begin planning for contingencies. This portal will be dedicated to administrative matters such as CPF nominations, lodging of Lasting Power of Attorney applications, advance medical directives, as well as the registering of wills.
[+1 sentence] If feasible, the portal may also prove to be a suitable avenue to set out funeral arrangement plans, with the next of kin able to perform the necessary notifications and extract the necessary information required to jumpstart the administration of the estate upon the passing of an individual.
Lastly, the portal can also provide further value by collaborating with the Singapore Academy of Law, to provide bite-sized, easy-to-understand legal knowledge on estate planning and the Law Society's Pro Bono Services to devise a way for the platform to dispense legal advice virtually.
[+3 sentences] Since the circuit breaker, the Law Society Pro Bono Services’ Community Legal Clinics have been offering preliminary legal advice service to residents in need via virtual platforms. In Mandarin, please, Mr Speaker. (In Mandarin): Since last year, CPF members have been able to log into their CPF accounts using their SingPass and nominate their beneficiaries online.
At present, more than two in five CPF members have made a nomination on who will receive their CPF savings after their death, as well as the percentage received by each beneficiary.
[+6 sentences] Many Singaporeans may not know that CPF nominations can bring many benefits. This will allow the CPF Board to understand the wishes of its members and to communicate more quickly with the beneficiaries and disburse what is left by the CPF members after they die. If you do not nominate a CPF beneficiary, your CPF savings will be transferred to the Public Trustee Office (PTO) who will distribute them to your family members under the Intestate Succession Act or the Muslim Administration Act after your death. For many beneficiaries from poor families, this procedure is cumbersome, time-consuming and costly. The PTO will also charge the beneficiaries a statutory administration fee, calculated based on the amount of CPF savings left behind. During the pandemic, I encountered several cases where residents sought financial help from me because they could not pay for the funeral expenses of their deceased relatives.
To encourage more CPF members to nominate their beneficiaries, I hope the Government will consider using PayNow to transfer a sum of money from the deceased CPF savings to the nominated beneficiary’s bank account immediately upon his death so as to defray the funeral expenses of the deceased and alleviate the financial burden of the family during this period.
[+1 sentence] (In English): In conclusion, Mr Speaker, notwithstanding the suggestions which I have put forward in my speech earlier, I stand in support of the Budget.
Mr Speaker3 words
[+1 sentence]Miss Cheryl Chan.
Miss Cheryl Chan Wei Ling (East Coast)1972 words
[+3 sentences]Mr Speaker, I rise in support of the Budget. Budget 2021, termed a Budget to "Emerge Stronger Together", does indeed try to achieve its objectives through continuing more targeted support for our ailing industries whilst providing large investments to transform the economy to ride on the wave of new opportunities. While spending may appear more tapered when contrasted against 2020's historical spending over five Budgets, I am cheered and look forward to this new wave of growth.
However, beyond the initial high over these astronomical investments into new growth areas, I cannot help but to be concerned over our current fiscal position and wonder how Singapore is evolving as a nation when it comes to national spending. It is the third time and second consecutive year that we are dipping into our reserves. Would Deputy Prime Minister Heng be outlining a projected timeline and roadmap on when these amounts would be returned to the reserves?
[+17 sentences] While dipping into our reserves are justified to address the current problems, on a broader scale there have been repeated rallying calls for the Government to be more generous in social spending too. I am heartened that as a nation many are looking out for one another and calling for social changes through greater social support for the lower income, for the frontline workers and for the migrant workers. However, have we envisaged and weighed the trade-offs? Often called a tiny red dot, we must never forget that we are still a small nation with limited resources and no natural resources. I say this not to merely highlight the small size of our country and to think small but rather quite the opposite – to think big, to put this Budget into perspective and not perceive it as an annual ritual on what "goodies" or "penalties" it presents. I would ask that we think longer time – how would this Budget, the strategic investments, affect and impact our loved ones, our children and subsequent generations to come? Would they benefit from these investments made or would they have to pay in terms of higher taxes in the future to fund our current expenditure? Fifty-six years on since Independence, we survived not by chance but intentional efforts by our forefathers to ensure that we and future generations would benefit and lead better life than theirs. Against the backdrop of heightened international competition for investments, Government revenues are tightening as costs are escalating especially so when we have an ageing population and the new economic trends. It is important that we first try to think how to stretch our existing resources, our every dollar, instead of cultivating a mentality that we have reserves to dip into. With the concept of fiscal prudence in mind, I would like to touch on two areas. First, exploring alternatives in supplementing social policies to support specific groups. Mr Speaker, it is heartening that even with finite resources, the special needs community are not neglected with the introduction of the pilot Inclusive Support Programme in this Budget. As a nation, we try to level the playing field starting from pre-school, those with special needs are included to enable them to develop social skills and social inclusion. As we look into the longer horizon when this community graduates from formal education and start the next stage of their life – work, how can we better ensure that they are prepared? When circuit breaker happened last year with many businesses shut, many in the special-needs community struggled to find alternative roles. For this community, the larger impact they face goes beyond income as their routine was abruptly disrupted, with the mental state for many of them inevitably scarred.
With the new and future economy, can we find avenues for more micro jobs to be created for adults with special needs?
[+9 sentences] With wider acceptance of remote working, this model of work shift can well be adapted to support the special needs and residents with specialised skills within the community. Longer term, empowering the special needs community would benefit the society as well, with a reduction in reliance on social spending especially when their care-givers age. Another group that is often neglected is the women who provide care-giving for seniors, young children and those with special needs. Care-giving is a service, a dedication that not many would embark on if they have another alternative. It takes love, patience and commitment to provide for those that are dependent on others to get about their daily needs. Today, as family units shrink and more are dual income families, there is a high reliance on day care centres, foreign domestic helpers and some family members had to give up their careers to care for the vulnerable at home. This trend is likely on the rise in future. But at the same time, the pandemic has changed the way we work and live. With the support of technology and identification of community-based resources, we should consider enabling platforms that augment the needs of families closer to home.
Connect the women who can provide part-time services within distance of their home, enable essential workers, especially the low-income families or single mothers to balance care-giving duties and also supplement their income with work within the community.
[+1 sentence] Others who wish to volunteer and contribute through ground-up initiatives, can do so without unnecessarily being incumbered by regulatory frameworks.
A recent example is that of a Ghim Moh resident, Ms Looi, who set up a community library for children at the lift landing in front of her HDB flat.
[+7 sentences] It not only highlights the value of kindness and giving, but also strengthens neighbourliness and instill the love for reading at a young age. Such is the society we hope to build. One that gives and one that cares by supporting one another within the community. Another select group of individuals I wish to highlight that requires our help – the elderly who are "asset-rich", cash poor. Traditional thinking conjures up the notion that these elderlies can easily liquidate their existing homes to unlock the cash for retirement needs. However, things are unfortunately not so straightforward. Sociologists have also shared that getting the elderly to uproot and move to an unfamiliar environment can be a traumatising experience for some.
In my own constituency, I have some elderly residents living in Chempaka Kuning area whose land lease expires in 2034, just 13 years from now.
[+3 sentences] Some of them live with their spouse, some singles and others living only with support of a domestic helper. Many have shared with me that some inherited the asset from their parents and others actually purchased them decades ago at a very low value. After retirement, they have minimal cash savings and are feeling the pinch from daily expenses and medical bills.
Each time, they receive little or no Government support as their property assets mean that they do not meet the qualifying criteria for many of the handouts.
[+2 sentences] This is above and beyond the impending loom and anxieties on the uncertainties ahead on where they would live next. Their property does not fetch much value with limited lease and downsizing to public property will also cost them almost just as much as the net sales proceeds if they are able to sell the asset now.
While I understand the rationale of having a viable economy and healthy employment rate that supports a broad segment of society, but what happens to those who fall through the cracks and are unable to monetise their assets during crisis due to the policies that are in place, health conditions and family complications. Thus, with these considerations in mind, I would like to ask if the Government can rethink how annual values of properties should be assessed as a criterion, if the applicants actually fulfill all other criteria for each of the benefit schemes. Also, the need for annual property value criteria under means-testing to be differently considered in times of crisis, for example the pandemic. Can the Ministry consider providing support on essentials related to utilities and transport vouchers for this particular group as most are no longer working or have no private transportation means.
[+22 sentences] With finite state resources and funds, the continuation of tax rebates to encourage charity donations is a step in the right direction. Beyond these charity donations, could we explore the development of philanthropic activities in Singapore to plug these gaps, for those that fall through the cracks? Perhaps more engagement with the wealthy naturalised Singaporeans alongside being involved with the community activities of Singapore could also help to ease and connect them to the community. Make no mistake that Singaporeans are generous and many of the wealthy are already donating, with some even choosing to do so in their private capacity and keeping this private. These donations are lauded and well appreciated. However, what I am appealing for is a more consolidated effort in philanthropic activities, leveraging on National Volunteer and Philanthropy Centre, to act as a better and more sustainable supplement to Government policies. And the second area: stretching our investment dollar. In my previous Budget speeches, I had expounded on the need in measuring investment outcomes beyond just monetary value and instead focus on building a social eco-system for more sustainable and long-lasting positive outcomes. I am heartened that in this Budget, with this industry transformation, more emphasis is being placed on connectivity and value creation – focusing on how local companies can grow and with the creation of partners to build new growing segments of future industry. It will greatly help to bring about a value chain within the industry that can expand beyond our shores. With the extension of SGUnited Jobs and Skills Package, as well as other investments for business transformation and the pivot towards a green economy, how can we better ensure that these investments ultimately create positive spillovers for the economy beyond the basis that it is a wage subsidy? The Straits Times recently reported that, understandably so, fewer new graduates landed full-time jobs last year with MOM looking at ways to link up unemployed fresh graduates with opportunities. Could the private sector be better tapped on for suitable matching of jobs? Beyond engaging the private sector through the engagement with the Institute for Human Resource Professionals (IHRP), could we have more engagement sessions with the private sector on a jobseeker level? Additionally, as we make the pivot towards a more sustainable focused economy, what would the future green jobs be like? I call that we work closer and define these in the new economy, and better harness the synergy between the public and the private sectors to reimagine how the future of job is like. With the push for businesses and workers to internationalise, the question is "how" for such emerging opportunities. All in all, with greater geopolitical tensions and heightened competition for foreign investments, the perennial question would be how then do we allocate funds optimally given shrinking revenues and increasing costs? There would always be infinite needs and finite resources. It is time that we ask ourselves, how can we do better with this dollar being spent? Solutions need not always to be monetary and grandiose in nature, simpler solutions like creating and enhancing the quality of local and community networks could just be what we need. What is important is for all of us to come together with a "can-do attitude".
As a nation, beyond the immediate handouts that many look forward to in the release of Budgets, it is critical that we view the Budget with a lens of strategic importance – preserving our national strategic interests and standing and ensuring that with immediate problems being addressed, it does not come at the cost of future generations and our future relevancy.
[+1 sentence] Mr Speaker, I stand in support of the Budget.
Mr Speaker4 words
[+1 sentence]Miss Cheng Li Hui.
Miss Cheng Li Hui (Tampines)1877 words
[+5 sentences]Mr Speaker, I rise in support of the Budget. It is a sombre and cautious Budget. It focuses on a few key areas to prepare ourselves for life after COVID-19, especially to transform our economy and emerge stronger. Mr Speaker, during these pandemic times, with social activities curbed, night spots closed, I wonder if we would see a surge in birth rates in the coming months. That will certainly be a blessing to the families and a boon for our population.
Our Total Fertility Rate (TFR) has been low at 1.14 for 2018 and 2019.
[+22 sentences] This is indeed worrying. I felt that the topic of assisted reproduction is neglected in this House, and today, I would like to focus on this topic. I applaud the Marriage and Parenthood Scheme, which offers a number of financing schemes to help Singaporeans with the costs of conception, maternity, delivery and newborn care. In particular, allowing the use of MediSave for assisted conception and co-funding for the assisted reproduction technology (ART) procedures in public hospitals, which has greatly reduced the financial burden for many Singaporeans. Sir, before COVID-19, I used to visit newborns and their families in Tampines East regularly. On one occasion, a new mom told me, "Thanks to the Government, I got my baby." I was puzzled and she explained the ART co-funding scheme. You see, both her sons were from IVF treatments – the second was from her frozen embryo. She also told me the experience with her second child at the same public hospital was better than the first. She said public fertility clinics have improved with shorter waits for procedures. On another occasion, as I cradled a newborn, the new mum exclaimed, "Miss Cheng, she's asleep. Keep her there. She is from our eighth attempt. I thought ART was tiring. She is more tiring", and laughed. This determined new mom did three rounds of IUI and five rounds of IVF before her girl came along. All these chats with families made me more aware of the different experiences that couples go through to become parents, and I started to ask more and listen to their stories. Sir, I am going to give several accounts today. I hope that by doing so, we can review how our assisted conception policies can be further enhanced to help couples fulfil their dream of becoming parents. In mid-2019, when the PAP Women's Wing wanted to do a paper, we put out a joint survey on flexi-work, pre-school considerations and special needs. I decided to put out another survey on my Facebook to understand people's views on social egg freezing and other related questions, such as donor eggs, single motherhood, raising the IVF age limit of 45 and if they have children, were they conceived naturally, through treatments or adoption. I also gave them space to write their views on every question.
In the 10 days after I sent out my survey, I had 716 respondents and over 400 who wrote their views and gave their contact details.
[+9 sentences] Here are some verbatims from them. What is egg freezing? "I did not know egg freezing is prohibited." "I spoke to my daughter in her 20s after I saw your survey. She froze in USA before returning because she knows is prohibited here." "It was against my religious belief until I saw my daughter-in-law going through IVF. Please allow it." "My cousins froze their eggs in JB." It seemed like quite a number of ladies go overseas for social egg freezing.
Today, in Singapore, only women with justifiable medical conditions are allowed to freeze their eggs.
[+3 sentences] For example, a woman who is about to undergo cancer treatment may freeze her eggs for future use. What about voluntary egg freezing? Is there room for a rethink on this long standing policy of not allowing healthy females to freeze their eggs?
Why do we create this environment where healthy women have to bear the cost and risk of doing this procedure overseas? It is my belief that voluntary egg freezing can be allowed with legislation and a proper framework put in place.
[+3 sentences] One suggestion is to make counselling session mandatory for women who intend to embark on this procedure. They should be fully informed of the procedure, financial costs, risks, the notion that it does not guarantee conception later on and most importantly, the emotional roller-coaster ride that they will be undergoing. Legislation can be put in place to prevent the abuse of voluntary egg freezing and they should include the following.
An age limit of 40 years old should be considered as the quality of their eggs deteriorate drastically beyond the age of 35.
[+39 sentences] For egg thawing and fertilisation to take place in the laboratory, the couple must be legally married. Sir, with voluntary egg freezing prohibited here, it also means we have no eggs bank. This means ladies of certain age or with poor eggs quality will have to source for donor eggs overseas or adopt. A resident asked me what a donor egg was and I explained. He told me that the option was never made known to him in public hospital. His wife's eggs could not be fertilised and after several extractions and failures, the emotional stress was too much and they gave up IVF. If there was the option of the donor egg, his wife would have loved the chance to carry a child herself and fulfil her dream of motherhood. They eventually adopted a child from Indonesia. Another couple came to my Meet-the-People session to tell me their story. The wife wanted to explain the emotional stress to me personally so we could help others. She said she could not bring herself to return to the same clinic after each failed attempt or miscarriage. Thus, each time, they had to change doctor and clinic. After years of ordeal, today, they have three lovely children. She wanted to donate the rest of her embryos and eggs but learnt from her gynecologist that there is no such option here. For private fertility clinics, they can source for donor eggs overseas and they can have the procedures done here. I know some of my residents who froze their eggs and/or conceived through IVF overseas. A few couples have told me they felt that the cost of IVF here is higher. The amount of money they pay for two IVF attempts here may be enough for three attempts overseas so they get more chances for the same investment. Getai celebrity, Liu Ling Ling, also disclosed in the media that she had her son via IVF in JB when she was 50 years old. It was a different story then. Then, IVF procedure was not allowed for ladies above the age of 45. The rule changed in 2019. I do wonder what happened to couples who were seeking IVF treatments overseas before 2020. For those who needed to access their frozen eggs or embryos in other countries, how did they bring them back for their IVF treatments last year? In the past, doctors used to tell me, "No worries, just courier back". But with the current travel restrictions, I wonder whether these procedures can still occur. Sir, the survey meant so much to some. I recall vividly this encounter when I was in a multi-storey carpark after one block visit and noticed a young couple with Police officers. The man's car was vandalised. As I approached, he ran over and thanked me. He said his wife and him did the survey together. His wife had suffered a miscarriage before and they wrote about it in the survey. He smiled and added that she was due the next month. And when I enquired about the car, he said, "No, no, go do more important things. We are happy you did this." Next, education and awareness. There is a lack of fertility awareness and on treatment and tests. Some hospitals gave out free fertility health checks in 2019 hoping to promote awareness but that stopped with the pandemic. We need to do more to promote understanding on the subject for couples.
With the availability of online platforms, our public hospitals should conduct more fertility awareness talks online so that couples can participate in the privacy of their homes. We should consider the use of MediSave for fertility health checks, which cost around $400, or if possible, fully subsidise it if they do it within first three years of marriage, to encourage couples to seek assistance earlier.
[+1 sentence] One of my Meet-the-People session cases was a lady who got married at age 40 in 2019.
She understood the low chance of natural conception and quickly appealed for IVF co-funding. However, the new rule only allows two rounds of co-funding if the IVF process was started before the age of 40. The appeal failed and the couple paid for it on their own.
[+5 sentences] She managed to extract two eggs, both successfully fertilised but did not result in pregnancy. Perhaps, the Government can consider progressively reducing the co-funding amount with age but extend some help to healthy couples who just passed the age of 40. My most recent appeal case was just in January 2021. Mr Lee and wife have been trying for a child for seven years and are both 37 years old now. They have just completed two rounds of IVF but unfortunately, both resulted in miscarriage.
According to their gynecologist, they cannot send the embryos to NUH's Pre-implantation Genetic Screening (PGS) Diagnosis Lab, the only approved centre in Singapore, unless they have defective gene and so on.
[+4 sentences] Sir, I had mentioned earlier about couples seeking treatment across the Causeway. On CNA Insider in April 2019, it was mentioned that couples seek treatment just 10 minutes across the Causeway in the cluster of fertility clinics in JB because one, cost; and two, PGS is allowed there. This testing and screening for the correct number of chromosomes can improve the chances of success. But this is not readily available here.
We have had a pilot programme for three years.
[+1 sentence] When will it go mainstream?
We should allow more to screen their embryos if they have suffered miscarriages, provided no gender selection.
[+7 sentences] Mr Speaker, how can we relax the rules in voluntary egg freezing and yet be mindful of the medical concerns, as well as the social and ethical implications surrounding this whole issue? There are many countries around the world where voluntary egg freezing is legal and have been allowed for many years. We will certainly be able to learn, adopt and adapt the best practices to suit our local environment. Through all the families and women I have encountered who have shared with me their stories, I believe that women undergo voluntary egg freezing because they truly want to be a mother. This is a beautiful and wonderful thought but unfortunately out of reach for some in Singapore. I hope that as we continue to push on with our plans to re-open society and our economy in a safe and sustainable way, we will be able to relook at voluntary egg freezing and open our hearts and minds to support the hopes and dreams of many families here in Singapore. With that, 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 4.45 pm.  Sitting accordingly suspended  at 4.25 pm until 4.45 pm. Sitting resumed at 4.45 pm.
The Minister of State for Education and Social and Family Development (Ms Sun Xueling)2033 words
[+6 sentences]Mr Speaker, Sir, I would like to speak on how Budget 2021 supports our Singapore women. The Singapore Government is fully committed to the advancement of all Singapore women. In 1961, the Legislative Assembly of Singapore debated the Women’s Charter and subsequently institutionalised the rights and protection of women and girls via the Women’s Charter. The Women’s Charter celebrates its 60th anniversary this year. We have a longstanding commitment to building a society of equal opportunities where all Singaporeans, including women, can achieve their full potential. And statistics reflect our progress.
In 2019, the literacy rate for women was 96.1%. And of residents aged 25 years and above and having a university degree, 50.8% are women. As Parliamentary Secretary Rahayu Mahzam earlier mentioned, in 2020, the employment rate for women was 73.2%.
[+4 sentences] But we can always do more to further support and uplift the women in our midst. COVID-19 has brought challenges to women, from increasing the stress of care-giving for some, to increasing financial instability or risk of violence for others. I will like to touch on how Budget 2021 builds on continuing efforts to support women and their families by: one, supporting women in care-giving; two, supporting vulnerable women; and three, supporting women in their career aspirations. Our women often play important roles as care-givers in our families, and we want to support them in caring for their loved ones.
The Government is increasing its annual spending on early childhood sector to over $2 billion per annum, within the next few years.
[+15 sentences] These efforts help women, by giving women real choices, as they give women peace of mind should they decide to go back to work when they have a young child. To ensure accessible, affordable and quality pre-schools, the Government has expanded pre-school capacity, and is on track to reach 200,000 pre-school places by 2023. Families are also now paying less for pre-schools. We have enhanced pre-school subsidies from January 2020, and appointed more pre-schools on the Partner Operator scheme with lowered fee caps for all Singaporean children from January 2021. Taken together, this means that a Singaporean child will receive about $50,000 in Government funding over five years when the child enrols in a full-day childcare programme with one of the Anchor Operators. Low- and middle income families can additionally receive up to $28,000 in means-tested childcare subsidies. Budget 2021 builds on these efforts and goes further. We know that care-givers with young children with developmental needs may find it even more challenging to care for their children. We have thus announced that in Budget 2021, we are stepping up efforts to better support young children with developmental needs. The Government currently provides Government-funded early intervention, or EI, services to about 5,600 children below age seven with developmental needs. Of these, 1,900 children are served in the Development Support Learning Support, or DS-LS, and Development Support Plus, or DS-Plus, programmes delivered in pre-schools, while 3,700 children are served in the Early Intervention Programme for Infants and Children, or EIPIC, delivered in EI centres. Currently, about 75% of children, aged three to six years old, who attend EIPIC provided at EI centres, also attend pre-schools. These "dual schoolers" shuttle between the pre-school and EI centre two to three times a week. I co-chair the Inclusive Pre-school Workgroup and the workgroup had engaged about 900 participants, including parents on their views regarding inclusion and support for children with developmental needs. In an online survey, parents and care-givers, the majority being mothers, rated travelling time between pre-schools and EI centres as being among their top three concerns.
The care-givers shared with us the strain of having to shuttle their children between the pre-school and the EI centre multiple times a week, and their concern being their children’s development when they are in pre-school. We have thus announced in Budget 2021 that we are piloting a new "Inclusive Support Programme", or InSP, where there will be in-school support for children who require up to medium levels of EI support.
[+11 sentences] This will allow the children to meaningfully participate alongside their typically developing peers and reduce care-giver burden and stress, which arise when shuttling their children between the two centres. Typically developing children and their families will also benefit from enhanced teacher training and development of stronger social skills from a young age. The InSP pilot will be launched at a few selected pre-schools and, if successful, we hope to expand the InSP to more pre-schools, and lighten the load for mothers who care for children with developmental needs. For care-givers of Persons with Disabilities, or PWDs, the Enabling Masterplan 3 had highlighted the need to improve care-givers’ well-being and enhance their care-giving capabilities, including by creating more peer support and informal support networks. We have thus introduced the SG Together Alliance for Action, or SG Together AfA, on Care-givers of Persons with Disabilities. Through this, NCSS and SG Enable will work with the community to tackle the pressing issue of supporting care-givers of persons with disabilities. For a start, the SG Together AfA on Caregivers of Persons with Disabilities will focus on self-help and mutual support. SG Enable will identify stakeholders who have common interests in peer mentorship and other informal forms of informal support, and shape and coordinate their efforts. If successful, a similar approach can be adopted to support other care-givers as well. Next, I would like to touch on supporting women who may be more vulnerable. COVID-19 has brought many challenges to families, with incomes and lifestyles impacted, all of which can lead to conflict within the family and in some serious cases, family violence.
MSF’s Adult and Child Protective Services saw a 40% increase in the number of average monthly enquiries between January and October 2020, as compared to the same period in 2019.
[+1 sentence] Though not all enquiries are related to family violence, and they include repeat calls by the same individuals, or multiple callers reporting the same incidents, we have to keep a close watch on these trends.
The launch of the National Anti-Violence Helpline, or NAVH, a few days ago, is a reflection of Government and community partnership in tackling family violence together. The NAVH is the first integrated helpline for the reporting of family violence and other forms of violence, abuse and neglect.
[+9 sentences] The NAVH operates 24/7, all year round to make it easier for victims of violence and abuse, members of the public and professionals to seek help. The Task Force on Family Violence, that I co-chair with Minister of State Assoc Prof Mohammad Faishal, has also studied the landscape and possible causes of family violence and we will be putting up recommendations to the Minister of Home Affairs and Law, and the Minister of Social and Family Development. The Conversations on Singapore Women’s Development was launched in September 2020 to take a comprehensive look at issues that impact women at home, workplaces, schools and the community. Participants in the Conversations have raised the issue of what the approach to punishment should be for hurt and sexual offences. MHA and MinLaw have reviewed the sentencing framework for hurt and sexual offences, and a Ministerial Statement will be made at a later date. We are cognisant of the fact that regardless of the progress that Singapore women have made on many fronts, we must continue to guarantee the physical protection and well-being of our women and girls. COVID-19 has also impacted the incomes of women, and we have introduced various forms of assistance, to help those who need help over this difficult period. In 2020, we introduced the Temporary Relief Fund and the COVID-19 Support Grant, to tide Singaporeans through the financial impact of COVID-19. Given COVID-19’s protracted economic impact, in January 2021, we launched the COVID-19 Recovery Grant.
All in all, about 210,000 of our working women have benefited from financial support through these schemes.
[+17 sentences] A Budget measure may thus not be explicitly targeted at women but it is no less impactful and meaningful for them. And as announced by Deputy Prime Minister Heng in the Budget Statement, we will be introducing a Household Support Package, or HSP, in order to provide additional support for families, during this time of economic uncertainty. Lower to middle income families will receive more and this includes women who lack family support, such as elderly females who live alone. Even as we support our women for their needs and guarantee their protection and well-being, we also want to support them in achieving their aspirations. Many women and men during the Conversations on Singapore Women's Development have shared feedback on how women can be supported in the workplace and their career aspirations, such as having more women in corporate leadership positions and putting in place formal and informal mentorship and networking platforms for women leaders to support and learn from each other. The Council for Board Diversity, or CBD, is one such platform, set up by the MSF, to look into having more women on boards. The CBD promotes sustained increases in the number of women on boards of SGX-listed companies, Statutory Boards and Institutions of a Public Character, or IPCs, by encouraging organisations to be more diverse and proactively identifying and grooming potential board-ready women. Our women leaders play key roles in our IPCs, as leaders or board members. And our IPCs have stepped up their support during the COVID-19 period. The Government is strongly supporting such efforts through various Budget 2021 initiatives such as the extension of tax deductions for donations to IPCs. Mr Speaker Sir, in Mandarin, please. (In Mandarin): The Singapore Government is fully committed to the advancement of all Singapore women. In 1961, the Legislative Assembly of Singapore debated the Women’s Charter and institutionalised the rights and protection of women and girls via the Women’s Charter. The Women’s Charter celebrates its 60th anniversary this year. But each era brings about new challenges and we need to continue to work hard at ensuring progress for our women. Fundamental to this is our continuing commitment to guaranteeing the physical protection and well-being of our women and girls. COVID-19 has brought significant stress to families and in some extreme cases, has led to family violence against women.
The Taskforce on the Prevention of Family Violence which I co-chair, will be putting up its proposals to see how we can raise further awareness about family violence and the channels of help available, refine processes to ensure ready and effective help rendered to victims and propose interventions where perpetrators are concerned.
[+2 sentences] We have also noted the public’s concerns over hurt and sexual offences against women and the Ministry of Home Affairs and Law will be making a ministerial statement on their review of the sentencing framework. We are also concerned about COVID-19’s impact on women and their livelihoods.
Through the temporary relief fund, the COVID-19 support grant and the recently launched COVID-19 recovery grant, about 210,000 working women in Singapore have benefited from financial support in these difficult times. And as announced by Deputy Prime Minister Heng in the Budget Statement, we will be introducing a Household Support Package and lower to middle income families will receive more. This will also benefit elderly females who live alone, and therefore have fewer means and family support. For women with children or who are care-givers, they will also benefit from increased support via the Inclusive Support Programme which provides in-school support to children with up to medium level developmental needs and seeks to lessen care-giving burden. Budget 2021 builds on past efforts to support women and their families and we hope we can work with all parties to build an equitable and inclusive society, where women are supported and enabled to achieve their fullest potential.
[+3 sentences] (In English): In closing, the 2021 Budget will continue to support our women in the roles they play, and provide support for those who need it. We have dedicated 2021 as the Year of Celebrating SG Women and I hope you will join us in celebrating the different roles our women play, in our families, for our economy and in our society. Mr Speaker, Sir, I stand in support of the Budget.
Mr Speaker3 words
[+1 sentence]Ms Denise Phua.
Ms Denise Phua Lay Peng (Jalan Besar)2229 words
[+8 sentences]Thank you, Speaker, Sir. I stand in support of the Budget. The hon Member of Parliament Mr Pritam Singh asked about the CDC Vouchers Scheme and the role of CDCs and Mayors. I am one of the Mayors and representing the Mayors now. Let me start with the CDC Vouchers Scheme. The CDC Vouchers Scheme was conceived for two purposes. One, to help Singapore households defray the cost of living and, two, to support local businesses, especially those in the heartlands. Supporting two target groups affected by the COVID-19 pandemic – residents and heartland businesses.
The first tranche of $20 million was rolled out last year to lower and middle income households, to much success. With that good support, the CDCs recently rolled out another $20 million of CDC Vouchers – what we called Tranche 2 – in January this year. More than 7,000 merchants have participated in the scheme and there was good feedback.
[+15 sentences] The scheme went beyond the "neighbourhood mom-and-pop shops" that were suggested by the Workers’ Party’s Mr Png Eng Huat. In fact, the range of shops covered the smaller supermarkets, coffee shops, wet and dry market stalls, confectionaries, bakeries, medicine shops, hair salons and so on. So, Mr Singh should have found out that NTUC Fairprice, Sheng Siong and Giant were not included, right from the start. The function of the CDCs in the Vouchers Scheme is clear. From scratch, the teams organised the resources, communicated the scheme and got as many merchants as possible to sign up and to make full use of this well-intended help scheme. Unlike what Mr Singh mentioned, local bodies like the grassroots Consultative Citizens’ Committees (CCCs) do not always have market and shop representatives sitting in their committees. Instead, merchant and hawker associations are reached by tapping on a network that is organised by the CDCs that comprise CDC and CC staff, contract staff, grassroots volunteers and national bodies, such as the Singapore Federation of Merchants’ Associations and its subsidiary, the Heartlands Enterprise Singapore (HECS). Sir, Mr Singh’s suggestion to have the CCCs or grassroots volunteers run this multi-million help scheme is either ignorant of or insensitive to the reality on the ground. Grassroots CCCs are not set up to run schemes of this magnitude. In the last year, in fact, many grassroots volunteers were quietly helping in the massive distribution of free sanitizers, free meals, millions of face masks and the Trace Together Token. Even today, they are knocking on doors to encourage residents to go for their vaccinations to get the herd immunity that Singapore would need to keep us safe from COVDI-19. In any case, the CCCs or the grassroots are not set up to organise schemes, such as the CDC Voucher Scheme. Finally, Sir, back to some of the questions that Mr Singh has brought up on the operation of the next tranche of the $150 million worth of CDC vouchers. This third tranche is intended, of course, to help the residents and the heartland businesses as well. But it is also intended by Deputy Prime Minister Heng and MOF to thank everyone for their support during the COVID-19 period and also to celebrate hawker culture.
The tranche is now more than seven times the initial two exercises – due to one key reason. Deputy Prime Minister Heng and his team had listened and decided that the vouchers would be extended to every Singaporean household, regardless of public or private dwelling.
[+18 sentences] The CDCs are still working on the processes, cost and timeframe of the scheme. Details will be announced once they are ready. I hope that heartland merchants from all the constituencies of Members of Parliament of this House, including Hougang, Aljunied and SengKang GRCs, will join the CDC Voucher scheme so that both merchants and more residents will benefit from it. Next, I wish to speak on the role of CDCs and Mayors. The idea of the CDCs was first mooted by the then-Prime Minister Goh Chok Tong in 1996 as part of his vision of a "tightly-knit, compassionate and self-reliant community in Singapore, with the more able in society helping the less able". Unlike Government Ministries, which have very focused functions and missions, CDCs are geographic district-based entities. It is another way to serve citizens who need help. The key mission is to assist, bond and connect. For many years, the CDCs focused primarily on "assisting" and are known mostly to the lower income households for administering, because they administer the Government’s financial assistance schemes. This administration has since been taken over by MSF’s Social Service Offices or SSOs. Although the SSOs are now administering the financial assistance schemes, CDCs continue to assist in different ways. At the district level, CDCs perform duties that grassroots or Government Ministries are not quite set up to do – effectively, three functions – A, B and C: (a) Aggregating – finding out – aggregating the needs and distributing resources at the district level; (b) Building capability for our residents at the district level; and (c) Connecting all the players who are willing to help in the community. On the work of the CDCs, as I have said, the CDCs operate at the district level and continue to be called upon to support national initiatives, such as the CDC vouchers scheme I have mentioned. We also do other things, support other national initiatives. For instance, many of us Mayors are very in support of the lifelong learning culture and SkillsFuture movement of Singapore. In fact, a total of 4,819 free SkillsFuture Advice workshops run by the five CDCs had reached more than 127,000 participants in the last three years. During COVID-19, the five CDCs quickly acquired online capabilities and aggregated resources from Government and non-Government agencies, such as MOE’s SkillsFuture Singapore (SFS) and MOM’s WSG, NTUC's e2i, the Institutes of Higher Learning (IHLs) and private training companies as well. This network, assembled by the CDCs, helped residents navigate the SkillsFuture landscape for them to stay relevant and find jobs during the pandemic.
In fact, in one week last year, the partners managed to reach out and connect over 250,000 viewers online and more than 6,000 of them joined in the online SkillsFuture workshops.
[+3 sentences] So, that is one of the examples where the CDCs support national initiatives. CDCs work at the district level, complementing the work of the grassroots and the Government Ministries, but, more importantly, they are active in the non-grassroots space. The CDCs keep in regular touch with non-grassroots players, such as the district’s business and corporate community, the social service agencies, schools and Institutes of Higher Learning, to name some.
With these networks, the five CDCs were able to quickly roll out, during the pandemic between February and October 2020, close to 70 local district initiatives that served over 676,000 beneficiaries.
[+7 sentences] A recent example is the CDC Student Meals. Within 10 days of the Circuit Breaker, the Mayors received ground feedback that vulnerable students who used to go to the school and received free school meals in school, might not be able to afford meals or might be deprived of free meals during the Circuit Breaker. We sprung into action with a lot of help from the community, we garnered support from corporate partner Grab Singapore, raised funds from a philanthropist introduced by a friend and put in place an initiative to give out e-food vouchers to students in rental flats. The agility and ability to garner resources are one of the CDCs’ uniqueness because we are not part of the big Ministry and we are on the ground with a small team but that is how we remain agile. Over the years, the CDCs have also championed the culture of giving back to the society. We have regular platforms to foster the spirit of giving by individual volunteers, individual donors, businesses and other partners, either for existing programmes or new ones co-created with our partners. Donors, such as Far East Organisation, United Overseas Bank, StarHub, MayBank, Ngee Ann Kongsi and Kwang Ming San Temples, are but some of the donors that the CDCs were able to approach for our districts' residents.
Last year, the CDCs drew on their networks to raise $12.3 million, in cash and kind.
[+2 sentences] The value of the CDC structure, although within the People’s Association, is its relative agility and ability to respond and develop programmes in the district faster than a bigger Government Ministry. We have developed programmes through innovative solutioning and collaborations with partners to better serve target residents.
Some of the more signature district programmes include – let me name just a few on behalf of my fellow Mayors: (a) North West CDC’s Club 100 which has close to 800 regular donors collectively contributing $1 million a year towards the Northwest Food Aid Programme which benefits low-income households in their 19 divisions; (b) South East CDC’s famous WALK FOR RICE @ South East in which rice and oats are donated to the district’s vulnerable families, for every 300 metres that participants walk or run; (c) South West – under Ms Low Yen Ling – South West CDC’s ADOPT @ South West leads more than 100 corporate and community partners to uplift the vulnerable in social wellness, healthcare, home safety, education and enrichment; (d) North East CDC’s Project Refresh, led by Mayor Desmond Choo, which supports more than 10 volunteer agencies and have refurbished close to 400 households; activating close to 3,500 corporate volunteers; (e) For Central Singapore district, my CDC, with which, of course, I am most familiar – there are 52 actually in the suite of programmes we have – let me name a few: (a) Ready for School Cheques, vouchers donated by Far East Organisation to relieve cost of starting school for 12,000 students in the rental households; (b) The holiday Digital Bootcamps sponsored by UOB for 2,000 students so they would not be overly affected or left behind by any digital divide; (c) Pan-district projects like The Purple Parade – and I thank Members of Parliament who have joined in this Parade – which is supported by all five Mayors and CDCs.
[+5 sentences] Speaker is always supporting as well, thank you so much! The Purple Parade is Singapore’s largest movement to support inclusion and to celebrate the abilities of persons with disabilities. The disability cause has been supported by Central Singapore CDC since 2013 and is one of its signature initiatives – perhaps still unknown to some. But many of the participants are not people with disabilities. They are people who believe in the cause and they joined us.
The Purple Parade reached out to over 10,000 participants annually and connected over 200 corporate and community partners – MNCs like Apple, HP and so forth, local Statutory Boards like the Building Construction Authority (BCA), LTA, MSF, MOE, SMEs, large local enterprises, schools and more than 40 disability organisations – every year.
[+6 sentences] And we have just a small team to work on this. And how we did this was with so many partners. The COVID-19 pandemic did not stop the Purple Parade and it went online for the first time last year and continued to receive very encouraging support – again, made possible by the strong network cultivated by the CDCs over the years. I have been an active volunteer in the disability sector but I do not think I can pull off the Purple Parade without the support of the CDCs and my fellow Mayors. I am not even certain that there will be a Purple Parade, if not for the CDC. Sir, I can take another Budget Day to share what the CDCs do.
Mr Pritam Singh's accusation that the Government is trying to find some way for the CDCs to be relevant by asking them to manage the CDC vouchers scheme, is belittling the CDCs and their partners.
[+1 sentence] There is nothing to be ashamed about making sure one is always relevant and can add value, as times change especially.
When Prime Minister Lee graciously created the role of the Leader of the Opposition, much to the surprise of Mr Singh himself, did Mr Singh not accept the role when asked, and the office and the research assistant and the salary and try to do his best to be relevant too?
[+3 sentences] Singaporeans also ask what the role of the Leader of Opposition in our Parliament is, under the circumstances that all nine of the elected Opposition Members of Parliament, all one single Party. What has been different? Nonetheless, I want to still thank Mr Pritam Singh for bringing up the subject of CDCs.
His comment on the CDCs' "relative absence" in the public mindshare has also given us some food for thought. Perhaps, the biggest mistake the CDCs made was not to have better publicised the work we do.
[+2 sentences] But the real work is in the work. How much publicity does one have to put out just to justify one's existence and to prove one's value-add?
The real work is in the work and the people we benefited. So, I hope that there are no attempts to politicise the good work of the CDCs and especially our partners.
[+3 sentences] Would Singapore society be worse or better off without the CDCs? Sir, this is a question that is best answered by the beneficiaries of the work done by the CDCs. Sir, I support the Budget.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)375 words
[+8 sentences]Thank you, Mr Speaker and thank you to the hon Member Ms Denise Phua. I expected a robust response to my speech; and indeed, Ms Denise Phua's comments are not surprising. Let me start with a very straightforward preamble. When I called for a review of whether Mayors should be full-time, this was not a personal vendetta against the current Mayors or Mayors who have been full-time Mayors in the CDCs before. Neither was it an indictment against the programmes that are run by the CDCs. But having said that, it is helpful for us to take a look back at the evolution of the CDCs. I think Ms Denise Phua tried to do that but I do not think she provided a complete picture. I will attempt to do so.
When the CDCs were first formed in 1996/1997, the Mayors were not full-time; they were part-time. They became full-time appointments, to my understanding, after the General Elections in 2001.
[+3 sentences] And that is because the trajectory of the Government thinking at that time was Government programmes, ComCare assistance, KiFAS, things which are done by MOE today, for example, would go through the CDCs. Selection of where childcare offices or childcare centres also came through the CDCs and the budget of the CDCs was proportionately increased. It is helpful to look at the Hansard of that era, specifically Committee of Supply (COS) 2002.
The budget of the CDCs was increased from $19 million in 1997 to $153 million in 2001.
[+8 sentences] So, you find the evolution of the CDCs, I think, best encapsulated by what Minister Vivian Balakrishnan said when he was Minister, MCYS, I believe, in 2010 or thereabouts. The Minister said all Government schemes go through the CDCs. This is what was said in Parliament, it is on the Hansard. Is that the case today? A lot of roles have devolved. ComCare is primarily handled by the SSOs. Many other functions are now not in the hands of the CDCs anymore. And concomitantly, the budget of the CDCs has reduced significantly. 
So, I think the question which the hon Member Ms Denise Phua did not answer is: is it still viable for Mayors to be full-time?
[+1 sentence] I would like to hear her reply to that.
Ms Denise Phua Lay Peng121 words
I have to say that I am probably the only full-time Mayor.
[+1 sentence] That is because the Prime Minister feel that I am running the largest district here – 23 divisions.
My fellow Mayors are all double hatting or triple hatting sometimes; and so I do not know whether you consider them full-time Mayors or not. But I do know that they only get one pay.
[+4 sentences] So, I think that is the current situation. So, I do not know whether you consider them full-time or part-time. But I am probably guilty of being the only full-time Mayor and I take it that that is why I do some national initiative projects as well. And other Mayors, please feel free to speak up.
Mr Pritam Singh336 words
[+18 sentences]Thank you. Yes, it will be helpful to hear from the other Mayors. I think my question is certainly put out there already. It is for the Government now to determine the approach that they want to take in terms of whether Mayors should be a full-time or a part-time appointment given the comments I have made about the scope of responsibility. I have made my point and it is now really in the Government's hands. I would also like to make a point about this issue that the hon Member Denise Phua made about public mindshare. This has been a problem, in my view, for the longest time. It is not just something recently that has cropped up. I will quote the Hansard. This is again from the 2002 COS debates. Mayor Zainal Abidin Rasheed, the predecessor in my constituency of Eunos, was the Mayor of Northeast CDC. And these are his verbatim remarks at that debate: "Recently, Radio 93.8 started a series of programmes where they interviewed Mayors and staff of the CDCs to explain and to talk about the CDCs. To my surprise, most of those who were interviewed by Radio 93.8 claimed that they were not aware of what the CDC was all about and they do not even know who their Mayors were despite the fact that we have carried out quite a number of activities." And, of course, it goes on. I think the point here is nobody is questioning the projects that the CDC runs. The question is: is it ostensibly possible that these projects also could be carried out with charities, some of whom have a huge footprint not dissimilar to very worthy initiatives that the hon Member Ms Denise Phua herself helms, like the Purple Parade. So, I think that there is a very valid question as to the roles and functions of the CDCs. And beyond the points that I have made in my speech, I thank the hon Member Ms Denise Phua for her clarifications.
Mr Speaker3 words
[+1 sentence]Ms Carrie Tan.
Ms Carrie Tan190 words
[+5 sentences]I would just like to share my inputs to address Mr Pritam Singh's last question about whether the work can be undertaken by charities. Coming from being the founder of charity, I think the capacity amongst the charity sector is limited. As far as I know from my experience, many charities want to focus their manpower and resourcing on the work of working, hand-holding, serving and supporting families. And I think, at least from my experience, the value of the CDCs to the charity sector has been that it is able to carry out the work of consolidating, aggregating, reaching out to partners to pool more resources and support for the charities and the work that they do as well. So, this is the part that I find, as a charity member in society, we do benefit greatly from the CDCs' amalgamation of resources from bigger corporations who are willing to give to the sector, but would like to be part of a bigger movement that then disseminates these resources out to the various charities who want to focus our resources on doing the work of supporting the communities directly.
Mr Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song (Aljunied)2573 words
[+22 sentences]Mr Speaker, in line with the theme of the Budget Statement, I would like to examine four areas in which we can work together towards emerging in a stronger condition than we were in before the start of the COVID-19 pandemic. First, I wish to address how we view and approach competition. Competition is a ubiquitous aspect of life in Singapore. In school, our children compete for grades, awards and places in top schools. Even in co-curricular activities, they compete for a spot on the school team to improve their chances of entering Secondary school via the Direct School Admission (DSA) scheme. We even grew a billion-dollar industry in the form of tuition centres, which have fuelled the competitive dynamic that is part of our education system. Keen competition continues after finishing school. Employees compete with each other for raises and promotions or enterprises engage in the survival of the fittest. Competition in itself is not bad. It can draw out the best in each person and each firm. However, when competition starts taking negative edge, we need to re-examine our priorities. As we are told time and again, Singapore is a small and vulnerable country which needs to stay relevant and competitive. Therefore, we must ensure that our competitive spirits are directed towards the right targets and adopt a more cooperative mindset with our fellow Singaporeans. For example, Singaporeans at the workplace could orient themselves more towards looking out for each other and helping each other succeed. This is how professionals and workers from other countries instinctively operate, even when they are working here. We should not see our fellow Singaporeans as competition for promotions but as partners we can cooperate with to improve the products and services of our company's, thereby improving our company's earnings and contributing to our bonuses. Government-linked companies or GLCs could look at more ways to collaborate with the SMEs in ventures overseas and form local consortiums with them, thus increasing Singapore's competitive edge. Mr Speaker, the pandemic support measures have helped many low-income families. However, we must not forget the plight of the middle income who make up a growing proportion of our population. Middle income families often find themselves squeezed from both ends. Their incomes render them ineligible for many Government benefits. Yet, they still have to cope with high costs like their home mortgage, children's education and aged parents' medical fees.
The increase in petrol duties adds to this squeeze and so will the future hike in GST.
[+4 sentences] All this leaves them with little buffer against the vicissitudes of life. An unexpected shock, like a family medical emergency, can throw them into financial distress. We need to provide more help to this group. To be clear, I am not calling for universal handouts.
Assistance should still be targeted but I hope to see more flexibility when it comes to assessing the eligibility of applicants for schemes, like the COVID-19 Recovery Grant. Individuals who narrowly miss eligibility requirements or have circumstances that deserve special consideration should not be denied assistance.
[+13 sentences] Such flexibility should be exercised at the first instance based on their merits. The Government agencies should not wait for these individuals to pluck up the courage to send in appeals before they can get the help they need. The COVID-19 pandemic has forced us all to re-examine what constitutes an essential job. Some supposedly higher skilled jobs have turned out to be less critical than their lower skilled counterparts. This was amply demonstrated during the just concluded Australian Open Tennis tournament, which was held in Melbourne under the shadow of the pandemic. To minimise the spread of viruses, all human line judges were replaced with Hawkeye, an electronic line judging system. Umpires are still featured, but their role seems to be relegated to calling the score, not adjudicating line disputes. It remains to be seen when they too will be made redundant. On the bright side, ball kids face far brighter prospects since it is harder to build a robot which can run, retrieve and throw balls on cue. Naturally, to gear up my kids to be future-ready, I signed them up to be ball kids at the ATP 250 Singapore Tennis Open which is taking place this weekend in the Singapore Sports Hub. This tournament also uses electronic line judges. Automation is by no means limited to the tennis court. Many other highly skilled jobs are either being taken over by machines or offshored to lower cost locations.
According to the OECD, 14% of jobs in rich countries are highly automatable while the further a 32% are likely to change because of because many of their routine tasks can be automated.
[+2 sentences] Robo advisors are giving active fund managers a run for their money; X-rays can be read by radiologist in India; and mobile app development can be outsourced to developers in Vietnam and Romania. The pandemic has showed us that many so-called "3D" jobs – dirty, dangerous or difficult – have turned out to be more essential than some white collar jobs.
We need to accord sufficient recognition to workers manning these positions. I am glad that nurses and healthcare workers are getting a much-deserved raise, but let us not forget our repairmen, refuse collectors and delivery drivers.
[+8 sentences] These everyday heroes, kept our country running when we were all locked down at home. I understand that even here in Parliament House, workers were here until late last night to fix a broken toilet pipe. But with the restrictions in the supply of foreign workers and the reluctance of many locals to take up 3D jobs, the demand for workers in these occupations often exceeds their supply. Based on the law of supply and demand, these workers' wages should naturally rise to reach a higher equilibrium price. In practice, however, many of their wages still remain painfully low. This is in part because of the structure of our industries and in part because our society does not esteem them highly enough. This is a market failure. The state needs to intervene to ensure that these workers' earnings increase to match the value they bring to society.
In 2012, the Government introduced the Progressive Wage Model, or PWM, to raise the wages of low-wage workers. Today, almost a decade later, the PWM still covers only 15% of workers in the lowest quintile of income earners and only from three industry sectors: security, cleaning and landscaping. According to MOM, there are a residual 100,000 workers in other sectors who still earn less than $1,300 a month.
[+10 sentences] The NTUC has announced plans to roll out the PWM to six more sectors. It is yet unclear how and when all these 100,000 workers will be covered. The Deputy Prime Minister said in his Budget Statement that the Government's aspiration is for every sector of the economy to have some form of progressive wages, echoing NTUC's call for a universal PWM. Senior Minister Tharman Shanmugaratnam has termed the PWM a "minimum wage plus". It is not my objective today to debate the merits or demerits of the PWM vis-a-vis the national minimum wage. I think the parties have stated their position on this issue. The Workers' Party (WP) has called for a national minimum wage, first set at $1,300 in take-home pay per month; and the Government and NTUC had explained why they have chosen the path of the PWM while pointing out that they are not ideologically opposed to the minimum wage. I accept that the Government is heavily invested in the PWM. My goal today is to discuss how the PWM framework can be improved so that we can achieve our common goal. Whether Singapore adopts the PWM, a universal PWM, a national minimum wage or a minimum wage plus, I believe the common goal of everyone in this House is the same: to raise the wages of all our low-wage workers and ensure they earn a living wage that can support their families in what is one of the most expensive cities in the world.
A household budget study by researchers from NTU and NUS in 2019, found that to meet basic standards of living in Singapore, a single elderly household needs $1,379 per month while an elderly couple needs $2,351 per month.
[+6 sentences] According to the MTI, the Average Household Expenditure for Basic Needs, or AHEBN, for a four-person household was estimated to be about $1,300 a month in 2017. AHEBN is an estimate of the average that households spend on essential needs such as food, clothing and shelter every month. This is how the WP derived our figure for a national minimum wage, which will rise with the AHEBN. However, the PWM's goals are not limited to setting a basic minimum wage. This is something which the Government has emphasised as the very reason why it favours the PWM over a national minimum wage. The PWM also seeks to chart out skills ladders and career progression for workers.
NTUC Deputy Secretary-General Koh Poh Koon shared plans to roll out the PWM to six more sectors in the next two to three years.
[+28 sentences] These sectors include strata management and solar technology, both of which do not typically employ low-wage workers. I find this rather puzzling. Why are we venturing into PWM for these industries when there are still so many more low-wage workers who lack a basic wage floor to protect them? The basic principle of the PWM is that higher wages must be a result of improvements in productivity, not Government fiat. Higher productivity can be achieved by upgrading workers skills through training. With a better skilled and more productive workforce, firms will be able to pay their workers better while still remaining profitable. This sounds great in theory, but is less straightforward in practice. First, the training element of the PWM may be well intentioned, but training can improve productivity only to a limit. In many low-wage occupations, there is a skill ceiling due to the manual nature of their work. How many more HDB blocks can a conservancy worker sweep if we send him for more training? After completing basic training, further training will reap diminishing returns. Worse, it could cost the firms money and lost work hours with marginal or no improvements in productivity. Even as the Government subsidises much of the training and absentee payroll, it does not mean the training is free because it is still borne by taxpayers. Second, providing pathways for career progression for our low-wage workers is also a worthy goal to strive for. However, it has limited utility for many low-wage workers. How many elderly cleaners are striving to be promoted to supervisors, where they have to manage a team and churn out monthly reports for management? For most of them, their priority is first and foremost to earn enough to provide for their families. And third, the PWM is designed to be rolled out to specific industries through licensing conditions set by the respective lead sector agencies: NEA for the cleaning sector, Police Licensing & Regulatory Department, or PLRD, for security agencies and NParks for the landscaping industry. These lead sector agencies require that firms implement the PWM before they are issued operating licenses. If an industry does not currently have any licensing conditions, the relevant lead sector agency will need to introduce a licensing requirement before implementing the PWM. This will be the case for the proposed roll-out of PWM to the retail sector, which currently has no licensing requirements. This two-step process will be cumbersome for both the Government agencies and the firms involved. It would surely introduce more red tape and dent productivity, leading to more overheads to firms, which may cost them far more than just what a wage hike may cause them. It may cause them far more than just a wage hike to meet the basic minimum wage. I am glad to hear that the NTUC is looking at a vocational PWM and I look forward to more details of how this will be implemented. Someone on Reddit once remarked that the PWM is like a Rube Goldberg machine which tries to solve too many things at once, without solving anything well. This may be a rather harsh critique of the PWM and I know there are many officials who are working very hard to make the PWM work. However, I believe there needs to be a fundamental re-ordering of the PWM framework so that it can be rolled out faster, for the benefit of more of our low wage workers.
The current pace of rollout of the PWM is much too slow. At this rate, it will be another decade or more before all low-wage workers are on the PWM.
[+4 sentences] What is more, we have to-date only picked the low-hanging fruit. It will be far harder to roll out the PWM, particularly in its current form, to the remaining industries and occupations. I believe it will be less bureaucratically complex and more efficient to first set a basic wage floor for specific industry sectors, and expand the list of sectors quickly so that we can eventually cover all our local workers. The other aspects of PWM like training requirements and career progression ladders can still be brought in, but later.
Given the urgency of the problem that remains to be addressed – 100,000 employed and self-employed workers earning less than $1,300 a month – we need to pick our battles more carefully and focus on what will move the needle the most and the quickest for our low-wage workers. Since the PWM is a "minimum wage plus", we should focus on implementing the "minimum wage" portion of the PWM across all industry sectors as soon as possible, then roll out the "plus" portion only later where practical.
[+1 sentence] I acknowledge that the pandemic period is not a good time to impose wage increases across a large swath of industries.
To ease the transition for all employers, the Workfare Income Supplement can be used to temporarily top up wages to the minimum wage, and these can be eased off as the economy recovers, with employers taking over.
[+10 sentences] Dr Koh Poh Koon said yesterday that the Wage Credit Scheme (WCS) could be used for this same purpose. Mdm Deputy Speaker, rolling out a basic wage floor more widely and quickly will not only improve the welfare of thousands of our lowest paid compatriots and their families. It can also have positive effects on our economic recovery. The lower income have a higher marginal propensity to spend because they need to meet their basic needs, so putting more cash in their hands will have a multiplier effect on our GDP growth. Higher wages for these occupations will encourage more people to enter the workforce and ease the labour crunch in many essential industries. Those already in the workforce will be more motivated at work, resulting in improved personal productivity and lower turnover and retraining costs for companies. It will be a win-win-win for workers, employers and our economy. Mdm Deputy Speaker, our people have demonstrated great resilience during this pandemic. However, in order to emerge stronger together from this economic downturn, we need to jettison some legacies that have lost their relevance in today's world, and be willing to adopt new paradigms to bring our country forward. Madam, I support the Budget.
Mdm Deputy Speaker4 words
[+1 sentence]Mr Yip Hon Weng.
Mr Yip Hon Weng (Yio Chu Kang)1499 words
[+5 sentences]Mdm Deputy Speaker, I thank the Deputy Prime Minister for a compassionate yet pragmatic and visionary Budget. Allow me to focus on two pillars of our nation – our seniors and the construction industry. First, our seniors. Among those whose jobs are affected by the pandemic, our seniors are among the hardest hit group. I am glad to note that this Budget continues to recognise the importance of promoting senior employability.
More than $200 million will be allocated for the Senior Worker Early Adopter Grant and the Part-Time Re-employment Grant. There will be increased funding to redesign jobs and leverage on technology to develop senior-friendly workplaces. This comes on top of the raising of the Retirement Age and Re-employment Age to 63 and 69 respectively from July 2022.
[+39 sentences] All this is good news for older workers who wish to continue in employment. While technology and financial incentives go a long way to encourage companies to employ seniors, a change in mindset of both employees and employers is required to create truly senior-conducive workplaces. Research consistently indicates bias against older workers in Singapore, with impaired health and reduced cognitive abilities among top concerns. This negative labelling of seniors can impact their employability. Concerns about employing seniors can be overcome by redesigning jobs and the physical workplace. But this is something that companies find cumbersome to do. One employer asked me, "Why review my workplace practices and design, when I can simply hire someone younger?" With this mindset, employers would miss out on the wealth of experience and problem-solving capacities of older workers. We are an ageing society. Workplaces must adapt, or we will face a labour crunch soon. Seniors must at the same time continue to be willing to adapt and persevere despite the challenges that they may face at work. It is not uncommon for seniors who, despite trying their best, remain self-deprecating of their potential and mistakenly believe that technology is for the young. Fear of the uncertainty is part of human instincts. But senior workers too, must be optimistic and believe in themselves. We must continue our efforts to push for greater digital adoption amongst our seniors. Mdm Deputy Speaker, I agree with Deputy Prime Minister that we need to continue with the Jobs Support Scheme, or JSS, for the time being. This is because the withdrawal of the JSS will lead to increased unemployment in the near term. This will likely impact senior workers more. We need more direct assistance and matching from the Government to help workers, especially senior workers, to stay in their jobs. Another major way to help on the employability front is to facilitate the creation of more micro jobs for seniors. Member Henry Kwek also spoke about this yesterday. I want to emphasise that many of these jobs can be in the community, including carers for other older, more frail seniors, medical escorts to accompany other seniors from hospital to home and vice versa and handyman works for repairs around the estate. For instance, I see many senior residents at my MPS who have expressed interest to look for micro jobs near their homes because they have family commitments and cannot afford to travel far. For instance, Mrs Tan, a 63-year-old homemaker, has approached me to help her look for employment as she can spare a few hours when her grandchildren are in school. The Government can play a role to promote such micro jobs by offering integrated search and listing platforms to match the demand and supply based on location. The Government can also consider providing accreditation and training for persons who might want to take up micro jobs. Mdm Deputy Speaker, I move on to the construction industry. This is an important sector that help to build our comfortable homes and world-class infrastructure. The past year has been difficult for the sector. I note that this year's Budget did not mention additional support measures for the construction sector, beyond the JSS extension. Have we forgotten the people who toiled and sweat to build our infrastructure and for our beautiful HDB homes? Their work has been badly affected by COVID-19. I have a good number of residents who work in construction, either as workers or employers. We need to do more to help this sector cope with the immediate fall-out in three areas. First, Mdm Deputy Speaker, we can do more on the manpower front. Though industry players are receiving help from the Government, many short-term challenges have not been addressed. Many firms with existing projects must cope with rising costs and labour shortage as a result of the pandemic. Some foreign workers have returned home. Yet the new arrivals are tightly controlled.
Newly arrived work permit and S Pass holders are required to complete a 14-Day Stay-Home Notice.
[+1 sentence] Those who have recent travel histories to higher-risk countries must stay at a designated facility to undergo an additional seven days of testing.
In total, they will be quarantined for as many as 21 days.
[+3 sentences] Employers would have to pay for their accommodation and the swab test costs, which can add up to a significant amount. I urge the Government to consider providing subsidies as all these amount to increased labour costs and cost of contracts. Housing the workers remains a challenge for some employers in construction.
The Temporary Living Quarters scheme is slated to expire in end March 2021.
[+7 sentences] However, some employers say that they are still struggling to obtain approval for building Construction Temporary Quarters or CTQ. Time is tight and the TLQ should be extended while these approvals are being worked on. The foreign worker levy waiver and rebates were a lifeline for construction companies. Due to safe distancing measures, productivity at worksites have dropped tremendously. During this difficult period, can the Government consider reducing workers levies? We can reinstate levies when SMMs are removed. For projects that are eligible for cost-sharing relief with contractual parties, can the Government look into expediting early settlement and payment to the contractors?
The COVID-19 (Temporary Measures) Act introduced co-sharing of project prolongation costs for public sector construction contracts.
[+1 sentence] This is supposed to help the contractors with their cash flow.
How many claims were made, and how many have been processed?
[+9 sentences] Second, Mdm Deputy Speaker, we should consider giving some priority to our local construction companies for public projects. Yesterday, Member Patrick Tay called for tougher measures to strengthen the Singaporean Core workforce. Today, I would like to call for the Government agencies to build Singaporean Core companies. COVID-19 is not the first pandemic, nor will it be the last, that will impact our borders. It is a stark reminder for us to improve our self-sufficiency. Local preference is relevant to our construction sector. We need to give our local construction firms opportunities to develop their own expertise and grow such that Singapore will not stagnate even in times of crisis. A potential critique of this practice is that it undermines competitiveness. And that the winning tender might not provide the best value.
Yet studies have shown that giving preference to local businesses can benefit the country's finances as a whole, even if it means spending a little more on the project itself.
[+9 sentences] The local construction companies would purchase from local supply chains and service providers. This in turn creates an "economic multiplier" effect. Investments that circulate locally boosts economic activity, employment and tax revenue. To ensure that policies which favour local companies are transparent and fair, the Government can establish certification programmes and make public a database of companies that qualify for the preference. Implementing specific definitions for local preference eligibility, establishing well-developed goals, clear tracking and reporting will help to ensure that the policies are effective. This ensures accountability and that projects are value for money. Of course, in doing so, we should be mindful that there may be restrictions such as WTO or other international agreements of which we are a party to. But, if we put our minds together and work hard towards our goal, we should be able to find solutions to support our local contractors. Thirdly and lastly, Mdm Deputy Speaker, as we cast our minds towards a post-COVID world, we must review our infrastructure needs accordingly.
Rather than defer infrastructure projects, the Government should consider taking an expansionary approach, and press ahead with projects in the pipeline.
[+2 sentences] This will in turn, create more employment, while ensuring that we are on track to adapt to post-COVID needs. Mdm Deputy Speaker, in conclusion, I am impressed by how quickly we pushed through many planned initiatives over the past year in light of the pandemic.
One year on, the economy and employment rate are showing signs of recovery.
[+4 sentences] But we must not forget to review our support for those who are struggling to catch up. In my speech, I focused on seniors and the construction industry as examples. In times of difficulties, we must do what it takes to support them. I stand in support of the Budget.
Mdm Deputy Speaker4 words
[+1 sentence]Dr Koh Poh Koon.
The Senior Minister of State for Health (Dr Koh Poh Koon)678 words
[+3 sentences]Mdm Deputy Speaker, thank you for obliging. The hon Member Mr Gerald Giam made a few references to my two speeches; one from last year and one yesterday about the PWM. So, I thought I am obliged to clarify some issues that he has brought up.
The first thing he asked was why we push for a PWM in strata management as well as solar technology sector.
[+2 sentences] I have great sympathy for my brothers and sisters working in the strata management sector. As I said yesterday my speech, this is an outsourced sector.
Many of them have seen wage stagnation because as each contract is renewed, there is some resetting of their wages and there is no career progression, even though in terms of absolute pay, it may not be at the lowest bottom end of the bottom 20.
[+2 sentences] I have great sympathy for them. I think the nature of the industry behoves us to think about a PWM model where they can see career and wage progression.
So, that is the reason why we are pushing for that. And in essence from the first, when the Labour Movement first talk about PWM in 2012, actually the PWM construct, while is tightly linked to low wage workers, it was never construed as only for low-wage workers, because the whole idea of the four-wage ladders – wage tied to skills to productivity and career progression is applied to all jobs or job roles across the different parts of the industries.
[+4 sentences] The reason why we started with the lowest sector is because they are the ones that need the most help. They are our brothers and sisters who need the greatest uplift to catch up the rest of society. But beyond the lower wage sector, we want the concept and the idea of a PWM to be pervasive across all job roles so that everyone in the job can see progression in their career and no wage stagnation. Mr Giam also talked about licensing requirement in diverse sectors at retail sector.
I think that is a focus of the tripartite workgroup's discussion and we hope that we can land on something that can allow us to implement this, without the necessary agencies that may have a particular regulatory lever similar to other sectors that were implemented in the past. And hopefully, this can be a recommendation from the work group sometime in the later part of the year.
[+7 sentences] Mr Giam also actually rehashed some of the points I already made yesterday about uplifting wages immediately using the Workfare Income Supplement. And in fact, I am glad he agreed with my suggestion to consider the wage credit scheme as a form of transitional support. So, I hope that when we do so, we will get more support; and in that sense, if there were any wage increase that translates to consumer costs increase, I hope the Workers' Party Members can also help to convince consumers that they have to do their part as well. What I do not understand is that in advocating for a sectoral wage floor across different sectors, how different is it from what we are already proposing for sectorial PWM, which starts with a sectoral wage floor anyway? And there is, in my mind, I thought there are some convergence there, in what he is suggesting and with what we are doing with the PWM sectorally. What the Member has not said, however, is how does what he proposed, whether it is a pervasive minimum wage can prevent disemployment? I have a great fear, that if we were to push pervasive minimum wage that is beyond what the industry can bear, my brothers and sisters will suffer from this employment and we will see more unemployment out there.
The Labour Movement always keeps saying this: that in pushing for too high a minimum wage, a minimum wage can become no wage.
[+1 sentence] And I think this is something that we ought to bear in mind – the cure we are proposing cannot be worse than the disease itself.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song412 words
[+3 sentences]Thank you, Mdm Deputy Speaker and I thank Dr Koh for the clarifications. I will address some of the points that he responded to. First, about strata management and solar technology sectors, and why he feels that it is important because of the wage stagnation.
I share his concerns about wage stagnation in any sector, not just the low-wage sectors. But my point was that, as important as it is to address the wage stagnation issue and provide career ladders for the different industries, why can we not just focus more first on the low-wage workers to ensure that all 100,000 low-wage workers who are not covered by the PWM now, are covered first.
[+11 sentences] Why do we not work harder at that first, rather than venture into other things? I am not saying that career progression is not good and I am not saying that it is not good to have increases in salaries beyond the minimum wage. But I think we need to really double down and focus on the low-wage workers first, to ensure that they are protected before we go into other areas. I do not think we want to have a situation where perfect is the enemy of good. We want to make sure that we implement the good things first and then try and perfect it later. The other point about the sectoral wage floor and the convergence he mentioned. Yes, indeed, there is some convergence between our proposals because the minimum wage is the first component of the PWM and it should continue to be that way. So, let us focus on that first component first before we go into career progression and other aspects. He also mentioned about the concerns about unemployment that will be brought about by increases in wages. Yes, it is true that if we increase wages by too much, there could be unemployment. But let us look at the actual real-world examples.
In the cleaning sector, the security sector and in landscaping, have we seen massive unemployment is the result of the implementation of the PWM?
[+1 sentence] I do not think so.
And I believe that if we implement a wage floor which is reasonable, and we have actually put out a number there – $1,300 a month – if we implement a wage floor which is reasonable, I do not think we will see massive unemployment.
[+1 sentence] I think the effects of this wage increases will be minimal on many other industries.
Mdm Deputy Speaker2 words
[+1 sentence]Dr Koh.
Dr Koh Poh Koon217 words
[+4 sentences]Madam, I think the Member refers to the cleaning sector. I think that is probably not quite accurate because actually that is already a PWM sector, which is why you do not see an increase in disemployment, because there is a wage ladder together with skills ladder. And in his proposal now, he is talking about a sectorial wage floor, which in fact, is what sectoral PWM is all about. Are you still advocating for your universal minimum wage that WP wants?
Or are you going with me now on my sectoral PWM with a minimum wage floor, sectorally?
[+2 sentences] I am a little but confused there. Has the WP's position changed?
But I think what the Member must also remember in my previous Parliamentary speech on this topic, is that the minimum wage floor in a PWM is not a standalone because there is a Government top-up with a Workfare Income Supplement that brings the salary way beyond $1,300. In fact, most of them will hit closer to $2,000 or $2,300.
[+4 sentences] So, I think you need to take the whole context of what we have in place. Beyond the PWM, tThere is also the WIS component. And we have been talking about augmenting this yesterday in my speech. I hope the Member remembers my speech from yesterday.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Gerald Giam.
Mr Gerald Giam Yean Song185 words
[+2 sentences]Dr Koh is trying to understand whether or not we have changed our position on this minimum wage issue. We have not changed our position.
Our position still remains that we should roll out a minimum wage first, to all low-wage workers who earn less than $1,300 a month.
[+5 sentences] That is the position that we are still pushing for, but two things: First is that we accept that we are not in Government, and the Government and the People's Action Party is in Government. The People's Action Party has decided to proceed with this PWM model. So, we are trying, in the interest of protecting our low-wage workers, to find a way that we can propose how you can start off with this minimum wage, and then you can do those other things like career progression and wage increases. I am not digging in, just to say that, "Oh, I want to stick with my position and my position is right, your position is wrong". I think we are all working together to find out what is the best way to benefit our low-wage workers.
Mdm Deputy Speaker2 words
[+1 sentence]Dr Koh.
Dr Koh Poh Koon313 words
[+2 sentences]Indeed, Madam, this is what we have been trying to do in this House: to make sure that we take care of our most vulnerable. But I still do not understand.
When we talk about sectoral wage floors, we are trying to make sure that the minimum wage floor by the sector is relevant to the particular industry, that job, and what the industry can bear, what the consumers are prepared to pay for the type of services so that that particular wage floor for the sector does not cause disemployment or unemployment in the sector.
[+2 sentences] If the Member's position is that we should set the appropriate wage floor so that we do not create disincentive for employment, then surely it cannot be one single wage floor across all sectors, all job types that can be relevant and absorbed by all different types of services and service bias. I think this is why we propose that the advantage for PWM is that it is customised for a sector.
It is a little bit more laborious maybe, but that makes sure that it is something the industry, businesses and consumers are prepared to bear. I said yesterday that we are looking at the option of pushing up for vocational PWM so that it actually involves different job types, especially those in the bottom 20% of income earners across multiple sectors.
[+1 sentence] And that hopefully will address the larger swath of workers who are in the lower wage group.
That is our strategy – we hope to cover as many of the low-hanging fruits and those who are in need, as the Member was pointing out. I hope by the end of this year, the tripartite work group will be able to come up with recommendations to push out occupational PWMs to cover the most vulnerable who are currently not covered by the mandatory PWM, sectorally.
Mdm Deputy Speaker11 words
[+1 sentence]All right, Mr Gerald Giam, could you just clarify the point?
Mr Gerald Giam Yean Song96 words
Just the last point on the sectoral wage floor. We want to see a $1,300 minimum wage across all sectors eventually. As for the sectoral wage floor, we acknowledge that one way of rolling out this $1,300 is to implement $1,300 wage floor for each sector, going sector by sector.
[+2 sentences] But it does not mean that we are saying that we should immediately start adjusting the different wages for the different sectors. That can be done in the PWM but let us get the minimum done first so that we can progress onto the next step.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Louis Ng.
Mr Louis Ng Kok Kwang (Nee Soon)2953 words
[+34 sentences]Madam, my daughter Ella started her Primary 1 journey last month. It has not been an easy transition for her. In her first week, she entered school every morning in tears. It was difficult saying goodbye to her at the gate. But it was comforting for us to know that the teachers were there. I was peeping through the fence, as we, parents, often do, and I saw the teachers holding Ella's hand, offering her a tissue to wipe her tears and showering her with love during this difficult period. I saw how this was not just about teaching, but it was a labour of love. Every morning, the principal and teachers were at the gate cheerfully saying good morning to the students as they arrived. We received phone calls from teachers updating us on Ella and we had Zoom calls with the teachers and other parents too. I thank the teachers for being there for our children, for providing much needed care and for their dedication. I thank them for being teachers. Madam, many people have asked me why my eyes are so red and about my eye bags. In fact, Minister Indranee was asking me about this during our break earlier and she said that I now look like a mad dinosaur. I have been called many things, but the first time, a mad dinosaur. But it has been a difficult Primary 1 journey for me too – waking up so early every morning to send Ella to school. Sometimes, it feels like I have just fallen asleep and it is time to wake up. I guess I had a glimpse of what it is like being a teacher, waking up so early every morning. But a glimpse also because I am sure teachers wake up much earlier than me. It has been said before, but it is not said enough: teachers have a tough job; and I thank them again for their loving role in nurturing our next generation. We have emerged stronger from this pandemic also because of our teachers. During the pandemic and the circuit breaker, they work doubly hard, teaching physically in classrooms and virtually. They were out there while we kept ourselves safe at home. There are things we can and should do to make their job a little better and this is what I would discuss today. So, Madam, let me also start by thanking MOE for its reforms in recent years, which have made education a more nurturing experience. We have stopped reminding students of how they are ranked in both class and level. We have stopped grouping them into classes based on academic abilities. We have stopped comparing students to their peers when grading the PSLE. The message to students has been clear: focus on your own learning; do not be distracted by how others are doing. As then Education Minister Ong Ye Kung put it, I quote, "Learning is not a competition, but a self-discipline you need to master for life." I agree. And indeed, we have done a lot to help our students get rid of the distractions and focus on their own learning. But I feel we have not done enough for our teachers. It seems contradictory to me that teachers tell their students that students are no longer ranked and compared relative to their peers while they themselves are ranked and compared relative to other teachers. Madam, in the past six months, I have spent time listening to what teachers have to say.
The Singapore Teachers' Union surveyed about 1,200 teachers and organised a series of closed-door dialogues with teachers of all levels who spoke candidly about their experiences.
[+4 sentences] I had the privilege to hear some of their conversations and experiences. I left with a renewed appreciation for the genuine passion our teachers have for teaching. The feedback that the teachers raised at these sessions were ultimately because they wanted to be better teachers for their students. But I also left with some worry.
Large numbers of them expressed concerns about their appraisal system. Over 80% of teachers and 70% of Reporting Officers, or ROs, agreed that ranking is not the best way to appraise all job holders.
[+9 sentences] Today, I will share four proposals to tweak and refine the appraisal system. These proposals reflect concerns on the ground, based on survey data by the union and personal anecdotes. I am not proposing to throw the baby out with the bath water. I am suggesting that we make the appraisal system more standardised, transparent, fair and formative. This will better support our teachers to do their best work. Let me take this opportunity to thank all civil servants for their essential work. My speech is about teachers because each of them influences tens and hundreds and thousands of young minds in their daily work. But it does not stop here. Starting from teachers, my hope is that the change in the appraisal system would flow through to the rest of the Public Service.
My first proposal is to standardise the appraisal process and require schools to follow it. While about half of the teachers surveyed felt there was some objectivity in the system, about three quarters of teachers surveyed agreed that appraisals should be based on standardised criteria.
[+14 sentences] Currently, teachers go through a two-step appraisal process. First, the teacher's RO assesses the teacher. Second, the RO takes this assessment to a Ranking Panel of senior staff members. The Ranking Panel then decides on the rank and grades of teachers in the school. How do all these people decide on what a teacher really deserves? As MOE has shared, it provides guidelines and conducts training to advise on best practices. But the stories shared by teachers reveal that current guidelines and training are not robust enough to ensure that the appraisal is standardised. At the first stage of assessment by a RO, teachers report that subjective and irrelevant considerations are sometimes taken into account in the assessment. One teacher said that some ROs prefer yes-men, I quote, "If you are one who asks questions and give alternate suggestions, you are deemed to be uncooperative and calculating". Another teacher said that their RO favours staff who are his friends or used to work with him in other schools. It should worry us that some teachers feel this way. Madam, even if the RO thinks that a teacher is good and the teacher meets or exceeds his or her targets, this does not mean that the teacher will get a good grade. They have to fight for the teacher at the Ranking Panel. Many ROs, themselves, feel frustrated by the Ranking Panel.
More than half of the ROs said that members of the Ranking Panel have an unequal say.
[+23 sentences] They flag the roles of personalities and politics. One RO said that those on the panel tend to play up their own teachers while criticising others so that they themselves are ranked as being effective. Another RO fretted about retaliation, saying that to speak up for unfairly ranked teachers means to risk, I quote, "suffering the same fate". Again, we should be concerned that some ROs feel this way. Our teachers are doing their best for the students and many do want to receive constructive feedback so that they can take steps to improve. However, the current process means that the outcome may not simply be a reflection of a teacher's performance and irrelevant considerations come into the picture. I understand the challenges of evaluating a teacher's work. I also understand that MOE has frameworks in place, such as Key Result Areas for each job level describing key competencies and qualities to achieve. But there is more that we can do to standardise the process. First, MOE can provide greater clarity to its guidelines and provide more granularity. For example, Key Result Areas currently tell teachers what "good" looks like. Just like the detailed marking rubrics used for students, these Key Result Areas should be broken down by grade so that teachers know what specific standards are required to achieve an A, B, C and so on. Clearer appraisal standards given to ROs and Ranking Panels make it harder for subjective and irrelevant considerations to enter into decision-making. Second, MOE should formalise its guidelines on teacher appraisal as requirements. Good guidelines are not so useful if they can be ignored or circumvented. Teachers and ROs alike said that the appraisal process varies sharply from school to school. Some schools have robust and objective processes in place. Other schools may have weaker processes which allow for more subjectivity. MOE has said that its policy on teacher appraisal seeks to balance between consistency across schools and discretionary judgement by the schools. The balance is currently tilted towards discretionary judgement. These stricter standards will move us towards consistency, limit biases and emphasise the performance of teachers. This is not just about what I think is right. It is what the vast majority of teachers think is right.
Again, about three quarters of teachers surveyed agreed that appraisals should be based on standardised criteria.
[+1 sentence] My second proposal is that MOE enforces a clearer and more consistent feedback policy for performance appraisals.
Almost 80% of teachers surveyed did not feel that the process of ranking has been made transparent them.
[+21 sentences] Teachers do not know how to improve if they do not understand how and why they got their grade. Transparency is crucial. Currently, the feedback policy that schools must follow when conducting their annual appraisal exercise are merely guidelines. These guidelines may not have been successful in helping teachers understand the ranking process. When we spoke to teachers to understand why they see the process as opaque, two main reasons cropped up. The first reason is because information was not proactively offered to some of them. One teacher said, I quote, "The grades were never explained to me for the years I joined service". The second reason is that even when some teachers asked about the process, they are given no explanation. One teacher sought to understand why they received that grade, but their RO said that there was no way to discuss the performance grade. There are many more stories like these. How can anyone do better if they do not know what they are doing wrong? I think we can all empathise with how frustrating it must be to be in a situation like this. Again, there is more we can do. MOE can implement a standard procedure for how schools respond when teachers request feedback and clarifications about their grade. Second, this standard procedure needs to be enforced. As the data shows, a large majority of teachers currently see the appraisal exercise as lacking in transparency. We must make proper communication mandatory and enforce this. Third and finally, we can work with the teachers to strengthen MOE's communication policies. We can implement a whistleblowing mechanism for teachers to use when their schools are failing to abide by MOE's communication policies on appraisal. Of course, this mechanism must include measures to protect teachers from retaliation within their schools. Together, these measures will foster a more transparent system where our teachers will always know how to do better, and this means a better education system for our children.
Third, I propose that we remove the quota for each grade.
[+1 sentence] This means a teacher's grade will no longer be affected by the limited number of As, Bs, Cs and Ds.
Close to 80% of teachers surveyed strongly agreed with this proposal.
[+8 sentences] We can see how the quota system can distort incentives. Let me explain this from two directions. At the very top, each school can only give out a very small percentage of As and Bs every year. Let us call this the "good quota". This means it is not enough to be a terrific teacher; you have to be more terrific than everyone else. The good quota rewards you for being a big fish in a small pond. However, it is a disincentive for being in a school where there are people better than you, whom you can learn from. The quota also hurts those at the bottom.
Five percent of each school’s teachers must be graded C-, D or E.
[+6 sentences] Let us call this the "bad quota". This means that even if you are a good teacher in a school over-populated with super good teachers, the quota may still force you to receive a terrible grade. Again, the system discourages you from surrounding yourself with the best of the best. The quota system may also be applied in ways unrelated to a teacher’s performance. One teacher said that some department heads agreed to spread out the bad quota across departments by "pre-selecting" a few teachers from each department to get bad grades and then fulfilling the prophecy by assigning unimportant tasks to these teachers. The bad quota would not be so painful if the bad grades were, in fact, not that bad.
Indeed, MOE has said the C- grade is not an adverse grade. But the reality is that those receiving C- grades and below, face a host of punitive measures, including ineligibility for promotion for three years and ineligibility for Professional Development Leave.
[+5 sentences] Minister Lawrence Wong has said that schools have flexibility for assigning grades. However, in practice, virtually all schools had teachers with C-, D or E grades, as Minister later shared. This may be because of the additional paperwork, scrutiny and justifications needed to exercise that flexibility. I propose we remove the quotas. Let schools assign grades based on a standardised process, as I proposed earlier.
Over 80% of teachers surveyed supported the removal of the quota.
[+7 sentences] The risk of fiscal imprudence is limited, as each school is given a fixed quantum of monies for performance bonuses. Standardising the process as well as the existing practice of having a Cluster Superintendent advise each Ranking Panel are both powerful checks to guard against grade inflation. MOE would not be alone in this shift. Some of the most successful companies in the world have dropped relative ranking and moved towards more flexible performance management systems. Amazon announced in 2016 that it would drop its stack ranking system. Even General Electric, the American conglomerate where stack ranking was popularised in the 1980s, has dropped it. Its current CEO said he prefers "reviews that candidly tell an employee where they are not measuring up and what they need to do to improve, without rigidly adhering to certain percentages".
General Electric has shifted to a system that emphasises continuous dialogue and shared accountability. I also propose that we remove the punitive measures for the C- grade. Seventy-five percent of teachers surveyed agreed with this.
[+26 sentences] Performance management should be formative, not punitive. Teachers who have struggled should not be denied the full resources to grow or the full prospect of being rewarded. Three years with 0% chance of promotion is enough to make anyone lose interest in their profession. Why would we disincentivise hard work like that? What I hope for is that our teachers spend more time improving their own performance and aspire to become better teachers, instead of spending time worrying about how they are compared to others. Madam, I am not the first Member of Parliment to speak on this. This has been a long fight by Member of Parliament Denise Phua and former Members of Parliament Zainal Sapari and Intan Mokhtar. Dr Intan said previously that our "appraisal system is quite summative" and spoke about the need for a more formative approach to the appraisal. Member of Parliament Denise spoke about the negative aspects of forced ranking, speaking of instances when employees get pushed up in terms of their ranking because of very vocal supervisors who were able to speak up for them at ranking sessions. In the last few months, I have heard these exact concerns surfaced repeatedly by our teachers. Mr Sapari, a veteran in the education service, first as a teacher, then a school principal, then a cluster superintendent. He asked for the forced ranking system to be abolished, and instead adopt a criteria-based approach for ranking. Mr Sapari, Dr Intan and Ms Phua have been speaking about this since 2018. In a previous debate, Ms Phua said, "to run a race whereby only a few win the trophy might be a race that, I think, the Minister has been asking for us not to run. We should run races where as many as possible can make it to the finish line, and as many as possible can meet a good or great performance standard”. We all want what Ms Denise Phua is calling for but it is simply not possible under our current appraisal system. Let me end with a quote as always, "A teacher plants the seeds of knowledge, sprinkles them with love, and patiently nurtures their growth to produce tomorrow's dreams". Sir, as teachers work hard to create a nurturing environment for our children, let us also create a nurturing environment for them. Let us make our appraisal system more standardised, transparent, fair and formative. The surveys show that majority of teachers support this call. But Madam, I know our performance management system of stack ranking is a sacred cow. We have used this system for decades. But for once, I am not asking for a scared cow to be slaughtered. As a vegetarian, I very much prefer that. I am asking for us to look after this sacred cow better and for our appraisal system again to be more standardised, transparent, fair and formative. With a strong, engaged and empowered teaching workforce, we will continue to emerge stronger.
Mdm Deputy Speaker3 words
[+1 sentence]Dr Wan Rizal.
Dr Wan Rizal (Jalan Besar)1616 words
[+14 sentences]Mdm Deputy Speaker, I rise in support of the Budget. Twenty-twenty was a tough and disruptive year, with the pandemic adding complexity to our lives, our livelihoods and our norms. Thus, I am grateful for the relief and assistance provided by the Government to cushion the impact of COVID-19. This year, while the fight against COVID-19 continues and we know it is far from over, we are in a better position to emerge stronger together. I move for us to consider, or rather reconsider, some of the important lessons learnt. The COVID-19 situation has surfaced one pertinent issue that has always been stigmatised – mental health. After my Adjournment Motion last year, I received several emails. Some complained about working from home and the pressures that they face. But coincidentally, it was during the annual ranking exercise and many shared the pressure that they faced and they have to perform. The fast-paced and highly competitive nature of our meritocratic system produce the best results globally, but it also means our workers face immense stress. Some highlighted the toxicity and the dog-eat-dog atmosphere. Others felt the pressure to maintain a high grade whereas some are just trying to avoid a C-minus grade. I was wondering why a C-minus grade? Because a C-minus grade may mean limited developmental opportunities and, perhaps, the end of their career.
As an educator, I believe that it is important that we continue to recognise our top performers but I also believe that those who did not do well, for whatever reasons, be given a chance to bounce back and emerge stronger. I call for the Public Service to lead the way in tweaking the ranking exercise and move towards a balanced model of performance and development.
[+7 sentences] And in that way, we holistically support the emotional and mental well-being in workplaces. Mdm Deputy Speaker, another issue that was raised fervently by both young and old was the influence of social media. Instagram, TikTok, the latest app is Clubhouse, if you are not in that yet, and other social media platforms allow us to connect virtually, but it also means that nothing is private anymore. Name-calling, rumour-spreading, deliberate online falsehoods are pertinent and challenging aspects of social media. I have seen how both youths, as well as adults, are belittled online by their peers, and the damaging effects of cyberbullying. As a father myself, I am worried for our children, who might be vulnerable and having their mental well-being affected. Collectively, mental health issues become more apparent and intervention is much needed in times like this.
We need to make concrete and concerted efforts to support those with mental health issues beyond mere awareness and promote positive mental well-being. I call again for these four strategies: first, to enhance mental health literacy as well as digital literacy programmes in our schools; second, to create more accessible touchpoints so that those who feel that they need help are able to do easily; third, including mental health screening as part of physical health screening and this should not be limited to just schools or workplaces only but also within the community so that our seniors may also receive help. Lastly, to introduce time-outs at workplaces and in schools, so that those who are under stress may take the option to take a mental break, but such breaks are recorded and the next time one takes it, we know that they may have something that we need to help with.
[+12 sentences] The strategies that I presented requires a whole-of-community effort. Madam, mental health is not a life sentence. It is not something that one has to go through alone. There are ways for us to overcome these challenges. Early mitigation would certainly help, but we need to do it, together. We can only emerge stronger together as a united society, not only in terms of social and economic factors, but also in terms of our mental health. Mdm Speaker, the collapse of certain sectors and the streamlining of the workforce brought upon by COVID-19, has exposed the inability of some of our fresh graduates to be agile in a volatile job environment. Recently, I had a chat with a resident who is about to finish his Diploma in Aerospace Engineering. As the industry is deeply impacted by the pandemic, it is natural that he was feeling anxious. He expressed that he felt that he made the "wrong decision" when choosing the course. That should not be the case. In my maiden speech, I highlighted that early specialisation constrains skillsets and limits opportunities.
I emphasised the need for broad skills that can be generalised across other disciplines so that we can put our fresh graduates on a better footing and give them the confidence to apply their technical skills across other relevant sectors. I call for MOE to continuously review pathways, to prepare our graduates with the agility to navigate through the varied and diversified workforce and discover their passion. I also call to review how we can ease the progression from Secondary school to ITEs or the Polytechnics so that anyone who has a passion for a certain field, are allowed to seize it.
[+11 sentences] I have taught many students from the Polytechnic Foundation Programme (PFP) and many have done very well – in fact, they do even better than the ones who come in through the "O" levels system or route and I felt that because they entered the Polytechnic slightly earlier than the rest, it allows them the time and space not only to settle down but to chart their education journey better. Finally, I hope that we continue to review the curriculum in IHLs so that it remains robust and most importantly relevant, working closely with the community and industry to ensure that every Singaporean is future-ready and remains employable. Mdm Speaker, my final point is on the support for our healthcare workers. Without a doubt, our healthcare workers deserve all the accolades that come their way. I would like to thank them for their sacrifice and hard work and hope that the proposed increase in salary laid out in the Budget will spur them even further. But we know it is not all about money. Nursing is inherently a very demanding profession and entails long hours and overnight schedules. Part of the job includes dealing with angry, mostly frustrated patients and family members. We must continue to provide them with the best support possible. From ensuring work-life balance to enhancing their career pathways, to continually provide opportunities for them to develop and gain expertise. But above all, it is protecting them against the abuse and harassment that they face in conducting their daily duties.
The number of abuse and harassment cases increased from 1,080 in 2018 to 1,300 last year. Over the same period, the number of such cases involving on duty public healthcare workers that were reported to the Police under the Protection of Harassment Act increased from 40 to 58.
[+8 sentences] Therefore, I call for us to review the processes to enhance the support and protection of our healthcare workers. Mdm Deputy Speaker, please allow me to end my speech in Malay. (In Malay): I support the Budget that was presented last week. As our economy recovers from the impact of COVID-19, other aspects of our lives will also begin to show signs of recovery. However, our battle against COVID-19 is not over yet. As we rise to combat this pandemic, I would like to highlight three important aspects. First, the importance of taking care of our mental health. I would like to recommend four strategies that can help us pay more attention to mental health together.
First, make mental health education and digital literacy programmes compulsory in schools.
[+1 sentence] Second, create access for those suffering from mental issues to seek immediate help.
Third, introduce mental health screening in the current physical health checks, and lastly, introduce "time-out" for students and workers who are suffering from stress or mental issues.
[+6 sentences] Besides mental health, I also touched on diversifying pathways in education. With the pandemic in our midst, many of our students are concerned about their future job prospects. I would like to highlight the need for educational institutions to offer skills that can be or will be practised in all fields of work. It will make our graduates more competitive as well as provide better confidence and opportunities to obtain employment in the future. Lastly is the support system for healthcare sector employees. We are proud that our nurses understand their professional roles and continue to serve with excellence.
We thank them for their sacrifices and hard work. I welcome the plan to increase the salaries of workers in the healthcare sectors as stated in this Budget.
[+5 sentences] However, besides financial support, attention should also be given in terms of expanding career paths, enlarging spaces and providing opportunities to upskill. The final, and to me, the most important point is about giving them protection from the pressures and harassment that they may face when carrying out their duties. I would like to assure the community that PAP Members of Parliament will continue to look after and care about all groups, in a holistic and comprehensive manner. In my recent Facebook post about the launch of M3 at Jalan Besar, I quoted the Malay proverb uttered by the Prime Minister in 2018, "Tied up like a bunch of betel leaves, clustered like a bunch of lemongrass” This year's Budget provides support to all segments of society. It is only when we Stay United and help one another that we will be able to become a Community of Success and Emerge Stronger together.
Mdm Deputy Speaker5 words
[+1 sentence]Parliamentary Secretary Mr Eric Chua.
The Parliamentary Secretary to the Minister for Culture, Community and Youth and Minister for Social and Family Development (Mr Eric Chua)1872 words
[+6 sentences]Mdm Deputy Speaker, the Budget for the upcoming fiscal year is a continuation of the Government's promise to secure lives and livelihoods to outlast the pandemic. It also takes a longer view of building a sustainable home for our future generations. While I applaud our bid to support businesses, workers and families in a more targeted fashion, I would like to sound the alarm on two issues. First, on our youth's state of mental well-being, particularly against the backdrop of COVID-19. Second, on how we could take better care of a smaller but no less important segment of our society, that is, our differently abled youth. First, on youth mental well-being.
The 2016 Singapore Mental Health study found that one in seven persons "has experienced a mood, anxiety or alcohol user disorder in his or her lifetime." This was a marked increase from the same study conducted in 2010, where one in eight persons was found to have suffered from some form of mental disorder. Also, noteworthy in the 2016 study was the finding that young people stood out as a demographic group more vulnerable to mental disorders. And the same survey also found that a large majority, in fact, 78% of people with mental illness did not seek help.
[+1 sentence] Stigma could have driven them away from seeking help.
As many as seven in 10 think that persons with mental health conditions experience discrimination in their daily lives, according to the 2017 NCSS study on attitudes towards persons with mental health conditions in Singapore.
[+38 sentences] Overall, there is still a lack of understanding of mental health conditions, with one in three persons expressing the view that mental health conditions stem from a lack of self-discipline or will power. Two in 10 felt that persons with mental health conditions should not be given any responsibility, while only a little over five in 10 were willing to work with a person with mental health conditions. I think these statistics paint a stark picture of our views on people with mental health conditions. It is not enough for us just to have a conversation. We need to change the way we think about mental health if we have the well-being of our younger generations at heart, and more importantly, we need to act. I recently met Courtney, a cheerful and confident 20-year-old lady; quite the high-achiever, or so it seems. As a teenager, Courtney had it all. She did well academically and landed a scholarship at a local institution. Things turned southward when Courtney started struggling to turn up in school, had difficulty socialising with her peers and ran into trouble with some of her teachers over flagging attendance. Unknown to people around Courtney and even herself then, was the fact that this young life was, in fact, dealing with underlying mental health conditions. In fact, it did not even occur to her that it was why she had behaved differently from before. And what she said to herself at that point in time was very revealing, and I quote her, "I had strong thoughts that I am a terrible person. Everyone hates me. I don't deserve sympathy. I don't deserve to feel like I am suffering. I come from a loving family. How could I be someone who suffers?!" Things were soon bad enough and Courtney was dropped from her scholarship. She chose to leave Singapore in 2017 to pursue a vocational programme in New Zealand. Courtney soldiered on in a foreign land, still not recognising her latent conditions. It all came crashing down again for her in November 2019, where medication she was on then exacerbated her severe mood swings. She regularly broke down, so much so that she could not carry on with public performances on several nights, which then, at that time, formed a big part of her assessment at vocational school. Finally, she sought help. She was diagnosed with depression and the lesser known Premenstrual Dysphoric Disorder, or PMDD. Looking back, Courtney's main regret was that no one around her and not even herself, had recognised that she had mental health issues. The lack of awareness and stigma makes it hard for the community to identify such issues, much less to respond. And it also makes it much harder for medical professionals to even get a chance to help. Courtney is blessed as her parents have stood by her all this while, supporting her even in her darkest hours. For Courtney, the key issue now is to help youngsters suffering silently from mental health issues to normalise help-seeking. And this work is even more urgent now, given the backdrop of a global pandemic. COVID-19 reached our shores a year ago and has left the world grappling with the havoc it has wreaked on our lives and livelihoods. For our youth, whether they are coping with home-based learning, or transitioning from student to working adult life, the pandemic has only made already stressful rites of passage even more daunting. In fact, a National Youth Council survey found mental health a consistent challenge youths face during this pandemic. Mdm Deputy Speaker, I hope Members of this House will agree with me that the time to act is now. We need to do more to help our young ones struggling with mental health issues and we need to do so sooner rather than later. I would next talk about a group of youths that is also close to my heart but for different reasons – our differently-abled youths. Before I proceed, I would like to declare that I am volunteering as a Board member with the Very Special Arts (VSA) Singapore, a charity that empowers youth with disabilities to pursue and realise their potential in the arts through continuing education. After Deputy Prime Minister Heng's Budget speech last Tuesday, I reached out to a group of VSA parents.
Many of them applaud the Inclusive Support Programme pilot, which will see the integrated provision of early intervention and early childhood services, so that we can better help children with developmental needs upstream.
[+9 sentences] However, their consensus was also that not only can we do more to better serve youths with disability, we can do it quite differently, especially when they complete formal education at 18. I would like to focus on three issues, namely, education, employment and housing. Firstly, education. Raising a child is a lot of work. I know that from my own experience in the past eight months. But I can only imagine the financial, emotional and logistical demands that parents of differently abled children face. Roger, father of 19-year-old Floyd, a young man with autism, shared with me, and I quote, "Many fail to realise that it is more costly to raise a child with special needs. Often, in such families, only one parent works, because the other parent remains at home to continue teaching life skills to the child, until they are independent and socially appropriate." Sally, mother to 19-year-old Amelia, a young woman with mild autism and dyslexia, shared with me that education for children with disabilities, can be expensive.
The monthly fees for a Singapore Citizen to receive an education in a mainstream MOE Secondary school is $25. In contrast, the monthly fee for an autistic student at the Pathlight School is $250. When Amelia was going through school some years back, her monthly fee at Pathlight then, at that time, was $500.
[+9 sentences] As Amelia has mild dyslexia, Sally had to fork out an additional $400 a month for programmes at the Dyslexia Association of Singapore. All in all, $900 a month for Amelia's education. To be sure, the gap between fees for an education in mainstream versus special education, or SPED schools has closed over the years. There are financial assistance schemes available in both mainstream as well as SPED schools to ensure that no child is denied an education. However, could we do more to help, so these families are not unnecessarily burdened with financial strains, just because they have a differently abled child? And could we also allow them to utilise their SkillsFuture credits to pursue: (a) Continuing Education, such as those offered at the VSA, or (b) for speech-, occupational- or psycho-therapy, services which many will need, well into adulthood? Second, on employment. I understand there is no one common international definition of disability but according to one UN report, 50%-70% of persons with disabilities of working age are unemployed, amongst industrialised countries. This translates into an employment rate of about 30%- 50%.
According to MOM, 28.6% of resident persons with disabilities aged 15 to 64 are employed, while another 4.2% are active job seekers.
[+2 sentences] While there are certainly differences in how disability is defined in the various contexts, we can do more as an inclusive society to improve employment prospects for this group of people. Parents I spoke to asked whether the Government can mandate a hiring quota for companies to recruit staff with disabilities, or to reward companies for inclusive hiring practices, just as how the Seoul Garden Group hired interns with disabilities through the SG Enable's school-to-work transition programme.
Last year, I understand that 64 organisations were lauded at the President's Challenge for their inclusive hiring practices.
[+15 sentences] While there are schemes such as the enabling employment credits and the job growth incentive that encourages employers to hire inclusively, we need this to become the norm. At the workplace, we can do better by sensitising both employers and co-workers to be better equipped to work with differently abled individuals. We need to foster an inclusive mindset so mainstream employers and employees are mindful of both the sensibilities and sensitivities of working with their colleagues with disabilities. I understand this is something that SG Enable is already doing through its Open Door programme, to equip workplaces with skillsets to interact with individuals with disabilities, but we need more companies to be on board, so collectively, we can make our workplaces truly more inclusive. Lastly, on housing. Many parents of children with disabilities worry endlessly about whether their children will be able to fend for themselves, long after they depart from this world. This is also what Diana, mother of 25-year-old Aaron – a young man diagnosed with autism – related to me. As many in the community work part-time, parents worry over whether their child will be able to afford a roof over their heads. In December last year, HDB announced the launch of Singapore's first assisted living flats for seniors. Could we not consider a similar housing option for this community, in addition to existing options such as adult disability homes? Mdm Deputy Speaker, Roosevelt famously once said, "we cannot always build the future for our youth, but we can build our youth for the future". So build our youth, we must. Not just on hard skills that will allow them to compete with their peers in the global marketplace, but also on softer skills of resilience, inner strength and overall well-being. As we progress as a society in the grand course of history, let us all be kinder to one another, and not forget the vulnerable ones amongst us. Notwithstanding the points I had raised above, Mdm Deputy Speaker, I support the Budget.
Mdm Deputy Speaker2 words
[+1 sentence]Deputy Leader.
Debate on Annual Budget Statement› Budget28 turns · 8,930w · 71 highlighted
budget-1582
Mdm Deputy Speaker2 words
[+1 sentence]Mr Saktindi.
Mr Saktiandi Supaat (Bishan-Toa Payoh)2704 words
[+7 sentences]Mdm Deputy Speaker, I thank the Deputy Prime Minister for his fair, inclusive and sustainable Budget with a focus on supporting future growth. Today, we are in the recovery stage because Singaporeans have worked very hard collectively to keep us safe and make the best of the pandemic. We must push ahead with the momentum so we do not let these efforts go to waste. In my speech today, I will speak briefly about one key area to leverage on for further opportunities and change. I will share my concerns on immediate challenges pertaining to cost of living, particularly the petrol duty hike. Finally, I will round up my Budget response with my thoughts on our fiscal plans. Manufacturing plays a key role in our post-COVID-19 economic strategy.
The sector currently accounts for about 21%, or $106 billion of our total gross domestic product.
[+6 sentences] It also hires around 12% of the workforce. COVID-19 has also propelled the demand for digital services and smart technology. This has led to an immense interest in smart manufacturing. The concept of digital twinning, in particular, has become increasingly valuable in transforming industrial operations, in an era where remote working is encouraged, and safe distancing required to limit the number of physically present workers. The digital twin captures insights on key operations at the manufacturing plant, allowing employees to respond by remotely reconfiguring processes and mitigating problems in real time. There is also heightened demand for collaborative robots in healthcare and manufacturing.
Post-COVID-19, smart manufacturing is expected to be worth $220.4 billion by 2025. The Government plans to grow our manufacturing sector by 50% over the next 10 years.
[+14 sentences] The goal is to pave the way for "qualitative transformation", with advanced manufacturing forming a larger portion of the sector. This is good news. But two key problems continue to plague the sector over the years. First, how can we accelerate digitalisation in more of our manufacturing companies beyond the existing grants and programmes. Maybe we can help more of our companies embrace digital twinning technology, raise productivity in our current environment now. Second, retaining talent and speeding up capability transfer programmes. Companies also require talents to create, manage and maintain these technologies. According to the Singapore Manufacturing Federation, companies have problems hiring talent like robotics engineers, software developers and programmers. Retaining local talent is yet another challenge, so companies express a preference for retaining their S pass holders. Undeniably, Singapore faces a labour crunch in the tech sector. This skills gap will require some years to shore up. In the meantime, the extension of the Capability Transfer Programme, or CTP, to 2024 to support foreign-to-local skills transfer is a viable support to grow the local pool of tech talents. In my Adjournment Motion in 2019 on "Enhancing the role of the Tripartite Alliance for Fair and Progressive Employment Practices, or TAFEP, to tackle workplace and job discrimination", I spoke about localising jobs and legislation to address job discrimination. I had also proposed then, to leverage on the existing CTP and expand it to support the transfer of capabilities from foreign employees who are already in Singapore.
With the extension of the CTP in this Budget, it has been projected that over 970 locals and more than 140 companies will benefit from 40 projects.
[+14 sentences] I laud the efforts and the focus now on the CTP and hope we can increase the number of projects in manufacturing and include collaboration with MNCs, with the goal to facilitate more skills transfer and retention to build a core of highly skilled Singaporean workers. Separately, I was actually hoping to hear more plans from the Deputy Prime Minister in his speech, to expand the Professional Conversion Programme, or PCP, to potentially shore up supply of labour into the tech sector. I hope MOM can share more in detail about the expanded PCP plans during the Committee of Supply. This is one area we need to focus on, the re-allocation of our young, middle-aged and senior workforce to sectors which are needed most and with speed, if possible, subject to existing constraints. Mdm Speaker, I now move on to the more immediate concerns of the public – costs of living. Domestic inflation will eventually go up, as the global and domestic economy recovers and following that, global easing by central banks will eventually be removed. This is likely to be a global concern in the next few years if the COVID-19 situation improves. The inflation forecast for OECD countries is set to rise gradually to 1.8% by end of 2022. Domestically, inflation was negative during the pandemic, but projected to climb up to around 1.5% in 2025. I would like to thank the Deputy Prime Minister for not raising the GST this year, and there is the GST $6 billion Assurance Package announced last year, which will help to offset the GST increase for low-income households for up to 10 years, and five years for the middle income households. As our economy is currently in the recovery stage, new jobs are created, Jobs Support Scheme continues for hard hit sectors, and there are real wage increases over time, especially with additional sectors identified for the Progressive Wage Model. So, Singaporeans need not be too worried about inflation for now. Mdm Deputy Speaker, in Malay. (In Malay): Mr Speaker, it is undeniable that there are concerns about the cost of living.
With a hike in petrol duty announced during the Budget, there will be an increase of 10-15 cents per litre even though the impact on inflation is still minimal.
[+8 sentences] The petrol component makes up 1.9% of the CPI basket, and with the rise in oil and energy prices as well as the recent hikes, it will likely only add 0.1 to 0.2% points to the headline inflation. But the question is, why now? Deputy Prime Minister has stated that it is another important step towards cleaner transport and a car-lite society, and to discourage the use of vehicles with internal combustion engines. In addition, we can view this increase as part of a series of moves to restructure duties over several years. There was an increase in petrol duties in 2015 and a restructuring of diesel duties in 2017 and 2019. I agree that the current hike is a smaller increase compared to 2015. However, for the man on the street, it is seen as another price increase or increase in cost of living. Those who drive or ride motorcycles for their livelihood, like the delivery riders and ride-hailing drivers, are the hardest hit.
To ease the transition, the Government is giving a 15% road tax rebate to owners of private cars for one year, while motorcycle owners will get 60% road tax rebate For those who use their vehicles to earn a living, the Government has provided additional offsets to ease the transition.
[+4 sentences] Apart from the petrol tax rebates for those who depend on their vehicles for their livelihood, if they are from the lower and middle income groups, they will be supported by various assistance schemes and social transfers. These support measures are partly funded by our taxes, which includes petrol duties. Apart from that, I am aware that this year’s Budget also provides the Budget 2021 Household Support Package consisting of GST vouchers, S&CC rebates, CDC vouchers and top-ups for school-going children, which will also go some way to ease the increase in cost of living. To achieve long-term change and encourage motorists to go green, I urge the Government to help those affected like motorcycle owners to transit to electric or hybrid vehicles in the next five to 10 years.
Last year, Government relaxed rules on electric motorcycles, allowing high-powered motorbikes on the roads as part of efforts to encourage usage of cleaner vehicles. But as of March 2020, there are only two electric motorcycles registered in Singapore, out of a total motorcycle population of more than 140,000.
[+3 sentences] The significantly higher cost of electric motorcycles compared to its petrol-powered equivalent is a deterrent. Electric motorcycles also have a long charging time of six to eight hours on average for a full charge. Our push towards EV charging stations, I hope, will also involve seamless ability to charge motorcycles quickly.
In Norway, which is known for being world leader on EV penetration and sales rate, the government incentivised EV ownership by removing their 25% sales tax from new EV purchases in 2001.
[+23 sentences] Can the Government work with our local electric motorcycle retailers and manufacturers to secure affordably priced motorbikes for our delivery riders? Can the Government also work with electric vehicle rental companies to keep renting costs more affordable for users? It currently costs more to rent an electric vehicle, compared to petrol-engine cars. (In English): I now move to my last point on fiscal strategy and plans during and beyond the COVID-19 crisis. I support Budget 2021 Plan to fund future infrastructure investments via the SINGA Bond and hope as part of our fiscal strategy in this current environment, we are not too constrained in speeding up our capital and fiscal investment commitments to put us in better state for the future. I would like to take the opportunity to suggest, as part of inculcating inclusivity in our fiscal strategy, to allow the public to invest in any future green bonds and other long-term infrastructure-related bonds issued by the Government. For example, in the past Budgets, we had offered shares to citizens which are linked to GDP growth. The Singapore Savings Bond is also very well sought after. So, are there plans to issue more and smaller retail green bonds or notes to Singaporeans so as to have a stake in Singapore's sustainable future? Before I end, Mdm Speaker, with the multiple Budgets last year and the draw on our reserves, there is concern as to how we will fund things we need to do going forward. In that regard, some, including the hon Member Hazel Poa had called for a full extent of our reserves to be made known. As someone who works in the financial markets and currency markets, I would like to share my frank thoughts from a professional viewpoint why we should strongly never reveal the data of our reserves. Let me explain why. Unlike most countries, Singapore utilises the exchange rate as the instrument of monetary policy. It is key to note this. Most other countries use the interest rate as a monetary policy tool. This choice is made based on our economy’s unique circumstances and also the fact that exchange rate is relatively controllable through direct intervention in the foreign exchange markets. On the other hand, this makes us vulnerable to currency speculation and attacks. We have seen such attacks during the Asian Financial Crisis in 1997/1998, impacting our economy and jobs. In fact, I started looking for a job right smack in the aftermath of the speculative attacks on some currencies in the Asian region during the Asian Financial Crisis in 1998, right after school. Let me tell you it was not easy back then. The impact then on sentiment, the economy and jobs in Asia and Singapore was bad. As a financial centre, there is also the risk of capital flows if our currency is attacked for speculative reasons.
I do not think we want to add the additional element of this risk into the equation for our Singaporean job seekers. So, publicising data from our reserves is akin to revealing the size of our ammunition to hedge funds and speculators out there with large pool of funds to play with.
[+1 sentence] Not only that; other market participants may also join the bandwagon and ride the speculation and those are not just in billions of potential, it could be even higher.
The potential risks and downsides outweigh the benefits of transparency.
[+2 sentences] Our geo-political context is also vastly different from other countries that publicise details about their reserves, like Norway. Norway’s monetary policy is that of an inflation-targeting regime to achieve lower and stable inflation.
Norway's policy rate is the interest rate on banks' overnight deposit rates in Norges Bank and its currency is free floating. Now, remember, I mentioned earlier, Singapore uses its exchange rate, not its interest rate. In Norway, its petrol-driven economy is also very different from ours and with a value-added tax or VAT of up to 25%, it is in stark contrast to our GST rate.
[+2 sentences] So, with vastly different economic considerations, it is not wise to compare, and say that we too should disclose our reserves just because others do. I would also remind that transparency is practised where it is safe and sensible to do so, and it is not true that our reserves are completely undisclosed.
For example, Temasek and MAS fund sizes are made public, only GIC’s is not.
[+15 sentences] Mdm Deputy Speaker, as a Member of this House, I would like to explicitly indicate my concerns about any moves to be more transparent on our reserves. Yes, hon Member Hazel Poa asked for the total reserves data from an economic, fiscal prudence angle. So, what is the amount and how it should used. It is understandable that people want to know. But foreign actors, currency speculators and anyone who does not wish us well is also interested to know. As I mentioned, people may join the bandwagon. So, there are trade-offs. The Government has to weigh in balance. The balance struck is that the Government discloses a lot already but not all. And I am glad it is done delicately and, so delicately, by our responsible Government. It would be prudent that we do not make unnecessary moves to reveal our total reserves, though sincere in its intent for more information, that it can unwittingly lead to significant negative economic outcomes given our domestic context. The results of decades of sound monetary and fiscal policies are evident in the resilience of our economy, which has weathered multiple storms over the decades. So, once again, I would like to explicitly state and indicate my concerns about any moves to be more transparent on our reserves. Since we are on the topic of reserves, Mdm Speaker, I would also like to comment on the suggestion of hon Member Mr Leong Mun Wai to use all the NIRC and not just 50%. I would be seriously concerned if the Government were to do this.
The current 50 to 50 percentage divide was explained by the Prime Minister when the framework was first introduced in 2008.
[+11 sentences] It was to have fairness between the present and future generations even though it is not an exact science. Fifty percent for now this generation and 50% ploughed back for future generations. If we use all now, there is little, if anything left in terms of NIRC for the younger generation, the younger and future generations to come. Importantly, by ploughing back 50% we continue to grow our reserves and that is important; while, at the same time, allowing the Government to tap on part of the investment income for current spending. The principle of fairness, responsibility, prudent stewardship and having a thought for the future is important for the Government and permeates every Budget. Mdm Deputy Speaker, yesterday, hon Member Hazel Poa also separately suggested that the Government target towards a higher 50% wage component as a percent of GDP. I actually intended to ask Ms Hzal Poa to clarify on her unique suggestion to target wage component on GDP, as I assume she knows that the major reason why wages as a percent of GDP is lower than our operating surplus of corporates and other organisations of 66.2% of GDP, is because of heavy MNC presence and the structure of our economy. So, I was thinking whether she is suggesting to reduce our MNC presence in Singapore now, at this point in time. Unfortunately, she is not here in the Chamber but that is something I was wanting to find out. Mdm Deputy Speaker, on that point and that note, I support the Emerging Stronger Together Budget, a Budget which aims to raise the welfare of the people in the long run. Thank you, Mdm Speaker.
Mdm Deputy Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim230 words
[+4 sentences]Thank you, Mdm Deputy Speaker. I am wondering if I could obtain a clarification from the Member on what he feels that the revelation of reserves would necessarily be destabilising. And I will just point out a few reasons why I disagree. The first is that revealing a target as well as reserves certainly could encourage destabilising speculation but it could also encourage stabilising speculation.
If we were off our fundamentally determined exchange rates, we could encourage market participants to actually engage in speculative activity that would get us back onto our fundamental exchange rate. This, in fact, was a point that was routinely argued by the inventor of the Basket, Band, Crawl (BBC) system, John Williamson for which we, MAS, subscribes to.
[+2 sentences] The second point I would like to point out is that actually, while it is convenient to argue that we have a distinct system in terms of exchange rate policy, by purchasing power parity, all exchange rate policy is in fact monetary policy. So, even though it is the case that we target explicitly the exchange rate, it will have implications for inflation and, hence, when other countries, as the Member has cited, such as Norway reveal that they have a certain amount of reserves and they are subscribers to an inflation targeting regime, it is not, in fact, distinct from our own exchange rate targeting regime.
Mdm Deputy Speaker7 words
[+1 sentence]Mr Saktiandi, do you want to respond?
Mr Saktiandi Supaat51 words
[+3 sentences]The hon Assoc Prof Jamus Lim, if I can try to recall your first question. But I will probably take your second question first. The second question is about, if I can recall again, Professor, you asked whether on the first one, there is stabilising and destabilising currency and speculative attacks.
Assoc Prof Jamus Jerome Lim12 words
[+1 sentence]I am suggesting that speculation can both be destabilising as well stabilising.
Mr Saktiandi Supaat189 words
[+3 sentences]Okay. I just want to share with you. I started off working in the MAS back in 1998/1999.
The impact of the currency attacks can never be stabilising.
[+2 sentences] It has ramifications on the economy. It has ramifications on jobs.
But back in the Asian Financial Crisis, the impact on the currencies that were specifically attacked, like Thailand and even to some extent, other countries in the ASEAN region, was very significant; to the point that the currencies depreciated so much that it led to the ramifications and cascading effects on the economy.
[+4 sentences] So, what I saw in the Asian Financial Crisis, which was a perfect example of a speculative attack, led to economic ramifications that are not destabilising at all. That is from my own lived experience in 1998/1999; not theory. So, the theoretical element that you shared from a theory perspective that there can be destabilising impact of currency adjustments or misalignments – yes, that it can be stabilising – in theory, does not make sense, unless you are talking about misalignments in the long run, that eventually correct themselves in time. So, that is the first question.
Assoc Prof Jamus Jerome Lim46 words
[+2 sentences]If I may clarify, I should point out that I am in fact old enough to have also lived through the Asian Financial Crisis and I am aware of the conditions surrounding it. So, this is not just in theory, it was also my lived experience.
Mr Saktiandi Supaat26 words
[+3 sentences]Your second question, Assoc Prof Jamus? About Norway's policy and how is it different from the Singapore's policy? If I may put it in general terms?
Assoc Prof Jamus Jerome Lim39 words
[+1 sentence]No, I was pointing out that I did not think that they were distinct policies because all exchange rate policy is in fact monetary policy and I am wondering if you could clarify why you thought they were distinct.
Mr Saktiandi Supaat9 words
[+1 sentence]Okay, okay, let me try to explain to you.
Mdm Deputy Speaker17 words
[+1 sentence]Mr Saktiandi, can the two of you just speak to the Chair and just clarify the point.
Mr Saktiandi Supaat233 words
[+3 sentences]Yes. Mdm Deputy Speaker, to answer the question about the difference between Norway's monetary policy and Singapore's monetary policy, they are very distinct. I mentioned in my speech about the different economic context of Norway where it is a petrol-driven economy and where Singapore is a very trade-driven economy.
The reliance of using exchange rate as a controllable intermediate target in the Singapore economy is very distinct from Norway which uses a policy rate in its central bank.
[+2 sentences] So, the important issue here when you are talking about reserves in this situation for Singapore, when Singapore uses the exchange rate as its policy tool, there is a direct intervention in the markets – using currencies spot to have an direct impact on the Sing Dollar. That is very specific because we target the exchange rate. 
If you look at Norway, Norway uses policy rate and its exchange rate is freely floated. So, for Singapore's case, the very fact that we target, the intermediate target of an exchange rate has some impact in terms of our ability to directly intervene in the markets and thus run down on our reserves, on MAS reserves.
[+3 sentences] So, there is a very direct impact from a policy perspective; and thus, ramifications on our ability to have a direct rundown on reserves. In Norway's case, the policy target is totally different. It is using policy rates or interest rates.
Mdm Deputy Speaker16 words
[+3 sentences]Okay, Mr Saktiandi, thank you for clarifying. I think we can move on. Mr Alex Yam.
Mr Alex Yam (Marsiling-Yew Tee)623 words
[+3 sentences]Mdm Deputy Speaker, it is always a challenge to be one of the last speakers of the day. But it is also an opportunity to look back at the day and slowly remove paragraphs that other hon Members have already covered. As you may well conclude from my written notes, I have thrown out my original and just gone for some key points.
My first plea this evening is that amidst the boldness of this Budget that looks beyond the now and focuses on the future, post-pandemic, ready not just to take off, but also be at the front of the pack, that we take another bold step. And that suggestion is to make vaccination mandatory.
[+1 sentence] Let me explain why.
We have taken bold steps to control the pandemic over the course of the last one year, many of which involved making things compulsory – mask wearing, social distancing, amongst others. We now have in our hands a weapon that brings the fight to the virus and over 216 million people worldwide have received at least the first dose. Adverse reactions have been very, very low, much like many other common vaccines that we take on a regular basis, and much less risk compared to smoking.
[+6 sentences] The decision to vaccinate is not just personal to holder. It does not just impact you as an individual. It is a matter of life or death for loved ones, friends, fellow countrymen, especially those who, because of medical reasons, are unable to be vaccinated. And we have invested significantly in this endeavour. So, let us be bold. We cannot be willy nilly about it.
If we believe in it, that it works, we should stand by it and, therefore, it should be conditionally opt-out rather than voluntarily opt-in, because only when we control this enemy, this virus, can the bold moves that this Budget and its intents bear fruit. On the topic of fruits, I now move to the kitchen larder. We have been drawing from our reserves in the last two years – difficult, but needed decisions.
[+13 sentences] It is a bit like taking a cookie out of the cookie jar. It is really tempting after that first delicious cookie to keep reaching in, cookie after cookie. Soon, you end up a cookie monster, forever tempted when you see a cookie. I have been listening quite intently to many of the alternative suggestions that have been put forward in this House over the last two days. And I imagine that, for the Minister for Finance, it is a tremendously difficult task. From the opposite bench, many of the suggestions seemed to indicate that everything can be easily funded because it is only X% of the GDP – very easy one, can be done. But if we take all these suggestions together – X% here, Y% there, Z% somewhere else – it adds up significantly. That is a whole lot of cookies to be given out. So, right now, while there is a lot of cookies that we are eating, there does not seem to be a whole lot of cookie-making. Our hon friends from the Workers' Party seem to say that eat, eat away, not everything, be careful, but here is a little chocolate chip and sprinkles while you at it. And if we run low, instead of buying the ingredients, the Government should make more, yet not what is necessary to provide ingredients to make the cookies. Our colleagues from the PSP, on the other hand, over the last two days, seemed to indicate we should take everything from the jar, everything, including the crumbs. However, no one wants to say how much it would cost nor be the one to be buying the ingredients.
Mdm Deputy Speaker7 words
[+2 sentences]Sorry, Mr Alex Yam. Yes, Mr Singh.
Mr Pritam Singh58 words
[+4 sentences]Mdm Deputy Speaker, thank you. Rules of debate. It is, of course, up to the Member if he wants to give way. I just wanted to ask whether Mr Alex Yam could identify which Workers' Party Members made the points that he is suggesting so that they can rebut him later on in the course of the debate.
Mr Alex Yam621 words
[+5 sentences]Sure, I will come to that. But no one wants to say how much it would cost nor be the one to buy the ingredients and bake those cookies. That big elephant in the room, of course, is GST. We cannot be constantly asking for more without being cogent of the cost. Funding from recurrent tax ensures that all that we are doing is sustainable.
With GST, we have also built in buffers for the low-income. Over and above that, as the hon Member Mr Saktiandi pointed out earlier, we also the GST Voucher Fund Act in March 2020, just under a year ago to cushion the impact of any GST increases for all Singaporeans both low-income and middle income families.
[+7 sentences] With these, we also give time for incomes to catch up so that we can deal with long-term cost of living. The challenges that we face are many and varied, including an ageing society that will propel increases in many areas, including, most importantly, healthcare cost. It is not just us that are facing these challenges. Hong Kong and Singapore are very similar cities with very similar traits at the end of the day. And they have just announced their Budget as well, just yesterday. But despite the similarities, our Budgets have taken very different trajectories. Some commentators point to a future deficit in the Hong Kong spending plan.
Andy Mukherjee of Bloomberg raised the point that Singapore's plan for an increase in GST is to ensure that we have enough recurring revenue to pay for permanent costs, such as healthcare. He compares these to Hong Kong and says, like Singapore, Hong Kong also has an ageing population, but they do not have a sales tax and has only been able to overcome its lack of steady revenue by fanning a gigantic real estate bubble.
[+6 sentences] It is certainly a scenario we will not be able to stomach locally. Yes, there is always room to do more but raiding the cookie jar till it is empty does us no good, if we fail to top it up. On the one hand, we may propose taxes, such as carbon tax. On the other hand, by equal measure, we oppose petrol hike, both of which achieve similar goals. These seemed to conflict with one another. A government, however, needs to be cognisant of the fact that there are costs to everything that we do, both in terms of our revenue streams, what more we can do for our people and, more importantly, also our popularity and our standing.
The Government is cognisant also of the fact that a policy like an increase in GST is unpopular but necessary because, ultimately, the responsibility of a responsible government is to do the right thing, even if occasionally unpopular.
[+9 sentences] Populism and opportunism will, however, all but turn us into cookie monsters, always dipping into the cookie jar. I am sure the Minister for Finance is open to many other suggestions on how we can fund these programmes and yet remain sustainable as an economy and balance our fiscal position. And if there is one that works as an alternative, I am certain it will take the biscuit. Much has been said over the last two days by both sides of the House. Many new suggestions, all of which will cost us. The Minister for Finance has to decide which are for the long-term good of the country and which will take us to the next mile. All of us have the good of Singapore at heart. We differ perhaps greatly on our ideas but, at the end of the day, we need to take responsible decisions to bring Singapore forward. With that, I support the Budget.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Leon Perera.
Mr Leon Perera330 words
[+12 sentences]Thank you, Mdm Deputy Speaker and I thank the hon Member Mr Alex Yam for his comments. Just a couple of clarifications on his cookie jar metaphor. He mentioned that when we draw upon the reserves or when we suggest that the rules governing the use of the reserves should be changed, this is akin to sort of taking cookies from the cookie jar. I think the Member is well aware that in 2008, I believe the Government itself, the PAP Government amended the rules governing the use of the reserves to create the NIR framework. And in 2015, those rules were amended again to include Temasek into that framework. Is it the Member's position or argument that those were really raiding the cookie jar as well, in 2008 and 2015? That is kind of my first point. Secondly, it is really to ask the hon Member, is it the Member's view that any kind of deviation away from these rules that are currently entrenched in the Constitution, in the current rules, amounts to sort of raiding the cookie jar and becoming a cookie monster, even if those rules are slowing the slope of the growth of the reserves, but do not actually draw upon and pull down the reserves, but they merely slow the growth from this sort of a slope, for example, to this sort of a slope, for example? Is that being a cookie monster? That is my second question. My third question would be really to ask, over time, over decades, as the absolute amount of reserves relative to GDP changes, does the Member not acknowledge that these rules should also evolve and change, and as society changes and the needs of society change and the opportunities to invest in our people, in the country change, should not those rules also be subject to change as well? I would just like to invite the hon Member Mr Alex Yam to agree with that general philosophical point.
Mdm Deputy Speaker3 words
[+1 sentence]Mr Alex Yam.
Mr Alex Yam207 words
[+11 sentences]Mdm Deputy Speaker, I thank the hon Member for his supplementary questions and clarifications. I agree, because that is what I made as a closing point in my speech. We all have the good of Singapore at heart. We may disagree with the route to get there. But on the first point, yes, as we go along, we make adjustments, such as introducing the NIR. But as was described earlier, we put in measures to ensure that we never empty out the cookie jar, that the cookie jar exists for moments of need, such as these. And even at the current moment, where we would benefit certainly from being extraordinarily generous, we have decided on what is prudent to ensure that there is always something left over and, not only that, that where we have the opportunity, to top it back up. So, it is a quite different scenario from introducing changes to rob the cookie jar. We have always ensured that we are prudent about it, that we make returns to it. As things evolve, just as it has in the past, ideas can be considered and adjustments made. But always with the view that we think about the future and not just about the now.
Mdm Deputy Speaker3 words
[+1 sentence]Ms Rachel Ong.
Miss Rachel Ong (West Coast)1182 words
[+1 sentence]Mdm Deputy Speaker, I am grateful that this year’s Budget has incorporated a very sizeable investment in our social capital and our environment, this in view of our long-term growth as a nation.
I also wish to thank our Deputy Prime Minister, as well as the Ministries and agencies which have worked tirelessly behind the scenes all through the Chinese New Year holidays to put forward this year’s Budget. This year’s Budget allows for MSF to expand the Community Link, or ComLink programme, designed to support low-income families with children, from the current 1,000 families to 14,000 in the next two years.
[+7 sentences] Thank you. I am very inspired by that! To this topic, my speech will focus on what we can do to further invest into the lives of our children from low-income families. I wish to propose two initiatives for our young friends for MSF’s consideration. These initiatives may not be new to some of us, but I am convinced that when applied intentionally to our young, they will strengthen their access to a fuller range of positive life choices. The first initiative is a consistent long-term mentoring programme, and the second initiative is to facilitate personal saving habits. Please allow me to first share on the Consistent Long-Term Mentoring Programme.
Last month, the Telok Blangah Community Development Welfare Fund awarded bursaries to 188 children across 118 households ranging from K2 to pre-tertiary students.
[+3 sentences] While this bursary is important, and helps alleviate some financial burden, it struck me that the additional funds will not change the lives of our young. Because of the complexity they face today in the ever-evolving environment, each child will require deeper interventions to access opportunities which are readily available to others. Over the past 19 years, I have had the joy of volunteering at Trybe, a social service agency that works with youths facing adversities.
Our interventions to reduce offences and their recidivism rates are multi-fold, but one specific intervention has proven to be most effective in turning lives around, that is, long-term mentorship, mentorship that is consistent for at least a year.
[+28 sentences] I believe that this intervention is not only effective for our youths at risk, but for all youths facing challenging home circumstances. May I share life stories to illustrate three key benefits long-term mentorship provides for our young? The first benefit is a safe space to process pain. Long-term mentorship provides our young an assurance that they are not alone in the challenges they face on a daily basis. Kai, a masked name, was raised in a violent home environment. He often fought in school and found himself expelled from both Secondary and tertiary schools as he could not rid himself of his aggression. Over the two years of mentoring, Kai was able to then reflect on the consequences of his aggression, subsequently shifting his focus to working out his life goals. As Kai’s mentor created time and space for him to feel understood, Kai sought help for his anger issue and is now meaningfully engaged in work. His friends have also noticed that he is experiencing better mental well-being. In the midst of sometimes unpredictable or painful circumstances, the consistency of the mentor’s presence provides a safe environment and space for our young to process their feelings and thoughts for a more productive outcome in life. The second benefit of a consistent and long-term mentorship is the ability to help our young recognise his or her innate value beyond circumstance. The strengths and passions of our children and youth can sometimes be overshadowed by family circumstance. Long-term mentorship provides an avenue to help them discover and more accurately identify what they are. Abandoned by his parents when he was seven years old, Ken was raised by his grandfather. Due to limited supervision, he lacked motivation to do well in school and eventually fell into bad company and vice. Things started to turn around when he said yes to mentoring four years ago. Ken grew to discover and appreciate his personal strengths and passion. He is now looking to pursue a stable career in engineering while freelancing as a barber. What is even more wonderful is that Ken has since reconciled with his family. As our young friends discover their innate value as individuals through mentorship, they grow to become contributing members of their families, their community and the society at large. The third benefit of long-term mentorship is the ability to break out of self-limiting habits and beliefs. A volunteer at a CDAC programme for low-income children once asked an 11-year-old which school she hoped to go to after PSLE. This sweet girl then said, matter-of-factly, “Oh, can pass, can already.” The volunteer then asked “What do you want to do when you grow up?” Without missing a beat, she replied “Just help my father in his store, lor.” For this 11-year-old, her response came not from excitement to support and eventually take over her father’s business, but as her only perceived vocational option available to her, which eventually discouraged further efforts in her education. One of the largest hindrances in the healthy development of our young people we note is learned disempowering beliefs about themselves and their future due to limited access to good counsel, financial and community resources. Mentors can show them a different way to live, and challenge them to remove self-limiting beliefs so that they not only have the best possibilities in life, but be motivated to choose wisely.
Such intervention takes time as these beliefs are often deep-seated. I am fully persuaded that lasting, sustainable change for our disadvantaged young will take place if we invest in long-term mentoring programmes for them. My hope is that, through ComLink, long-term mentoring will be of easy access for our 10- to 16-year-olds to effect mindset growth and a healthier worldview.
[+1 sentence] I will now move to the second initiative aligning to ComLink for our young friends, and this will be very brief, which is to facilitate personal saving habits.
In 2015, POSB re-introduced the “National School Savings Campaign” to great response and participation by schools. This programme currently requires the parents to set up the bank account for their children and to monitor it. I wish to raise for MSF’s consideration the possibility of making enrolment to this programme automatic for our children in low-income families. This will also see to creating a corresponding personal savings account for them, ideally complemented by other initiatives to encourage saving. Facilitating the process or simplifying it will be of great value to the already time-stretched parents. This will jumpstart our children in the positive habits of saving and grow a sense of self-efficacy for a fruitful life.
[+3 sentences] Our youth must be empowered, not be afraid to hope, and be unhindered by socio-economic backgrounds. Let us extend equitable access beyond finance and education to include the social and emotional support they need. May we see every youth a success story as they author our Singapore Story for the generations to come.
On this note, Mdm Deputy Speaker, I affirm my support for the Budget.
Mdm Deputy Speaker4 words
[+1 sentence]Mr Xie Yao Quan.
Mr Xie Yao Quan (Jurong)2302 words
[+3 sentences]Mdm Deputy Speaker, every Budget is a statement of intent on our social compact. Today, I would like to talk about how our social compact might look like as we emerge stronger, together from COVID-19. First, on Healthcare, which is a top concern for Singaporeans, especially as we get older.
Indeed, healthcare costs for us, as a society, are escalating. This year, the operating expenditure for health is estimated to be $17.4 billion, compared to an estimated $11.7 billion last year, and $10 billion in 2019. This makes healthcare the highest Head of Expenditure in 2021, compared to third highest in previous years, after Defence and Education. A big reason for this is our on-going fight against COVID-19, with close to $5 billion allocated to the COVID-19 Package.
[+5 sentences] And I think this $5 billion is absolutely vital ammunition, for testing, tracing and vaccination. It bears reminding that there are already 2.5 million confirmed COVID-19 deaths around the world to date, with many more unreported. In Singapore, the toll is 29 deaths. The Government has done well in managing COVID-19 here so far, and the COVID-19 Package will give the Government the means to continue keeping all of us safe in 2021. But beyond COVID-19, we might as well start getting used to healthcare being the highest expenditure item, and start getting used to numbers like $17 billion because, in due time, even with COVID-19 behind us, this would be our fiscal reality.
For this year, already, $0.5 billion more has been set aside – for more patient subsidies as three polyclinics open, for the ramp-up of Woodlands Campus, for recruitment of manpower into these new facilities, and for MediShield Life premium support, as well as other forms of grants and financial assistance to Singaporeans.
[+26 sentences] Within our social compact, the central question for the future of healthcare is this: How – and how much – would we, as a people, continue to care for one another, in sickness and infirmity? One of my residents’ parent came to Singapore to visit before COVID-19 and could not go back home since last year. The parent declined in health, went in and out of hospital here, as a non-Singaporean and eventually passed on. The hospital bills came up to five digits, even in a C class ward. I think his experience shows vividly the real cost of healthcare, and the real difference that Government subsidies for Singaporeans, at the outset of care, makes. And, so, subsidies must continue to be a central feature of healthcare here, in order to keep it affordable for Singaporeans, but the challenge is how might we, as a society, keep these subsidies going, for the maximum benefit of all Singaporeans? Let me make four points. First, we have to try and contain cost per capita – in other words, the cost to care for each Singaporean, on average. This is a difficult task, as ever more tests and therapies rapidly become standard in care. So, we need to continue making tough decisions on standard versus non-standard therapies and care modalities. Ultimately, we all want the best care for ourselves, and our loved ones. But we need to also keep a firm eye on value and effectiveness. And this would only work, if all of us, as a society, embrace this basic principle. Even so, I think it is inevitable that costs per capita will rise, and this is my second point. One reason is the need to duly recognise healthcare professionals for their noble and very hard work. So, while I cheered at the plans to enhance salaries in public healthcare, we need to recognise that manpower is a key driver of healthcare costs and, ultimately, any salary enhancement must mean that subsidies and other financing tools must somehow keep up. If we can all intuitively understand and support this, it will be a good example of how we, as a society, can continue to evolve our consensus and do what is right and fair. All these, in turn, would mean that we need to raise more revenue. And this is my third point. Already, GST will increase, sooner or later. But GST, fundamentally, relies on a robust consumption base. This is why I support the Budget’s laser-sharp focus on investing in our economy: investing in recovery from COVID-19; investing in industry transformation; and investing in our people. In his Budget Statement, the Deputy Prime Minister mentioned Xnergy, a local start-up in contactless charging. In fact, one of the co-founders of Xnergy is my resident, and I could sense the absolute energy as he talks about his team and his business. For me, it is a glimpse into our economic possibilities, where Singapore is the place to create the future, for the world, yielding exciting roles for Singaporeans and, importantly, generating the means for us to better care for one another, as a society. And, so, there is a direct link between our economic success and social objectives, and the economy must continue to be a basic parameter as we think and talk about our social compact going forward.
On this note, I like to ask: the Government projects that GST collections this year would recover 14.6% from last year, to roughly 2019 levels, and corporate income tax would grow 8% compared to 2019 before COVID-19, and even Net Investment Returns Contribution would go up 7.8% from last year.
[+5 sentences] Can the Deputy Prime Minister clarify the basis for these projections amidst the severe economic contraction that we experienced last year? My final point on healthcare subsidies is this. In the aggregate, we must keep the growth in total subsidies to a sustainable pace because, ultimately, things do add up. This Budget draws on past reserves for a second year running. And as many Members have noted, eventually, we want to start replenishing our reserves.
And so, we must be very prudent about how much our total outlay in healthcare subsidies should grow in the years ahead. Now, if costs grow faster than fiscal revenue, then healthcare subsidies might need redistribution because, ultimately, the pie is finite.
[+13 sentences] And some of us might get less subsidies, in order that those who need these the most can continue to get the right level of support. At the same time, we should review how subsidies could also be redistributed across various settings of care so that we can further channel care to each right setting and enhance care continuity across settings. I repeat the call I made in my maiden speech for the Government to invest more deeply in Intermediate and Long-Term Care (ILTC) so that we go beyond basic to dignified care for Singaporeans who need such care. Our nursing homes ought to be more home than nursing. And I believe that we, as a society, support such a basic direction. But more subsidies for this sector may mean less subsidies for acute and specialist care in hospitals, for example. And so, these are tough choices, but choices that we, as a maturing society, must continue to make. In short, to secure the healthcare dimension in our future social compact, I think we need to flatten the cost curve, keep a lid on total subsidies and, within this, distribute subsidies judiciously across means and settings, and, number four, create better health and care outcomes for all Singaporeans, and, five, all these on the basis of a sound economy. We need a refreshed consensus on how we can all lean in to make this happen. Madam, let me speak next about strengthening social service delivery for Singaporeans with less in life. We have decided, fundamentally, that we will not impose a cap – a ceiling on our progress as a society – that the top, and the middle, will continue to grow as fast, and go as far, as they can. Our central task, therefore, must be to do our level best to help the bottom, especially children at the bottom, to level with their peers. For every tuition class, every sport, coding or other passion that their peers pursue because they can afford to, we have to help the young at the bottom level with their peers, as much as possible.
Therefore, I support the Government’s commitment to intervene actively and intervene more in early life. I support the additional $0.2 billion set aside for the Early Childhood Development Agency (ECDA), to further develop quality and affordable childcare for every Singaporean child, and I especially look forward to the expansion of KidSTART, so that more children at the bottom can get a holistic and sustained uplift, starting from early in life, even before birth.
[+1 sentence] At the same time, we need to double down on holistic support for the entire family at the bottom, so that we help parents and care-givers to do well, and do better, even as they continue to do their best for their children.
There is a whole range of needs – housing, jobs, food, physical and mental health – with complex interdependencies, and we need to coordinate more to address these needs. So, I strongly support the planned expansion of Community Link (ComLink), from 1,000 families in the pilot phase, to 14,000 families, and, hopefully, to many thousands more eventually.
[+16 sentences] Just yesterday, I spoke to a CEO about corporate giving. I explained the gist of ComLink to him, and his first response was, "Oh, this is huge". So, his corporate instincts told him so immediately. Indeed, this is huge. ComLink has the potential to be the platform that transforms our social service sector, the galaxy that lifts all agencies and partners up to a higher plane and pulls everyone closer together, with its gravitational force. And as a society, I hope we can all help make ComLink succeed quickly. In Singapore, our approach has always been Many Helping Hands. In fact, we need more helping hands, going forward. But we also need one plan. Many helping hands, one plan, because, ultimately, it is about one family, the same lives. Madam, an ever fairer and more just society in Singapore should be one that keeps progressing, keeps advancing, but one where we all find it in ourselves to look back, reach out, pull fellow Singaporeans along, and on a platform, an impact multiplier, that coordinates and weaves all our efforts together. I hope this "social operating system" can become a core capability, at the whole-of-society level, for Singapore to emerge stronger. In this way, I think every Singaporean can have his or her shot to become the fullest version of himself or herself in life. Madam, in Mandarin. (In Mandarin): COVID-19 has allowed the world, Singapore and the individual to undergo a major change. In fact, we should capture the opportunity and transform.
In the area of healthcare, I fully support the move to raise the salaries of nurses and other healthcare workers.
[+7 sentences] After all, salary cost is a key component of the healthcare industry. It will be worth pondering over how the framework of Government subsidies can adjust to it, and how we can rebalance the allocation of subsidies within the framework. In terms of supporting vulnerable families, I hope that ComLink will be upgraded to become a platform for future community service operations, integrating community services and resources in a holistic manner. In conclusion, I hope that our social compact will become stronger and stronger, and this is probably one of the fundamental meanings of emerging stronger in a post-COVID-19 world. (In English): Madam, in Singapore, we say the best welfare is a job. In this light, a key part of our compact must also be about how we, as a society, could enable and sustain good jobs, and good salaries, for our lowest wage workers. And to frame this properly, I think it is not so much about reskilling and pivoting these workers to new industries, but about helping them to do better within their sectors.
To this end, I agree that the expanded Progressive Wage Model (PWM), when conditions allow, would be a key plank. But at the same time, a big part of the basic equation here, I think, must simply be for all of us to recognise and pay more for low-wage workers' services. It is such a stark paradox, but one that bears constant reminding that as the world went into lockdown last year, and as we entered our own circuit breaker, the workers that continued going to work, the workers that could not work from home, the workers that basically kept our world going were so often the low-wage workers providing essential services. So, as a society, I think it is high time – high time as COVID-19 rages on – that, we, not the Government, but we – as consumers, as a people – do what is right, what is just, and show our willingness to pay a fairer level for our low-wage workers' services.
[+1 sentence] Madam, let me conclude.
We have an opportunity to shape the post-COVID-19 society that we want to be, transform our compact, transform how we commit to caring for one another. COVID-19 has fundamentally upended how we value things in life, reshuffled what truly matters, and redefined how we look at the world, each other, and ourselves. We can – we must – ride on COVID-19 to emerge as a society that is ever more vested in one another's success, where those with more are ever more willing to put in their treasures, talent and time for those with less, where the hallmark of success is to pay it forward, and to help others do well and be well.
[+2 sentences] In this way, we can emerge stronger, together, as a thriving democracy of deeds. Madam, I stand in firm support of this Budget.
Mdm Deputy Speaker2 words
[+1 sentence]Deputy Leader.
Exempted Business› Motions2 turns · 125w · 0 highlighted
motion-1581
The Deputy Leader of the House (Mr Zaqy Mohamad)44 words
[+1 sentence]Mdm Deputy Speaker, on behalf of the Leader, may I seek your consent and the general assent of Members present to move a motion to take the proceedings on the business set down on the Order Paper for today beyond the moment of interruption?
Mdm Deputy Speaker81 words
[+3 sentences]I give my consent. Does the Deputy Leader have the general assent of hon Members present to so move? (proc text)]
Adjournment of Debate› Motions4 turns · 44w · 0 highlighted
motion-1583
The Deputy Leader of the House (Mr Zaqy Mohamad)31 words
[+2 sentences]Mdm Deputy Speaker, may I seek your consent to move, "That the debate be now adjourned." . (proc text)]
Mdm Deputy Speaker5 words
[+1 sentence]Resumption of debate what day?
Mr Zaqy Mohamad5 words
[+1 sentence]Tomorrow, Madam, at 12.00 noon.
Mdm Deputy Speaker3 words
[+1 sentence]So be it.
Adjournment› Motions1 turns · 23w · 0 highlighted
motion-1584
Speaker not recorded23 words
[+2 sentences]. (proc text)] Adjourned accordingly at 8.00 pm.
Criteria for Reduction in Silver Support Payout Quantum› Oral Answers to Questions5 turns · 549w · 9 highlighted
oral-answer-2402
Ms Denise Phua Lay Peng55 words
[+1 sentence]asked the Minister for Manpower (a) what are the circumstances under which the Silver Support payout quantum may be reduced for beneficiaries; and (b) whether there are ways by which changes may be better explained to reduce the anxiety and other negative consequences for the seniors who are unaware or do not expect the drop.
The Minister of State for Manpower (Ms Gan Siow Huang) (for the Minister for Manpower)251 words
[+1 sentence]Mr Speaker, the Silver Support Scheme helps seniors who had low incomes during their working years and now have less for their retirement.
In total, the Government will disburse about $600 million in Silver Support payouts to almost 250,000 seniors in 2021. This is nearly double the $330 million paid out to 150,000 seniors in 2020. As part of scheme enhancements that were implemented this year, we introduced a new payout tier for seniors with higher household monthly income per person. Prior to 2021, seniors who experience an improvement in circumstances may no longer receive Silver Support. With the new payout tier, such seniors could continue to receive Silver Support payouts of a reduced quantum. All seniors who are eligible for Silver Support in any given year are automatically notified of their payout amounts by the Central Provident Fund (CPF) Board in December of the preceding year.
[+4 sentences] The letter and its accompanying infographic that explains the eligibility criteria are written in all four languages. Those with registered Singpass mobile numbers will also receive an SMS notification. We appreciate that some seniors may still need help to understand changes to their payouts. They may visit the Silver Support website to check their eligibility status.
They may also call the CPF Board hotline to check their eligibility status and reasons for their changes in payouts. We will consider appeals on a case-by-case basis. We are also reviewing the feasibility of informing recipients of the specific reasons for the changes in their payout quantums.
Mr Speaker4 words
[+1 sentence]Mr Lim Biow Chuan.
Mr Lim Biow Chuan (Mountbatten)148 words
[+4 sentences]I just wanted to ask the Minister of State this: many of our seniors who are eligible for the Silver Support Scheme are actually of a certain age, where they may not be literate, they may not understand an SMS that comes through the telephone, or they may not be able to appreciate the information provided by the Government. Is there any way in which we can communicate to them in the language that they understand, the vernacular language? Or is there any way in which we can get the Community Clubs (CCs) or the grassroots leaders to convey and explain to them the reason for the reduction in the Silver Support Scheme? Otherwise, I can appreciate that for many of those who are less literate, it will be a big challenge to understand why it was this amount last year and this year, it will be reduced.
Ms Gan Siow Huang91 words
[+3 sentences]Indeed, we recognise that some seniors may have difficulties understanding why there is a change in payout or why they are no longer eligible. We do have letters in the four vernacular languages to explain to the seniors and we also have a hotline which the seniors can call to make direct enquiries. I do agree with hon Member Mr Lim Biow Chuan that our grassroots leaders also can play an active role in helping to do the translation and helping them clarify on the reasons for the changes in payouts.
Tiered Pricing for Stay-Home Notice Dedicated Facilities to Ensure Affordability› Oral Answers to Questions4 turns · 664w · 11 highlighted
oral-answer-2403
Ms Foo Mee Har43 words
[+1 sentence]asked the Minister for National Development whether the Government will consider implementing a tiered pricing schedule, aligned with tiered Stay-Home Notice Dedicated Facilities so as to offer inbound travellers a choice of accommodation that is commensurate with their affordability and level of comfort.
The Minister of State for National Development (Mr Tan Kiat How) (for the Minister for National Development)238 words
[+2 sentences]Mr Speaker, Sir, the current Stay-Home Notice Dedicated Facilities (SDF) system was set up in March 2020 to isolate returning travellers until they were found to be free of COVID-19. Protecting the community from imported cases is our key priority, and multiple agencies and hotel partners work closely together to implement health, security, transport and accommodation arrangements to do so.
The system has served about 190,000 travellers since its formation.
[+2 sentences]  Travellers are “bubble wrapped” from the moment that they arrive at the checkpoints, all the way to the SDFs, with strict infection prevention and control measures maintained throughout the process. To minimise operational complexity, travellers are assigned to SDFs when they arrive at the checkpoints.
As travellers cannot choose their SDF and the cost structure is largely similar, a standard fee is charged regardless of the SDF that they are assigned to.
[+1 sentence]  At the same time, we recognise that certain travellers may have specific needs.
For instance, those who require elderly or disability-friendly facilities, or those travelling with children or minors may require specific room arrangements. We consider appeals on a case-by-case basis, based on the travellers’ financial or personal circumstances.  We understand that travellers would like to have more choice and flexibility for their SDFs. We are constantly reviewing our system and studying ways to provide travellers more options to meet their preferences and budgets, without compromising the safety of travellers, operational staff and importantly, the community.
Ms Foo Mee Har (West Coast)139 words
[+4 sentences]I thank the Minister of State for his answer. I understand that, operationally, it can be quite complicated to allow the travellers to choose. But I would like to appeal to the Government, given that we have been in this phase for almost a year now and that many families especially those who need to go through the quarantine period, for example, those bringing in foreign domestic helpers, I have had many residents come and appeal, that the cost is really quite significant for the families to bear. So, I would like to appeal for the Government to really think of a more economical option so that families who do need to go through a quarantine for different reasons, including onboarding of foreign domestic helpers for the care-giving needs, can have a more economical option for them to choose.
Mr Tan Kiat How244 words
[+4 sentences]Thank you to the Member for her query. As the Member pointed out, it is indeed operationally complex to have the entire system with strict Infection, Prevention and Control measures (IPCs), from the moment the travellers arrive at the checkpoint, how to identify the Persons on Stay-Home Notice (PSHN), to assign them to the SDF, to assign them the transport arrangements to the SDF, managing the PSHNs in the SDF itself, and finally, the in situ exit processes before we release the PSHN. These are complex operations and issues, with many moving parts. That is why we take a lot care to make sure the robust measures are in place.
But we understand the points that the Member has raised, especially when the Member has talked about foreign domestic workers, different circumstances. We will look at those cases on a case-by-case basis, in addition to the present arrangement of having different tiers of SDFs. There is an economy tier catered to many of the profiles or archetypes that the Member talked about – workers from the construction, marine process industries as well as foreign domestic workers. So, we do have different tiers of SDFs for different archetypes of travellers coming in. At the same time, like I have said, we will look at those issues on a case-by-case basis, and we will continue to refine the system to cater for various flexibilities, without compromising the operational safety of our operational staff and our community
Criteria for Restrictions in Phase Three of Reopening to be Lifted› Oral Answers to Questions9 turns · 1,145w · 9 highlighted
oral-answer-2404
Mr Yip Hon Weng57 words
[+1 sentence]asked the Minister for Health (a) what are the Ministry’s plans for Singapore to ease out of Phase Three; (b) what are the specific criteria that must be fulfilled for the current Phase Three restrictions to be lifted; and (c) whether a certain vaccination rate must be achieved before we can explore an exit from Phase Three.
The Senior Minister of State for Health (Dr Janil Puthucheary) (for the Minister for Health)300 words
[+1 sentence]Mr Speaker, Phase Three is a new normal which will last until the time when there is evidence on vaccine effectiveness in preventing future outbreaks, and a substantial proportion of the population is vaccinated and the rest of the world also has the virus under control.
Since we entered Phase Three of our reopening on 28 December 2020, we have seen increased COVID-19 outbreaks in many countries around the world and the emergence of more transmissible viral variants.
[+4 sentences] Several weeks ago, we also faced an increase in unlinked cases and community cases in Singapore. Hence, even within Phase Three, we had tightened community safe management measures and recalibrated the pace and scale at which activities were able to resume. While the outbreaks in several countries have abated in recent weeks, we need to remain vigilant. We will continue to find ways to allow our economy and our society to further reopen in a safe way.
But given the dynamic situation here and around the world, we will need to adjust our safe management measures from time to time. We do not expect to move out of Phase Three any time soon. The vaccines approved in Singapore have been shown to be effective in providing protection against the COVID-19 virus. We are still awaiting more evidence about how effective they will be about preventing transmission.
[+1 sentence] We are also closely monitoring their effectiveness against new viral variants.
Meanwhile, our best strategy is to continue to be disciplined about safe management measures and achieve a high level of vaccination within our population to boost our collective immunity.
[+2 sentences] Singapore has made good progress on our vaccination programme. We are continuing to bring in more vaccine supplies, and we encourage all eligible Singaporeans to take up the vaccines to protect themselves and others around them.
Mr Yip Hon Weng (Yio Chu Kang)72 words
[+4 sentences]I thank the Senior Minister of State for his reply. It is reported in the media that if all goes to plan, Singapore will have enough vaccines to vaccinate everyone by the third quarter this year. We read yesterday that China's Sinovac vaccine arrived in Singapore, but has not been approved for use yet. I would like to ask the Ministry if Sinovac is approved, will this push forward the vaccination timeline?
Dr Janil Puthucheary80 words
[+1 sentence]Mr Speaker, the vaccination timeline is dependent on a number of factors; most importantly, our ability to ramp up the capacity and capability of the vaccination centres and also the willingness of Singaporeans to step forward to get vaccinated and, indeed, the supply of vaccines.
The approval or licensure of one given vaccine is not a rate limiting step in that process.
[+1 sentence] We will look at the vaccine licensure as an issue of safety and efficacy of a given vaccine.
Assoc Prof Jamus Jerome Lim (Sengkang)61 words
[+2 sentences]I thank the Senior Minister of State for his elucidation. I am wondering if he would be willing to share the processes that the Ministry may have in place for if there are outbreaks of more virulent strains of COVID-19 which are not as amenable to the traditional safe management measures, which would render some of our existing procedures less efficacious.
Dr Janil Puthucheary263 words
[+1 sentence]Mr Speaker, I thank the Member for his question.
The fundamentals of how we managed COVID-19 – safe management, hand-washing, PPE, distancing, reducing the dwelling time of crowds in crowded areas – these are going to be necessary and important parts of our fight against COVID-19, for as long as the virus is with us, whatever the variant may be.
[+5 sentences] How we apply a given set of safe management measures will very much depend on the burden of disease currently in Singapore and and the risk that our population is exposed to. This will be a dynamic process as we go forward. And then, separately, we have to have processes in place to deal with the outbreaks themselves. So, the first portion was about how we prevent outbreaks and transmission. The second is when outbreaks occur.
Again, the fundamentals will be the same: that we need to test people, we need to contact trace people and then we need to quarantine.
[+3 sentences] What we will need to calibrate is, for example, how many steps removed you might want to contact trace, how long one quarantines an individual for, and what are the tests before someone is released from a quarantine. So, these are the general processes, but I think when it comes to the specifics of a given viral variant – these are now in a hypothetical space – the key point would be that we take reference from technical and professional advice. And we are very grateful that we have a depth of technical and professional advice to advise us in fighting COVID-19.
Dr Tan Wu Meng (Jurong)174 words
[+9 sentences]I thank the Senior Minister of State for his answers. Integral to safe management and containment is, of course, the process by which we test suspected patients who may be carrying the COVID-19 virus. Can I ask the Senior Minister of State, what is the current turnaround time for a PCR swab test? And the reason I ask this is because one of my residents late last night, contacted me saying on Wednesday morning, he went to the polyclinic and was required to take a swab test. He has been asked to stay home till the test result comes out and can be confirmed as negative. But his wedding is on Saturday. And so, if he does not get the result in time, he may have to cancel the wedding. So, this is a very material question for Singaporeans who may be in a challenging personal situation. And so, I was wondering if the Senior Minister of State might be able to share a bit more about the timeline for the swab test turnaround.
Dr Janil Puthucheary117 words
[+8 sentences]Mr Speaker, my apologies to the Member. I do not have the data in front of me. The Parliamentary Question (PQ) was very much about the considerations for Phase Three, Reopening. I would say that the turnaround time is affected by a number of processes. Some of them are logistic and administrative as well as the laboratory process itself. We can follow up with the Member and his constituent separately. I just want to make an additional point, Mr Speaker, about the question that was raised earlier. If we do have more vaccines, it is possible that we can accelerate our timeline, but ultimately, this will depend on Singaporeans being willing and coming forward to be vaccinated.
Mr Speaker21 words
[+2 sentences]I would like to remind Members to keep their supplementary questions supplementary and related to the original PQs. Dr Wan Rizal.
Influence of Deliberate Online Falsehoods on People of Different Age Groups› Oral Answers to Questions2 turns · 283w · 7 highlighted
oral-answer-2405
Dr Wan Rizal43 words
[+1 sentence]asked the Minister for Communications and Information (a) whether the influence of online falsehood differs according to age groups; and (b) whether there are targeted plans to reach out to seniors in developing their digital and media literacy in combating deliberate online falsehoods.
The Senior Minister of State for Communications and Information (Dr Janil Puthucheary) (for the Minister for Communications and Information)240 words
[+1 sentence]Mr Speaker, a study conducted by the Institute of Policy Studies in 2020 found that more than two-thirds of the participants in the study, from all demographics, had difficulty differentiating misinformation from real news reports.
While different age groups might have different media and information consumption habits, no age group is immune to misinformation. Even highly literate and savvy participants, including the young and those with tertiary education, were susceptible.
[+1 sentence]  The study underscores the importance of targeted efforts to strengthen digital literacy among the different segments of our society.
The Government and our partners have several initiatives aimed at this, such as the National Library Board's S.U.R.E. which stands for Source, Understand, Research, Evaluate programme, and the Media Literacy Council's Better Internet Campaign.  But we recognise that seniors, in particular, continue to face challenges navigating novel and unfamiliar digital technologies. Hence, in May 2020, we set up the Singapore Digital Office (SDO) to accelerate efforts to equip every individual, including our seniors, with digital tools and skills. The SDO has since established its presence in 55 community hubs at community centres and libraries island-wide, where Digital Ambassadors teach seniors how to use features on their smartphones, apps and so on.
[+1 sentence] The expansion of this presence on the ground, providing support in-person, significantly increases our engagement with seniors.  
The Government is fully committed to building on these efforts to help seniors participate meaningfully in digital life and keep themselves safe online.
Impact of Postponement of World Economic Forum Meeting on Singapore's Preparations› Oral Answers to Questions5 turns · 541w · 6 highlighted
oral-answer-2406
Mr Yip Hon Weng66 words
[+1 sentence]asked the Minister for Trade and Industry with the rescheduling of the World Economic Forum (WEF) to August 2021 (a) how has this impacted Singapore’s plans and preparations for the event; (b) what are the measures in place to reduce the likelihood of further postponement; and (c) how will the Government address the challenges and concerns faced by WEF to ensure the conference proceeds as planned.
The Minister of State for Trade and Industry (Mr Alvin Tan) (for the Minister for Trade and Industry)202 words
[+2 sentences]Mr Speaker, Sir, I would like to thank the Member for his question and the Members of the House for their continued interest in the World Economic Forum (WEF) Special Annual Meeting. I think it acknowledges the significance of Singapore's hosting of this important global event and the signal of confidence that it sends about Singapore's management, thus far, of the pandemic.
The WEF rescheduled the Special Annual Meeting in Singapore from 25 to 28 May 2021, to 17 to 20 August 2021. The WEF explained that the current restrictions on global travel and the challenges that many countries are facing in combating the COVID-19 virus, have made it challenging to plan for an in-person meeting in this half of the year.
[+2 sentences]  When the WEF announced this change, it made the point to reaffirm its confidence in Singapore's management of the COVID-19 situation and the measures that had been proposed to ensure the safe conduct of the event. I would like to assure the Member that we will proceed with the necessary preparations with these new dates in mind, but we will continue to monitor the COVID-19 situation here in Singapore as well as globally, and make the necessary preparations as required.
Mr Speaker4 words
[+1 sentence]Mr Yip Hon Weng.
Mr Yip Hon Weng (Yio Chu Kang)64 words
[+4 sentences]I thank the Minister of State for his reply. I have two supplementary questions. First, will the Ministry consider having this event done virtually or in a hybrid style – both physical and virtual – should the situation worsen? And second, what are the other major international events that we will be courting for next year, should the conduct of the WEF be successful?
Mr Alvin Tan205 words
[+3 sentences]I thank the Member for his supplementary question. The key point is that we must remain open to the world and to all the different opportunities that come before us, and these include very important events such as the WEF's Special Annual Meetings. We are currently building our muscle to manage as well as to host these events.
This will apply to the WEF's Special Annual Meeting, but we are building our muscle to test, to trace, to vaccinate. We thus far had about 29 of these business events.
[+1 sentence] It is not just business events.
If you look at other kinds of events like the ONE Championship as well as the ATP Tour coming up this weekend.
[+1 sentence] We are calibrating to the prevailing measures, we are calibrating to the prevailing COVID-19 situation and we will be open to seizing these opportunities but making sure that we conduct the events safely for our global community, for the attendees but also for our local community.
Polytechnic Graduates who Dropped Out of SGUnited Traineeships Programme› Oral Answers to Questions5 turns · 429w · 6 highlighted
oral-answer-2407
Dr Wan Rizal30 words
[+1 sentence]asked the Minister for Manpower (a) what is the number of Polytechnic graduates who dropped out from the SGUnited Traineeships Programme; and (b) what are the reasons for the drop-outs.
The Minister of State for Manpower (Ms Gan Siow Huang) (for the Minister for Manpower)192 words
[+1 sentence]Mr Speaker, the SGUnited Traineeships Programme was launched in June 2020 to provide recent graduates with traineeship opportunities across various sectors.
As of end-December 2020, about 720 Polytechnic graduates had been placed into SGUnited Traineeships. Of these, 23, or about 3%, did not complete the programme.
[+1 sentence] The Singapore Business Federation (SBF), our programme partner managing the SGUnited Traineeships Programme, surveys host organisations and trainees who have completed the programme, or left halfway.
For those who did not complete the programme, the reasons were mainly because they had found full-time employment, or had undisclosed personal or medical reasons.
[+4 sentences] The SGUnited Traineeships Programme provides meaningful opportunities to graduates to pick up skills in preparation for full-time jobs. I am encouraged to see that the majority of trainees continue to go through with their traineeships. For participants who need career assistance, they can approach Workforce Singapore (WSG) or NTUC’s e2i through physical touchpoints such as the SGUnited Jobs and Skills Centres, WSG’s Careers Connect and its mobile extension, Careers Connect On-the-Go, as well as NTUC-e2i’s career centres. They may also visit the MyCareersFuture portal to search for job opportunities that suit their skills and competencies.
Dr Wan Rizal (Jalan Besar)60 words
[+3 sentences]Mr Speaker, my question is, with regard to these 700-over students from the polytechnics and those who dropped out because of these issues, but those who remain, are they in the same field that they actually studied in? Is that the reason why most of them got jobs or stayed on in the programme? That would be my question, Sir.
Ms Gan Siow Huang89 words
[+1 sentence]I thank hon Member Dr Wan Rizal for the supplementary question.
Offhand, I do not have the information on whether the polytechnic graduates who opted for the traineeships are actually in sectors that are relevant to what they studied. But we do know that the Polytechnic graduates have a wide range of choices of traineeships. We do encourage them to take on traineeships in sectors that are relevant to them, but we also encourage them to keep their options open and be ready to consider other choices as well.
Mr Speaker58 words
[+4 sentences]Order. End of Question Time. The Clerk will now proceed to read the order of the day. [Pursuant to Standing Order No 22(3), Written Answers to Question Nos 7-8, 11-12 and 14 on the Order Paper are reproduced in the Appendix. Question Nos 9-10 and 13 have been postponed to the sitting of Parliament on 26 February 2021.]
Announcement by Speaker› Announcement by Speaker1 turns · 151w · 0 highlighted
speaker-1579
Mr Speaker151 words
[+7 sentences]Order. Pursuant to paragraph (7) of Standing Order 92, I have fixed the times for the conclusion of consideration of the heads of expenditure in the Estimates of Expenditure for FY2021/2022 in the Committee of Supply (COS). In fixing these times, I have taken into account the reduction of Question Time to 30 minutes on the days allotted for the COS debates and the extension of Sitting times of the COS for each of the allotted days. Additionally, Members are notified that the Sittings on the allotted days of 1 to 8 March will commence at 10.30 am. The "guillotine" times I have fixed have been notified to hon Members. I would also like to remind Members to use slides and videos sparingly to keep the spirit of our debating Chamber. Focusing on the delivery of speeches to be made will, I think, create a far greater impact in a debate.
Impact of Excluding Single Unwed Parents from Receiving Parenthood Tax Rebates and Working Mother's Child Relief› Written Answers to Questions2 turns · 141w · 0 highlighted
written-answer-7323
Mr Louis Ng Kok Kwang58 words
[+1 sentence]asked the Deputy Prime Minister and Minister for Finance (a) whether the exclusion of single unwed parents from receiving the Parenthood Tax Rebates and the Working Mother’s Child Relief has had a measurable impact on reducing the rate of single unwed parenthood; and (b) if so, what are the findings on the reduction rate of single unwed parenthood.
Mr Heng Swee Keat83 words
[+4 sentences]The Parenthood Tax Rebate and the Working Mother’s Child Relief are not aimed at bringing about a reduction in the rate of parenthood outside marriage. Hence, we have not done studies to measure the causal linkages between our tax policies and single unwed parenthood. Rather, both these tax reliefs are specifically granted to support parenthood within marriage, and to encourage married mothers to continue working after childbirth. We will continue to review our tax policies bearing in mind prevailing societal concerns and values.
Breakdown of Children and Young Persons below 25 Years Old Detained under Internal Security Act in Past 10 Years› Written Answers to Questions2 turns · 152w · 0 highlighted
written-answer-7324
Mr Leon Perera63 words
[+1 sentence]asked the Minister for Home Affairs (a) how many children and young persons aged 18 years and below and persons between 19 and 25 years old respectively at the time of detention have been detained under the Internal Security Act in the past 10 years; and (b) what is the median number of years the persons in each age group have been detained.
Mr K Shanmugam89 words
[+4 sentences]Since 2010, ISD has detained three individuals aged between 16 and 18; and seven individuals aged between 19 and 25; under the Internal Security Act for terrorism-related conduct. Of the three individuals aged between 16 and 18, two remain in detention, while the third individual was released on a Restriction Order (RO) after two years in detention. Of the seven individuals aged between 19 and 25, two remain in detention, while the rest have been released on RO. They were detained for periods ranging from two to six years.
Process to Assist Disadvantaged Persons in Applying for Administration of CPF Money after Demise of Family Member› Written Answers to Questions2 turns · 329w · 0 highlighted
written-answer-7325
Ms Raeesah Khan88 words
[+1 sentence]asked the Minister for Law (a) what is the current process to assist (i) less technologically savvy individuals (ii) less language-able and (iii) persons with disabilities, in applying for the administration of CPF money after the death of a family member; (b) what is the rationale for the fees charged by the Public Trustee in the administration of un-nominated CPF money being non-waivable; and (c) whether the Ministry will consider waiving these fees or charging a flat fee for individuals/households below a defined income and property value threshold.
Mr K Shanmugam241 words
[+10 sentences]The Public Trustee's Office (PTO) provides a service to family members to administer the CPF monies of their loved one who has passed away without making a CPF nomination. Individuals can apply for the service online. Those who need assistance with the electronic application can be assisted in-person by e-helpers who are conversant in multiple languages and dialects at the Ministry of Law Services Centre. Those who are unable to make their way to the Services Centre, such as those with mobility difficulties, may contact the PTO. Where necessary, PTO officers can make home visits to provide assistance. The Public Trustee has to impose a fee to cover the cost of administering the un-nominated CPF monies, which includes tracing the deceased's next-of-kin, identifying all eligible beneficiaries and establishing the familial relationship between the beneficiaries and deceased. The fee is deducted from the un-nominated CPF monies. The Public Trustee can waive the fee in part or full, taking into consideration supporting documents that evidence the applicant's financial circumstances, and has done so for deserving cases. To allow their CPF monies to be distributed to preferred beneficiaries faster and without incurring fees, we strongly encourage all members to make their CPF nominations and update it as their life circumstances change. They can do so via the CPF Board's online nomination service1 or visit the CPF Service Centres, where the Customer Service Executives can help in the nomination process and act as their witnesses.
Identifying, Diagnosing and Raising Awareness of Post Natal Depression in Singapore› Written Answers to Questions2 turns · 205w · 0 highlighted
written-answer-7326
Ms Raeesah Khan54 words
[+1 sentence]asked the Minister for Health (a) what is the prevalence of paternal postnatal depression (PPND) in Singapore; (b) what are the current efforts to identify and diagnose PPND; and (c) whether the Ministry will consider implementing policies to raise awareness about PPND and provide greater support to individuals at-risk of, or diagnosed with, PPND.
Mr Gan Kim Yong151 words
[+7 sentences]Local studies1 have estimated the prevalence of paternal postnatal depression (PPND) to be 1.8% at six weeks after the birth of the child. The Ministry of Health (MOH) does not routinely track PPND prevalence. Currently, hospitals may assess the spouse as part of the mother's consultation during clinic appointments, especially when risk factors such as maternal postnatal depression are present. This would involve monitoring for signs of distress, tiredness or being generally emotional, or checking with the mother if her partner is coping well. Where PPND is detected, the affected father is offered the appropriate management, including referral to polyclinics or other mental health professionals. Within the community, initiatives such as KidSTART, led by the Early Childhood Development Agency, actively screens for paternal depression during home visits and directs appropriate individuals to polyclinics for further assessment. MOH will continue to monitor and respond to the mental health needs of the population.
Expand Number of Dementia-Friendly Communities and On-Demand Home-based Intervention as Alternative to Care Centres› Written Answers to Questions2 turns · 330w · 0 highlighted
written-answer-7327
Ms Raeesah Khan53 words
[+1 sentence]asked the Minister for Health whether the Ministry intends to (i) increase the number of dementia-friendly communities (DFCs) beyond 15 to provide greater community-based support and (ii) expand the number of on-demand, home-based interventions as an alternative to care centres, to allow persons with dementia to live more independently and relieve care-giver stress.
Mr Gan Kim Yong277 words
[+9 sentences]The Ministry of Health and the Agency for Integrated Care have to date set up 10 Dementia-Friendly Communities (DFCs), and we will set up another five DFCs this year. These DFCs have reached out to over 102,000 people to raise awareness on dementia and provide information on how to communicate with and support persons with dementia and their care-givers. In addition to the DFCs, we have also expanded the network of Go-To Points (GTPs) in the community to over 300 nationwide, to serve as dementia resource centres and "safe return" points in the community. If there is a need for additional capacity, we will work with our partners to scale up the DFCs and GTPs. We will continue to provide a supportive environment for persons with dementia and their care-givers. We will also expand the supply of home-based care services, such as home medical, home nursing and home personal care services in line with the growing needs of frail and home-bound patients who require assistance with Activities of Daily Living (ADLs), including persons with dementia. In addition, we will continue to evolve our home-based interventions to meet seniors' changing needs. For example, we have worked with Social Service Agencies to set up community outreach teams who conduct home visits to clients with dementia and their care-givers, to provide them with information on dementia care, basic emotional support, and to connect them with social and health services as needed. We have also piloted the Integrated Home and Day Care programme that allows individuals, including clients with dementia, flexibility to receive home-based care services, centre-based care services, or a combination of both, to cater to their unique care needs.
Conduct Study on Gradually Increasing Minimum Legal Age for Smoking to Reduce Prevalence of Youth Smoking› Written Answers to Questions2 turns · 447w · 0 highlighted
written-answer-7328
Ms Raeesah Khan70 words
[+1 sentence]asked the Minister for Health (a) whether a study has been conducted on the effectiveness of gradually increasing the minimum legal age for smoking in reducing the prevalence of youth smoking and, if not, whether the Ministry will consider conducting one; and (b) how has the Ministry supported youths, unable to smoke legally following the raising of the minimum legal age for smoking on 1 January 2021, to quit smoking.
Mr Gan Kim Yong377 words
[+16 sentences]Increasing the Minimum Legal Age (MLA) progressively from 19 years old in 2019 to 21 years on 1 January 2021, has reduced opportunities for our youth to take up smoking. This is part of a set of measures we have introduced to reduce the prevalence of tobacco use. Based on the National Population Health Survey (NPHS) 2020, smoking prevalence among our youth aged 18 to 29 years was 8.8%, a decrease compared to 9.8% in 2017. As the MLA was just raised to 21 years less than two months ago, it is still too early to assess the impact of the latest adjustment. MOH will continue to monitor smoking prevalence rates in Singapore and introduce new measures or adjust existing ones as needed. The Health Promotion Board (HPB) has a range of programmes to educate youths and raise the awareness of the benefits of leading a tobacco-free lifestyle. HPB works closely with the Ministry of Education and Institutes of Higher Learning to incorporate anti-tobacco messages into the curriculum. Our focus is on counselling and education to help under-aged smokers quit smoking while enhancing enforcement actions for retailers or persons caught giving or furnishing tobacco to under-aged smokers. HPB’s smoking cessation programmes for youth smokers adopt a strengths-based approach to build confidence for behaviour change. It also imparts them with knowledge and skills to kick the habit, and positive coping strategies to better deal with stress, anger, frustration or boredom. In addition, there are Student Health Advisors (SHAs) in more than 60 educational institutions who provide tailored counselling to youth smokers on quitting smoking. These counselling sessions help them to understand the harms of smoking and equip them with strategies to cope with withdrawal symptoms and quit the habit. Last year, close to 2,200 youth received smoking cessation counselling from SHAs, and amongst these, more than 58% managed to reduce smoking or quit the habit one month post-counselling. Counselling support is also provided by certified Quit Consultants via HPB's QuitLine (Tel: 1800 438 2000) services. Beyond the government's tobacco control measures, tackling smoking also requires a whole of community effort. Positive role modelling and support from family members and peers are also important in encouraging our youth to lead a tobacco-free and healthy lifestyle for the longer term.
Study on Demand and Need for Night-time Childcare Services› Written Answers to Questions2 turns · 240w · 0 highlighted
written-answer-7329
Mr Louis Ng Kok Kwang52 words
[+1 sentence]asked the Minister for Social and Family Development (a) what data has the Ministry collected in its study on the demand and need for more night-time childcare services; (b) what are the Ministry’s findings from the study; and (c) when will the study be concluded if it has not already been concluded.
Mr Masagos Zulkifli B M M188 words
[+9 sentences]To cater to the needs of working parents, childcare centres are required to operate full-day services from 7 am to 7 pm on weekdays, and from 7 am to 2 pm on Saturdays. Childcare centres have the discretion to extend their services beyond the standard operating hours, taking into consideration demand and resources. Currently, over 40 childcare centres (or about 3% of centres) operate beyond 7 pm on weekdays. The current arrangement meets the needs of most parents. For those working shifts or on weekends, many of them arrange for other caregivers, such as grandparents and relatives, to help out. Nevertheless, we understand that some families may face difficulties in making such caregiving arrangements.  As part of the Community Link (ComLink) pilot1 to provide greater support to families with children living in rental housing, we engaged some 650 families to understand their needs and circumstances, including caregiving arrangements. Engagements with some community partners indicated that night-time childcare services could be useful to some low-income families. We are studying the possibility of piloting night-time childcare at a ComLink site to better assess demand for and sustainability of such services.
Queries Related to Waitlist Position for Preschools Received in Past Five Years› Written Answers to Questions2 turns · 264w · 0 highlighted
written-answer-7330
Mr Leon Perera50 words
[+1 sentence]asked the Minister for Social and Family Development (a) in the past five years, how many queries related to waitlist position for preschools has the Early Childhood Development Agency (ECDA) received; and (b) whether ECDA will consider introducing a requirement that preschools tell parents their queue position on the waitlist.
Mr Masagos Zulkifli B M M214 words
[+11 sentences]Parents may register interest in a preschool via the Preschool Search Portal (PSP), an online self-help search portal that was launched by ECDA in 2019. Some may also directly contact their chosen preschools. While we strongly encourage all parents to use the PSP, registration of interest via the PSP is still voluntary for parents. Hence the PSP cannot provide parents with their queue position within a preschool's overall waitlist. Communicating an exact queue position to all parents could also pose significant administrative strain for preschools since the queue position could change frequently, possibly even on a daily basis. Instead, parents can see the estimated time (e.g. immediate, within six months, within one year) by which a vacancy in a chosen preschool may be available on the PSP. This can help to give parents a sense of the preschools with shorter or longer waitlists. ECDA does not track the number of queries received on parents' waitlist position. When approached, ECDA advises parents to check directly with the relevant preschool, as preschools are allowed some discretion to determine their own enrolment policies that best meet their parents' needs. For example, some preschools may offer priority placement for siblings of enrolled children. ECDA encourages all preschools to be transparent regarding enrolment policies in their communications with parents.
Average Cost and Construction Duration of Building Sheltered Walkways and LTA's Criteria in Deciding Their Feasibility› Written Answers to Questions2 turns · 175w · 0 highlighted
written-answer-7331
Mr Gerald Giam Yean Song39 words
[+1 sentence]asked the Minister for Transport (a) what is the average cost per metre and average construction duration of building sheltered walkways; and (b) what are the criteria that LTA uses in deciding on the feasibility of constructing sheltered walkways.
Mr Ong Ye Kung136 words
[+8 sentences]The construction cost of covered linkways ranges from $200,000 to $300,000 per 100 metres. High covered linkways that enable heavy vehicles to pass under, cost around $600,000 per 100 metres.  It typically takes around nine months to complete construction of a typical covered linkway of around 400 metres long. This can of course vary depending on site conditions.  Covered linkways provide convenience and are very welcomed by residents. That is why LTA has built hundreds of kilometers of linkways over the years. But to ensure prudent use of public funds, we should build them when they connect large numbers of commuters to major public destinations, and in the context of LTA, these will be transport nodes like MRT/LRT stations and bus interchanges. In evaluating proposals, LTA takes into account usage patterns, site constraints and safety requirements.
Average Cost and Duration of Constructing Lifts at Pedestrian Overhead Bridges.› Written Answers to Questions2 turns · 114w · 0 highlighted
written-answer-7332
Mr Gerald Giam Yean Song20 words
[+1 sentence]asked the Minister for Transport what is the average cost and average duration of constructing lifts at pedestrian overhead bridges.
Mr Ong Ye Kung94 words
[+4 sentences]A pair of lifts costs around $300,000, but extensive civil works are needed to install them. This brings the average cost of constructing a pair of lifts at a pedestrian overhead bridge to $2 to 3 million, typically, including costs such as site investigations, technical studies and design, or even service diversions and extra structural works.  It typically takes 14 to 22 months to fit in a pair of lifts, and the construction duration varies according to site conditions. More time will be required if there is a need to divert affected utility services.
Breakdown of CPF members without Nomination at Time of Death by Age, Education Level and Household per Capita Income.› Written Answers to Questions2 turns · 234w · 0 highlighted
written-answer-7333
Ms Raeesah Khan38 words
[+1 sentence]asked the Minister for Manpower over the past five years, what is the breakdown of CPF members without a nomination at the time of their death by (i) age (ii) education level and (iii) household per capita income.
Mrs Josephine Teo196 words
[+8 sentences]Over the past five years, about one in four CPF members pass away without a nomination. CPF members who passed away at an older age are more likely to have nominated their CPF monies. The proportion of members without a nomination at the time of death is 53% for those aged below 55, and 21% for those aged 55 and above. CPF Board does not record the member's education level or the income level of the member's household at the time of death.  Members can make a nomination via the CPF Board's online nomination service or visit the CPF Service Centres, where the Customer Service Executives can help in the nomination process. CPF Board has undertaken various efforts to encourage members to make their nomination, which resulted in a 60% increase in the number of nominations made over the past five years. We encourage all members to make their CPF nominations early and update them as their life circumstances change, including marriage that revokes any prior CPF nominations. Newly married members will have to make a fresh nomination to ensure that their CPF monies continue to be disbursed according to their wishes when they pass away.
Outcome of Pilot Care Close to Home Service Model in HDB Estates› Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 376w · 0 highlighted
written-answer-na-7212
Ms Denise Phua Lay Peng31 words
[+1 sentence]asked the Minister for Health what are the outcomes of the pilot Care Close to Home service model for the elderly frail and home bound residents in HDB public rental estates.
Mr Gan Kim Yong345 words
[+14 sentences]Launched in 2014, the Care Close to Home (C2H) pilot aimed to assist seniors in HDB public rental estates to age-in-place. Nurse-led care teams were deployed to selected precincts, with a focus on supporting seniors in their activities of daily living and monitoring of medical conditions, in their homes. The pilot is currently running at 15 sites across Singapore, with around 6,000 enrolled clients. The Ministry of Health undertook a review of the scheme from 2018 to 2020. Based on our findings, clients perceived the services to be easily accessible.  However, we also found that the services did not always meet clients’ needs. For example, the majority of clients enrolled onto C2H were relatively well and did not require assistance with activities of daily living which the programme focused on. On the other hand, clients with complex health and social needs required deeper and more intensive services beyond what C2H was able to provide. In order to address seniors’ needs better and scale up the services to all seniors in the community, we will be transiting the C2H pilot to the new eldercare centre service model. Under the new model which will be rolled out progressively at eldercare centres in phases from May 2021 to 2024, all eldercare centres will provide a common suite of services, comprising active ageing programmes, befriending or buddying, and information and referral to care services. On top of this set of common services, centres may also layer on additional care services such as day care or community rehabilitation to cater to seniors who are frailer. As part of the transition, the Ministry of Health will work with seniors, their caregivers, the C2H and eldercare centre providers to transit clients smoothly to the relevant services. For example, seniors requiring greater social support will receive befriending and buddying services, while those with higher care needs and require assistance with their activities of daily living will be referred to the appropriate care services such as home personal care. With this transition, we hope to better enable our seniors to age-in-place within the community.
Peer Support Network Programmes in Schools and Institutes of Higher Learning› Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 369w · 0 highlighted
written-answer-na-7364
Dr Wan Rizal30 words
[+1 sentence]asked the Minister for Education (a) what are the peer support network programmes in schools and institutions of higher learning; and (b) what has been the efficacy of these programmes.
Mr Lawrence Wong339 words
[+18 sentences]Strong and caring peer relationships are at the heart of effective support for students in schools and Institutes of Higher Learning (IHLs). This peer support culture is established through a two-pronged approach. First, through Character and Citizenship Education in schools, we seek to establish a peer support culture in every school and every classroom. All students are taught to be kind and caring, to identify their social circle of support, and recognise signs of distress. Similarly, the IHLs promote mental well-being and basic mental health literacy among students through curricular and co-curricular activities and events. Students are encouraged to provide social and emotional support to one another, and facilitate help-seeking by alerting trusted school personnel when their friends encounter difficulties. Second, schools and IHLs have established a peer support structure where student Peer Support Leaders (PSLs) are selected to take on a more active role to look out for their peers. All IHLs have established peer support structures. All schools will have a peer support structure in place by 2022. The PSLs are trained to listen actively, respond with empathy, manage conflicts, and encourage early help-seeking and positive coping strategies. Schools and IHLs also work with Health Promotion Board and other community partners to raise awareness of mental health issues. PSLs are appointed at class or school level, and can include students who volunteer for the role. These PSLs are in turn supported by teachers, staff and counsellors who regularly check in with them. Schools and IHLs actively seek feedback from students and PSLs to review and strengthen peer support efforts. Schools also monitor the quality of peer relationships and extent of help-seeking behaviour. Schools and IHLs that have implemented peer support have observed more students actively showing care for peers going through difficulties. PSLs have also supported more classmates to seek help from teachers and counsellors, and alerted teachers when they come across peers in distress. MOE will continue to support schools and IHLs to strengthen peer support and partner the community to promote student well-being and resilience.
Effectiveness of Sexuality Programmes offered in Special Education Schools› Written Answers to Questions for Oral Answer Not Answered by End of Question Time1 turns · 277w · 0 highlighted
written-answer-na-7365
Mr Lawrence Wong277 words
[+12 sentences]Sexuality education is an important part of the curriculum for all Special Education (SPED) schools. It imparts understanding about the physiological, social and emotional changes experienced in growing up, develops students’ social, emotional and personal safety skills, and builds students’ positive attitudes and beliefs towards self, others and relationships. Sexuality education in SPED schools is delivered through the Healthy and Safe Relationships (HSR) programme, which started out as a pilot with six SPED schools in 2013. The programme covers three broad themes, namely body awareness, personal safety and relationships, and is carried out through customised lessons according to the varying needs of students, with a range of methods such as direct instruction and role-playing. To support SPED schools, MOE launched "A guide to teaching HSR in SPED schools" in 2016. This guide and accompanying workshops were jointly developed by MOE, SPED teachers and the Health Promotion Board (HPB), with input from parents and caregivers. In addition to HSR lessons, SPED schools adopt a multi-disciplinary approach involving social workers and psychologists to support families in helping their children cope with sexuality-related changes, as well as managing behavioural and social-emotional challenges. SPED schools also conduct workshops to equip parents and caregivers in sexuality education. MOE works with SPED schools to regularly review the effectiveness of their HSR programmes. In 2019, workshops were conducted for school leaders and an enhanced HSR course was introduced to provide teachers with comprehensive strategies and resources including an emphasis on cyberwellness and parent engagement. This year, MOE will add on an advanced-level course for SPED schools in HSR curriculum development. MOE will continue to partner SPED schools to enhance their capabilities in sexuality education.
Heritage Impact Assessment for Proposed Redevelopment or Change to Land Use› Written Answers to Questions for Oral Answer Not Answered by End of Question Time2 turns · 482w · 0 highlighted
written-answer-na-7369
Mr Leon Perera94 words
[+1 sentence]asked the Minister for National Development (a) whether the Government will consider introducing a mandatory heritage impact assessment regime for sites that are deemed by a reasonable number of not-for-profit organisations or members of the public to be of heritage value (including those not designated as monuments or conserved areas) when they are proposed for redevelopment or change in land use; and (b) how does URA’s Planning Department and other statutory boards work with the National Heritage Board to integrate heritage considerations in planning processes in addition to the work of URA's Conservation Department.
Mr Desmond Lee388 words
[+16 sentences]We value our built heritage as it strengthens our sense of identity and history. As a small city-state, we need to balance the importance of our built heritage with the need to develop and renew our cityscape to meet current and future needs. There is currently a systematic framework to incorporate heritage considerations in our planning and development process. Every development proposal is subject to a robust planning evaluation process that considers the development’s impact on traffic, public health, environment, as well as built heritage. We adopt a consultative and calibrated approach to balance heritage preservation and development needs. URA works closely with NHB, along with expert panels and key stakeholders, to incorporate heritage considerations upstream in our land use planning process. For example, NHB conducts studies, such as the tangible heritage survey, to research and document the history of buildings and sites in Singapore. Such studies help inform agencies, to better incorporate heritage considerations into the planning and development of each site. URA also obtains NHB’s and its expert panel’s views in determining the conservation merit of our buildings. As part of our ongoing review of long-term land use plans and strategies, URA will be engaging researchers to carry out research on areas of heritage interest. This will help to form the basis for our assessment of longer-term development options, and guide downstream planning strategies. URA will be seeking feedback and views on our long-term plans later this year. For specific development proposals, agencies work closely with local stakeholders and interest groups, as well as regular expert panels such as the Heritage and Identity Partnership (HIP), to ensure that heritage aspects are adequately addressed upfront and sensitively integrated into the planning and design of the development. The HIP advises URA on strategies to manage built heritage, and represents diverse backgrounds and specialisations, including the heritage and arts sector, academia, business, and the building and real estate industry. URA also engages other industry experts and the wider public through design competitions and Requests-for-Proposals on plans for specific sites, such as the former Bukit Timah Fire Station, the former Pasir Panjang Power District, and the site of the Paya Lebar Air Base. We look forward to partnering stakeholders in shaping our future plans, striking a careful balance to protect our built heritage as we develop and rejuvenate our city.
Multi-storey Carparks in Fernvale for Urban Farming by Residents› Written Answers to Questions for Oral Answer Not Answered by End of Question Time1 turns · 331w · 0 highlighted
written-answer-na-7370
Ms Grace Fu Hai Yien331 words
[+12 sentences]Urban farms situated on the rooftops of HDB Multi-Storey Carparks (MSCPs) activate pockets of vacant urban spaces for productive farming, thereby contributing to the "30 by 30" goal to locally produce 30% of our nutritional needs by 2030. SFA and HDB held the first tender of MSCP sites for commercial urban farming in May 2020. The tender proposals were evaluated on a competitive basis and successful companies were subsequently awarded in September 2020. As these farms are expected to contribute to the "30 by 30" goal, they must commit to and meet a high volume of production. We are heartened by the support and interest from the industry and public for the first commercial urban farming tender, and a second tender has recently been launched. SFA and HDB consider multiple factors in the identification of suitable MSCP sites for commercial urban farming. These include the utilisation rate of the MSCPs, the loading rooftops can bear, the availability of water and electricity supply, as well as the current and future developments of the surrounding HDB blocks. This approach is intended to unlock such alternative urban spaces for food production without compromising the residents’ needs for parking spaces, while ensuring that urban farms situated on MSCP rooftops are safe and have access to adequate supporting infrastructure to conduct operations. Agencies will assess the suitability of MSCP sites in Fernvale, along with other sites in various HDB estates, when identifying new urban farming sites for tender. In addition, residents who wish to participate in growing edible plants on a recreational basis can do so through a variety of means. For example, they may take up home gardening, rent allotment garden plots from NParks, or start or join community gardens in their neighbourhood. NParks will continue to work with HDB, Town Councils, Residents’ Committees and Neighbourhood Committees to encourage the setting up of more community gardens, including at suitable MSCP rooftop sites or by converting parts of the common green in estates to community gardens.
Debate on Annual Budget Statement› Budget62 turns · 35,117w · 202 highlighted
budget-1585recorded 2021-02-26
Speaker not recorded57 words
[+2 sentences], (proc text)] . (proc text)]
Mr Speaker3 words
[+1 sentence]Mr Vikram Nair.
Mr Vikram Nair (Sembawang)1967 words
[+17 sentences]Mr Speaker, I will focus on two topics in my speech: climate change and COVID-19. One is the most important long-term threat the world faces; and the other, the most immediate threat that is on the minds of world leaders and people around the world. The one thing they have in common is that both address concerns that can only be addressed by concerted effort on the global scale. These problems must be addressed collectively and individual efforts are not going to be enough. Climate change is getting more and more attention. There is broad consensus that climate change is caused by carbon emissions. As more carbon dioxide and greenhouse gasses are emitted, the faster global temperatures rise. The drivers of carbon emission include the industrial development and agriculture, which are in turn driven by consumption. On the other end of the equation, carbon sinks, which are largely forest and plants that absorb carbon dioxide and produce oxygen, are being increasingly destroyed as forests are cleared to make way for development. The effects of climate change are going to be felt by everyone. As global temperatures rise, the arctic ice caps will start to melt and sea levels will rise. Singapore has already started to make plans for dealing with this in the previous Budgets. At the same time, there will be increased desertification as temperatures rise, and more and more eco-systems and species face the risk of dying out as temperatures rise. There will be extremes of weather, droughts and floods. While people may continue to make adjustments to survive, quality of life will definitely get more harsh and difficult. Another casualty in this process is the natural world. I was very much moved by Sir David Attenborough’s documentary "A Life on Our Planet", which is really a sad reminder of what we have lost in the course of just one lifetime.
Some of the frightening figures there include 15 billion trees are being cut down each year and that more than half our rainforests are gone. Coral reefs, which also absorb heat, are dying at an alarming rate because of rising water temperatures and pollution. There are also reports that 60% of invertebrates have been wiped out since 1970.
[+13 sentences] There are large numbers of species going extinct and the current age is being referred to as the Sixth Great Extinction. Yet, our journey down this path has been paved with good intentions. People want better quality lives and development generally entails clearing land and development. We had a microcosm of this discussion just earlier. This is also why the greatest carbon emitters are the biggest economies, namely the US and China. The greatest carbon sinks are in the developing world. The developing world wants to develop and be more like the developed world, and this entails clearing land. One area where this is being very publicly debated is the clearing of the Amazon rainforests in Brazil, where land is being cleared at one of its fastest rates. President Jair Bolsanaro has publicly defended his country’s right to clear land for development, while the rest of the world insists it should not. Brazil's view is understandable. Brazil does not see why it has to forgo its own development for the benefit of the rest of the world. On the flipside, it views the developed world, where countries already benefited from deforestation, are not being fair in telling the developing countries not to develop. Not only that, but the developed world still continues to have a significantly higher carbon footprint than the developing world.
In my view, the only sensible solution to this is that we have to pay countries to conserve their forests. And in order to make this payment, there must be a price on pollution and carbon emissions.
[+1 sentence] These ideas are not new; they have been developed in various international treaties like the Paris Agreement and the Kyoto Protocol.
Ideally, if we can have a global carbon trading market, we may be able to have a fair system where countries that create carbon sinks to absorb carbon get payments for doing so, and countries that emit carbon pay for the same.
[+20 sentences] This way, countries will be incentivised to reduce emissions, in which case they pay less. And countries that may be engaged in reforestation and absorb more carbon can get paid more. This will hopefully create a virtual cycle where countries can be incentivised to reduce emissions and, if possible, even to engage in reforestation. Of course, this is ideal. In order for this to work, the countries emitting carbon have to acknowledge they have a problem. So, what can Singapore do? Singapore is a small country. We cannot really move the meter very much on the global scale. Our own emissions are probably a drop in the ocean. But I think our Budget measures show a clear commitment to reduce our own carbon footprint and to maintain and manage our own development in a sustainable way. We had a very long discussion earlier on on the clearing of land in Kranji. The fact that land clearing gets so much attention in this House, to me, is a good sign of how seriously we take this commitment. We recognise the need for development but we also recognise the need to do so sustainably. I think what we also could do is to lend our voice and continue to do so on the international sphere, and to the extent we can aid in the assistance of working out global solutions. The two most important players in this space are the US and China. While they are rivals on some fronts, hopefully, on this front, there is an opportunity for them to take the lead in unison. Both President Xi and President Biden have publicly voiced their commitments to reducing emissions, have taken measures, and the next step is to do so in the international scene. If we reduce emissions and ideally, incentivise and promote reforestation, the effects of climate change may be reversible, but we must work collectively to take effort. The second topic I will discuss is COVID-19. Just a little over a year ago, in the beginning of 2020, COVID-19 was a little known virus which had been spreading in China in the province of Wuhan, but had little footprint elsewhere.
Singapore anticipated the seriousness of this threat and set up its Ministerial taskforce as early as January 2020 with both strategy and tactics coordinated at a high level.
[+1 sentence] We have had our ups and downs in dealing with this virus, the most difficult stretch being the two-month circuit breaker, the period when the virus was spreading rapidly in our foreign worker dormitories.
Notwithstanding the challenges, we have generally managed well and kept our fatality rate amongst the lowest in the world. We have also managed to absorb a large part of the economic impact because of the emergency financial measures we put in place – companies were supported in their payroll, rentals were reduced and managed, and workers who lost jobs or lost income were given compensation.
[+6 sentences] Many people played a part in this process. Frontline workers kept essential services like hospitals, food supplies and transport running, parents and teachers played their part in helping with home-schooling and later the opening of schools. Today, the situation is under control again, and our journey here was enabled because of collective effort and cooperation. But the situation can change rapidly. All it takes is one or two clusters and it will spread again. The most important next step in this battle is the vaccination.
Happily, Singapore is in a position where we have adequate supply of the vaccines coming in the course of the year.
[+10 sentences] According to the BBC, vaccine efficacy based on data coming in is actually quite strong, with Pfizer, Modena, even Russia’s Sputnik V vaccine all having efficacy levels of above 90%, which is a measure of how much they reduce the risk of coming down with symptoms of COVID-19. Although no vaccine has 100% efficacy, even for those people who do come down with COVID-19 symptoms after taking the vaccine, it had generally not been fatal. So, the symptoms are usually more mild. So, what this means is there is close to 100% protection against serious effects of COVID-19. The benefits are definitely there to the individual for taking the vaccine. But we have a slight problem in Singapore. The slight problem we have is that our community spread rates are low and most people are less afraid of getting the virus. So, a number of the people I have spoken to have suggested they would prefer to take a wait-and-see approach; there is no urgency to take it, so let other people take it first. Of course, if everyone does this, there will be a risk that our vaccination rates do not go up as quickly as we would like them to. Other Members in this House have spoken on how we should incentivise people to take vaccines, with Dr Lim Wee Kiak suggesting that vouchers be given out, and Mr Alex Yam suggesting it be made mandatory.
My suggestion is a variation on the scheme but I would suggest that what we should do is give incentives to people who take the vaccine but not monetary incentives.
[+1 sentence] We should give them more liberties.
So, for example, if you have a group of people who are all vaccinated, they may be allowed to meet in groups of larger than eight.
[+19 sentences] Workplaces may be allowed to operate at higher than 50% occupancy if everyone who is attending in the office has taken the vaccination. So, these are sort of gentle ways to, I think, nudge people into taking the vaccine, to give them very tangible, immediate benefits. Ultimately, it is my hope that we will be able to get all people vaccinated as soon as possible. Vaccines can remain optional but I think if benefits are linked to it, liberties are linked to it, people will take it up more. It is my hope that all eligible people will take the vaccine soonest, as this will probably have the greatest impact in getting back to as close to normal as possible. Mr Speaker, in Tamil. (In Tamil): Mr Speaker, the past year has been a difficult one for all of us because of COVID-19. Some of you or your loved ones may have been infected by the virus. Many more would have experienced loss of income, loss of jobs and big changes in lifestyle. The Government provided significant support last year, providing companies with help like JSS, which provided support for up to 75% of Singaporean’s salaries which helped keep many people in jobs. Those who lost jobs or had significant loss of income were given financial support. The self-employed were also supported, in particular, those in the affected transport sector like taxi drivers. During the lockdown period, many of us were wishing for a vaccine. This vaccine is now here and being rolled out. I would thus strongly encourage everyone to take it. These vaccines have gone through extensive clinical testing and are generally safe to be taken. For those with serious medical conditions or concerns, you may check with your doctors to be sure. If we are able to get a large part of our population vaccinated, then it will be harder for the virus to spread, protecting even those amongst us who are unable to take it. We have put up with a lot of challenges in the last year – the next step, to take the vaccine, should be a lot easier and it is my hope that everyone who is able to will take it as soon as they can.
Mr Lim Biow Chuan (Mountbatten)1111 words
[+17 sentences]Mr Speaker, last year has been a difficult year for many Singaporeans due to COVID-19. Fortunately, due to Singapore’s strong fiscal position and our reserves, we were able to turn the situation around. The five Budgets announced by Finance Minister last year has helped many of our workers stay employed and helped many businesses stave off insolvency. Many of my friends who are employers expressed their appreciation for the Jobs Support Scheme which has helped them to keep paying their staff. I also met many residents who were able to receive the Self-employed Income Relief Scheme or SIRS because this gave them much support for the leaner months due to the circuit breaker. There was also substantial support given by the Government for families to help build a caring and inclusive home and plans to transform and grow the economy. Compared with many other countries, Singapore has done relatively well in managing the negative impact on the economy. For that, I think it is appropriate to give credit to Deputy Prime Minister and his colleagues from the Finance Ministry as well as to thank the Multi-Ministry Task Force and the many frontline workers for their efforts in keeping Singapore strong economically and for keeping Singapore safe. The Deputy Prime Minister has said that the Government will enhance the salaries of nurses and other healthcare workers. I fully agree. Like several other Members of Parliament before me, I also urge the Government to consider enhancing the salaries of our other essential workers as well. The COVID-19 crisis has shown us that during a health crisis of this nature, our essential workers, like our cleaners and those who clear our rubbish on a regular basis, they play an important role in our daily lives. I submit that we must also give credit to Singaporeans who gave their full-hearted support for the efforts of the Government. Singaporeans wore face masks when it was mandated, they used sanitisers regularly, stayed at home where necessary during the circuit breaker and coped with safe distancing measures. Our citizens did their part to help manage this pandemic. Although the impact of the past five Budgets have made a great difference to many workers and businesses, the question is what next. As a country with no natural resources, we must always be mindful of digging into our reserves which is finite.
The last five Budgets with all the additional COVID-19 support measures have cost Singapore almost $100 billion. This year, our expenditure for Health has shot up to $18.8 billion. Defence will cost $15.4 billion and Education will cost $13.6 billion. Our deficit for this year is projected at $11 billion.
[+19 sentences] Members may also recall that during the National Day Rally in 2019, the Prime Minister said that it will cost $100 billion or more to protect Singapore against rising sea levels. Will we ever be able to put back the $100 billion withdrawn from our reserves for this COVID-19 support measures? I recall in 2011 that the Government returned the $4 billion which was withdrawn from the reserves for Jobs Credit Scheme. How will we be able to pay for the huge expenditure required for future development projects? Over the next week, during the Committee of Supply debate, we will hear many Members of Parliament asking the Government to do more and more for our citizens. And I hope that we will all exercise prudence and remember that the Government is but the trustee of all the taxes paid by all tax payers. Every additional tax relief or subsidy that Members ask for would mean that taxpayers would have to pay for those measures. No one likes to pay more taxes but yet, if we do not project for more tax revenue, we will not be able to fund those expenses which are necessary. We may not be able to help those who truly need additional help from the Government's measures. Sir, Budget 2021 contains various measures to help Singapore to emerge stronger as a nation. I agree with the general direction set by this Government to emerge stronger together. I think it is important for the Government to help our businesses transform so that they can create good jobs for our citizens and opportunities for all the businesses. We must be ready for a post-COVID future and build a stronger Singapore. Our citizens must also be equipped and upskilled to take up jobs which may be different from the current jobs that they are used to. We must never be complacent and think that our place in this world is guaranteed because Singapore had been successful in our earlier years. If our Singapore workers lose their desire to work hard, lose their hunger to be successful, other countries whose citizens are more hungry will step up to meet the challenge. Sir, I wish to sound a word of caution to my fellow Singaporeans. Last year was described to be an unprecedented year in which Singapore suffered one of the worst recessions in our nation’s history. However, when I read the real estate statistics shared by URA in January this year, I was surprised to find that prices of private properties still managed to increase by 2.2% last year.
Sale of private properties by developers and in the resale market did not slow down at all despite this recession. And despite the fact that there are many unsold properties in the market, URA tells me that there are 52,783 unsold units in the market which have already obtained planning approval.
[+2 sentences] Despite so many unsold units, residential property prices remain high as developers did not reduce their prices. In fact, agents tell me that some new developments which were launched recently in my constituency are priced at between $2,100 and $2,800 per square foot.
Friends in the car industry also told me that there were visibly more people in the car showrooms looking to buy cars. It was as if there was no recession at all, much less the worst recession in Singapore’s history. So, I urge the Government to continue to be fiscally prudent in its Budget. We need to save for another rainy day because we really have no other natural resources except our reserves.
[+1 sentence] I also urge Singaporeans to be mindful that we must all exercise financial prudence to prepare for uncertain times ahead of us.
COVID-19 has changed the way many businesses operate and many businesses have realised that they can operate their business from anywhere in the world without having to come to Singapore. Thus, we must never take Singapore’s continued success for granted.
[+1 sentence] Sir, I support the Budget Statement by the Finance Minister.
Mr Ang Wei Neng (West Coast)1880 words
[+19 sentences]Mr Speaker, Sir, I would like to first declare my interest as the CEO of ComfortDelGro Taxi. In the first year of the COVID-19 pandemic, we were like A&E, quickly reacting to where the blood flowed. We had an unprecedented four Budgets, where we swiftly came up with ways to help people and businesses cope with the loss of jobs and livelihoods. As we moved into our second year of the COVID-19, many of us learned to live in the new normal. It is no longer just an emergency. Instead of only viewing COVID as a crisis, we are now better able to re-orientate ourselves to seek out the opportunities, to boost Singapore’s future health status. As someone who is involved in the transport sector, I feel that COVID-19 gives us the chance to put in a place a more environmentally friendly and sustainable model of public transport which is also a better use of public resources. The key reason for this is how working from home has taken hold around the world, and in Singapore. I must confess I was not a fan of working from home. I did not believe that people could be as productive when they are in the comfort of their home, and surrounded by distractions. But what I saw during the circuit breaker period made me a convert. More importantly, I observed that for the first time in my life, the roads were empty and public transport was not crowded during the usual morning and evening peak hours, which is what we call the devil horns of public transport. The morning/evening peaks are the devil horns of public transport. Will working from home be a permanent feature of our working life? Even though cases in the community are low and we have started our mass vaccination exercise, MOM still advises companies to adopt working from home policies as a default option. Meanwhile, Chinese newspaper Lianhe Zaobao reported that more than 40% of Singaporeans would like to continue working from home after the pandemic. To get a sense from actual businesses on the ground whether working from home is here to stay, I conducted a survey of over 30 of my fellow CEOs in the private sector, ranging from large companies to SMEs. They include MNCs, law firms, architectural firms, financial institutions and manufacturing companies and so on. I asked them if working from home would be a permanent feature at their companies after the pandemic.
About 58% said it would not and citing reasons such as lower productivity, majority of the staff are operational staff, lack of opportunities for building camaraderie, for not endorsing working from home. The bright spot is that the remaining 42% said they would embrace working from home in the long run and they said about 20% of their staff would likely be working from home at any one time. If this is representative of the majority of companies in Singapore, we could take the opportunity to re-shape our public transport system. I would go further and suggest that we actively work toward having about 40% of organisations in Singapore commit to having about 20% of their staff to work from home at any one time.
[+11 sentences] One way we could go about this is for the Civil Service, which is the largest employer in Singapore, to weigh in and implement longer term working from home policies especially for the back-end and support staff. I remember when all sorts of incentives, like free travel on certain peak hour periods, were introduced to try to change commuter travel patterns, it took months, if not years, to take effect. COVID-19 achieved that in a matter of days. Without the devil horns, everybody has a more comfortable ride and it also benefits the environment. We should work to stop the horns from growing back. Indeed a report from the International Energy Agency states: “Research has shown that disruptions can be a catalyst for shifts towards more sustainable transport behaviours but avoiding a return to pre-crisis behaviours requires governments to take decisive action.” In the same report, it notes that most people are shifting to cycling, in order to avoid potentially crowded buses and trains. The same is happening in Singapore, though to a lesser extent, as sales of personal bicycles go up and bike-sharing companies report an increase in ridership. An example of the Government taking decisive action would be to invest in new and improved cycling networks to make sustainable transport more attractive and safer. On sustainability, I would like to move on to the topic of whether our bus services are sustainable. Currently, there are many bus services running alongside and duplicating MRT routes, which are costing too much money, according to Senior Minister of State Chee Hong Tat.
Senior Minister of State Chee Hong Tat also informed us that out of the 356 bus services in Singapore, only 11 services were profitable in 2019. The Government had to subsidise $1 billion to operate the remaining 345 services.
[+9 sentences] In 2020, only two bus services were profitable as bus ridership plunged during the pandemic. I could not be sure how much subsidy was given out in 2020, but logically, it would be over $1 billion. At the same time, we have made a huge investment into the MRT network. Our current MRT network is about 230 km and MOT plans to increase the network to 360 km by 2030. In the last Budget, it was already announced that the Government would be spending more than $60 billion this decade to expand and renew the rail network. After spending so much money, it is natural to encourage more people to use the MRT for longer distance travel, which are more comfortable and efficient, instead of taking buses running parallel to the MRT lines. What do I mean? The three longest bus routes in Singapore are service numbers 30, 51 and 61. Let me us service number 61 to illustrate.
For service 61, the bus ride from Bukit Batok takes more than two hours, calling on 19 MRT stations in between. If you take a train from Bukit Batok to Eunos, the travelling time is only 46 minutes – 120 minutes bus ride as compared to 46 minutes train ride.
[+5 sentences] The above example shows that it is better for bus services to connect people to the train stations within a town, and that is for the first and last mile connection. It is more efficient to travel between towns using MRT. Thus, I would like to propose a radical idea. Currently, many duplicate bus services ply through the Central Business District or CBD. And yet, the CBD is well-served by the MRT.
Most buildings in the CBD are within 400 metres of an MRT station. Hence, I propose that LTA consider having bus services terminate at MRT station bus stops just outside the CBD and have dedicated feeder bus services to ply within CBD, connecting all the interchange MRT stations.
[+30 sentences] There are many benefits associated with this proposal. Firstly, we can drastically cut the number of duplicate bus services and number of buses plying within the CBD, without compromising the service level. We can even allow only electric buses to ply within CBD. This will help to reduce air pollution within the CBD and contribute to the Green Plan 2030. Secondly, having all existing cross-town trunk services to terminate just outside the CBD will naturally cut short the trunk services, making bus services more reliable and cheaper to run. The resources saved can be used to improve bus connectivity within each HDB town. I am sure many Members in this House have received feedback from their residents on the need to enhance bus connectivity within their respective divisions. The most common grouses among my Nanyang residents is the inconvenience of getting to the polyclinic and back home. It is not uncommon that residents have to walk a total of 700 metres plus a bus ride or change bus services to reach the polyclinic. When one is unwell, a 700-metre walk is not pleasant. Reforming bus routes is not new. Seoul has done it successfully, by re-organising its bus system to create safer, more comfortable and efficient rides. I am not advocating we reduce the $1 billion subsidies for the bus services. I think it is necessary to subsidise public transport just like we subsidise healthcare. I am advocating making bus services more efficient, complementing the train network and adjust to changes in transport behaviour, including the trend of working from home. The worst option is to raise public transport fares significantly to cover costs if ridership remains low. The COVID-19 pandemic has its perils but it has also provided us the golden opportunity to keep the devil horns away and create a more environmentally friendly and sustainable bus system that does not compete with the MRT, but is in synergy. Mr Speaker, Sir, my last topic is pertaining to the Budget measures in relation to the incentives to promote electric cars. When similar measures were announced last year, it electrified the debate. This year, it has done the same trick again. Let me elaborate in Mandarin. (In Mandarin): Many car owners are wondering, why is the Government so eager to raise the petrol tax this year while the new incentive measures for electric vehicles will only be implemented next year? Moreover, there are few charging points for electric vehicles today and they can barely satisfy the existing 1,000 or so electric vehicles. This is not enough to encourage Singaporeans to buy electric vehicles. URA and LTA have already put up tenders to invite operators to install charging points to cater for 600-odd electric vehicles at more than 200 public carparks island wide. Most of the charging points will only be installed next year, in other words, water from afar cannot put out fires nearby. For taxi drivers and private hire drivers, the pandemic has significantly reduced their income. The increase in petrol tax at this time is like adding frost to snow. As the Government has said, taxi and private car hire car owners will enjoy a 15% road tax rebate of up to one year and an additional $360 in a four-month period. The total rebate for these two types of rebates is about $513.
For taxis that travel 400 km a day, the additional $1 per litre of petrol tax amounts to $663 additional cost a year.
[+4 sentences] The rebate of $513 is not enough. Fortunately, the Government has heard the taxi drivers' appeal and announced yesterday that full-time relief taxi drivers will also enjoy the additional $360 petrol tax rebate to further reduce the impact of the petrol tax hike. As far as taxi drivers and private hire drivers are concerned, I would also like to mention that it is unlikely that their income will improve before the end of this year. It is because it is unlikely that tourism will recover and nightclubs will reopen within this year.
The trend of working from home will continue. Hence, I urge LTA to consider extending the COVID-19 Driver Relief Fund to the end of the year.
[+1 sentence] (In English): Mr Speaker, notwithstanding the issues raised above, I support the Budget.
Mr Speaker4 words
[+1 sentence]Ms Poh Li San.
Ms Poh Li San (Sembawang)577 words
[+11 sentences]Mr Speaker, Sir, the COVID-19 pandemic may have caused a huge impact on economies around the world but this crisis has provided us with an inescapable fortuity to reassess the way we work and play. We need to reset. Before this pandemic, many of us were guilty of not exploiting digital technologies in our everyday life in purposeful ways. The pandemic has forced us to take an extraordinary digital leap in our daily practices. In a flash, an entire generation started to grasp digital tools in order to adjust to the new norm. Despite social distancing and self-isolation, we are all finding ways to connect with one another. Twenty-twenty was a year of disruptions and we had to disconnect to reconnect. COVID-19 is a game changer and has taught many of us about the importance of adapting and advancing. Just like a quote by Charles Darwin, "It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change." The pandemic has impacted different businesses and industries very unevenly. Inevitably, the pandemic will bring about new rising enterprises while traditional big wigs may be brought down to their knees.
To help the new rising companies and try to avoid the downfall of some big wigs, the Government has announced four additional Budgets with a supplement of nearly $100 billion. This Budget will: one, help certain sectors to retain, retrain and prepare workers to be ready to spring back right away after recovery; two, help companies transform themselves for the future digital economy; three, support the core and the worst hit sectors, such as aviation, land transport, arts and sports; four, co-fund new ventures in the areas of creative ideas; and five, help the high-growth enterprises and the startups to have continued access into financial capital.
[+6 sentences] The Government stands in solidarity with Singaporeans and will try to assist companies to adapt to the economic debacle that we are facing and there will be various assistance and grants. However, our workers and businesses must have the resilience to build their own muscles to innovate, have a creative mindset to reinvent themselves, be adaptable and be forward-thinking to compete against the best on the global stage. And we need to have the gumption and fortitude to succeed in spite of the risk of failure. In unity, we can emerge stronger. Last month, together with several fellow members of the GPC for MSE, we filed a Motion to accelerate and deepen efforts to combat climate change. And I am heartened to read about the Singapore Green Plan 2030 and the goals outlined by the five Ministries.
The green bonds on selected public sector infrastructure projects is a welcomed financing tool to catalyse the flow of capital towards sustainable development and to anchor Singapore as a green finance hub.
[+1 sentence] This will ensure that the access to capital for a large scale critical infrastructure is available to serve our next generations of Singaporeans.
Deputy Prime Minister Heng has announced that up to $19 billion of projects will be allocated towards developing our green economy. So I hope MOF and MSE will expand the scope for such green infrastructure projects so as to accelerate the pace of achieving the targets set out in the Singapore Green Plan 2030.
[+2 sentences] Budget 2021 is committed towards our long-term goals and sustainability and has given many Singaporeans renewed hopes after an uncertain 2020. Mr Speaker, Sir, I support Budget 2021.
Mr Speaker4 words
[+1 sentence]Mr Chong Kee Hiong.
Mr Chong Kee Hiong (Bishan-Toa Payoh)1180 words
[+7 sentences]Mr Speaker, Sir, after a year of combating COVID-19 and dealing with its unprecedented impact on so many aspects of our country, it is time for us to embark on the road to recovery. The world has been profoundly changed by this pandemic. It has pushed us to re-assess our priorities and forced us to adapt to new ways of doing things. For example, this crisis has accelerated digitalisation and flexible work arrangements. The crisis also presents opportunities in certain sectors and provides the impetus for new approaches. This Budget has some bold initiatives, particularly green ones, which I am delighted will be implemented. Like water, food security is a critical national issue.
I have always felt strongly about ensuring food security for Singapore, so much so that I had urged the Government for more sector support in this House a few times in the past. Hence, I welcome the decision to commit $60 million to a new Agri-Food Cluster Transformation Fund. The Fund will help us move towards the 30-by-30 goal of producing 30% of our food through local farms by 2030.
[+2 sentences] This will be no mean feat, considering that we are at less than 10% today. I understand the COVID-19 crisis has placed an enormous strain on our financial resources.
Nonetheless, I seek the Minister's assurance that funding will be increased when our economy recovers. I would also like to ask the Minister if the Agri-Food Cluster Transformation Fund is in addition to the $63 million Agriculture Productivity Fund (APF) launched in 2014.
[+21 sentences] Would the Minister share with us how much of the APF has been utilised to-date and provide a summary of the projects it supported, such as the type of farming projects and food production? It is important that we continue to develop this sector and ensure its viability, as this industry is perceived to be less profitable than other industries, such as manufacturing and financial services. The COVID-19 pandemic has highlighted the importance of locally produced food. We are fortunate to have adequate national food reserves and have been able to work well with our regional and global partners to keep borders open for goods to flow between countries so far. However, we should not take these arrangements for granted. We must be prepared for other crises in the future and the more local food production sources we have, the less vulnerable we are to supply disruptions. I am heartened to note that we are exploring and tapping upon available technologies to overcome our land constraints for food production, whether these are for fruits, plants, livestock, or new types of production, such as lab-grown meat. These are capital intensive but necessary for food security. To strengthen food security, besides sector-friendly Government policies and financial support, we need to develop a whole eco-system to make the agri-food sector a significant economic sector. We need to nurture a new generation of local expertise, while consulting with leading agri-food practitioners and researchers locally and internationally. We need new faculties in our ITEs, Polytechnics and Universities to prepare our people for jobs and careers in this sector. We should continue to support small local household and community farming endeavors too. The output from household and community farms may be small but every effort to contribute to our food security and resilience is important. As the saying goes, many little drops make an ocean. In his Budget speech, Deputy Prime Minister Heng mentioned, we need a whole-of-society approach to succeed in realising our sustainability goals. As the efforts to support supply side factors continue to strengthen, it is also important to increase consumer awareness and confidence in local produce to build up demand from our local population. As I have raised in one of my previous speeches, we should encourage a "Buy Singapore" mentality where Singaporeans choose local brands and products in an informed manner. "Buy Singapore" will not only help ensure the sustainability of producing local food but also reduce our carbon footprint, as transportation and refrigeration required to move and store food over long distances are reduced. In fact, "Buy Singapore" can also be expanded to include goods and services beyond the agri-food sector. There are other local industries that may potentially have an advantage in serving our domestic market. These should be supported and better funded to help them grow.
Buying products using materials that are preferably locally sourced and made here is another way of reducing one's carbon footprint. I full-heartedly support the Ministry's decision to issue green bonds to fund select public infrastructure projects.
[+7 sentences] Three years ago, I had suggested that we designate a proportion of our borrowings for green projects to be in green bonds issuance. Not only will this support the Monetary Authority of Singapore's aim of growing the green bond market in Singapore, Government issues will help develop a green bond market of a significant size. As ASEAN's largest green finance market, we account for about half of the cumulative ASEAN green bond and loan issuances. We can look forward to a more dynamic bond market with a greater variety of products to offer different investors. The bonds are expected to finance a wide range of green projects and I hope that the Government will include agri-food developments in these issues and its distribution can be sized such that even small investors can participate and do their part to support the growth of Singapore's agri-food sector. Many green and sustainability-linked projects will be pioneering initiatives and do not have track records. To enable current and new enterprises in these endeavours, I hope the Government will consider more risk co-sharing with investors and banks so that green start-ups will have higher chances of bringing their visions to fruition.
Lastly, I would like to appeal on behalf of motorcyclists, taxi and private-hire-car drivers for more support to defray their increased cost of operations due to the increase in petrol duty rates. While there are various measures to ease the transition, such as road tax rebates, cash handouts and petrol duty rebates, many of the users who depend on their vehicles for their livelihoods have shared with me their hardships and made their calculations. The rebates will not be enough to offset the higher duty rates.
[+3 sentences] The intention of the rate hikes is to encourage more green behaviour and reduce the purchase and use of vehicles using internal combustion engines. However, at this point in time, these users have no other alternatives but to use their current vehicles to earn a living. Many of them deliver goods with the proliferation of online orders.
They are not able yet to switch to electric vehicles due to sunk costs or infrastructural constraints. They, however, are faced with the immediate reality that the hike will increase their costs and cut their take-home pay.
[+2 sentences] I appeal to the Minister to consider providing more financial subsidies or rebates to help them tide over this difficult period or until they have time to switch over to electric vehicles. With this, I would like to conclude with my support for the Budget.
Ms Mariam Jaafar (Sembawang)2759 words
[+7 sentences]Mr Speaker, Sir, first, Happy Chap Goh Meh! Second, I would like to declare my interest as managing director and partner of a management consulting firm that does work in the area of sustainability and climate change consulting. COVID-19 has given us a unique opportunity – to "build back better". Mr Speaker, I am proud of the public commitments in the Green Plan, from planting one million trees to phasing out internal combustion engines by 2030. Climate change is absolutely the biggest existential problem of the 21st century, for the world, for Singapore. I am particularly proud that we are forging a brave new green economy, with new green jobs in green technology, including agri-tech, alternative fuels, the circular economy and also green financing and carbon markets and services. This is the big unlock.
The idea that we can grow our environmental sustainability and our economy, both together. So, I was perturbed when a young resident, Brian, said to me that he was ashamed to be Singaporean, because we are not doing enough; that Singapore's emissions are still rising at 2% to 3%; that we are among the worst in the world in terms of emissions per capita; that on the Climate Action Tracker website, we are squarely in the Red zone, indicating that our policies and commitments are, I quote, "outside of (a country's) fair-share range and are not at all consistent with holding warming to below two degrees Celsius, let alone with the Paris Agreement's stronger 1.5 degree Celsius".
[+5 sentences] Mr Speaker, I am not an activist. I am a consultant who works with businesses and Government. But I am also a lover of Nature and a global citizen who is deeply concerned about the world we leave behind for our future generations. And I think, it is important to look at things from all sides so that we can carve the best pathway to fit our needs and our aspirations and bring everyone along. Where do we stand today?
Singapore accounts for only 0.1% of global emissions.
[+2 sentences] In reducing emissions, we face constraints in our size and our geography. A complete shift to renewables is probably not on the cards.
While in our CBD, the "urban canyon" effect affects temperatures at the micro level. It is true Singapore ranks 27th highest out of 142 countries in emissions per capita.
[+2 sentences] But it is not surprising; we are a hub economy. Our status as a manufacturing hub, a trade hub, is the envy of the world.
Take Jurong Island – home to more than 100 oil and gas companies, and petrochemical companies, and investments of more than $50 billion.
[+34 sentences] Mr Speaker, you and I, and I am sure every one of our colleagues in this House, have residents who work on Jurong Island, or Changi Airport, or the Port of Singapore. Oil and gas, petrochemicals, aviation and shipping – these are all hard-to-abate sectors where direct electrification or shift to renewables is technically not yet viable or too expensive, but they are also a significant share of our GDP. For a hub like us, a better metric is emissions per GDP dollar, or emissions intensity, where we are in the best 20. As a hub, we provide goods and services to the world, and as a hub, we are already doing this more cleanly than most. Mr Speaker, the climate change space is fast developing. According to the International Energy Agency, 50% of global emissions reduction to reach net zero needs to come from technology that is still in the demo stage. Yet, we cannot underestimate the progress of technology, nor the power of the people, especially young people. There is a gathering momentum on carbon reductions from the demand side, from businesses, investors and government. I know because my clients are asking for advice. What if our trading partners introduce carbon border taxes – which Europe is already planning? What if pressure on net zero shipping cripples long distance shipping? Now, if that is not an existential crisis of epic proportions for Singapore, I do not know what is! In some sectors, a wait-and-see approach could be more risky than getting ahead of the curve. Mr Speaker, it does not look likely that we will meet the two-degree goal. We are unlikely to get to carbon negative by 2030 which is what it would take. But let us not be discouraged. Singapore has the potential to lead the technological innovations, the business model innovation, the necessary eco-system collaborations in order to push the techno-commercial limits around decarbonisation, and then turn all of it into our new exports. We did it before with water. We can do it again. Our economy will be more competitive, more resilient and we will be enabling, empowering the rest of the world to reach the two-degree goal. In short, we can lead the world. Surely, that is something to be proud of. Pragmatic problem-solving, innovation, execution – that has always been the Singapore way. We aim for best in class, but we know that this will evolve over time, so our approach must be a humble, learning approach – learning from the past, learning from others – as we position ourselves to lead in policy, technology, collaboration and advocacy. As we build and learn, I call for the Government to stay open to revisit our commitments and put in more aggressive targets over time because a bigger ambition drives the pace of innovation, gives businesses and investors the confidence to invest, and gives us the licence to engage more broadly – to lead the world. Mr Speaker, I would like to propose three ideas where I think there is scope for us to invest more so that we might lead the world. I will focus on decarbonisation, leaving the also important restoration of our natural habitats and nature-based solutions to others. First, double down on the sectors for which Singapore can be the world's most sustainable hub; in doing so, increase our value-add and our competitiveness. There are sectors where because we are a hub, Singapore has an opportunity, and indeed, some might say, an obligation to define the 21st century vision for the sector. I highlight two today: petrochemicals and shipping. There are more than 100 petrochemical companies with major operations in Singapore, mostly on Jurong Island. This manufacturing base and our position as a trade and logistics hub for petrochemicals make us uniquely positioned to incubate and scale technology, solutions and services to enable a green petrochemical supply chain. With best-in-class sustainable assets, and symbiotic relationships across the eco-system to unlock collective benefits and drive resilience in the face of externality pricing. Now shipping.
Normally shipping generates 2% of global greenhouse emissions. As a country it will be the sixth largest.
[+9 sentences] There is growing policy and social pressure to decarbonise shipping. The Maersk Mc-Kinney Moller Center for Zero Carbon Shipping is a coalition that has been established to drive the maturity of decarbonisation technologies in shipping, with seven founding partners. But it is European-centric. An Asian platform is lacking. Singapore can set up or enable a similar coalition in Asia. Mr Speaker, many green economy jobs will be technical and engineering work. Thanks to our development history, we have a strong local core in areas like process engineering, energy management, control systems, from the vocational level to advanced engineering. We can be optimistic that this time, with some training, it is our Singaporean workforce who will benefit most from the transition. My second proposal is to push forward on international and regional engagement, coordination and leadership, starting with ASEAN.
The 10 ASEAN economies contribute 7.5% of global emissions.
[+2 sentences] Four of them are in the top 10 countries in the world most at risk from climate change. Singapore is not one of the four.
The countries have very different carbon intensities, with Indonesia accounting for more than 60%.
[+45 sentences] Indonesia emissions from land use, land use change and forestry – or what we call LULUCF in the industry – are higher than their forest carbon sinks while Malaysia and the Philippines have net negative emissions from their carbon sinks. There is scope for collaboration – things that can be done at scale. Carbon capture, utilisation and storage (CCUS), expensive in Singapore, but, with cross-border carbon sinks, we may be able to get the economics to work. Singapore could tap on regional renewable energy grids while providing carbon offset markets and green financing to complement our neigbours’ green efforts. We can lead the region down a collective 2-degree path; an ASEAN 2-degree path that plays to our individual strengths. My third proposal is to be innovative in encouraging individual actions. Many of us in this House have made our green resolutions – from metal straws to collecting rainwater to planting trees. In the Budget, the Government will partner Singaporeans and support ground-up projects. I hope, I know, our wonderful youths will pick up the baton and push the boundaries. But we cannot just preach to the converted. For the ambivalent or the sceptical, it can be hard to make climate change relevant. It can be harder still to get Singaporeans and Singapore companies to pay more to go green. We cannot simply tout statistics. We cannot simply tell people they must pay more, we cannot simply tell them to stop doing something. But we can provide a vision of a sustainable Singapore in a way that appeals to both reason and emotion. I believe that one way is through stories, poetry and literature. So, let us bring our creative arts community into this campaign. Then let us encourage all who have a stake in Singapore – individuals, families, communities, SMEs, corporates, to commit to climate change action. An inclusive transition. We all hope for an inclusive transition, one where the disadvantaged are not further left behind. One that is free from the hypocrisy and power plays that, I hate to say, are often thinly veiled in their space. An inclusive transition means advocating to support developing countries to mitigate and adapt to climate change. Developing countries suffer the brunt of the impact of climate change, physically through flash floods, the destruction of flora and fauna, disease outbreaks and whole islands sinking, as well as economically through lower crop yields, for example. At the same time, many emerging countries exhibit high emissions intensities. The developed nations are reducing their emissions, but it is a case of been there, done that. Many developing countries, especially in Asia, are still industrialising – iron, steel, cement will be needed for years to come. Developed countries have been able to mitigate their emissions partly because global manufacturing has migrated to emerging markets that have invested heavily in energy, in particular, coal. The average age of coal plants in Asia is only 12 years versus a useful life of 50 years. The cost to transition is, therefore, huge. China, perhaps, can do it. But many emerging markets will need help – aid, debt assistance, technical assistance. Singapore can advocate for their voices to be heard, not to give them excuses, but to get them help from the advanced economies. We ourselves must be happy to help, happy to share our expertise and platforms in technical and financing aspects because that is leadership. An inclusive transition also means considering and mitigating the impact on the most vulnerable people, including lower income groups whose livelihoods depend on the carbon economy, for example, taxi and private car drivers and delivery riders. Many of my colleagues have talked about them today. The petrol duty hike is an immediate hit to their pockets when many are already struggling. One resident told me that he needed to drive the equivalent of an extra day to make up for it. The rebates help but, may I ask, for how long will this be extended for this particular segment? The duty hike comes when alternatives do not yet really exist, certainly not for this segment. Actually, I take that back. There is one alternative – e-bikes that many switched to after the PMD ban. But Mr Speaker, it was with despair that I learnt that e-bikes are being financed in the market at exorbitant interest rates. We have got to stop these predatory behaviours. It is just not fair. Further, as technology continues to accelerate, driverless cars will become a reality.
An inclusive transition must, therefore, create new green jobs, with training and reskilling, so that the most vulnerable will directly benefit.
[+5 sentences] Mr Speaker, I would like to continue in Malay. (In Malay): Climate change is going to affect all us, and more importantly, our children and our children’s children. It is a matter of life and death. Technology will play a big role, but we also need to change how we produce, consume and dispose. The government’s Green Plan articulates a compelling vision where taking care of the environment is no longer seen as at odds with economic growth.
New jobs will be created in the new Green Economy, in fields like engineering, carbon services and green financing.
[+1 sentence] Many of these jobs will require a good foundation in Science, Technology and Engineering (STEM).
Although our Malay community has made progress overall in tertiary education, we remain underrepresented in STEM fields.
[+3 sentences] It is already hurting us in the digital economy. Let us not miss the boat in the green economy. Instead, let us identify the root causes, the key steps where Malays fall out – be it when they choose what to study in school, or when they choose their first job, and address those.
The Government, schools and M3 must help Malay youths and Malays in the workforce to get an equal chance at developing interest, knowledge and skills in STEM, including green technologies.
[+28 sentences] This exposure must come early. It means creating an environment that is attractive and conducive for Malay students to choose STEM courses and careers, for example, by ensuring that Malays are part of the faculty, providing better support systems and building confidence. I have spoken to a Malay youth in Woodlands. Despite qualifying for Junior College, he decided to take the Polytechnic route. I found out that he had shown promise in Science and Math, but ultimately chose to go into another field. The reason was, the youth was uncomfortable, felt that he did not belong, there were few Malays. He also believed that the STEM fields will be harder and yet the returns he might get or the levels he might get to will be commensurate. Mentorship and role models are key. Malays in the workforce should have access to and take advantage of the training and reskilling required to support the transition to the new green economy and further their careers there, as part of a broad-based workforce transition or as part of a commitment to diversity and inclusion among our companies. At the same time our young Malays and their parents must be proactive to position themselves in the new green economy. They must hone their skills and learn, from Malays and non Malays, in the STEM fields. M3 must provide the platforms and the outreach. Mr Speaker, as a community, we Malays love nature, which is an important element of sustainable development. We must ensure that all in our community join in this climate change discussion – not just the fortunate few. (In English): We are all in this together. The Green Plan outlines a whole-of-nation approach to climate change. And that is what it takes, the whole nation and our partners, to unite in this fight. We are all in this together. Mr Speaker, the world lauds our Government’s exceptional handling of the COVID-19 crisis. But good governance is only part of it. Our success has been because our people trusted that we are doing our best to keep us safe during this crisis. Devastating as the COVID-19 crisis has been, climate change is an even bigger crisis, with even higher stakes. I hope that, again, our people, our businesses, our partners will trust that we are doing our best, not only to keep us safe, but to keep the world safe; not only today but for future generations. And that they will push together with us to lead the world. If we do this, Mr Speaker, I am sure Brian will feel proud that we are, indeed, doing our best. I am sure he will feel proud to be Singaporean. Mr Speaker, thank you for the opportunity. I support the Budget.
Mr Speaker4 words
[+1 sentence]Mr Zhulkarnain Abdul Rahim.
Mr Zhulkarnain Abdul Rahim (Chua Chu Kang)1493 words
[+17 sentences]Mr Speaker, we are at an important part of our nation’s recovery from one of the deepest economic downturns ever experienced, due to COVID-19. While we have steadied the ship, this storm is far from over. Although the wind is still not behind our sails, we are making headway. However, we face significant headwinds when, all around us, the pandemic is still raging. Turbulent times still lay ahead on the horizon. In my maiden speech last year, I spoke about strengthening connections and the building blocks of our society in these uncertain times. Hence, I welcome this Budget which focuses on strengthening our people, our businesses and our reserves for the future as we emerge stronger together. I will be elaborating in the Committee of Supply debates but, for now, I will broadly outline three areas that we should strengthen: first, our relations with neighbouring countries; second, our social fabric as one united Singapore; and third, sustainability for our future generations. The first part. The Council of Foreign Relations stated in April 2020: “Singapore, one of the world’s wealthiest and most trade-dependent countries, punches above its weight in regional and global affairs”. This does not happen overnight or by chance, but by deliberate design, decisive actions and purposeful policies over the years. Singapore’s economy depends heavily on trade. In times of crisis, however, some nations tend to look inwards, preferring protectionism over partnerships, sheer competition over collaborations. We cannot afford to do that. COVID-19 has reinforced how important it is for Singapore to continue to play an active role internationally and deepen our interactions with key stakeholders and other countries. I think that maintaining and strengthening relations with our immediate neighbours will be more critical than ever to overcome the socio-economic impact of COVID-19, particularly in ASEAN. I have two proposals here.
First, we should look and work towards having more travel bubbles with strategic countries as the situation improves.
[+1 sentence] This promotes not only more business travels and encourage more Singaporeans to take advantage of overseas opportunities, but it would also allow the flow of people and reconnection of families who have been kept apart in this pandemic.
Second, we have to invest in Singapore’s long-term infrastructure to prepare ourselves against future pandemics even after we see the end of this one, which may be another four to five years away.
[+7 sentences] For instance, with Connect@Changi, quarantine-free business travel is made possible. It is hoped that aviation, tourism and retail businesses can benefit from it, thereby enabling gradual economic recovery. The second part – strengthening our social fabric. We have started living life more normally with less restrictions, at an earlier time compared to other countries. And as we recover and adapt ourselves to a post-COVID-19 world, we have to engage and empower Singaporeans to play an even greater role in our Total Defence. We should tap on our strengths as a multi-racial society. An SMU study had found that people living in more racially diverse neighbourhoods are more likely to lend a helping hand to others in need.
Their surroundings made them appreciate that they are all members of a collective and broadened their sense of identity, enabling them to see others as their own. I am thus happy that Budget 2021 focuses on strengthening our social compact, with the expansion of ComLink, greater support for children with special needs and assistance to lower income households through various schemes.
[+14 sentences] There are some groups, however, that still require more targeted assistance than others. First, ex-offenders, upon prison release, face not only social stigma but real struggle to obtain and retain jobs in this already harsh economic climate. Second, our youths are now exposed to more radicalised views and deliberate efforts of disinformation around the world. We need to actively engage them and have them invested in their stake here in Singapore. And third, families, due to significant economic pressures, are more exposed to domestic violence. We must do what we can to protect vulnerable groups, like children under the age of 12 or those with mental and physical disabilities. I welcome the greater resources for these vulnerable groups and those facing domestic violence. Rehabilitation and reintegration efforts for ex-offenders, especially those with drug offences, must be done in concert with their families and strategic social and business partners. We can also adopt technology to tackle recidivism. For instance, a US-based app called Pokket SM, facilitates information sharing and coordination among case workers, probation officers and ex-offenders. Through connecting justice agencies and human service providers, it encourages and sustains self-sufficiency and accountability. The third part of my speech is on sustainability for future generations. If COVID-19 is a crisis of a generation, then climate change is a crisis for all generations. I applaud the Government’s Green Plan 2030, particularly on agri-food technology, green financing and electric vehicles.
Keat Hong is home to many of our local farms in Lim Chu Kang and Kranji. Hence, the $60 million fund to boost production in the agri-food sector is welcomed.
[+4 sentences] I hope that this will spur adoption of technology and make our food security more resilient. Next, the plan to support green financing with up to $19 billion of public sector green projects is a good start. The green bond market is a growing and innovative market, which has grown from US$1.5 billion in 2007 to surpassing US$100 billion in 2019. Green bonds attract a new base of investors and it can advance adoption of innovative new technologies and finance projects that provide green jobs.
Last year, Keat Hong CC played host to a Sustainable Job Fair organised by South West CDC, SembCorp Industries and e2i. It was the first-of-its kind sustainable jobs discovery in the heartlands and part of the South West CDC’s efforts to aggregate jobs in the growing sustainability sector, such as the solar and clean energy.
[+1 sentence] Many thanks to Mayor Low Yen Ling for this.
On green financing, I propose a public awareness campaign on the Singapore Green Plan and building strong partnerships with banks and investors in the region.
[+1 sentence] Green bonds in our region, also extend to non-conventional bonds, like Green Sukuk as well.
Lastly, on electric vehicles or EVs, as stated in my previous filed Parliamentary Question, we should not only look at the infrastructure, but also the legislation and regulatory framework to mandate possibly the installation of more EV charging stations in private residential and commercial carparks.
[+24 sentences] Other possible incentives can be to lower ERP rates for EVs and, with future technology, there can be a "progressive" road tax model that charges vehicles not only on time spent on the roads but also on actual carbon emission. On adoption of EVs, I suggest the Public Service should lead the way by having more EVs and EV charging stations in its premises. Mr Speaker, Sir, allow me to say a few words in Malay before I conclude my speech. (In Malay): This Budget aims to build on last year’s efforts. We are not yet free from this pandemic. In fact, without last year's budget and support schemes, our economic situation and employment rates this year would have been much worse, unlike the current situation. So, we are not only grateful for the effort, toil and sweat of our frontline workers, but we should also thank all segments of society who have come together to pool their energies and ideas with the Government, to face and combat this pandemic together. One of the focus areas of this Budget is to further strengthen the social compact of our country. This cannot be achieved without the help of all communities. Each of us plays an important role. Here, I share a quatrain: This quatrain depicts a highly regarded Malay warrior who is seen as a beacon for those who are struggling to stay afloat or need support to survive. So, let us all help those in need to stay afloat and give them support. (In English): Mr Speaker, Sir, in summary, we cannot let the difficulties faced by businesses to spiral downwards. Hence, I am glad that there are targeted schemes to help them. We cannot allow disappointment of laid off workers to turn to despair. Hence, we should work to reskill them. We cannot stand for vulnerable groups in our society to be devoid of hope. Hence, we should speak up for them. We cannot kick the can down the road for our children to tackle climate change. Hence, we should tackle it now for them. I am glad that this is the spirit of Deputy Prime Minister Heng Swee Keat’s Budget Statement and it has underscored the actions that will be taken right here, right now. The theme of this Budget 2021 "Emerging Stronger Together" resonates with me. Because if we persevere, stay the course and navigate through the storm, then we will be the ones making the waves in this ocean. Mr Speaker, I support this Budget.
Mr Speaker4 words
[+1 sentence]Mr Christopher de Souza.
Mr Christopher de Souza (Holland-Bukit Timah)2138 words
[+14 sentences]Mr Speaker, Sir, what does one say as the last speaker – sandwiched between the second last speaker and the Deputy Prime Minister? So, I must thank the Leader of the House for giving me this unenviable task. But I will do my best. Mr Speaker, last year, through the four Budgets, we assisted many Singaporeans in their time of need. I believe this year’s Budget is a continuation of that spirit, that is, timely aid to citizens and companies in need. Sir, Singaporeans have risen up to the occasion and taken ownership and responsibility in this crisis, helping their neighbours and friends, and giving to those who need it more than themselves. I believe that COVID-19 has shown the world the best of Singapore and how we have stood together to overcome. The pandemic has revealed our common humanity. It is with this spirit – of a common humanity and our common identity as Singaporeans – that I wish to speak today. My first point is how we should strive towards becoming one united Singaporean family. Multi-culturalism is a significant ingredient in our Singapore tapestry. Unity does not mean homogeneity. In fact, as we continue to embrace multi-culturalism and diversity, and the more we understand the differences and the richness of each culture, the tighter our social fabric becomes. We do value the diversity in our ethnic heritages.
The self-help groups, such as CDAC, SINDA, Mendaki and the Eurasian Association, play important roles in keeping ethnic heritages alive in modern day Singapore.
[+3 sentences] It shows that we value the different cultures inherent in our society and aid each subsequent generation to become familiar with the traditions and outlook of each ethnic group. These self-help groups help their individual communities while also carrying out joint inter-racial events. This helps foster both the bonds within each individual community and also the bonds in the larger Singaporean context.
Another example is the Ethnic Integration Programme within HDB estates.
[+3 sentences] I support this as it is in line with the spirit of enhancing ties between people of various ethnic backgrounds who become neighbours and who then share common environments. I believe that as we continue to strengthen and understand different ethnic communities, and as our diverse culture and heritage become more and more a part of Singapore, race will become less and less a factor in evaluating a person. In fact, I would dare say that race matters less in the minds of Singaporeans, especially those who are younger, in comparison to their nationality, than that of being Singaporean.
I think the identity marker in my age group of Singaporeans and younger is: Singaporean first, and ethnicity second.
[+1 sentence] But what does that mean for politics?
I think that means that when choosing a candidate to lead the Government, the choice must be the best man for the job, regardless of race.
[+15 sentences] Instead of being evaluated based on race, we can evaluate based on more robust factors, such as the person’s character, abilities, values and experience. Politics is about leadership. In my personal view, ceteris paribus, when it comes to leading the Government, I think it should be the best man for the job, regardless of race. So, if there is a Singaporean Chinese candidate of the right age and with the right character and the right skillset making him the best man for the job, he should be chosen for the job. If there is a Singaporean of a minority race of the right age and with the right character and right skillset to be the best man for the job, I think he should be chosen for the job. Leadership within the Government comes with years of experience and years of being an elected Member within this House. It could easily be 20 years before an elected Member becomes a Prime Minister and, by that time, the familiarity and connection that people would have with the Minister would count for more than just his race. COVID-19 has shown, more than ever, the need for good government and good leadership of and in government. I know many people my age and younger do want the best man to lead the Government, regardless of race. Some may say I am being overly idealistic, to the discount of pragmatism. I beg to differ. Why? Because the very idea of a multiracial, multicultural Singapore was an ideal, an aspiration, born, literally, from the tears and the sweat of our founding fathers. And inch by inch, year by year, we grow closer to making it a reality. Are we there yet?
I believe we have some way to go. But my wish for Singapore is that, one day – perhaps when deciding the 5G or 6G Prime Minister – race is not used as a trump card or a disqualifying criterion.
[+16 sentences] We are too small a nation to discount a man based on his race. This is my view, based on my personal belief. Mr Speaker, I hope this House can understand the point I am getting at. I am not saying race is not important. Neither am I saying race should be used to dichotomise and polarise. I am firmly of the view that multi-racial Singapore is important and we should not dilute the significance of race and what it can bring to the table. In fact, it brings such a rich tapestry such that many parts of the world can see themselves in us, in Singapore. But when it comes to leadership of government, we should not discount anybody because of their race, but instead evaluate the candidate based on who is best for the job. I hold this belief. I know many in my age group and younger hold this belief firmly too. Maybe this will happen in 15 to 20 years' time when the party holding the majority of the House chooses the 5G or 6G Prime Minister of who the 5G or 6G Prime Minister should be. However, it being 20 years away should not deter us from having such conversations now. I do not want any room for my speech to be misinterpreted. So, let me say categorically that I do believe that our Prime Minister is the best man for the job. And I also do believe that the 4G Ministers have chosen the best man for the job to eventually lead their team. So, nothing in my speech should distract from those conclusions.
The point I am making in this speech is that it should be the best man for the job regardless of race, or dare I say the best person for the job regardless of race, for I do not see why a woman with outstanding leadership ability should be discounted.
[+32 sentences] Look at Angela Merkel – a woman leading a solid government. Singapore is small. If we were to straightjacket our perception of talent, we could very well lose out on the best person for the job. Being a Singaporean is the key identity marker in Singaporeans of my age group and younger. The second identity marker – that of race – comes after the first identity marker – which is, being Singaporean. I mean this personally. It comes from deep within and I would like to share a story that speaks to the heart of these beliefs of mine. My wife and I have four children aged between one and 12 years old. Our second daughter was adopted. Her ethnic lineage is pure Chinese and we adopted her at birth in Singapore. What happened was that there was a young Singaporean Chinese woman who found out she was pregnant. She decided to carry on with her pregnancy, delivered the baby and put the baby up for adoption. She got in touch with a Christian charity who helped place babies with adoptive families. My wife and I had put our names down with the charity as potential adoptive parents. And then, we received the phone call. My wife and I prayed about it and took the leap of faith in adopting this little Singaporean Chinese baby girl. Today, my daughter is completely part of our family. She is the younger sister to our first daughter and dotes on her two younger siblings. All our children are loved and treated equally, and are being brought up first and foremost as Singaporeans first; and secondly, as Singaporean Eurasians. So, what then is race? If it is merely defined by virtue of blood lineage, our second daughter would be Chinese. But if it was also defined by culture, then living experience would play a part too. My second daughter put up the Chinese New Year decorations made up of hongbaos around our house this year. But during the Christmas season, she would eat all the Eurasian fare on the dining table, including sugee cake and even ask for seconds. To pre-empt her wondering why she looked a little different from her older sister, my wife and I told her when she was very young, "You came from your tummy mummy; but you were born in our hearts." It is the same way I view Singapore – we are all given life from our mother's wombs but we are all born with Singapore in our hearts. So, when I say being Singaporean is the pre-eminent identity marker of a citizen and that race is a secondary identity marker, I believe that firmly. There is no binary lens with which one should view race such that race completely does not matter or always matters to the discount of everything else. It is a spectrum – a spectrum that is a continuum within which my daughter, of Singaporean Chinese lineage and living in a Singaporean Eurasian home, is completely comfortable. Race is an asset to make the tapestry of Singapore culture richer and our identity fuller. So, let it not divide us but unite us in always choosing the right person to lead our Government. The next point I want to make relates to adoption, a point which I have shared, I care deeply about.
If we can create an environment in which couples who are unable to have their own children but who would love to have children and want to adopt can be placed in touch with the database of prospective mothers in Singapore, wanting to offer their babies for adoption, this would benefit both parties. But for this to happen, the pregnant women must be told of this option. I have had discussions with MSF over many years and I hope they will close the loop with me and inform me how the counselling for pregnant women, to ensure that they are aware that adoption is a good and feasible option, has improved.
[+11 sentences] Mr Speaker, I return to my point about our common humanity. As I have said, the pandemic has shown the strength and depth of our community bonds, as people reached out to those around them and blessed their neighbours and helped the vulnerable. But there is a particular group of vulnerable people who are not afforded the same protection that other citizens have. These are the stateless people living in Singapore. They do not vote but they, too, need a voice in Parliament. Many have grown up in Singapore and many were even born in Singapore. They live here, work here and have families here. Yet, because their parents failed to register their birth at the time of their birth, some are denied citizenship and live their lives as stateless people. This impacts them in their daily life as some struggle to open bank accounts, buy or rent houses and even find a job. Such difficulties present a very real challenge for them. It leaves them in the lurch and vulnerable.
Today, I have spoken a lot of what it means to be Singaporean. I believe giving stateless people living in Singapore citizenship or at least PR status would go a long way in giving them something to be rooted in – the identity of being a citizen.
[+11 sentences] Allow me to conclude, Mr Speaker. This pandemic has brought the best out of Singapore. We have something precious here in Singapore. First and foremost, our people. Secondly, our Government working with the people, like a formidable aerobatics team weathering the storm in tight formation. The pandemic has not deterred Singapore's determination to build a better future for our children. The Jewel still stands at Changi Airport. Olive trees still grow on the equator at Gardens by the Bay. And we are not done turning a mudflat into a thriving metropolis. And inch by inch, yard by yard, we strive in this House – and out there in the streets – to become a more united country, regardless of race. And that is a future worth fighting for.
Mr Speaker6 words
[+1 sentence]Deputy Prime Minister Heng Swee Keat.
The Deputy Prime Minister and Minister for Finance (Mr Heng Swee Keat)16210 words
[+36 sentences]Mr Speaker, Sir, I thank Members of this House for the 15 hours of robust debate, which saw 65 Members speaking. Normally, the Round-up speech is shorter than the Budget speech but this year, it may be different. I also want to thank Mr Christopher de Souza for his very moving and personal speech of what it means to be a Singaporean. And also let me thank Mr Liang Eng Hwa, Chairman of the Government Parliamentary Committee (GPC) for Finance and Trade and Industry, for laying out the big picture and key issues clearly. Mr Liang spoke about supporting our people through the immediate pain of the crisis and the need to take action to emerge stronger. Importantly, he did not shy away from the difficult conversation of how these important measures need to be funded and offered constructive suggestions. This sets the stage for this House to discuss the way forward. I also thank Ms Foo Mee Har who not only spoke passionately about supporting our people and businesses, but also suggested how to do so in a prudent and sustainable manner. Over the last few days, the passionate debate went along a few threads. Some Members elevated the debate to help Singaporeans appreciate the changing landscape and the need to act. Some Members highlighted the importance of our reserves, the bold and decisive response mounted and what it achieved. Unfortunately, some argued selectively without acknowledging the broader impact of COVID-19 and the outcomes of the Government's decisive interventions. Before I dive into the issues raised by Members, I want to situate Budget 2021 and Singapore's future within the larger forces sweeping the world. Singapore sits at the crossroads between the East and the West. It is a position that we have harnessed to maintain our relevance to the world amid the flux and changing tides of global political and economic developments. But we cannot take our standing in the world for granted. It is something that we have to painstakingly maintain, as the world and region evolve, so that we remain relevant. For some time, we have observed the gradual geopolitical and technological shifts. The world was slowly adapting to a rising China, which found its place alongside the US as an economic and military powerhouse. Inevitably, there has been some friction. Fortunately, the deep interdependence of markets and supply chains served as a stabiliser for world order, as well as international trade and commerce. But COVID-19 disrupted this tenuous equilibrium and accelerated bifurcation and change. Overnight, this virus revealed the vulnerabilities of inter-connected supply chains. The race for vaccines and the rush for economic recovery have also surfaced nationalist tendencies. These events will play a significant part in countries' and businesses' calculations, as they rebuild their value chains and business networks. Countries will seek for greater onshoring of their key industries for resilience. Businesses may re-think their globalisation strategy and approach, giving more weight to resilience and reliability. Singapore can capitalise on them to emerge stronger, become more competitive and remain relevant to the world. First, nations and businesses will place a high premium on partners and locations which are reliable and predictable in their dealings. This is where we can leverage the strong Singapore brand, globally trusted for long-term planning, openness and reliability. Second, as the flow of people pulled back because of the lockdowns, the flow of digital information and knowledge spiked. There is potential for Singapore to ride on the rise of technology adoption and digital economy. Third, climate change is a threat for humanity. We must do our part, create new opportunities from the global interest in sustainable development. My Budget Statement laid out our strategic plan to capitalise on our strengths and to double down on our commitment to invest in connectivity, digitalisation, the green economy, and of course, our people. So, I will round up this Budget Debate by speaking on Members' contributions along three themes: our economic strategy to emerge stronger; a cohesive and liveable Singapore and a prudent fiscal strategy for the long term.
Last year, I committed close to $100 billion to fight this crisis.
[+4 sentences] Since then, I have heard many views on the appropriateness and adequacy of our economic response. Some have called for more support, while others have asked if we are doing too much. Let me recap the context. COVID-19 has caused the worst global economic crisis since the Great Depression.
Globally, real GDP is estimated to have fallen by 3.5% in 2020, equivalent to a drop of close to US$ 5 trillion dollars in economic output.
[+1 sentence] Many countries experienced full-year recessions in 2020.
Sectors like aviation and tourism felt the brunt of the impact, with 1 billion fewer international arrivals in 2020 – a 74% drop. Labour markets were disrupted on an unprecedented scale, with 8.8% of global working hours lost relative to the fourth quarter of 2019.
[+4 sentences] This is equivalent to 255 million full-time jobs. Economists also warn of possible scarring, with long-term GDP losses, rising public and corporate debt, higher hurdles on capital spending, and continued rise in unemployment levels. We disbursed a total of $27.4 billion in grants to provide relief, preserve jobs and help firms build capabilities to pivot to new growth areas – more than 18 times the amount disbursed in 2019. As many Members including Mr Liang Eng Hwa and Mr Desmond Choo thoughtfully reminded us, we narrowly averted a much deeper recession and scarring.
Our fiscal and monetary policy measures are estimated to have prevented a further 6.6 percentage points in GDP contraction last year, and mitigated the rise in resident unemployment rates by two percentage points – or about 155,000 jobs. While our economy contracted sharply in the second quarter of 2020, compared to the fourth quarter of 2019, the rebound over the next two quarters recouped about 80% of the output lost.
[+8 sentences] More details of our early findings can be found in the interim assessment of the COVID-19 measures that MOF released earlier this year. The impulses from last year's measures continue to flow through the economy to complement Budget 2021. The combined effects of the two years' Budgets imply a material support to GDP in 2021. Our calibrated strategy to support businesses and protect livelihoods has seen positive outcomes for firms and workers. We tilted support towards the hardest-hit sectors to help them retain core capabilities and prepare for recovery. Today, some of these sectors are starting to see light at the end of the tunnel. For example, with the phased resumption of activities domestically since June 2020, the consumer-facing sectors, including retail and food services, saw a gradual recovery to around 85% of pre-COVID-19 output levels by Q4 in 2020. Many firms have made good use of the support we rolled out.
In 2020, $18 billion worth of loans to 21,000 enterprises were supported by Enterprise Singapore's financing schemes.
[+12 sentences] Almost all recipients were micro, small and medium-sized enterprises, or SMEs. Enterprise Singapore also supported more than 15,000 companies in raising productivity, going international and undertaking innovation projects. This is 54% more than in 2019. So, I am glad businesses were taking innovation more seriously during this COVID-19 period. Mindful Movement was one such beneficiary. When COVID-19 struck, the yoga studio halted on-site classes. After consulting an SME Centre, Mindful Movement tapped on the Productivity Solutions Grant to transit their classes online. Today, they continue to offer both online and physical classes, to provide clients greater choice and flexibility. For sectors that remain badly affected, I will continue to provide targeted relief and support to help them transform and reposition themselves for recovery. On the workers front, the SGUnited Jobs and Skills Package has helped to cushion the labour market fall-out and preserve the livelihoods of Singaporeans. Many jobseekers joined industries with a promising growth outlook through the Jobs Growth Incentive, or JGI, and drew the same or higher wages. The Ministry of Manpower will provide more details at the COS.
Nearly 76,000 local jobseekers were placed in jobs and skills opportunities through the SGUnited Jobs and Skills package between April and December last year.
[+27 sentences] Close to 80% of them were placed into jobs. Of these job placements, six in 10 were long-term jobs. Growth sectors such as InfoComm Technology or ICT, healthcare, and manufacturing, accounted for most of the placements. We tilted support towards mature jobseekers, recognising the higher hurdles they faced with career transitions. Based on preliminary estimates, mature workers aged 40 and above accounted for about half of the first 110,000 JGI beneficiaries, and about half of the 76,000 locals placed in SGUnited jobs and skills opportunities. This includes more than 8,000 mature jobseekers placed last year on career conversion programmes, like the TechSkills Accelerator and Professional Conversion Programmes, or PCPs. These schemes enable trainees to reskill for jobs with good growth prospects. For example, about seven in 10 PCP participants earn higher wages after starting their new jobs. Mr Goh Che Yong has been in tourism for close to 24 years, dealing in traditional sales for walk-in customers. He witnessed the digital disruption to the industry. At 55 years-young, Che Yong embarked on the Professional Conversion Programme for Digital Sales Executive with Siam Express last March. Although he was still in the same travel industry, moving from traditional to digital sales was not easy. But with the structured training, he gained confidence. Che Yong now applies his newly acquired digital skills in his job and enjoys exploring new ways of packaging holidays for a post-COVID world. We averted a "COVID generation" of workers and students by preserving human capital and enhancing their employability. Compared to the 2019 cohort, although full-time permanent employment fell by about 10 percentage points, overall employment rates for this year's fresh IHL graduates remained similar to past years. In particular, 94% of autonomous university graduates in 2020 found employment or got into a traineeship within six months, compared to 91% in 2019. The SGUnited Traineeships programme has contributed significantly to this outcome. It has placed close to 5,400 recent graduates into traineeships, to help them gain useful skills and industry experience, and prepare them for the recovery. Some have already landed full-time jobs. Mr Chen Jiahao embarked on a traineeship last year with Taiger Singapore, an Artificial Intelligence, or AI start-up. Although he had no prior experience in AI or data science, the traineeship enabled Jiahao to pursue his dream of working in deep tech. He picked up new skills quickly and developed a Natural Language Processing model to perform information extraction. Taiger was impressed by Jiahao's strong performance and hired him as a full-time Junior Software Engineer within six months of the start of his traineeship. In this Budget, I also extended the JGI to September 2021. I hope this encourages more employers to convert trainees to employees in a timely manner. Overall, we have managed to mitigate the impact of COVID-19 on our young.
While unemployment rate amongst our young increased by two percentage points from September 2019 to September 2020, it remained well below that in EU countries.
[+8 sentences] I would like to thank Members including Dr Shahira Abdullah for speaking on the importance of safeguarding the future of our youth, and I assure this House that this remains a key priority. Looking back, the waters of 2020 have been rough. But we have kept our ship intact, with all hands on deck pulling together to navigate it out of the storm. In 2021, our suite of support measures, including the further extension to the JSS, the SGUnited Jobs and Skills Package, and targeted support for the worst-hit sectors, will continue to provide a stabilising effect on our economy, amid uncertainties and risks in the global economy. Domestically, the pace of border re-opening has slowed amid the global surge in COVID-19 cases and the emergence of new virus strains. Nevertheless, the COVID-19 situation within Singapore remains under control. Against this backdrop, the Singapore economic recovery over the course of the year is expected to be gradual and uneven across sectors. Outward-oriented sectors are expected to benefit from the pick-up in external demand, while domestic industries improve as activities safely resume.
Overall, the GDP growth forecast for 2021 is estimated at 4% to 6%.
[+26 sentences] Now is the time to chart our course, position ourselves to catch the winds of opportunity and sail boldly in a reshaped world. That is the focus of this year’s Emerging Stronger Together Budget. I thank Prof Hoon Hian Teck for his insightful comments on how this Budget has struck a balance between stabilisation and transformation. The COVID-19 Resilience Package continues to provide near-term support to safeguard lives, jobs, supply chains, and core capabilities. At the same time, we are also dedicating substantial fiscal resources towards raising the productive capacity of the economy in the medium to long term. I also applaud our Labour Movement, led by Secretary-General Mr Ng Chee Meng, for their excellent contributions to this debate. Let me underscore three important points from our Labour Movement. First, as Deputy Secretary-General Mr Heng Chee How mentioned, the way forward is as much about being Stronger Together, as it is about Emerging Stronger. A number of our businesses and workers will hold their own against the best in the world. But at the end of the day, we compete as one Team Singapore, not worker by worker, or enterprise by enterprise. It is the strength of our collective capabilities and connectedness, as an economy and as a society, that will determine how far we will go. Second, several Members, including Deputy Secretary-General Dr Koh Poh Koon, highlighted the synergies between firms and workers. The fortunes of businesses and workers are inextricably linked, more so today than ever. Demand shocks caused by COVID-19 have exacerbated labour market dislocations and skills mismatches. Coupled with the structural shift of shorter technology cycles, it will be increasingly difficult for firms to find candidates with the perfect skill sets. So, I urge businesses to look beyond hiring just "plug-and-play" workers, and see the potential within jobseekers to learn and grow in your firms. I am glad to see our local banking community leading the way in grooming new fintech talent like Ms Choo Cui Ling through career conversion. After working in IT audit, Cui Ling enrolled in the Technology in Finance Immersion Programme with OCBC Bank. A few months into her attachment, she was converted into a full-time employee. She now helps to coordinate information risk management for the bank in her role as Assistant Manager. At the same time, jobseekers should keep an open mind, be receptive to new and different job roles, and take the initiative to build new skills. Third, I am heartened by the Labour Movement’s forward-looking approach on bringing firms and workers together to ride the waves of change and emerge stronger. Technological advancements promise new possibilities as well as challenges. As Mr Melvin Yong starkly put, "every job is at risk". "Working from home" will also mean "Working from anywhere" – so job competition can come from any corner of the globe with an internet link. For our businesses, while e-commerce opens them to a global pool of customers, it also opens their customers to the global pool of sellers.
As Mr Liang Eng Hwa highlighted, our $24 billion action plan over the next three years is about pursuing our medium to longer term economic imperatives, even as we tackle the immediate challenges.
[+1 sentence] This seeks to give our workers and businesses a distinct advantage in the global marketplace.
We will build an eco-system that fosters a virtuous cycle of innovation and knowledge transfer. This includes $4.4 billion of the on-going $8.3 billion Transformation and Growth strategy I announced at the Unity Budget last year, to deepen enterprise capabilities and upskill workers.
[+16 sentences] Another $19.6 billion of fresh funding will go toward new digitalisation measures and enhanced enterprise development support, as well as worker support measures such as the extension of the SGUnited Jobs and Skills package to support jobseekers in upskilling and accessing employment opportunities. Together, these measures seek to stimulate private investment over a longer horizon and boost the supply-side capacity of the post-COVID economy. This will help Singapore capitalise on the post-COVID economic recovery and emerge stronger. This Emerging-Stronger component of the Budget therefore has a strong medium-term orientation through an enduring effect on supporting the level of labour productivity in the economy. Members including Mr Zhulkarnain Abdul Rahim spoke about what the post-COVID-19 world means for Singapore’s economy. To pave the way for our next lap of growth, we must make the following moves. First, we must remake Singapore as a Global-Asia node of technology, innovation and enterprise. This requires enhancing our connectivity, including digital connectivity, and positioning our firms and workers at the intersection of key global chains growing out of Asia and ASEAN nations. Second, as Mr Gan Thiam Poh highlighted, we must shift to a technologically advanced, innovation-driven economy, where firms and workers are equipped with the skills to harness technology and intangible assets as a key differentiator. Third, we must invest in economic resilience and sustainability as a source of competitive advantage. Building on previous Budgets, Budget 2021 invests in our economic toolkit to support these moves – or as Mr Shawn Huang aptly summarised, to "survive, pivot and develop an edge to seize opportunities of the future". If we get this right, we can set our economy on a path of growth for the next five to 10 years. Building a stronger Singapore Core is at the heart of our approach, as several Members including Ms Jessica Tan and Mr Abdul Samad rightly noted. The ultimate goal of economic growth is to improve the jobs and lives of Singaporeans. The only way to sustain such improvements is by raising productivity, where firms transform in ways that bring workers along. We build from a position of strength.
From 2016 to 2019, labour productivity growth, measured in terms of real value-added per actual hour worked, grew by 2.7% per year, up from 2.2% per year in the preceding three-year period. Real median income of Singaporeans increased by 3.7% per year, higher than the 3.2% per year growth in the preceding three-year period.
[+1 sentence] The crisis in 2020 interrupted this progress.
Still, real median income of Singaporeans grew 1.5% year-on-year, while unemployment was higher in 2020 than in 2019.
[+5 sentences] Dr Tan Wu Meng spoke about our $19 billion Research, Innovation and Enterprise 2020, or RIE 2020 plan, and its potential returns on investment. RIE is a cornerstone of Singapore’s efforts to develop as an innovation-led economy and society with good jobs for Singaporeans. The payoffs from investments in research take time to manifest. We have nevertheless made good progress and the results are promising. One example is in the biomedical sciences, where Singapore’s RIE investments since 2000 have helped set the foundation for the flourishing sector it is today.
Since 2000, the value-added of the biomedical manufacturing sector has grown by more than three times.
[+26 sentences] Today, the biomedical sector makes up almost 4% of GDP, and four of the world’s top 10 drugs by global revenue are made in Singapore. We have also established capabilities to develop innovative solutions to national challenges, including in managing the pandemic. Our researchers have worked with local companies to develop and manufacture diagnostic test kits, such as the Fortitude 2.0 test kit, that are now used both locally and in more than 45 countries worldwide. All of these would not have been possible without our sustained investments to build up our RIE capabilities over many years. Members including Ms Poh Li San have underscored the importance of supporting businesses to emerge stronger. The uneven impact of COVID-19 across industries and enterprises means that each enterprise segment requires different support to recover, grow and thrive. I agree with Mr Edward Chia on the need to adopt a differentiated, life-cycle approach to enterprise development. Our agencies offer a holistic suite of support schemes targeted at the needs of each enterprise segment, by sector and growth stage. And we approach it not just at the company-level, but at the industry-level, to achieve value-chain transformation. I spoke about the Built Environment sector coming together to transform decisively across developers, consultants, contractors and suppliers. We will build on our Alliances for Action to enable more industries to transform together. We will continue to invest in future engines of growth to create new opportunities for our firms and workers. Dr Lim Wee Kiak and Miss Cheryl Chan spoke about the importance of nurturing and harnessing the growth of the green economy. This is an important area. The green economy is a key part of the future economy. Making bold investments now will give us a head-start and create many good jobs for Singaporeans in future. We will work with businesses to meet the rising demand for more sustainable products and services. We committed resources to sustainability efforts under our Research, Innovation and Enterprise or RIE 2020, and will allocate even more for this in the next five years. Helping local SMEs expand their potential remains a focus. Most of our workers are employed in SMEs, so the success of SMEs will enable our workers to have better jobs and better pay. Budget 2021 builds on a large existing base of measures, to provide significant enhanced support for SMEs to digitalise, innovate, and transform to seize new opportunities. For example, to encourage more local SMEs to embark on transformation efforts and venture abroad, I extended the support levels of the Productivity Solutions Grant, the Enterprise Development Grant and the Market Readiness Assistance grant until March 2022. And as several Members of Parliament and Mr Mark Chay observed, the pandemic has forced many to take an extraordinary digital leap. To help firms confidently take this leap forward, we have also introduced a suite of digitalisation support, including the Chief Technology Officer-as-a-Service initiative and the Digital Leaders Programme. The Ministry of Communications and Information will announce more details at the COS. We have also provided substantial support to SMEs through last year’s Budgets.
On a per dollar of value-added basis, smaller firms received three to seven times the amount of support given to larger firms in 2020.
[+10 sentences] As I mentioned earlier, we take an eco-system approach to economic development, to support workers and companies across all sectors to reach their full potential. Mr Leon Perera pointed to the synergy of having MNCs and SMEs work together – let me add that this synergy is not just between MNCs and SMEs, but across all companies and sectors – from Large Local Enterprises to SMEs, and even among SMEs. Our economic agencies actively support companies in their efforts to transfer capabilities to upskill our local workers. This includes the PACT scheme to support knowledge transfer and co-innovation activities between large enterprises and their local suppliers, and initiatives on knowledge transfer and skills training, such as the SkillsFuture Leadership Development Initiative. The Ministry of Trade and Industry will elaborate on this at the COS. I have covered how we will sustain a virtuous eco-system of innovative and competitive firms that support a vibrant economy. All of these efforts serve to create opportunities for our people. To help workers capture these opportunities and enjoy the fruits of growth, we have moved into helping workers get into growth areas, and equipping them with skills to secure sustainable livelihoods. Our immediate priority is to build upon the skills and experience that workers have accumulated, while breaking down barriers so that they can access new jobs. As Mr Abdul Samad put it, not just to equip workers with skills today, but also to prepare them for jobs of tomorrow.
Mr Vikram Nair asked about measures to support employment. We will continue to support our jobseekers’ career growth through the labour market recovery, including through the extension and recalibration of the SGUnited Jobs and Skills Package.
[+7 sentences] Mr Sam Ong was amongst the 7,200 jobseekers who enrolled in the SGUnited Skills programme last year. He was retrenched from an offshore construction company in the oil and gas industry due to the impact of COVID-19 and the industry downturn. Sam recognised the importance of digital skills amid the future job market and enrolled in the Building and Construction Authority’s SGUnited Skills Diploma in Integrated Digital Delivery. He found the course useful and looks forward to securing a role in a company that would allow him to apply his new skills. To equip workers with industry-relevant skills, we are partnering market leaders to conduct quality training at scale. For example, Google, Boston Consulting Group and Siemens are partnering SkillsFuture Singapore to offer SGUnited Mid-Career Pathways programmes in ICT, professional services and advanced manufacturing. These help local jobseekers adapt to the changing technology trends in a shifting labour market.
Our company partners have collectively committed more than 6,000 training places and enrolled more than 2,500 trainees.
[+10 sentences] I am confident that these efforts will put our workers in a stronger position to seize new opportunities in the recovering economy. Mr Patrick Tay has highlighted employability and job security as top concerns of workers. These are important and closely interlinked focus areas in our medium-term jobs and skills strategy. The employment landscape is evolving rapidly, with technology being a key driver and enabler. Some jobs are becoming redundant, while new ones are created. Hence, job security is fundamentally about staying employable, rather than staying employed in the same job. We will thus continue to strengthen the skills eco-system, which comprises workers, businesses, unions and trade associations and chambers or TACs, through SkillsFuture. Let me touch on efforts to enhance the employability of every worker. First, the efforts of our workers. I am heartened to see more Singaporeans making good use of our support to take ownership of learning and acquire skills, even in the midst of the pandemic.
More than 188,000 Singaporeans used their SkillsFuture Credit in 2020, a 21% increase in participation from 2019.
[+19 sentences] Mr Melvin Tan is one of them. After a 23-year-long career in architecture and project management, he switched to the healthcare sector, so as to better care for his ageing parents. He became a freelance home care-giver last year to provide home-based care-giving for seniors. When the SGUnited Skills programme was launched, Melvin decided to enrol in the Therapy Assistant course at HMI Institute. Using his SkillsFuture Credits, he was fully covered for the subsidised course fee of $500. Melvin is keen to continue his journey in the healthcare industry as a Therapy Assistant when he completes the course this year and I wish him all the best! Second, businesses playing their part, to enable workers to build skills. Our firms have come onboard to make workplace learning a priority. Since 2018, the National Centre of Excellence for Workplace Learning has helped about 180 enterprises per year implement or enhance workplace learning processes. Last year, 3,400 enterprises sent their employees for training in courses supported under the SkillsFuture Enterprise Credit, and about 250 enterprises benefited from partnerships with SkillsFuture anchor companies to enhance their employee skills development and workplace learning capabilities. Deputy Secretary-General Dr Koh Poh Koon highlighted that upskilling and job redesign must come together for pervasive transformation. By redesigning jobs and training workers to take up the new jobs, employers not only help workers stay employed, but also enable the firms to thrive. We will continue to provide strong support to companies on this front. This includes operation and technology roadmapping, or OTR, that integrates upskilling to achieve a long-term growth strategy. Environmental services company SembWaste, in partnership with the Building Construction and Timber Industries Employees' Union and the NTUC Training and Transformation, formed the Company Training Committee and embarked on an OTR process to develop a five-year business growth strategy to support Singapore's green targets. And to support these transformation plans, SembWaste is upskilling its workers in areas such as digital technology. It has also adopted the Progressive Wage Model to ensure sustainable wage increases tied to skills and productivity growth. Third, our unions and TACs can reach out to more firms and promote deeper collaboration between firms and workers. For example, the Singapore Business Federation, or SBF, in partnership with Workforce Singapore, leads the Industry 4.0 Human Capital Initiative, to help companies adopt Industry 4.0 through job redesign.
To-date, close to 70 companies have come on board, to potentially uplift more than 1,000 jobs and generate more than $52.5 million in cost savings. SBF aims to scale this to benefit up to 300 companies and 1,500 workers by September 2022.
[+2 sentences] I also thank the Labour Movement for their tireless efforts in supporting the lifelong employability of workers, across different segments with different needs. NTUC Job Security Council and Company Training Committees are an important innovation for NTUC to partner companies and the Government, to achieve synergy.
By pre-emptively matching at-risk workers to new employers, the Job Security Council helps workers minimise employment downtime and aids businesses to manage fluctuating manpower needs. I am heartened to hear that it has successfully placed more than 28,000 workers in new positions last year.
[+6 sentences] Ms Janet Ang and Mr Patrick Tay have spoken about the importance of ensuring fair access to employment opportunities for Singaporeans, while remaining open to global talent to complement local capabilities. I agree. I thank Members for agreeing that harnessing complementarities among our Singaporean Core and the different talent sources is important for us to remain as a vibrant and competitive economy. MOM will elaborate on this at the COS. As Mr Henry Kwek mentioned, our TACs can support firms and workers to emerge stronger, by helping them to transform in a pervasive and sustained way. Over the past year, I am encouraged to see TACs rallying the business community together to fight the crisis.
The SG Together Enhancing Enterprise Resilience, or STEER fund, which I enhanced at last year's Resilience Budget, has matched more than $10 million across 10 industry-led funds to help the business community tackle challenges arising from COVID-19.
[+24 sentences] Over 2,700 businesses are expected to benefit from these initiatives. This includes the $1 million Singapore Contractors Association Limited, or SCAL COVID-19 Fund, set up to help construction sector firms cope with the increased operational requirements due to COVID-19. Some 500 member SMEs will stand to benefit from this Fund. Apart from STEER, the Fund also received contributions from BCA, over 50 SCAL members and the SBF Foundation Compassion Fund that Ms Janet Ang spoke about in her speech. The Singapore Malay Chamber of Commerce and Industry, or SMCCI, also formed a COVID-19 taskforce in March last year, to support members affected by the crisis. It set up an emergency hotline, organised individual outreach sessions to about 400 members, provided legal advice to those in need, and connected businesses to available Government support measures. SMCCI also showcased members who transformed their businesses in the wake of COVID-19 on their specially curated platform, "Discussions @ Dewan", so that others can learn from their successes. The SBF has also been working closely with the National Jobs Council and 31 TACs, to conduct job matching on a business-to-business level, both within and across sectors. Since the start of the pandemic, SBF has assisted more than 600 companies and more than 100 workers have been successfully matched to 77 companies. Through these collaborations, our firms and workers can emerge stronger in a post-COVID world. And as you can see, this is a case where really everyone is putting in their effort and working together. Members like Mr Lim Biow Chuan spoke about how Singapore has come out relatively unscathed from COVID-19, and how we are starting from solid ground. Looking around the world, beyond the economic impact, we also see broader health and social impacts. One year on, some countries have not recovered from the initial wave of the outbreak. Many are still seeing new COVID-19 cases in the thousands each day, and repeated cycles of lockdowns. This has wrought havoc on their communities, disrupting livelihoods and day-to-day activities. People are putting the future on hold to focus on surviving the crisis. In December 2020, UNESCO reported that, globally, classrooms for nearly one in five school children were closed. In some countries, healthcare services are still overwhelmed by COVID-19 cases, leaving little help for those with other needs. In Singapore, many of us have resumed our daily activities. Jobs and opportunities to learn new skills remain available. Our young children are back in schools physically and equipped with digital devices for learning. I thank Mr Louis Ng for showing his appreciation for our teachers in our schools. We are looking forward to the future and are working towards our dreams.
Demand for BTO flats remains strong even in these uncertain times.
[+6 sentences] As we heard from Mr Lim Biow Chuan earlier, people are still looking to buy cars "as if there was no recession at all"! While we should count our blessings, let us not forget that we are still in the eye of a raging global storm – there are still challenges ahead and there are still individuals and families who are under stress. Budget 2021 focuses our efforts and resources on emerging stronger. I have shared how we are taking a long-term view and working to support transformation of our economy and workers. But I want to assure Members that the Government has also been putting in place multiple layers of support, which will continue to provide targeted, customised relief to help Singaporeans differently affected by COVID-19 and the uneven, K-shaped recovery. First, we have broad-based, permanent schemes to provide strong social support and safety nets that protects all Singaporeans, especially the vulnerable.
When the crisis hit, we layered on temporary assistance on top of some of these permanent schemes to provide additional support to vulnerable groups. We also introduced new measures like the Solidarity Payment and Care and Support – Cash to provide quick relief for Singaporeans' day-to-day expenses, and with the lower income receiving more.
[+2 sentences] Finally, for those whose livelihoods were disrupted, we stepped in to provide some bridging support as they picked themselves up, for example, through the COVID-19 Support Grant and Temporary Relief Fund. We cushioned the vulnerable against the worst of the crisis and mitigated social inequality.
As a result of these efforts, our Gini coefficient after taxes and transfers is at a record low, as this chart shows.
[+8 sentences] Mr Pritam Singh pointed out the divergence between the data on inequality, and the lived experience on the ground. He was quoting a particular report. We are fully aware that there are families who have been deeply impacted by the pandemic, and some more than others. This is exactly why we have tilted our support significantly towards the lower income and vulnerable groups, and Government has partnered the community to reach out to those groups during this period. Mr Singh himself noted that there was and I quote, "not-insignificant" support. So, you have to see the support in totality – the full set of support – and not conclude from one sample because these are rigorous study of what his happening throughout Singapore. Members, including Mr Patrick Tay, Prof Hoon Hian Teck and Mr Louis Chua suggested that we study the viability of an unemployment insurance for workers affected by involuntary employment. In the midst of significant disruption, interim, bridging support is needed to tide workers over.
The COVID-19 Recovery Grant will support our workers who need more help while they find new jobs or go for training during this period.
[+26 sentences] Longer term, while an unemployment insurance appears attractive, this would not be sustainable without longer-term structures to help our workers bounce back. This sentiment is echoed in other countries like Germany, Sweden and South Korea, where unemployment insurance schemes are linked to active labour market policy measures which seek to get the affected worker back into a job quickly and avoid skills atrophy. An unemployment insurance would also have its complexities, as Prof Hoon and Mr Tay have pointed out. Instead, as Mr Xie Yao Quan said, a job is the best welfare. It is more sustainable to ensure that workers maintain a source of income, and to up-skill and re-skill our workers so that they can bounce back quickly from job disruptions. But at the same time, I recognise that as the global economy goes through an even faster pace of change, the nature of jobs and skills will be changing faster too. We will partner our business leaders, Labour Movement and academics to study how to support employability and help those who falter, through measures that suit our context. Mr Gerald Giam claimed that our middle income receive little support for their cost of living. Others like Ms Jessica Tan have raised concerns that the middle income may have been missed in the short-term support measures. I would like to remind Members of this House that the bulk of every Budget goes towards uplifting all members of our society, including the broad swathe of our middle class. In this Budget, I have set aside a total of $42 billion for our social spending and transfers, 35% more than FY2019. This is on top of: our security spending, which ensures the safety of our people and allows property and asset prices to rise over time, in line with our economic fundamentals, our investments in the economy which ensure that our people have access to good jobs for many years to come. And we have different schemes and components in our support packages. Some target those with less means. Others, like the upcoming CDC Vouchers, are provided to all, including our middle class. So, we should not look at each Budget in terms of "goodies for me", but whether the totality of the spending creates more opportunities for us and our children. I fully understand the aspirations of our middle class earners. It is natural that we want to do better for ourselves each passing year. Like Ms Janet Ang has said, the Singapore Dream is a work-in-progress. We wish for every future generation to be better off than the last. So, let me reiterate the measures that the Government has put in place to support these. First, we have quality housing, which is affordable to all Singaporeans. Let me share how we are doing. Even in land-scarce Singapore, you can see in this chart , our housing prices are lower than those of many major international cities, even before accounting for grants. We provide housing subsidies to keep HDB flats affordable. The current income ceiling of $14,000 allows eight in 10 Singaporeans to buy a subsidised HDB flat.
As a result of our housing policies, around 80% of new HDB flat buyers have little or no cash outlay on their mortgage payments, meaning they do not have to come up with cash, or little cash, for their mortgage payments; and nine in 10 Singaporean households own their homes.
[+4 sentences] Our homes may not be the largest or the cheapest, but we definitely have well-built, affordable housing options, in a safe, secure and green environment. Next, we have strong support for couples who want to raise a family. Miss Cheng Li Hui and Ms Hany Soh asked for more to be done to support parenthood and first-time parents. Over the years, the Government has strengthened support for families with children, to defray the cost of education and childcare, through a combination of broad-based grants, subsidies and tax benefits.
Upon the birth of their child, a Singaporean family would receive up to $35,000 in cash and cash-like benefits, through the Baby Bonus and other benefits.
[+1 sentence] This includes a $4,000 MediSave grant which covers the child’s MediShield Life premiums from birth till age 21.
Every Singaporean child can also receive over $180,000 in education subsidies by the time he or she turns 16, including pre-school subsidies.
[+11 sentences] Even more support is available for those who come from less-privileged backgrounds. I thank Minister of State Sun Xueling, Parliamentary Secretary Rahayu Mahzam and the other women Members for speaking on the different ways that the Government, businesses and the community can support women to fulfil their aspirations and help them to better support their families. These include job opportunities, support for their jobs and livelihoods, re-designing jobs for more progressive workplaces, encouraging higher technology adoption amongst women, and support for care-giving. These are good points which we can continue to work together. Children also have access to an affordable education, supported by nurturing teachers, which ensures that our children are equipped with important knowledge and skills to perform to the best of their potential. We nurture our students’ aspirations and continue to develop multiple pathways to enable our students to learn, including through industry attachments. Third, I assure Mr Louis Chua that we remain committed to helping all seniors retire with greater peace of mind through the CPF system. The Silver Support Scheme provides support for our seniors who had low incomes during their working years and need additional support in retirement. Over the next five years, to help more Singaporeans meet the Basic Retirement Sum, we will also be providing an additional boost through the Matched Retirement Savings Scheme. We are also in a fortunate position where most of our seniors have housing assets which they could use to support their retirement, if they choose to. Last but not least, the Government provides good and affordable healthcare to all Singaporeans, especially our seniors.
We have been investing in our healthcare system, to meet the needs of an ageing population. We have almost tripled our healthcare spending, from $3.9 billion in 2011 to $11.3 billion in FY2019.
[+24 sentences] This went into expanding healthcare capacity and enhancing healthcare subsidies. We now spend more than twice the amount on patient subsidies than we did 10 years ago and expect to spend more as our population ages. On average, a Singaporean can expect to receive about $200,000 in Government healthcare subsidies throughout their lifetime. As a result, we do well in terms of health outcomes. I thank Dr Tan Yia Swam who has registered her confidence and, I quote: "I am confident that our healthcare system is robust and can provide adequate care for all citizens". Indeed, Singapore ranks amongst the top for the World Bank’s Human Capital Index, which measures the ability of a child to reach his or her full potential if they had full health and complete, high-quality education. We also do well in the Bloomberg Health-Efficiency Index, which measures life expectancy as compared to medical spending. In 2019, our average life expectancy at birth was 84.9 years, with health-adjusted life expectancy of 74.5 years. Globally, Singaporeans are expected to live the longest! Ms Hany Soh will be glad to know that we have put in strong support for young parents. A young couple buying a HDB flat near their parents could benefit from more than $134,000 in support in this year alone. Besides housing grants, the support includes pre-school subsidies to help with the education of their child, healthcare subsidies, and also offsets for expenses through the Household Support Package. Another example is a multi-generational family that already owns their 5-room HDB flat, supporting a Pioneer Generation senior with disabilities. The family could receive over $35,000 in support this year in education and healthcare subsidies, including $1,200 from the Household Support Package. And these are over and above the housing subsidies that the family would have enjoyed when it first bought the flat. Neither family needs to pay their MediShield Life and CareShield Life premium in cash. No one will lose coverage due to inability to pay. So, with the most important items in life well taken care of, I hope Members like Mr Leong Mun Wai will agree that his position that our support is, I quote, "ad hoc, short-term and unpredictable" is wrong. In fact, our support is systematic, well-structured and balanced. Singaporeans can be assured that: they can always have a home to call their own; that they can expect their children are being well-nurtured in a world-class education system, which will prepare them well to take on good jobs and fulfil their potential; that we will provide assurance to our seniors over their retirement; and that the healthcare needs of their family will always be well taken care of. Now, it is also natural for us to look out for "what is new" in every Budget. But it is important for all of us to appreciate what is already there, and to see the Budget in totality, over the years. Individual Budget measures are useful enhancements which sit on top of our already significant social spending. Over the past decade, we have been gradually tilting the tax and transfer system in favour of lower and middle income groups.
On average, lower income citizen households can expect to receive benefits, net of taxes, of $6,500 per household member in 2021. Members of middle income households can expect to receive $3,500 in 2021. The highest income households instead pay about $9,500 in taxes, net of benefits, per household member.
[+11 sentences] Members of this House – Mr Darryl David and Mr Faisal Manap – have welcomed the salary increase for healthcare workers and have asked for salaries for other frontline workers and sectors to be enhanced. As I have said in the Budget Statement, there are good, meaningful jobs in healthcare for our locals, and it is important to pay them the salary that they deserve – commensurate with the work that they do. This is how we are able to attract and retain locals in the long-term, even as other markets compete for our Singaporean talents. As Mr Saktiandi Supaat pointed out, Ms Hazel Poa’s conclusion that our workers are worse off due to lower wage share of GDP is wrong. A capital-intensive economy open to investment and trade can have lower wage shares than labour-intensive economies. For example, in the biomedical sector, the wage share of the sector’s output is less than 6% compared to over 60% in the accommodation and food services sectors. But workers in the biomedical sector earn more than twice that of the accommodation and food services sector. So, what will improve the lives of our workers are better wages and better prospects, not the aggregate share. What matters more is that the wage growth of our workers is in line with productivity so that it is sustainable. Several Members, including Mr Raj Joshua Thomas and Mr Mohd Fahmi Aliman, spoke about the need to continue boosting the incomes of lower wage workers, and the Progressive Wage Models. Indeed, there has been some progress.
Citizens’ real incomes from 2016 to 2019 at the 20th percentile grew at 4.4% per annum, faster than the median at 3.7% per annum.
[+36 sentences] I thank the Labour Movement for their strong support for the Government’s vision of progressive employment, which is shared by many caring Singaporeans. Ms Foo Mee Har and Mr Desmond Choo have also called for more help for our self-employed. We have been studying for some time how best to boost protections and retirement adequacy for this group. MOM will continue working with the Labour Movement and our industry partners, through the tripartite mechanism, to uplift the incomes of all our lower wage workers and support those in the gig economy. MOM will share more on this at COS. Helping lower wage workers and self-employed persons is a work-in-progress. I hope that, if some of the new measures lead to a modest increase in costs, caring Singaporeans will agree that this is worth doing for solidarity. Some members, like Ms Tin Pei Ling and Mr Yip Hon Weng, have highlighted another group of concern – our older workers. I thank NTUC FairPrice for its efforts to support our older workers who wish to remain active in the workforce. As Mr Seah Kian Peng has shared, this is an example of a company which has fully utilised the reservoir of talent in its mature workforce. To build on this momentum for all sectors, we are pushing ahead with our plans to raise the retirement and re-employment ages in 2022, with the Government and the Labour Movement taking the lead by effecting this in 2021. I thank Deputy Secretary-General Mr Heng Chee How for reaffirming the need for this move. NUH is one of the organisations taking the initiative by redesigning jobs, offering flexible working arrangements and training opportunities for their senior workers in collaboration with the Healthcare Services Employees' Union. Senior Staff Nurse Mdm Badthu Manne Doraisamy has been working with NUH for 31 years. She has benefited from NUH’s strong support for senior workers. Mr Agos Salim Sapuan is a security supervisor at NUH. He shared how everything at his job is digitalised now, and he is no longer making manual entries in logbooks! I am sure he has benefited from NUH’s many training opportunities. I hope that the Government’s Senior Worker Support Package will encourage more businesses to retain their mature workers and tap on their wealth of experience. Ms Ng Ling Ling and Mr Eric Chua have asked the Government to do more to encourage the hiring of persons with disabilities, or PwDs. Helping every Singaporean achieve their potential is a key priority for us in building an inclusive society. We agree that more can be done, and there are plans in the pipeline. The MSF will share more about this in the coming months. As Members have highlighted, there are specific groups of Singaporeans who have been deeply affected by COVID-19 and remain so. We have seen this all over the world. Dr Wan Rizal spoke on the issue of mental health. Ms Joan Pereira, on the support needed for care-givers. Ms Rachel Ong and Ms Nadia Ahmad Samdin spoke on the employment and re-integration of ex-offenders and youth-at-risk, as well as Mr Don Wee on families with children with special needs. Ms Denise Phua and Ms Carrie Tan spoke yesterday on how the CDCs are partnering Social Service Agencies, or SSAs, to multiply their reach for the vulnerable in the community. They have also asked to rally the community to help. BlockBox is good example of partnership. To support seniors with chronic disease management and to address issues of social isolation due to COVID-19, students from NUS and Yale University created a community space and monthly health subscription boxes to track seniors' health and keep them engaged. For the pilot, the team received seed funding from MOH and sponsorship from the private sector. This is the spirit of SG Together. But the Government can only do so much alone. As Ms Carrie Tan said, we must look into the, I quote, "Sharing of Care".
I am sure that she will be glad to hear that we will continue to push ahead with our plans to develop deeper capabilities in the social sector. I announced last year that we will partner ToteBoard to jointly commit up to $350 million to support the Community Capability Trust over the next 10 years.
[+3 sentences] This will drive capability- and capacity-building efforts within the social services sector, to enhance SSAs' ability to serve the community. Like Mr Seah Kian Peng and Mr Derrick Goh have said, we must do more to "bridge the digital divide" and "grow our digital muscles", especially during COVID-19. We refreshed our plans to ensure that no one will be left behind in this digital age.
The Seniors Go Digital programme equips seniors with digital skills. For low-income and vulnerable families with children or PwDs, MCI's NEU PC Plus programme connects them to broadband access, and laptops to support their learning.
[+31 sentences] And who best to be our ambassadors of the digital world than our young people! Under MCCY's and the National Youth Council's YouthTech Programme, youths will be deployed to businesses and organisations in diverse sectors, including the community and social sector organisations to support their digitalisation efforts. We will also need to boost the digital and technological transformation of the social sector. Good ideas have come from the businesses who are partnering SSAs to do good and supplement the human touch with the human "click". For example, Engineering Good, a non-profit organisation is working with community partners to provide digital access through refurbished laptops and Internet connectivity to low-income families, coupled with digital literacy and skills programmes as part of its Building Digitally Inclusive Communities project. This is the spirit of Emerging Stronger Together. Mr Christopher de Souza said we need to embrace our multi-culturalism and diversity, and spoke about what it means to be a Singaporean, regardless of race, language or religion. And indeed, we are stronger together when we look after one another, and build a society that leaves no one behind. At the end of the day, our success is not measured in terms of GDP, but in the society and community we build together. Besides fostering a caring and inclusive community, we must ensure our clean living environment endures for future generations to enjoy. I thank Members like Ms Poh Li San for supporting the Government's sustainability plans. I am glad that Ms Nadia Ahmad Samdin, one of the youngest Members, if not the youngest Member of this House, also spoke in support of the Singapore Green Plan 2030. But we must not take our environment, whether green or blue, for granted – or for the matter, our reserves. What we have today is a testament to the foresight and hard work put in by many to distinguish Singapore as a City in Nature over the years. We made a big effort to improve our sanitation systems and clean up the Singapore River in the 1960s to 1980s. We launched the Clean and Green Week in 1990 to encourage an environmentally conscious lifestyle. To improve our air quality, we started encouraging the adoption of cleaner vehicle alternatives as far back as 2001. Climate change and environmental sustainability did not become a priority overnight. We have been protecting our home. Members like Dr Lim Wee Kiak and Mr Dennis Tan have questioned why the Government is raising the petrol duty expecting many drivers can and will switch to Electric Vehicles, or EV, before the infrastructure is ready. Now, this is not the case. The petrol duty adjustments are to set price signals and change behaviour. Just like how we have made deliberate decisions to protect our environment, we want people to make conscious choices about how to drive, how much to drive, and whether to even drive at all. And EVs are not the only alternatives to driving. Mr Sharael Taha has reminded this House that hybrid vehicles are another alternative that are already widely available today. We are also keeping public transport affordable and accessible through rail and bus subsidies and investing in public transport infrastructure. Dr Lim Wee Kiak and Mr Dennis Tan asked if we are sufficiently prepared for an EV future, and on the cost-effectiveness of electric cars compared to petrol cars. The Ministry of Transport will elaborate on this at the Committee of Supply. There will never be a good time to raise petrol duty. Some Members like Ms Mariam Jaafar and Mr Darryl David have pointed out that the petrol-duty increase would affect those who drive for work more, like our taxi and private hire car drivers, and delivery riders using motorcycles. I understand the pressure that they are facing, especially during this COVID-19 situation.
I have cushioned the impact for these drivers and riders. We expect to channel almost all of the increase in duty collections in 2021 back to petrol-vehicle owners as offsets.
[+6 sentences] On top of the road tax rebates, more support will be provided to those who drive for work through additional Petrol Duty Rebates. Taken together, the support will cover the increase in petrol duty for a year for motorcycles and taxis. Taxi operators and Grab Rentals have agreed to pass on the road tax rebates to their drivers. Gojek will also be introducing additional incentive rebates for their drivers. With this, their drivers will receive rebates starting from next month. Motorcycle owners will receive their additional Petrol Duty Rebates from May.
Over 50,000 of our taxi and private hire car drivers would have also benefited from COVID-19 relief measures, like the Self-Employed Person Income Relief Scheme, and the COVID-19 Driver Relief Fund, which we have just topped up by $133 million.
[+41 sentences] I hope these measures address Members like Mr Chong Kee Hiong, Ms Yeo Wan Ling and Mr Ang Wei Neng's concerns over the impact on taxi and private hire car drivers. Our broad-based rebates will not be able to cater to every unique circumstance. They may also not reach those in more informal work arrangements. We are working with the Labour Movement to see how we can provide further help to self-employed delivery workers and limousine drivers. I thank NTUC Secretary-General Mr Ng Chee Meng, our Labour Members of Parliament and their team for their partnership. Ultimately, protecting our environment must be our commitment to future generations of Singaporeans. This is just one of the many small but necessary steps in our whole-of-society, multi-generational effort to preserve our clean-living environment. Let me now turn to Members' points on our fiscal strategy. Before I address individual issues, it is important that I reiterate this Government's fiscal principles. We abide by the same two core values of our forefathers: prudence and stewardship. First, on prudence. We spend on needs, not wants, and we seek to get the best value out of our spending. We must be prudent because these finite resources are entrusted to us by Singaporeans. Second, on stewardship. In the Unity Budget Round-Up in 2020, I said and I quote, "We have a duty not just to those who make their views known today, but also to the young and the future Singaporeans. They are not here today to represent their views – because they are not born yet! But we have a responsibility to them, and we have to take decisions which are difficult for us, but which will safeguard their interests." In other words, we must be responsible stewards. During a time of high economic growth in the 1980s, our leaders managed our fiscal surpluses prudently. Instead of finding ways to spend the surpluses and win popularity, they not only accumulated surpluses, but also took the bold step in 1991 to amend the Constitution, to require each term of Government to run a balanced budget. This is to ensure that future Governments do not make unrealistic promises, dip into our savings unnecessarily, and mortgage the future of our children. They knew the temptation of squandering the easy inheritance would be too great for some to bear. Singapore is in a new phase of development. We cannot expect the same kind of buoyant GDP growth as in the past, as our economy now matures. Our expenditure needs will grow as new needs arise, and as our population ages. At the same time, we must continue to invest to build a better Singapore for the future. We are once again confronted with hard choices. We must abide by our core values, and keep Singaporeans, now and generations to be born, at the heart of what we do. Many Members spoke about building a fair and just society where no one is left behind. This is good, and I share this aspiration; but it is only one half of the conversation. Mr Liang Eng Hwa, Mr Alex Yam, and Mr Lim Biow Chuan have reminded this House that just as importantly, we need to consider how to pay for these. We do not have oil gushing out from our ground, and even Saudi Arabia, a country with huge oil reserves, is carefully planning ahead. It introduced a 5% value-added tax from 2018, which it increased to 15% from 1 July 2020. Members of this House must have the will and courage to make the same responsible choices as our forefathers did. We must be upfront – that if we want to spend more, we have to raise the revenue. First, acknowledge that if we want more social safety nets, it comes with costs. Second, work out sustainable resourcing. Do not make irresponsible promises which burden future generations. If these are recurrent needs – which have to be financed year after year – we must find recurrent revenues – which we can collect year after year. Let me reiterate why the GST-rate increase is needed. As Mr Xie Yao Quan has rightly pointed out, we have already seen structural increases in our recurrent spending, especially in healthcare.
The share of Singaporeans aged 65 and above will increase from one in six, to one in four by 2030.
[+3 sentences] Seniors are four times as likely to be hospitalised compared to younger persons. And each time our seniors are hospitalised, they stay for twice as long. The Government heavily subsidises healthcare at our public healthcare institutions – up to 80%!
Even with an efficient healthcare system, we will need to increase healthcare spending by 30% to meet the needs of our population in 2030.
[+3 sentences] These structural trends are clear – we will have to spend more. So, let me share some data and projections with this House. This chart shows our spending, as a percentage of GDP, over the past 15 years.
Our spending has grown by about 1.5 percentage points of GDP in every five-year period.
[+10 sentences] How much is 1.5 percentage points of GDP? About $7 billion per year! This is about two-thirds of the current GST revenue. Half of the increase in spending was for social support. We do not have a crystal ball but let us take a reasonable look at how our spending will change. Let us start with healthcare spending. Our demographic trends will mean higher spending, outstripping GDP growth. We estimate that healthcare spending will reach 3% of GDP by 2030. If our healthcare spending grew like those of OECD countries with a similar demographic profile, it would be even higher, 3.5% of GDP by 2030. This would be 50% more than in 2019.
Stripping out the effects of COVID-19, the next chart shows projected spending on healthcare if we took the average of the two scenarios. So, this means that healthcare spending alone would cause Government expenditure to grow by 0.5 percentage points of GDP for the current five-year period, and another 0.3 percentage points for the next five-year period.
[+12 sentences] So, that is the chart that I just mentioned, over five-year periods. To see the impact of healthcare on Government spending, this chart made a simplifying assumption that non-healthcare spending will remain the same as a percentage of GDP. Now, we know this is a simplifying assumption and a very conservative one. First, on security, threats have not diminished but are now coming in different forms – cybersecurity, hybrid, information wars, food security. In Budget 2018, I mentioned that we could expect annual security spending by MINDEF and MHA to rise by 0.2 percentage points of GDP to meet rising threats. Second, other social spending will continue to rise. We are seeing higher spending on pre-school education and lifelong learning. Third, as I explained in my Budget Statements in this year and earlier, we will see a hump in infrastructural spending to enhance economic competitiveness, build our home, and improve connectivity across the island. Even with borrowing under the Significant Infrastructure Government Loan Act, or SINGA, we expect infrastructural spending to remain relatively stable as a percentage of GDP. Mr Pritam Singh asked that we increase the scrutiny of expenditures, and to set up an independent parliamentary budget office to enhance such scrutiny. I am glad that Mr Singh agrees with the need to be prudent and accountable in our spending. In fact, it would be very helpful if each time Mr Singh or his colleagues ask the Government to spend more, to give us their estimates of how much it would cost and how they would fund it.
Instead, the Workers' Party has called on the Government to spend $20 million to set up an independent parliamentary budget office to do this job for them.
[+6 sentences] Even as they call for more scrutiny on Government expenditure, we invite them to hold themselves to the same scrutiny. As I have outlined, prudence and stewardship are core values of this Government. We hold ourselves to high standards and work hard to ensure that our spending is cost-effective, to deliver the best value for money for taxpayers. We have achieved world-leading outcomes while running one of the leanest governments in the world. We are always looking to achieve better outcomes with less, and we will say more about this during MOF’s COS. In addition to independent audits by the Auditor-General’s Office, we also have Parliamentary scrutiny of our spending through the Estimates and Public Accounts Committees.
The Workers’ Party is represented in both of them. Such an office would be a wasteful duplication of these functions.
[+7 sentences] So, let us face the hard facts and be prepared to make difficult choices. The Government is meeting difficult trade-offs arising from our society’s growing spending needs, head on. We have shown that current taxes are insufficient to cover our spending needs. Since 2007, we have already increased various taxes to collect more from those with more means, which are then transferred to our lower income. All this while, over the 14 years, the GST rate has remained unchanged at 7%. We would be in a budget deficit if not for the contribution from reserves, in the form of Net Investment Returns Contribution or NIRC. Economic growth alone is not likely to raise enough revenues to meet our needs.
The honest, but hard, conclusion is that we will need to raise more tax revenue.
[+23 sentences] We are not raising the GST rate now, as the economy is in the nascent stages of recovery. But we have been giving notice, since Budget 2018. The fact is that some of the structural increase in expenditures will hit us sooner rather than later. MOH is already ramping up our public healthcare capacity. Just two months ago, the Minister for Health announced that we will build a new integrated hospital in Bedok North by 2030, to serve the growing population in the east. If we defer this spending, we risk being unable to adequately care for our people when the need comes. Some may ask if the projections are accurate, whether we really need to raise additional revenue within this timeline. No projection is perfect. We live in a complex world, filled with uncertainties. So, we must work with the information available. For example, we could not have projected the biggest disruption of our generation, or that we would have to draw on our Past Reserves for two years in a row. This is a far cry from what Mr Pritam Singh said in February 2020, and I quote, "the current Government has had the privilege of far more budgetary elbow room, both political and fiscal, than any previous Government in Singapore's history." Unquote. Unfortunately, instead of elbow room, COVID-19 has given governments around the world a very sharp elbow. Ouch – it hurts, and will continue to hurt for some time. I also do not know how Mr Leong Mun Wai could say with such confidence, and I quote, "for the foreseeable future, we do not see any shortage of fiscal revenues", unquote. If Mr Leong could give me the basis of his projection, I will study it carefully. But if it is his hunch, I hope that as a responsible Member of Parliament, he would agree that we cannot be advocating national policy on the basis of personal hunches. My caution to all is this: it will be foolhardy to underestimate the risks and uncertainties we are facing. Let us be honest, focus on the hard work that needs to be done and do not take the easy way out. That is the way to enable our people to make progress. Several Members have expressed worries about the impact of the GST rate increase on Singaporeans. I share your concern – as I said before, as Finance Minister, I do not have any joy in raising taxes.
I do it because I care for our future.
[+1 sentence] Let me assure Members and all Singaporeans that we are committed to helping our people manage the impact.
We have set aside $6 billion for an Assurance Package, which will in effect delay at least five years of the GST rate increase for the majority of Singaporean households. Lower income Singaporeans will receive higher offsets of about 10 years’ worth of additional GST expenses incurred.
[+2 sentences] The Assurance Package is on top of existing benefits and transfers such as the GST Voucher scheme. These keep our overall taxes and transfers system fair and progressive.
In 2020, the top 20% of Singaporean households by income paid 56% of the taxes and received 11% of the benefits whereas the bottom 20% paid 9% of the taxes and received 27% of the benefits.
[+1 sentence] And we are concerned for the broad middle income.
The middle 60% of households paid 35% of taxes, while receiving 62% of the benefits, even for the broad middle.
[+54 sentences] Several Members have asked that we consider other forms of taxes. As I have said at my Round-up Speech at Budget 2018, we continually consider all options, so let me go through them again but it is a long list. Some Members asked if we can do more on wealth taxes. Wealth taxes are not new in Singapore and we have in fact enhanced the progressivity of wealth-related taxes over the years. I agree there is scope to further review our wealth taxes. But first, let me address the elephant in the room. Wealth taxes will not replace the need for the GST rate increase. Already, the GST rate increase alone will not yield sufficient revenue to meet our growing healthcare and social spending needs. I will share briefly our considerations for the suggestions raised. Ms Foo Mee Har suggested a one-off wealth tax. Argentina did this to fund higher spending for COVID-19 measures. Singapore entered COVID-19 with a strong fiscal position, and is fortunate to be able to tap on our Past Reserves. The impact of the crisis has been uneven. I believe Ms Foo’s intent is for those who came out on top of the crisis to do more for our community, and I share her sentiment. We will indeed continue to review our wealth taxes. Mr Leon Perera suggested raising Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty, or ABSD, for more expensive properties. First, I am glad that he recognised that this move will not fully cover our higher resourcing needs. Second, I want to correct a misconception. The ABSD is a property market measure, not a revenue-raising one. We calibrate the ABSD carefully to maintain a stable and sustainable property market in Singapore. But I agree that there is a role for property-related taxes. The Government will continue to review this to ensure that it remains progressive. Indeed, we made property tax and stamp duty more progressive in Budget 2010, Budget 2013 and Budget 2018. I trust that Mr Perera will give his strong support if and when we make such new moves. We have also considered other options, including estate duty. We abolished estate duty in 2008, because the middle and upper income groups were affected disproportionately compared to the wealthy, who were better able to avoid the estate duty through tax planning. Let me reiterate. We do tax wealth and we have been raising wealth taxes over the years. This is not the question. Rather, the practical question has always been how to design wealth taxes moves to ensure that they are effective. First, we must ensure that the tax cannot be easily avoided, especially by those with more means. Otherwise, it will not achieve the social equity and fairness that we want. Second, we must balance between progressivity and staying competitive to grow our economy. Singapore must remain attractive to those who work hard and those who invest to create good jobs, because growing the economy is the most sustainable way to generate revenue and raise our standards of living. Third, the move should add to our revenue resilience and adequacy. The Government will continue to study wealth tax options and I look forward to your support. Several Members have also said that we could rely on other sources of revenue, other than taxes. For instance, Mr Louis Chua cited the Government’s total estimated receipts and claimed that the Government has far more surpluses than we do for spending. He must know that includes our capital receipts from land sales. So, he is really saying that we should spend our land sales proceeds directly. Mr Louis Chua also cited the increase in NIRC in 2021 as one of the reasons we should not be, and I quote, "overzealous in strengthening our revenue position"; and Mr Leong Mun Wai suggested that we spend 100% of the NIRC instead of 50%. Let me address them one by one. First on using land sales proceeds directly in the Budget. We should treat our land as a scarce and finite asset. Selling land does not give the Government more resources and should not directly support our expenditure. Instead, we sell the land that we need to sell for urban development and invest the proceeds. This approach generates a sustainable stream of income over the long term, and has served us well. If we had decided in the past to spend the proceeds from these land sales, we would not have built up our reserves today and would surely be worse off by now. Relying directly on land sales for fiscal revenue also has two risks. First, land prices can be volatile. You do not want Government revenues to fluctuate wildly with property cycles because it creates too much uncertainty for the Government to plan long term. Second, even more serious, once a Government gets used to relying on land sales to fund spending, the Government has a vested interest to keep land prices high, or to sell more land. Both options are terrible. We can see the distortionary effects on the welfare of people, in places where local governments rely on land sales for revenue.
The current approach of spending the land sales proceeds through the NIRC avoids these pitfalls and allows the Government to make land sale decisions based on what is best for the country’s development, and not because it needs to balance the Budget.
[+6 sentences] Next, on NIRC. The NIRC framework smooths the volatility arising from sharp fluctuations in the asset base due to market cycles. This avoids a boom-bust pattern in Government spending, driven by the volatilities of the market. However, some variation is still to be expected for the NIRC as we update the net asset base and investment income figures over the course of the year. The global financial market remains volatile and uncertain. How the post-COVID structural changes will affect long-term returns is still being played out.
The fact is, NIRC is already the largest single source of our revenue, larger than Corporate Income Tax, Personal Income Tax or GST.
[+4 sentences] This did not happen by chance or merely because of good fortune. It is the result of years of fiscal discipline and prudence of our founding generations. If they had succumbed to the temptation to spend more, we would not have built up our reserves. And without reserves, we would not have been able to generate this stable and recurrent source of revenue today.
Mr Leong Mun Wai's suggestion of using 100% of NIRC is akin to treating our reserves as a gold mountain.
[+15 sentences] If we adopt his suggestion, one day, even this mountain will be eaten up completely, like the saying in Chinese "坐吃山空". We have a responsibility to future generations. Next, let me talk about the use of debt in our fiscal strategy. Many Members have expressed support for borrowing for long-term infrastructure, as part of our fiscal strategy. I was happy to hear that Assoc Prof Jamus Lim was "happy as a clam" when he heard that our fiscal strategy reflected a number of elements that he had previously outlined. But I announced that we were studying borrowing in 2019, even before he entered Parliament. But I am glad he shares our views. So, perhaps if he reads more of our past Budget Statements, he would be even happier. Nevertheless, I must caution against the additional modifications that he has suggested to what is essentially a prudent and restrained use of borrowing. The Government's approach to borrowing is a carefully calibrated one. As Ms Foo Mee Har said, there is good debt and there is bad debt. While we do borrow, the key difference is what we do with the debt proceeds. The Government is currently already borrowing, under the Government Securities Act and the Local Treasury Bills Act. But instead of spending the proceeds, we invest them for long-term returns, which is used to repay our debt. The rest go back into the reserves.
The Government is going to borrow for major, long-term infrastructure.
[+21 sentences] These investments will benefit and generate value over generations, but the upfront costs are hefty. Borrowing is a fair and efficient approach to spread out the lumpy costs, to ensure that we better match the timing of the benefits with the timing of spending. If we do not, I will have to raise taxes significantly to fund these major expenditures. And Assoc Prof Jamus Lim has asked if we can borrow more to fund "soft capital" like education. Let me sound a word of caution. We have to refrain from the temptation to borrow for what are essentially recurrent expenditures. In many countries, there is a tendency to expand the scope of what constitutes "soft capital" beyond the original intentions. So, the original intentions were good but it creeps. So, when used to fund increases to Government subsidies or social transfers, it is really more recurrent spending. Borrowing continuously for them will just lead to ever higher debts which have to be repaid by future generations. When borrowing is not used productively, the result has often been high debt, low growth, rather than high growth, low debt. As debt level grows, interest payments can also increase, as Assoc Prof Jamus Lim himself pointed out. This can lead to an unsustainable fiscal position and spiralling debt, affecting investor confidence, raising the costs of funding for businesses and ultimately, our long-term growth. In addition, interest rates are low, in fact, ultra low for now, but this may change quickly. When it changes, existing debts would have to be refinanced and a higher rate could spiral the fiscal situation downward quickly. This usually happens in a crisis, when we can least afford it. Borrowing is not a form of revenue. Borrowing gives us cash for liquidity planning but it does not create free monies for spending. Today's debt is paid for by tomorrow's growth and tomorrow's generation. As I have explained earlier, our fiscal principle is that every Government must spend within its means and raise the revenue required to fund its initiatives. Members, such as Ms Foo Mee Har and Dr Lim Wee Kiak have noted, we must borrow prudently and sustainably.
So, let me now also briefly address their queries on the safeguards and how borrowing under SINGA might impact our credit rating. We will set $90 billion as a borrowing limit and this is sized based on the expected expenditure of major, long-term infrastructure projects over the next 15 years. Any increase of this limit will require legislative amendments which is subjected to Parliamentary approval. We will also put in place other safeguards, such as a limit on the interest costs, so that the debt servicing cost will not over-burden future generations.
[+12 sentences] This will address Ms Foo's concern about rising interest rates. More will be elaborated later when the Bill is presented in Parliament later this year. Since the announcement of SINGA, credit rating agencies have also published articles affirming Singapore's strong credit standing, attributing it to Singapore's prudent and sustainable fiscal policy. Mr Liang Eng Hwa also asked if we would consider one-off, special purpose borrowing for the economic investments under our emerging stronger strategies to help Singapore to emerge stronger. I thank Mr Liang for his suggestion. As I have explained earlier, borrowing does not give us revenue. Instead, if the economic and fiscal outlook turn out worse than expected and we have to draw on Past Reserves for economic investments, borrowing would allow us to keep our reserves invested long term and earn good returns. Borrowing from the market also means that we will have to have the discipline to repay amounts used for these economic investments. The key here is to use debt equitably and sustainably. We will borrow under the SINGA to spread out lumpy costs equitably across current and future generations. The Government will study Mr Liang's suggestion of a one-off, special purpose borrowing to help us emerge stronger from this long drawn out crisis. Staying true to our core values of prudence and stewardship, we have built up significant reserves that are now our strategic assets.
Our reserves give us the confidence to forge forward, knowing that we have the wherewithal to deal with any crisis that might come our way. We have drawn on our past reserves to deal with two crises so far – $4 billion in 2009 to deal with the Global Financial Crisis; and up to $53.7 billion in 2020 and 2021 to respond decisively to the COVID-19 crisis.
[+35 sentences] Some commentators have questioned if we are dipping into the Past Reserves too readily. And yet, there are others who downplay the use of reserves, saying that these are small amounts and we can afford to use more of our reserves by spending more through the NIRC. Let me reiterate that the Government does not take any decision on the use of reserves lightly. Our reserves serve three important roles. First, they serve as an endowment fund, providing a key stream of revenue to supplement our annual Budget through the NIRC. Second, they provide a buffer against shocks and attacks on our financial system. Third, they serve as our bulwark against crises of an extraordinary nature. Due to the strategic importance of our reserves, we have a two-key approach to managing and safeguarding reserves. The Elected President serves as the custodian of our reserves. The Constitution vests in the President discretionary powers to withhold her assent to budgets and expenditures proposed by the Government that may lead to a draw on Past Reserves. On this note, I would like to address a question repeated by Ms Hazel Poa on whether the President knows the size of the reserves. I have just addressed this in June last year when I rounded up the debate for the Fortitude Budget. I shall repeat my answer here. It is public information that, under our Constitution, the President has access to information about the size of reserves. Under Article 22F of the Constitution, in the exercise of her functions under the Constitution, the President is entitled to any information regarding the reserves. In addition, on the MOF website, it is already mentioned that the President has full information about the size of the reserves. Ms Hazel Poa also asked about the size of our reserves. Again, it is not in our national interest to disclose the size of the reserves. As Mr Saktiandi Supaat explained very well yesterday, Singapore is vulnerable to currency speculation and large capital outflows. Revealing the size of the reserves is akin to laying bare our defence plan and will diminish the value of our reserves as a strategic defence. No responsible leader would do so. So, I was very alarmed when I heard Assoc Prof Jamus Lim citing theoretical literature that speculation could be stabilising. I would also point out that there are other academics who recognise that currency markets can be marked by massive instability. It is, in fact, well acknowledged by most economists today that market-driven short-term flows are and will continue to be fickle and extremely volatile. The episode in 1992 when hedge fund manager George Soros took on the Bank of England by betting against the Sterling pound and dramatically destroyed the UK monetary system is one stark example. To put it simply, foreign exchange speculations have been and will continue to be a threat to economies, especially small, open ones like ours. As an international financial centre, portfolio and banking-related flows in Singapore amounted to S$294 billion last year, or 63% of our GDP. Just last year, we saw extreme capital flow volatility in global financial markets due to the uncertainties and risk sentiments associated with the pandemic. MAS kept the Singapore dollar nominal exchange rate stable during this period backed by the full power of our reserves, giving banks and businesses certainty to make decisions under very trying circumstances. I personally saw this during the Asian Financial Crisis, when I was Principal Private Secretary (PPS) to Mr Lee Kuan Yew. Mr Lee was invited by several countries in the region to share his views, as Singapore was relatively unscathed. I sat in all his meetings. It was very painful to see how speculation and the currency volatilities that these countries face was destroying businesses, big and small, and the lives of men and women in these places. The exchange rate is far more important for a small open economy like ours compared to our neighbouring countries. And if our neighbouring countries are so badly affected during the Asian Financial Crisis, you can imagine the impact on us.
The Singapore dollar is one of the most actively traded currencies in the world relative to our GDP with daily turnover estimated at US$37 billion globally or annual turnover of US$9.5 trillion.
[+14 sentences] Our nominal GDP is just US$350 billion. So, you are comparing trillions and billions. Let me share that I was Managing Director of MAS when the Global Financial Crisis hit the world. Singapore is unique in operating in an exchange-rate centred monetary policy. My team and I had to not just be alert to the domino effect of the failures of banks globally, but also the flights of capital and the risks of speculation on the Singapore dollar. If we had been attacked, the businesses in Singapore, big or small, and the lives of our workers, would have been severely disrupted. Now, as a Board member of MAS, I want to ensure that MAS is able to continue effectively using Singapore's exchange rate to deliver price stability. A very volatile Singapore dollar exchange rate, subject to market fads and bubbles, would not ensure low and stable prices for Singaporeans. In normal times, our nation’s reserves also underpin our triple A sovereign credit rating, thus underpinning confidence in our unique exchange rate monetary policy system. So, as a practitioner at the frontline, who tries my best to understand the intricacies of the system, I must caution Assoc Prof Jamus Lim – let us not play with fire. This is about the lives of our people, not theoretical musings. And I urge all Members of this House to focus the debate on the merits of the policies and programmes and how we can improve the lives of Singaporeans. Instead of repeatedly focusing their attention on the size of reserves or other erroneous claims. We have inherited a strategic asset for the long-term survival and success of Singapore.
Protect it, nurture it and never squander it.
[+1 sentence] Let me now turn to the global outlook, and our next steps.
I said in my Budget Statement that we expect to fund the expenditure for the remainder of this term of Government without a further draw on Past Reserves.
[+7 sentences] But the global outlook is highly uncertain, and we need to think ahead of how we can respond. Prof Hoon Hian Teck articulated well the difficult balance Singapore needs to strike: stabilising the economy to avoid a sharp downturn, but also undertaking and investing in structural policies for transformation. The uncertainty over how quickly the global economy will recover makes this balancing act even more complicated. If we face a prolonged slump, it will be even more necessary for us to transform, but it will also be more challenging to find the required fiscal resources to both stabilise and restructure the economy. Taking the longer-term view, we have to press on with these economic investments, secure the next decade of growth and emerge stronger. If we hold back these investments, we will miss the opportunity to restructure, seize new opportunities and race ahead. If we fail to change and our economic recovery is sluggish, it would have a long tail effect on our jobs and economic vibrancy, and affect Singaporeans adversely.
It will also further worsen our fiscal situation. So, after considering the various options, if the public health and economic situation deteriorate sharply and our fiscal situation turns out to be worse than expected, the Government may again have to seek the President’s approval for the use of Past Reserves to continue such economic investments so that Singaporeans can emerge stronger.
[+3 sentences] The President has expressed her understanding towards the Government’s approach and will consider the Government’s specific proposals, should there be a need to draw on Past Reserves. But if we are to draw on Past Reserves for the economic investments to emerge stronger, we should do our best to make good on the draw. These investments are expected to yield returns for the economy, which can give a boost to our tight fiscal situation and allow us to make good the amount drawn.
As a crisis response to COVID-19, we have drawn from the Past Reserves, an amount equivalent to about 20 years of financial surpluses.
[+11 sentences] It will be a challenge to also make good this amount drawn given the magnitude of the crisis. This is the "crisis fund" function of the reserves. Nonetheless, we should strive to remain fiscally prudent to build back our reserves gradually. The fiscal situation ahead will be very challenging but I believe that Members agree on several issues. There is scope to do more to take better care of Singaporeans, especially the more vulnerable. With that, we will need to find the resources to do so. We need to consider all available options to raise revenues. We will continue to review additional options to complement a GST rate increase, but it is not realistic to hope for these to become alternatives to a GST rate increase, or to make the GST rate increase unnecessary. Each of the decisions we make or do not make today to tackle the challenges will determine the starting point we give our future generations. We must have the courage to confront the hard issues now and not take the easy way out. We are stewards and must keep faith with our future generations.
Doing so will give us the resources to deliver on social, economic and security priorities to further the welfare of Singaporeans.
[+21 sentences] Not just today, but also tomorrow. Mr Speaker, Sir, we inherited a strong Singapore. We are able to enjoy many opportunities and work towards our aspirations, because our pioneers were also good stewards with courage. They steered Singapore through many storms. We have strong governance and trusted institutions today. We have built a strong global Singapore brand. We contribute to the world in our own way. COVID-19 has taught the world that trust is a valuable currency, and there is a high premium for long-term planning, and reliability. Singapore takes pride into doing these well. First, we plan long term and act in the best interest of Singapore and our people. Mr Cheng Hsing Yao rightly pointed out that we now have the luxury of choices in dealing with resource constraints, precisely because of the foresight of the generations before us. Second, we are upfront. We do not shy away from difficult conversations. We explain the difficult decisions, as the well-being of Singaporeans are at the heart of what we do. Third, we honour our commitments and hold ourselves to high standards. Where we fall short, we learn and strive to do better. Singaporeans know that they can trust us to lead the country. We trust one another and advance as Singapore Together, as one united people. And this is crucial to our success, because Singapore is a small island nation in a big turbulent world. We will continue to work hard to deliver results to Singaporeans, and strengthen and grow our valuable reserve of trust and unity. Mr Speaker, allow me to say a few words in Mandarin before I conclude.
(In Mandarin): Although COVID-19 is still spreading globally, we have made progress in safeguarding our health, livelihoods and businesses. This year's Budget prepares us for a post-COVID-19 world and is more targeted at helping businesses, workers and the vulnerable groups.
[+2 sentences] The vaccine has brought hope for countries around the world in triumphing over the pandemic . But the tremendous impact of the pandemic has also accelerated the structural changes which were already taking place.
We need to redouble our efforts to protect our future. We will continue to help businesses in all sectors to transform and to create more good jobs for our workers to ensure that Singapore thrives in the post-COVID-19 era.
[+2 sentences] COVID-19 is a grave test for many countries. We will also build trust and strengthen cooperation with other countries to overcome our common challenges.
Our Past Reserves give us the confidence to move forward because we have enough resources to cope with a possible crisis.
[+38 sentences] Drawing on Past Reserves is a difficult decision. When considering whether or not to draw on the Past Reserves, the Government has always adhered to the principle of fiscal prudence and long-term planning, as practiced by our forefathers. This is to ensure the sustainability of our fiscal policy, that we act as stewards to safeguard the interests of future generations. Today happens to be 元宵节 or the Lantern Festival. The significance of the Lantern Festival lies in family reunion. Family union is happiness. When all of us are united as a nation , we have strength. Over the past one year, Singaporeans have shown a spirit of solidarity and fortitude. In the new year, I hope that Singaporeans will uphold this spirit and work together to build a prosperous home with strong social cohesion. The future will change rapidly but I firmly believe that as long as we work together, we will be able to overcome the challenges ahead and emerge stronger. (In English): COVID-19 has tested the strength, unity and resolve of countries – socially, economically, and fiscally. Singapore has done relatively well so far. Our society came together as One Team Singapore to battle this invisible but deadly enemy. We looked out for one another, and we stood united. We protected the livelihoods of Singaporeans amidst the immediate economic fallout. Now, our economy is gradually, but steadily, recovering. We have been careful and prudent in the use of our reserves to protect the lives and livelihoods of our people. There remain huge uncertainties ahead. But we confront these unknowns together with confidence, knowing that we have built a deep reservoir of trust to meet the challenges head on. The years ahead will be crucial. We have a narrow window of opportunity to transform our economy and forge ahead as One Team Singapore. Singapore did not happen by chance. Whether we continue to do well cannot be left to chance. I have laid out our strategy to emerge stronger. The Government is committed to put in the investments. But the Government cannot do this alone. To succeed, every Singaporean must come together to build the Singapore that we want. Businesses should continually innovate and support their workers through opportunities for training, growth and progression. Workers should seize the opportunities to up-skill and re-skill. And within our communities, I urge all Singaporeans to lend a hand to those who need more help. Nation building is hard work. But if we put our hearts, minds, hands together, I am confident that Singapore will continue to prosper and be a place we are proud to call home. That is why I have given the name "Emerging Stronger Together" to this year’s Budget Statement. It is as much about "Stronger Together" as it is about "Emerging Stronger". We are in this together. We all need to each play our part. We have a clear view of where we are headed. Government, businesses, and the community must come together to overcome our shared challenges; and Singaporeans must care and look out for one another along the way; so that Singapore will emerge stronger together.
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh (Aljunied)41 words
[+3 sentences]Thank you, Mr Speaker. Sir, I have three questions and clarifications for the Deputy Prime Minister. Before I start, can I ask Deputy Prime Minister Heng where did he get the figure of $20 million for a Parliament Budget Office from?
Mr Heng Swee Keat16 words
[+2 sentences]Mr Singh, I got it from your Member who mentioned it. It is in the record.
Mr Pritam Singh22 words
[+2 sentences]Mr Speaker, can I ask that the Workers' Party's Member who gave that figure to please clarify. Was that figure actually given?
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)21 words
[+1 sentence]I believe that the information was shared with the Ministry in bullet points for my cut which has not been delivered.
Mr Pritam Singh649 words
[+6 sentences]A point of order, Mr Speaker. The Committee of Supply debates have not begun. That figure was specific to a cut. I believe the MOF officials have asked Member of Parliament Assoc Prof Jamus Lim to deliver points for and it should not really be part of this debate. But having said that, that was with regard to, I believe, a fiscal office and the cut has not been delivered. Let me carry on with my clarification questions, Sir.
The Parliament Budget Office or the Parliamentary Budget Office is not an unusual institution in many parliamentary democracies.
[+14 sentences] It is a fairly new institution and, really, it is not to help the Opposition in Parliament. It is to help all Members of Parliament. This is constant with the separation of power schema. I was a Member of the Estimates Committee some years ago, and I will never forget – and those Members of Parliament who were Members of the Estimates Committee will also remember – a senior civil servant said, "I cannot be smarter than my boss". Who is her boss? Her boss is the Minister for Finance. And so, a Parliament Budget Office or officer is there to provide independent analysis to confirm the nature of the Budget, to confirm that programmes are delivering the outcomes that are desired. As was quite eloquently put by the Member for Aljunied, Mr Leon Perera, who said it is not just about getting an "A" for effort, it is about scoring and "A" for outcomes. And to that end, as I acknowledged in my speech, and Deputy Prime Minister Heng also shared in his Round-up speech, the Budget is not about a one-year programme. It is about a multi-year programme. And in my speech, I asked Deputy Prime Minister Heng – for which I do not believe a clarification was forthcoming – about the headline $24 billion figure which is a multi-year initiative, questions about the accountability of this figure, how are we going to look back at this figure and say that money has been spent prudently? The second point is with regard to the Capability Transfer Programme. I believe I had some questions about it and fundamentally again, the Minister committed until 2024, I believe. And I had some questions about how many Singaporeans were trained?
The Minister gave the number: less than 970.
[+11 sentences] And my query also sought information on how much money was spent on this initiative and whether these outcomes are outcomes that the Government is satisfied with. I do not believe that was answered. My third point is a carryover from the Unity Budget. The Minister made the point about a remark I had made, elbow room, more fiscal elbow room than any other government. I think that is factually true. More revenues, certainly, more expenditure, but certainly more revenues as well for the Government to spend and to consider how to lay out its plans. So, there is nothing factually inaccurate about that. But I would come to the point of the Driver Support Programme or the various programmes that the Government has laid out for private hire drivers. In the Unity Budget, I spoke about another community of individuals – private hire bus drivers – and many of them support the tourism sector. I think in this Budget with the JSS being extended to severely-hit sectors like aviation, I am sure the workers in that industry, the companies in that industry, appreciate the support. But this group of private hire bus drivers; there was support rendered in the subsequent Budgets from the Unity Budget.
One of the most important interventions was to subsidise the cost of parking in HDB estates for these private hire bus drivers.
[+1 sentence] And that was extended to March 2021.
Can I ask Minister Heng whether this extension would continue for this group of workers, because the tourism industry is decimated?
Mr Speaker1 words
[+1 sentence]Leader.
The Leader of the House (Ms Indranee Rajah)127 words
[+6 sentences]I apologise, Mr Speaker. I did not mean to go before the Deputy Prime Minister's response, but I just wanted to ask or seek a clarification from the Leader of the Opposition, because this may be helpful for either the Deputy Prime Minister's reply or perhaps for later. When he refers to the Parliamentary Budget Office, and I think it was quite clear in his original speech and just now, that he indicated that the purpose of this Office is to assess outcomes of Government expenditure. Can I just clarify if that is the purpose? Question number one. Question number two, is this the same as the Independent Fiscal Council that the other Member of the Workers' Party, Assoc Prof Jamus Lim, has filed a cut on?
Mr Pritam Singh64 words
[+3 sentences]The Parliament Budget Office that I had shared in my speech in this debate about, actually mirrors the Canadian model, the Canadian Parliament Budget Office. Or under the Parliament of Canada Act, I believe it is called Parliament Budget Officer. So, the second question is then answered: no, it is not the same proposal that has not been delivered by Assoc Prof Jamus Lim.
Mr Speaker1 words
[+1 sentence]Leader.
Ms Indranee Rajah31 words
[+3 sentences]I thank the Leader of the Opposition. So, there are actually then two proposals: one, for a Parliamentary Budget Office, and the other for an Independent Fiscal Council. Is that correct?
Mr Pritam Singh61 words
[+4 sentences]Mr Speaker, I am not sure whether Leader can phrase it that way because the Independent Fiscal Council, that cut has not been delivered. So, there is terminology. I think IMF refers to all these different agencies within Parliament as Fiscal Councils, but perhaps we should wait for Member Jamus Lim to deliver his cut. Then, the clarification would be obvious.
Ms Indranee Rajah129 words
[+6 sentences]Mr Speaker, that was not really my question. The Leader of the Opposition is well also the leader of the Workers' Party, so I assume he knows what he is talking about, and I assume he knows what his Member is going to to ask about. So, I am not asking in advance what Assoc Prof Jamus Lim is going to say. That, of course, he will do in the Committee of Supply. But I am just asking and I am sure the Leader of the Opposition must know this: is the office that he is asking to be set up the same thing as what his colleague is going to ask for, or are they both asking for two separate things? That is all I want to know.
Mr Pritam Singh14 words
[+1 sentence]Mr Speaker, I can assure the Leader that it will be the same thing.
Mr Speaker4 words
[+1 sentence]Deputy Prime Minister Heng.
Mr Heng Swee Keat348 words
[+11 sentences]Mr Speaker, Sir, now that Mr Pritam Singh says that it is the same thing, I am totally confused. Because they are very different entities. But before I answer his specific questions, let me repeat what I said right at the beginning of this debate. I said over the last few days, passionate debate went along a few threads. Some Members elevated the debate to help Singaporeans appreciate the changing landscape and the need to change. Some Members highlighted importance of our reserves – the bold and decisive response mounted and what it achieved. Unfortunately, some argue selectively without acknowledging the broader context, broader impact of COVID-19 and the outcomes of the Government's decisive interventions. So, Mr Singh said earlier that we should set up such an office because it is important to examine outcomes. He had an encounter with a Ministry of Finance official who say that, "I am not smarter than my boss". Your arguments are totally convoluted. One does not lead to the other.
If you are focused on the outcome, may I ask if Mr Singh and the Workers' Party Members have read the interim report which I have put out in the Ministry of Finance website, widely reported in the papers, on what the measures have achieved? There is a reason why I put out the interim report, even though the full effects have not been done. Because I am conscious we have used a big part of last year's Budget, we have used the past reserves and that I have a responsibility to account for those outcomes.
[+6 sentences] And I put those outcomes. So, the Member talked about assessing outcomes. That is our biggest spending. Does the Workers' Party have any comment on that? Because I sat through the debate, I read your transcripts, but no one no, one mentioned about outcome, no one raised a question about, "Could this have been done better, could that have been done better". So, what is the purpose of setting up an office when, with information that is publicly available is there for you to ask?
Mr Speaker3 words
[+1 sentence]Mr Pritam Singh.
Mr Pritam Singh109 words
[+3 sentences]Thank you, Mr Speaker. Sir, this is essentially a question, as I mentioned in my first intervention about Organs of State. You have the Ministry of Finance, you have Political Office Holders who drive the agenda of that Ministry and you have a parliamentary platform where the proposed Parliament Budget Officer will sit.
Two different functions completely independent of what Government is saying about the outcomes, because that is an independent perspective and that is something for Parliament who is going to approve the Budget.
[+2 sentences] Those who are approving the Budget ought to have access to an independent analysis. And that is what the Parliament Budget Officer will give.
Mr Heng Swee Keat204 words
[+13 sentences]Mr Singh himself, admitted that he has different names, different nomenclature. So, I do want to prolong this debate but we have the Committee of Supply coming up on the Ministry of Finance and we can debate that. But let me just ask for the Workers' Party to be clear about what is it that you are proposing; and second, I am asking you a very simple question. Have you or any of your Workers' Party Members scrutinised that interim report and have questions for us? But instead, in talking about outcome, what you have asked us just now, you raised the issue about, what about the Capability Transfer Programme which MOM is going to do in 2024? This is going to be debated at the Committee of Supply for MOM. You can ask those detailed questions. Then, you asked what about the private hire car drivers and so on, and would it be extended? Those are details of the scheme. This Budget debate is a serious debate about whether our broad direction is correct. Do you have suggestions on how we can do it better? I am open to your ideas. But I have to say, unfortunately, so far, I have heard none.
Mr Pritam Singh118 words
[+6 sentences]Mr Speaker, I understand that when there is a Budget debate, it is again part of the rules of debate, that when I bring up a subject matter, that is the subject matter I want to talk about. I am not sure another Member has capacity than to ask me about a matter I have not spoken about. So, just as a point of order, I think we should make that clear. I mean, the Standing Orders exist for a reason, I suppose. And insofar as the Minister's answers on Capability Transfer Programme, other issues being dealt with in the Committee of Supply, I can accept those answers. I can ask my questions during the Committee of Supply.
Mr Speaker3 words
[+1 sentence]Mr Louis Chua.
Mr Chua Kheng Wee Louis (Aljunied)431 words
[+2 sentences]I thank the Deputy Prime Minister for responding to some of the points I raised in my speech. Just two clarifications, Mr Speaker.
The first is one where I raised that the Government cash surplus from 2011 to 2019, that is about $261 billion or about $29 billion of cash surplus a year.
[+1 sentence] I understand that the Deputy Prime Minister mentioned that the land sales revenue would form a key part of it.
Based on what I could see, that would be about a $138 billion within the same time period or about $15 billion.
[+14 sentences] So, in the spirit of accountability, just so all of us can better understand, where did the balance of $14 billion of cash surplus come from? And I understand the need for us to be prudent about the use of land sales and this is something which I understand, but I think it is not one where we are calling for the use of land sales revenue in its entirety. It is one whereby, if you look at the incentives to using land sales revenue, they already exist today, but probably in a different extent. And I think it is also important, I guess, for me to share that — Sorry, so, what I mean is that the incentives for using land sales as a means to increase revenue. I think that is something that is already done indirectly and so that is already in place although to a different extent. But I think the broader point that I also would like to share, is in the context of Singapore, when it comes to land sales, it is something which I believe is a recurring source of revenue for the Government as well. That is the first clarification. The second is, there has been a lot of talk about our reserves. Just now Deputy Prime Minister mentioned that is about 20 years of surplus. Yesterday, a different Member shared that we have blown about 10 years' worth of savings. And I think earlier today, a separate Member also asked how long do we need before we can replenish our reserves. So, probably it will be helpful for Members of this House to understand, after accounting for the additional $11 billion of the draw at the end of FY2021, where would our reserves be? I mean, we do not need to know an absolute number, but where would our reserves be compared to 10 years ago, five years ago. That also helps us to understand the context, but without knowing the absolute amount of the reserves itself.
Mr Heng Swee Keat434 words
On the technical question that Mr Louis Chua asked about, what constitute the other big part, well, one bit which, as the Member has pointed out, is the land sales; and the other part, a big chunk of it, is the NIRC.
[+4 sentences] The NIRC is already being used. On the second point about land sales, and that there is an incentive for the Government to use land sales because the revenues are already done indirectly, that is wrong. I said very clearly that when we do land sales, it is to meet the needs for our people, for our economy. You cannot plan land sales on the basis that we need the revenue, and therefore, I would have to do that.
The land sale proceeds, they go into the past reserves.
[+12 sentences] I totally reject your allegation that the Government has an incentive to sell more land in order to generate revenue. If the Government had an incentive, I would not have pointed out the problems in many countries. I have studied this in many countries where unfortunately, where the government, especially the local government, is so reliant on land sales that they have a vested interest to keep land prices high because they need the revenue, and, in turn, that creates a lot of hardship for the people. So, our system cannot incentivise it. URA has long-term plans – 50-year plans, 20-year plans. The land use planning has been a great strength of Singapore. I think you should seriously look at what the agencies have been doing and do not make allegations like these. Because I think it will demoralise the many good officers that we have in our planning departments, in URA and the Ministry of National Development, who have over the years, allowed for so much development in so compact a land. And by the way, one of the areas that I am hoping that we can do more in our research plan, is precisely on urban solutions and sustainability, something which Senior Minister Teo started when he was the Chairman of the National Research Foundation (NRF) and which we are continuing. Because that is a constraint for Singapore and if we can overcome this constraint, we can do better. It is not for us to sell land in order to do that. So, I would like you to take back your allegations that the Government has an incentive to sell land for that purpose.
Mr Chua Kheng Wee Louis153 words
[+7 sentences]I thank the Deputy Prime Minister. I would just like to share that I did not make the allegation. Basically, what I was trying to get at is that if you look at the context of Singapore, the land sales revenue, I think that is a recurrent source of revenue for the Government over a period of time. I am actually not belittling the work of our MND and the good officers of the URA. I think that is something that they have done well in terms of the concept plan and the master plan. What we are looking at is in terms of the level of cash surplus that the Government is generating, understanding where this comes from. Because on the technical point as well, if the NIRC is something that is to be used, then that should not actually form part of the cash surplus if it has already been used.
Mr Heng Swee Keat91 words
[+6 sentences]Mr Chua made the points in a very indirect way, to say that, "Well, the Government is doing it indirectly." I am glad that you are taking it back to say that you are not making that statement. So, I thank you for that clarification. But let me repeat that the Government has no incentive to sell land for the purpose of generating revenue. Our Reserves Protection Framework has safeguarded all the assets that we have. You are just converting one asset to another form of asset and these are guarded.
Mr Speaker3 words
[+1 sentence]Mr Darryl David.
Mr Darryl David (Ang Mo Kio)165 words
[+6 sentences]Thank you, Mr Speaker. I have a point of clarification for the Deputy Prime Minister. Earlier, in his wrap-up, the Deputy Prime Minister mentioned the point that I made about nurses and healthcare workers and how I was very supportive of the decision to enhance their salaries and to review their salaries. I also made another point beyond that, which was to say that, I believe, it is not just about salaries; there are other factors that perhaps we could look at in terms of enhancing careers, mid-career conversions, perhaps in improving the work-life balance. I even suggested a bit of a radical idea, like paid holidays or mandatory leave that nurses and healthcare workers need to take to encourage them to step back from the frontline. The Deputy Prime Minister did not quite address this in his speech and I wanted to ask if it is something that the Government can actually consider beyond the salaries and the financial aspects of a nursing career.
Mr Heng Swee Keat134 words
[+1 sentence]I thank Mr Darryl David for the question.
When the issue of raising the salaries of our nurses and healthcare-related workers was raised as part of this Budget approval process, I did speak to Minister Gan Kim Yong.
[+1 sentence] I asked exactly the same question.
Minister Gan has given me a very good reply and I am satisfied with that. The MOH Committee of Supply debate is coming up and I will leave it to my Minister for Health to outline more fully. But let me say that personally, I support what you have said about how we can improve the working conditions of our nurses.
[+2 sentences] I myself am a big beneficiary of the care of our nurses. I would like to see improvements, certainly, and career progression for our nurses and related healthcare workers.
Mr Speaker4 words
[+1 sentence]Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang)197 words
[+9 sentences]I thank the Deputy Prime Minister for his comprehensive response to a few points that had raised in my Budget speech. Let me just begin by fully agreeing with the principles that he has laid out. And I believe that, not only myself but also the Workers' Party, agree with the principles of prudence and stewardship. And we also agree that we, of course, do not have oil gushing out of our ground. Now, that said, I think we can potentially have ideas gushing out of our heads and that is precisely why I made the suggestion about soft infrastructure. And I wonder why Minister Heng remains dismissive of soft capital. The key I think is ultimately that we invest what we end up borrowing and while I agree that we should not allow recurrent expenditures to be lumped into soft capital, it is easy to allow recurrent expenditures of all forms, like various HQ functions in hard capital projects. The key is that we always evaluate what how we define a given project as soft or hard capital; and its ultimate investment and repayment potential. Now, I should also clarify another point on the exchange rate.
Mr Speaker5 words
[+1 sentence]Are you seeking a clarification?
Assoc Prof Jamus Jerome Lim191 words
[+14 sentences]Yes. So, the first one I was hoping for clarification on why he remained dismissive of soft capital. My second point is again a clarification. I should be clear. I am not suggesting a revision in our exchange rate regime. I am questioning whether there is a need to keep reserve information secret and whether that actually helps, or hinders, our effort to do. What I heard Deputy Prime Minister Heng share was a lot of reasons why the exchange-rate-targeting regime is warranted for our country. And I cannot agree more. But I did not hear strong reasons why secrecy over our reserves actually helps in that case. Markets, I think, we both acknowledge, can be volatile. But I think they tend toward the truth. And indeed, speculation, as I conceded, can in fact be destabilising if our exchange rate is disconnected from the fundamentals. So, it leaves me to wonder is if Minister Heng is suggesting that with our current situation, such secrecy can actually help us to maintain what is an otherwise untenable rate? Because I know that the Ministry has routinely denied that we manipulate our exchange rate.
Mr Speaker9 words
[+1 sentence]If the Member can keep the clarification short, please.
Assoc Prof Jamus Jerome Lim22 words
[+3 sentences]Yes. And the Ministry has routinely denied that we manipulate our exchange rate, only that we seek stability. I will stop there.
Mr Speaker4 words
[+1 sentence]Deputy Prime Minister Heng.
Mr Heng Swee Keat1053 words
[+22 sentences]Mr Speaker, Sir, first, let me let me say that in Parliamentary debates, please do not put words into my mouth. I did not dismiss soft capital. You said that I was dismissive of soft capital. I was not. I said that we have to be careful. I said, I sound a word of caution about soft capital. Precisely because it is soft, it can morph into various shapes. I had mentioned how many good schemes started with very good intentions, with very good people, but precisely because it is soft, the shape changes, and over time, everything becomes capital investment. So, that is the first point. Second, I think there is a role for building all this soft capital. If you want to talk about whether my notion of partnership, working together, is soft capital, well, you can say that and say: should we invest a lot of money in that? We have been very careful to say how we can build our society. In fact, if you want to use academic terminologies like these, there is a lot of soft capital in our neighbourhood because people are supporting one another, and we did see soft capital coming up. But that is not the issue. The key issue is this. We have to be very careful with recurrent spending and the outcome focus, which was a point that Mr Pritam Singh mentioned right at the outset. So, let me share my experience as Education Minister. I said in my speech, and in fact, I have shown this slide many times. Perhaps I should show it again and again until the message gets through. I have shown it many times how Singapore has been ranked so well in the international ranking of students. I have also shared that in 2018, when the IMF/World Bank meeting was held in Bali, President Jim Yong Kim of the World Bank invited the Prime Minister to talk about the Human Capital Index. And when I was walking with President Jim Yong Kim to the venue site, I asked him: "Personally, I am not terribly comfortable talking about Singapore being ranked well because it is not our approach to talk about our ranking.
So, what is your purpose?" And he said something which has never left me. He said, "Well, actually, my interest in Singapore is not how much you spend, but how well you spent." And the reason he could say that was that he had done comparisons, the World Bank team had done comparisons, of the educational expenditure and the outcomes of the student. We ranked well not because we spent the most money, but because we actually achieved outcomes.
[+10 sentences] Having been Education Minister for five years and visiting so many of our schools, I am convinced that our schools and our teachers have put in the greatest amount of effort, and the fact that we have parents who are so supportive of our kids' education is what allowed our students to do so well. There is no one magic formula. You can have a number and say, "I would like to know whether it is 5% or 10% of GDP" and so on. It does not. I have also said in this Budget debate and even in the previous round, about our healthcare outcome. It is the same – it is not what you spend; it is how you spend it and the dedication of the staff. So, I am extremely grateful to our frontline officers, to our teachers and our educators in their various roles in our schools, and which is why, as Education Minister, I talked about every school being a good school, because I am deeply convinced that that is the case. It is not something that a Budget and a theoretical number can give you the result. So, President Jim Yong Kim told me, "I hope that Singapore is open to sharing this so that others can learn because there are countries who will need to raise this, and they are very concerned that they will not have the resources to educate their people better". So, it is how we use it.
Now, the second question on the exchange rate.
[+2 sentences] Let me again state, for the benefit of our currency stability and for the benefit of all of these debates around the world about manipulating exchange rate, Singapore does not manipulate our exchange rate. Singapore does not manipulate our exchange rate.
We do not manipulate it to secure a competitive advantage because that is not sustainable.
[+1 sentence] As an economics professor, I think he will fully understand that, that long-term sustainability for economic competitiveness must come from productivity growth and labour force growth.
Our labour force growth is turning towards zero.
[+11 sentences] And so we have to rely on productivity growth –which is why in the next phase of our transformation, we need to focus on technology and innovation-driven growth. So, we do not manipulate our exchange rate. So, what do we do? What is our exchange rate policy centred on? It is not different from other central banks, which is maintain medium term price stability, so that economic agents, economic players can make decisions on the basis that these are the relative prices that they can make decisions on, that you do not have runaway inflations. Even then, I will say that, right now, because of COVID-19, there is, again, new thinking about whether this inflation targeting is the right approach, and so on. But as far as Singapore is concerned, we have been maintaining price stability and that has allowed our economy to have the macro economic framework to stay competitive. So, the question about our exchange rate regime, I am glad that the Member is not saying that we should reveal our exchange rate regime, that is good. As to your question about why the secrecy, I do not wish to hold up this whole forum. I devoted more than two pages of my reply to you on that, about the size of currency trading, about my experience in MAS during the Global Financial Crisis, about my experience when I was accompanying Mr Lee Kuan Yew to the countries which were so badly hit by the Asian Financial Crisis. So, please, have a care that policy-making cannot be theoretical musings.
Mr Speaker4 words
[+1 sentence]Mr Sitoh Yih Pin.
Mr Sitoh Yih Pin (Potong Pasir)246 words
[+4 sentences]Thank you, Mr Speaker. Mr Speaker, I would just like to add on to a point that the hon Member Assoc Prof Jamus Lim had raised. Because I know he is very gung-ho on borrowing; he is entitled to his views. But I just want to add, in life, when you want to borrow, it does not automatically mean people want to lend to you.
In the case of Singapore, we will be able to issue debt papers if we want, but that is because of the huge reserves that we have accumulated over the last 55 years.
[+1 sentence] I would like to raise a question to Deputy Prime Minister Heng.
Deputy Prime Minister Heng did not say so but I am trying to read into his mind, and I apologise if I got it wrong. I think one of the reasons we are quite comfortable to borrow now, with fairly large reserves behind us, is because we are quietly confident that in the long term, our rate of return from our reserves is going to exceed the cost of borrowing.
[+6 sentences] Because when the Government of the Republic of Singapore goes out to borrow, there is a premium. The cost of debt is significantly lower than others. So, am I right about my assumption? Mr Speaker, Sir, I know you are going to ask me to sit down but please allow me to share a story. Thirty seconds. I want to share a story with the House.
Mr Speaker4 words
[+2 sentences]Fifteen seconds. Thank you.
Mr Sitoh Yih Pin128 words
[+9 sentences]Thirty seconds. I had a conversation with our retired Member of Parliament Mr Chandra Das not too long ago. I do not think he will mind me mentioning his name. Mr Das worked with Dr Goh Keng Swee in the 1960s and 1970s. So, I asked Mr Das, "During your time, did you go out to borrow?" And he said "Once"; only once but for a different reason. And that was because Dr Goh saw a project, he was not entirely convinced that it was feasible and he gave instructions to the staff, "Go out to an external third party financial institution and get a second opinion and see whether they lend us". So, that is how careful we have been. In the past and even today —
Mr Speaker6 words
[+1 sentence]It is more than 30 seconds.
Mr Sitoh Yih Pin28 words
[+2 sentences]Okay, and that is why when we issue debt, the international financial world is willing to take it. Thank you, Mr Speaker, Sir, thank you for your indulgence.
Mr Speaker2 words
[+1 sentence]Thank you.
Mr Heng Swee Keat373 words
[+3 sentences]I thank Mr Sitoh Yih Pin for his question and for sharing the story. Why are we borrowing at this point? There are several reasons and the Member touched on two of them.
One is that for our SINGA Bonds, which is about borrowing for our infrastructure, the significant national infrastructure, we are borrowing because we are now coming to another hump in our development expenditure.
[+1 sentence] In the early years, did we borrow?
Yes, we did borrow when we were building the first MRT and our airports.
[+1 sentence] And, again, that was another big hump.
So, the nature of infrastructure project is such that you need to build it over the next two, three years, but the benefits of that project should last us several generations.
[+17 sentences] So, therefore, how do we spread out the borrowing? First, do we build or do we not build? Just because we do not have the resources to build it now, do we forego it? We must build it only if it gives you economic or social return. The projects that we did for our MRT lines, for our airport, give us both the economic and social returns, and therefore we can justify why we are doing it. But at the same time, I mentioned that, in the coming years of, first of all, even if our fiscal situation was good, it may not even be enough for us to fund that lumpy investment. So, lumpy investments need to be spread out over time. Then, the next question is how do I fund it? There are several ways. One is, could you go and use the past reserve for that? It is not because the reserves are used for extraordinary and temporary situation. It is spelt out in our Constitution. So, why are we borrowing? Well, I mentioned before that there are several reasons. One, that it is fair for inter-generational equity, because you spread out the cost of borrowing, because various generations are going to benefit from that. Second, at this point, it is efficient because interest rates are very low and ultra-low. And to your observation as to whether, therefore, we should not touch our reserves and liquidate our assets to borrow, you are a good investor.
Mr Speaker60 words
[+3 sentences]Time is also not unlimited, so I will not borrow anymore time. Otherwise, we will not finish on time next week. I will wrap it up.