Ahmad Mohd Magad
Singapore
“The participants were proudly spoilt and present their national attires, the mainland Chinese would tell stories about the differences in their culture and practices from ours and the Indians would cook their best sumptuous dishes for us.”
“Sir, anecdotal data suggest that there is an increasing number of families who have sold their flats twice but are unable to afford another flat from the open market due to cash flow or other financial problems. There are also others, for one reason or another, who are no longer eligible to purchase another subsidised flat.”
“I would also like to know whether HDB could process applications for sales of balance flats faster as feedback received suggests that applicants are frustrated by the long waiting time and the uncertainty of whether or not they are going to get their flats allocated. Income ceiling for HDB flats”
“Furthermore, for single mothers who are working, many of them are possibly unaware of the childcare schemes that they can make use of. I hope that MCYS, with the cooperation of Malay/Muslim organisations, can spread the message about the choices available to fulfil this need.”
“Many small and medium enterprises (SMEs) in the manufacturing industries face challenges in sending their workers for training and skills upgrading.”
“Sir, 2009 also saw quite a significant shrinkage in maritime activities in Singapore. With the economy on the mend, could the Minister provide an update of MOT's efforts to prepare and capitalise on the economic upturn and enhance Singapore's position as a global maritime hub?”
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“Savings for retirement Sir, it is laudable that the Government has tweaked the CPF voluntary contribution cap by individuals to make it coincide with the mandatory contribution cap of 17 months of the CPF salary ceiling. Similarly, the rules on the contribution caps for the Supplementary Retirement Scheme (SRS) have also been relaxed. These revisions, hopefully, will encourage individuals to take active steps to set aside more for their retirement. However, Sir, it has to be borne in mind that CPF contributions today have come down to 33%, compared to a high of 40% in the not-too-distant past, and contribution rates are lower for those above age 50. Furthermore, much of Singaporeans' CPF savings have been used up for property purchases, leaving not too much for retirement. This is especially of concern, in view of the fact that we are among the fastest ageing in the world. The SRS, which was introduced to encourage additional savings for retirement, has its drawbacks, in that the limit has been reduced in recent years and the accrued tax savings are not sufficiently attractive. As a result, I understand the take-up rate for the SRS has been rather low. There is scope for the SRS to be fine-tuned and made an attractive vehicle for more Singaporeans to make additional contributions for their retirement. The more Singaporeans save for their retirement, the less will the burden be to the Government in looking after the financial needs of the elderly. An attractively revamped and repackaged SRS as a world-class savings and pension system could draw economic benefits beyond just meeting the retirement needs of Singaporeans.”
“Taxes With regard to taxes, the 2% cut in personal income tax has been widely expected as a given, although many were disappointed that it comes in two stages. However, reduction in income tax only benefits about 30% of Singaporeans, as the remaining 70% do not pay taxes. This is where I feel the Government could have been more generous to the man-in-the-street. Consideration for allowing tax deduction on mortgage interest is quite overdue, especially in the light of mortgage interest rates. This will benefit a wider cross section of Singaporeans. Many countries, such as the US, Hong Kong and Taiwan allow this, subject to a maximum cap. Buying a home is every Singaporean's dream. Therefore, making home mortgage interest allowable will help realise the Singaporean dream faster, as it makes the total cost of owning a home cheaper. The Government may be concerned that allowing tax deductions on home loans may lead to speculation and a new bubble building up. However, such concerns could be quite easily plugged by requiring the property to be owner-occupied, imposing a cap on the mortgage interest amount that is tax-deductible, and also a time limit of, say, 10 years from the date of purchase of the property. Hong Kong, for example, allows seven years of deduction, provided that the property purchased is used as a principal place of residence by the owner. Reduction in road taxes would also be meaningful to more Singaporeans. Considering that the Government has implemented effective mechanisms, such as Electronic Road Pricing and capping vehicle population increase on a monthly basis, there is certainly room for road tax to come down further.”
“REITs REITs, as a new and rapidly emerging asset class in Asia, bring with them the potential of unlocking value tied up in real estates, enhance the liquidity of real estate market, and free up the capital of companies that hold large numbers of properties for other higher-yielding alternatives. The several successful REIT listings in Singapore to-date clearly demonstrate that there remain opportunities for further growth. The three measures announced by the Prime Minister to lower REITs, set-up costs and enhance their appeal to overseas investors would undoubtedly bring about greater excitement in the REITs sector. However, bearing in mind Singapore's smallness and therefore limited asset portfolio that could be developed here, two measures I think that could help inject further vibrancy to the REITs scene are: (1) The development of incentives for local REITs to buy into overseas markets so that their income and profits could be repatriated to Singapore; and (2) The encouragement of foreign REITs to list in Singapore, notwithstanding the cross-border issues that need to be dealt with and resolved. I hope the Minister could consider these additional measures in the not-too-distant future. Sir, let me now touch on the "heart" side of the Budget. I acknowledge that this year's Budget contained a generous spread of goodies for the man-in-the-street, to the extent that some dubbed it an election budget. It is ingeniously packaged and, when fully implemented, will benefit Singaporeans from all walks of life. However, just like at each year's Budget announcement, expectations are abound.I would like to comment on a few such incentives where I think the Government could have gone a little further for the benefit of Singaporeans.”
“The existing framework, such as statutory and liquidity requirements, corporate governance, etc, could, by and large, be made applicable to Islamic finance without affecting the Islamicity of the system. However, there are some additional requirements, such as interest-free banking requirements and the need to follow the Shari'ah (or the teachings of Islam) that need in-depth discussion and consideration. I would like to propose that the Government consider the progressive development of a full-fledged Islamic banking and finance system as an alternative to the conventional system. I believe such a move will send a strong signal to the financial community that we are responsive to the changing global financial landscape. A well-defined system and an adequate Syariah infrastructure will attract corporate players and pave the way for Syariah-based loan syndications, private debt securities, issuance of bonds and many other Syari'ah-compliant instruments to be placed here. This will add further vibrancy to a thriving wealth centre that we are pursuing to become. As it stands now, Middle East funds are already showing a lot of interest in Singapore because of our reputation as a well-regulated and prudent financial regime. I would like to draw our Minister's attention to what Citigroup Private Bank's new Managing Director, Mr Alston Beinhom, has said and quoted in the Business Times of 27th January this year. He said, "Private money from the Middle East is increasingly looking to Singapore as an alternative wealth centre." Therefore, the presence of an Islamic banking and finance system will send a clear signal to Middle Easterners that we are serious in wanting their business. Sir, I will revisit this subject during the COS debate.”
“The Government should provide opportunities for our SMEs to enhance their role as suppliers to the public sector. We should follow the example of some countries where the Government agencies set aside a certain percentage of their procurement for the SME sector. I will delve more on this subject in the COS debate. Financial services sector Sir, let me now move on to the financial services sector. This sector undoubtedly received the biggest boost in this year's Budget. The wide variety of innovative measures announced will further enhance our reputation as an international financial centre and strengthen our resolve to be a premier wealth management hub. Allow me to comment on two of the initiatives announced, namely, Islamic finance and banking, and Real Estate Investment Trusts (REITs). Islamic finance and banking Mr Speaker, Sir, the global Islamic finance industry has grown at a phenomenal rate in recent years, with the current estimated market to be more than US$300 billion in over 70 countries. With the annual double-digit growth expected to continue, it represents one of the most dynamic segments of the global financial system. In the wake of our country endeavouring to increase trade and economic activities with Middle Eastern countries, and with SM Goh being very active in visiting a number of Muslim countries since last year, it is timely, indeed, that PM Lee has announced various tax measures to facilitate Singapore's development into a hub for Islamic finance activities. Singapore already has a well-developed and regulated banking and finance infrastructure which is internationally recognised and respected.”
“(ii) How long would the IRAS take to refund any tax following the claim for loss carried back? Would this be done only after the company has finalised and filed its tax for the particular year of assessment? In connection with this issue, would the Government also permit carry back of losses if a company chooses to cease its business? In the UK, a company is allowed to carry back losses against the profits of the three years preceding the year in which the loss is incurred if acompany discontinues its trade. If this were allowed, it would certainly provide a breather for businesses that have failed to quickly pick up the pieces. This would also help in further encouraging entrepreneurship in our country. I hope the Minister could consider this. Government outsourcing Next, Sir, on Government outsourcing. In its endeavour to stay lean, I am encouraged to note that the Government intends to step up outsourcing. This move should be win-win for both the public and private sectors. As the Government moves towards outsourcing moreof its non-core functions to the private sector, I would like to urge the Government to give due consideration for a reasonable slice of the outsourced activities to be set aside for local SMEs. In proposing this, I am certainly not suggesting that there should be any let down in quality or reliability of the outsourced functions when any of the PPP deals are struck up with SMEs. They must also pass the appropriate market tests. I am confident that many of our SMEs have the capability and competence to handle many Government projects but they lack the clout and branding that the bigger players, namely, the MNCs and GLCs possess. They tend to be oftenelbowed out by these players.”
“Their dependence on skilled foreign workers will continue even with the higher levy, negating the desired outcome of making Singaporeans more competitive in the job market. In this regard, the Government should have been more targeted at specific industries where the job content and value better match Singaporeans' skills set and desire to be employed in. I would like to urge the Ministry of Manpower to rethink this move as it may also result in some cost sensitive industries to consider relocating due to the added cost they now have to bear. HDB retailers Sir, the announced measure to help retailers in HDB estates either upgrade their businesses or exit the sector is indeed welcoming. I believe this could eventually have a positive impact on the economy if it succeeds in unleashing new energies in a sector that takes up a considerable amount of real estate, labour and other resources - and which has been under-performing for many years. Carry back of tax losses Sir, perhaps the most pleasantly surprising announcement in this Budget for local SMEs is the one-year loss carry-back rule, capped at $100,000, for excess current year trade losses and capital allowances. This is particularly meaningful for SMEs in helping them alleviate cashflow problems ina business downturn. However, there is some lack of clarity in the scheme which I hope the Minister could clarify: (i) Considering that existing rules permit a tax exemption of up to $100,000 of chargeable income for the first three years for new start-ups, would the loss carry-back be set off before or after the exemption amount? If the intention is earnest about helping small businesses, the loss carry-back should be set off after exempting the income for this scheme to be truly meaningful.”
“SMEs Allow me to elaborate more on the feedback from the SME community. Generally, many SMEs, especially small businesses, still felt that last year's strong growth has not filtered down sufficiently to them. They expressed that the measures do not adequately address the difficulties and challenges that they are continuing to face. While they expect growth to continue into this year, the SMEs are very concerned about their lack of competitiveness. High labour costs and difficulty in access to capital are cited as the key contributors to their eroding competitiveness. Members of the Singapore Manufacturers' Federation (or SMa), which include MNC representation, with whom our GPC alsoseparately met, went as far as saying that traditional manufacturing is rapidly hollowing out and wondered whether the Government truly has a long-term strategy to retain the 25% manufacturing contribution to GDP, which the Government has repeatedly said it would do. Hearing what we had to say, I think it would be beneficial if the Ministry of Trade and Industry could step up dialogue with the SMa to further understand their woes. Foreign worker levy LocalSMEs and manufacturers are especially critical about the increase in foreign worker levy which they feel unnecessarily adds to their business cost. The issue is not so much the levy increase but the difficulty in recruiting skilled Singaporean workers and also their lack of flexibility at the workplace. Similarly, the construction industry, in having to price their contracts with minimum or no profit due to stiff competition, will be directly hurt from the levy hikes as their contracts are committed over a fixed period with a fixed sum.”
“Mr Speaker, Sir, against a backdrop of a strong 8.4% expansion last year and the near elimination of an initial projected budget deficit of $1.4 billion, Prime Minister and Finance Minister, Mr Lee Hsien Loong, presented a creative Budget, which main thrust was the promotion of a caring and inclusive society. This came in the form of goodies and giveaways for Singaporeans in education, health, provision for retirement, retraining for workers and building a caring community. However, the Budget fell short in introducing new measures to consolidate business recovery and promote Singapore as a base for regional operations. It is narrowly focused and aimed at specific industry sectors or the measures represent refinements of the existing tax incentives and programmes. What I have just said represents the general sentiment expressed by Resource Panel members of the GPC for Finance and Trade and Industry, which comprise representatives from the various Chambers of Commerce and trade associations, with whom the GPC met last week to gather views and reactions from the business community. Views solicited from the finance and accounting fraternity, including the big four accounting firms and bodies, such as CPA Australia and local firms also bear similar sentiments. They have all provided the GPC with valuable feedback for which I wish to thank them. While the announcements were welcoming in themselves, the business community, in particular, would have loved to see the injection of more stimulants to the economy, with more wide-ranging measures which would benefit all businesses. There was also disappointment that the Budget did not contain sufficient measures to help companies cut costs and address their concerns about competitiveness.”
“In regard to the liability of an LLP partner, while a partner would not be personally liable for the malpractices of other partners in the LLP, the Bill is unclear whether a partner who is negligent and fraudulent is subject to unlimited personal liability according to the general principles of law, or whether his liability is limited to his capital contribution. I would appreciate it if the Minister could clarify this. In conclusion, Sir, LLPs are likely to be embraced by many partnerships for the benefits they confer, especially that the move involves little cost. Many businessmen and entrepreneurs have also mentioned that the new business structure is more attractive for those who wish to limit their personal liability. Similarly, foreign companies would welcome a wider variety of business structures and legal vehicles to choose from when they consider investing in our country. Providing this additional LLP option is another important step in our endeavour to make Singapore the best place for business. Considering the fact that we are progressively moving up the technological and innovation ladder, and also the intense dynamics of the global business environment that we operate in, where rules and laws are frequently reviewed and revised to suit changing business needs, it is imperative that we, too, must be prepared to do likewise in periodically reviewing our policies and regulations to keep ourselves relevant. On that note, Sir, I support the Bill.”
“If there is no provision for such changes at the conversion stage, I would like to propose that such flexibility be permitted to allow the entities to make the necessary adjustments at the stage of conversion to an LLP. Further, on the point of the conversion process, the Bill is also silent on payment of stamp duty. I am of the view that a change of an existing partnership to a limited liability partnership should not attract stamp duty as it is merely a change in the legal status of the business structure. It would also be contradictory to the seamless conversion process envisaged in the Bill. However, if stamp duty is considered necessary, I feel that existing partnerships should be given a sufficient window period, say, 1-2 years for the settlement of stamp duty, considering that larger partnerships would likely take a longer period of time than smaller ones. My next point pertains to clause 9 of the Bill. According to this clause, an LLP is not bound by anything done by a partner in the circumstances provided for by the Bill. In this case, I believe an aggrieved party could not initiate legal proceedings against the LLP. Considering that the aggrieved party's course of action is only against the partner he had dealt with, what happens if the partner is a bankrupt? This is by virtue of clause 12 which provides that a bankrupt could still be a partner of an LLP, unlike a bankrupt who could not be a director of a private limited company. It is legally impossible and practically pointless to sue a bankrupt. Where is the protection for the aggrieved party in such situations?”
“Since LLPs are not required to prepare, file or have its financial statements audited, other than just declaration of solvency or insolvency to the Registrar of LLPs annually, I am concerned that this may place unwary creditors in a position of high risk. While it is understood that some of the key objectives of creating the LLP structure is to confer limited liability on owners of firms and also to lower compliance and maintenance costs for businesses, a fair balance needs to be struck between meeting these objectives and protecting creditors and customers of LLPs. I would like to suggest that a form of monitoring and surveillance system be developed by ACRA, the regulatory body in this case, to ensure that LLPs maintain an annual set of financial statements and records that properly reflect a true and fair state of affairs of the business and that these are readily accessible in the event of a dispute arising between the LLP and its creditors. A monitoring and surveillance system would help in ensuring that LLPs become more compliant in properly declaring their state of solvency or insolvency. To facilitate a conversion to an LLP, this Bill provides that whenever a partnership converts to an LLP, all the properties and assets that are vested in the partnership would be deemed to vest in the LLP. In addition, all the liabilities and obligations of the partnership would be transferred to the LLP. I believe this is fair. However, the Bill is silent about allowing changes, such as adding new partners or relieving existing partners, and restructuring the assets during the conversion stage.”
“While I applaud the Ministry of Finance's timely move in introducing this Bill, which will enable us to keep pace with countries such as the United States, the United Kingdom and Australia, I would like to raise several concerns and issues for the collective benefit of the business community. First, Sir, is the provision of a grace period of up to two years for a sole remaining partner to find another partner, failing which winding up proceedings will commence. I feel this duration is excessive and may be subject to potential abuse. One partner may deliberately leave after a short time of incorporation to make way for the surviving partner to run the business behind the veil of limited liability for a much longer period than necessary. While it could be argued that the Companies Act now allows the registration of private companies with one director and one shareholder who need not be a different person, it has to be borne in mind that a one-partner LLP is a legal misnomer which is not in line with international practices. As such, I would like to suggest the following approach for the Minister to consider: Should the vacancy in a two-partner LLP arise from the resignation of one partner, the surviving partner should be required to resolve the partner vacancy within one year. However, should the vacancy result from death of one of the partners, then the grace period of up to two years, as provided for in the Bill, applies. This would help in preserving the credibility of LLPs and prevent those desirous of establishing LLPs from taking advantage of such loopholes. The aim is also to induce a sense of urgency in resolving the remaining partner's vacancy. Let me move to my second point.”
“Mr Deputy Speaker, Sir, thank you for allowing me to start the debate on the LLP Bill. I would like to first declare that I am a member of the Accounting and Corporate Regulatory Authority (ACRA) Board which, as the Acting Minister has just announced, will be tasked as the regulatory board to administer LLPs upon enactment of the LLP Bill into law. I am heartened that the Company Legislative and Regulatory Framework Committee initiated the formation of a study team with a view of introducing LLPs as a new business structure to fill the gap between business firms such as sole proprietorship and partnerships, and private limited companies which are governed by the Companies Act. In addition to an alternative business structure, LLPs accord businessmen and investors with limited liability, privacy as their accounts are not required to be publicly filed, and tax transparency as the partnership would be a separate legal entity from its partners. The absence of filing requirements and mandated company secretariat, as in the case of private limited companies, also means lower compliance costs. What is also interesting is the provision for a seamless conversion from general partnerships or companies to LLPs or vice versa. Sir, broadening the business structure options to the business community would certainly encourage existing businesses to stay rooted while attracting new businesses, both local and foreign, to be created here. Feedback I received from various sources has been favourable, with many keenly awaiting for the passage of this Bill.”
“Mr Deputy Speaker, Sir, I rise to express my support for the Estate Duty (Amendment) Bill. The key changes to this Bill, namely, the increase in funeral deductible expenses from the current $1,000 to $6,000, and the improved interest rate regime, which includes offering incentives for early filing and payment of estate duty, are both favourable changes which benefit the community.I only wished that these changes were made sooner, considering the substantially changed economic environment we are living in today. However, I have one point to make, ie, whether the current Act has sufficiently addressed the issue of making it attractive enough for foreigners to put in their money in Singapore in the light of our desire to promote our country as a wealth management hub. To do so, foreigners need to be assured that their investments and properties, specially liquid assets, are easily moveable out of the country to wherever they want to transfer them to, without the fear that this may attract hefty estate duties. I would appreciate it if the Minister of State could clarify whether the Act has sufficiently addressed this. I know on the whole that Singapore tries to shoot for a reasonably low tax regime, using the OECD nations generally asa benchmark. I applaud this initiative and vigilance, as we need to be competitive and, wherever possible, maintain an advantage in comparisonwith the OECD countries. I trust the debate on estate duty will continue in the future as we find ways and means to address the issue of competitiveness and make Singapore an attractive place for Singaporeans and foreign talent to live in.”
“While I believe those who shun using e-services cut across the various social strata, it is usually those in the lower income bracket that feel discouraged to venture into this new realm of possibilities because of the perceived upfront costs, lack of confidence and also probably lack of incentives. Looking ahead, it could take a generation or two before we could envision a totally paperless system by making e-services the only method of transaction. I hope the Government and the Ministry will craft out a convincing holistic plan to build trust, encourage and persuade more taxpayers to adopt e-services to be offered by IRAS. Reverting back to my second point about the complete removal of combined assessments, while this makes sense in view of the fact that separate assessment provides a more advantageous tax treatment in comparison to joint assessment, I would like the Minister to clarify whether homemakers, ie, non-working housewives, are still required to fileseparate assessments. If so, there may still be some utility in combined assessments in such cases as it helps to reduce paper work. Finally, Sir, there is also the introduction of a new section 36A concerning the general tax treatment of the limited liability partnership. Since there is also a separate Bill on this subject which is due to be read in 2005, I shall take this matter up when this Bill is discussed next year. On that note, Sir, I support the Bill.”
“In rolling out these enhanced electronic services to our taxpayers, I take it that the Ministry assumes that the majority of Singaporeans will take to the system. May I ask the Minister what is his Ministry's projection of the percentage of taxpayers expected to make use of this new system within a reasonable period of time from its roll-out? This is important because anecdotal evidence suggests that a large number of Internet-savvy users still prefer conventional methods of correspondence and are likely not to embrace this new method of dealing with the tax department feverously.The Income Tax Act currently prohibits prosecution for non-compliance of an electronic notice, unless the notice is served in person or by registered post. I believe that this will remain the case with the new change. Sir, while I believe that the introduction of e-services is in line with best practices, I am also cognisant of the fact that we cannot force everyone to adopt these new services instantaneously. Inevitably, the benefits of this introduction will only be realised at a later date. With this in mind, and given the anticipated percentage of users, what would be the expected cost savings to the Ministry? Can I ask the Minister whether any part of these cost savings will be passed on to the participating public in order to entice more to use this system? Mr Speaker, Sir, in our push to enable more transactions to become less paper-dependent and to maintain the top spot in e-governance, I hope the Ministry has plans in place to inculcate trust in taxpayers to use the system.”
“Mr Speaker, Sir, it is my understanding that this Bill, as clarified by the Acting Second Minister for Finance, essentially covers the tax changes which were announced and debated in the last Budget Statement debate and also in the Prime Minister's National Day Rally speech. I should not dwell into the key income tax changes as they had been dealt with in past sittings. However, Sir, there are two points with respect to the tax policy changes, which have been introduced in this Bill, which I would like to comment on and, wherever applicable, I would be seeking clarification from the Minister. The first point concerns the changes to facilitate electronic transactions with the Inland Revenue Authority of Singapore (IRAS) and the second is about the removal of combined assessment. On the first point, I believe the move by the Ministry of Finance to expand its electronic services, which include e-services to taxpayers via individualised portals, represents a laudable effort. While electronic services are already provided under the IRAS system, which is the IRIS, this Bill paves the way for the introduction of a new system which enhances customer service which among others will include the provision of e-services to taxpayers via individualised portals. I see this as a positive change as it provides taxpayers with an option to interface directly with the selected departments within IRAS and will also enable the taxpayer to access more advisory information and services than what is currently available. With this amendment, electronic notices sent to a taxpayer will have legal force if the taxpayer agrees to receive such electronic notices. Taxpayers who do not opt for these services will not be subject to the new provisions. This is fair.”
“Sir, a point of clarification for the Minister. In regard to the development expansion incentive, the Minister has just clarified that a company can enjoy a 20-year period of post-pioneer incentive. Is this over and above the 15 yearsof the pioneer incentive scheme?”
“Considering the resource constraints of our SMEs to research into such schemes, and also that the EDB which administers this scheme has only a small section on its website which describes this scheme, I would like to suggest that the Ministry consider beefing up the information about the PioneerIncentive scheme, detailing clearly how SMEs and innovative start-ups could take advantage of this scheme. To make entrepreneurship a successful career option in the long run, we must open up as many avenues as need be to create the necessary environment for entrepreneurship to thrive. In conclusion, Sir, I would like to applaud the Ministry's effort in regularly updating thisimportant piece of legislation to maintain our competitive edge in the light ofthe rapidly changing regional and global landscape. I wholeheartedly support this Bill.”
“This would enable the Minister to be more accountable for his decisions, consolidate cases so that explanations could be provided, while injecting a sense of transparency in the overall process. Next, Sir, is the amendment to section 10 in clause 5. While it is laudable that amongst others, the definition of "capital expenditure" in subsection (5) is now extended to cover "expenditure concerning acquisition of Intellectual Property rights", why is it confinedonly for usage in Singapore? Since most, if not all, pioneer companies operate on a global stage, should not the IP rightsbe extended to other countries as well? Finally, Sir, I am also pleased that the scope of the Technopreneur Investment Incentive is amended and renamed the Enterprise Investment Incentive orthe EII to cover all forms of start-up ventures. This, hopefully, would spur and encourage more Singaporeans to consider entrepreneurship as a career option. In connection with this, and further to the suggestion that I have made earlier, to pave the way for more local SMEs to tap into the Pioneer Incentive scheme by teaming with foreign SMEs, we should truly encourage more home-grown companies to benefit from the Pioneer Incentive scheme. Anecdotal evidence seems to suggest that most SMEs have the feeling that this particular incentive scheme is covered in a cloak of secrecy and intended only for large MNCs or foreign companies and is not within the scope of incentives that they can tap into. I know this is a misperception, but it is rather unfortunate that such a perception among our local SMEs exists.”
“Recognising the resource constraints of local companies, one way to enable them to tap on this scheme is to encourage them to team up with smaller foreign SMEs, which may have the expert knowledge and capacity to conduct pioneering and value-creation activities here, but doing away with the hundreds of million or billion dollar investment requirement before they could qualify for long-term pioneer incentives. In the value-creation niche, it is not necessarily the large amount of money invested but, more often thannot, the brain power and specialised know-how that produce breakthroughs. Incentivising teaming between foreign and our local SMEs would create a win-win situation for both, particularly the latter, as the creative activities would be rooted here. Hence, I urge the Minister to also be generous in extending long-term pioneer incentives to such tie-ups. Sir, I have a little concern in regard to the repeal and re-enactment of section 4, specifically relating to the part where the Minister is given full discretion to revoke any approval given for any pioneer industry andproduct, without the need for any public consultation. This amendment subsequently removes the obligation of posting such notices in the Government Gazette in repealing section 4. I am concerned that this amendment may go against the Government's overall drive for transparency as this amendment fundamentally precludes any right to a review of the Minister's judgment. Perhaps one consideration is to add a clause to the re-enacted section 4 which would allow a Panel to be set up and review the Minister's decision, say, within a three-month period, should any notice of objection from any party arise.”
“In the light of us moving more and more intovalue-creation activities, such as biomedical sciences, pharmaceuticals, involving the creation of new drugs, etc, which requires substantial upfront investments in R&D, it is certainly appropriate to extend longer tax relief periods for suchestablishments. This would provide the incentives for companies to invest in such value-creation activities with heavier upfront, with the comfort in mind that a quicker breakthrough would enable them to recoup their investments sooner, while also enabling them to increase their profits over a longer period of time. In line with this, Sir, I would also like to suggest to the Minister that a similar extension to the post-pioneer period be considered so as to encourage pioneer companies to expand and upgrade their activities after their pioneer tax relief period. The post-pioneer concessionary tax of not less than 10% should remain, as such companies would have already substantiallybenefited from the zero tax extended to them during the pioneer period. While it is desirable to continue to attract new leading-edge investments, there is also a corresponding need to further encourage companies which are already here to sink their roots in Singapore further.Sir, while the pioneer incentives have been a powerful tool to attract foreign investments, it is worthy of note that very few home-grown companies have been able to benefit from these incentives. In the light of the present strong entrepreneurship push, we should find creative ways and means to enable our local SMEs to also take advantage of this scheme.”
“Mr Speaker, Sir, in speaking on this Bill, allow me to first declare my interest in my private capacity in being an executive of an American MNC which has substantiallybenefited from pioneer incentives extended by our Government. I note with interest thatthe EEI Act has been subjected to quite regular amendments since it was first introduced in 1959. The introduction of this Act, and its regular amendments, has undoubtedly beenintegral in enabling Singapore to continually attract foreign investments, which in turn has successfully contributed toeconomic expansion over the last several decades of our existence. I commend the Ministry of Trade and Industry in continually sharpening its pencils to employ economic expansion incentives, among a host of other measures, to attract and nurture high-value adding and value-creating companies to set up base within our shores. As neighbouring and regional countries learn from our success and adopt similar incentives to attract investments, it is imperative that we, as a regional pioneer in the introduction of such incentive schemes, continue to enhance and provide new incentives to facilitate, improve and update existing incentives to continually encourage the inflow of foreign investments into our domestic economy. Sir, allow me to now deal with some of the changes that are put forth. First, Sir, I applaud the Minister for the extension of the tax relief period from the current 10 to 15 years for pioneer enterprises or pioneer services establishments. I believe this is probably another world first in extending pioneer incentives up to 15 years for qualifying companies.”
“As we move forward and refine our IP law, could we consider evolving a culture where we balance the valuation of our creative capital with our Asian value system? Could we explore and find an approach that could take away or lessen the burden of our legal system and evolve an environment where ideas and creations are respected in our society in the spirit of fair competition, without always having the long arm of the law to intervene in such processes? On this note, Madam, I support the Bill.”
“Whilst the benefits of this are obvious, especially for large companies, how could we ensure that the SMEs can take advantage of this regime without incurring a large overhead? How could IPOS help spread the message of IP and, particularly, have our SMEs become more cognisant of these new laws without having them lose sight of their bottom line? Our residents too must also understand the subtle message of these laws. IPOS' campaign to educate the majority of the ills of piracy is an excellent step towards trumpeting this message. On the average, the cost of filing a trade mark ranges between $1,000 and $5,000. For patents, it can run into a five-figure sum and could take years to finalise. On the understanding that the application process and the technicalities involved in filing trade marks and patents are quite complex, it is in our best interest to provide a means for the lone inventor or scientist with limited resources to affordably access this system. This will help bolster the entrepreneurial drive within our shores and will help remove the stigma that IP is the domain of those only with deep pockets or that of big businesses. Given its extensive reach, the Government plays an important role in setting the right tone for the private sector to follow. We must ensure that the public sector respects and adheres to these lofty goals that we wish to promote. Not too long ago, the case of an entrepreneurial team with an idea to vend food in mobile vehicles was 'adopted' by the URA and balloted to the general public. I feel such actions weaken our position as an example setter and should not be repeated again in the future. Lastly, Madam, a parting thought as we warm ourselves to the league of nations with advanced IP laws.”
“I believe, Madam, our goal in formulating these laws is to strike a balance amongst the three forces that orbit this realm - the creator, the industry and the consumer. By creating a framework that nurtures an idea for an industry, the consumer inadvertently ends up paying for these additional safeguards. Whilst we are not disputing these benefits, as these are distributed, we must ask whether we are going too far in protecting the creator and industry without safeguarding the interests of the consumer, whose interest lies in securing dated material within a reasonable timeframe. Perhaps the Minister could clarify the rationale for the extension. Another is the removal of requirements for marks to be visually perceptible. The Bill removes the requirement for a trademark to be "visually perceptible" before it is registrable. As a result, this may be interpreted to mean that sounds and smells may be registrable in Singapore. As interesting as the advancement may be for our regime, the mechanics of how such marks are to be described and protected have yet to be determined. Given shorter product life cycles, quicker turnovers and rapid changes in technology, could we create an IP regime that parallels our changing lifestyles, our quest for new frontiers and our thirst for knowledge? Using the 20-year life of a patent as an example, could we find a 'sweet spot' where the 'costs' involved in filing a patent is commensurate with the technology it is designated for? Cost, Mdm Deputy Speaker, is generally what it all boils down to. A segment of our economy has emerged where ideas are now treated as property - to be bought and sold or bartered.”
“I note that in the numerous FTA negotiations we have held with the US and various countries, Singapore has always stood firm in safeguarding our country's interest and has, as far as possible, adopted an independent approach with its partner nations. Neither American nor European-centric, our nation has humbly found a position that is unique to our own. An example of this is our copyright protection, which is granted automatically - freeing us from the need to add the ubiquitous 'C' or copyright symbol to every document or speech. Not many may have realised this and therefore have chosen instead to follow the practices of our international counterparts. Another clause allows our university students to access certain copyright materials without infringing on copyright laws. A 'Class' fee helps balance the academic needs of our universities without compromising the rights of authors and thereby creates a solution unique to our needs. However, I do have some concerns if the Minister could help clarify. First, is the extension of the copyright protection from the current 50 years to 70 years. At first glance, extending protection for creative work by an additional 20 years could be viewed as a step in the right direction. US lawyer Zechariah Chaffee noted in his 1945 Reflections on the Law of Copyright that, "intellectual property is, after all, the only absolute possession in the world ... The man who brings out of nothingness some child of his thought has rights therein which cannot belong to any other sort of property." However, as a nascent knowledge-based economy, I would think that this would inhibit the exchange and proliferation of intellectual property that should be brought to the public domain sooner for the benefit of consumers.”
“Apparently, as consumers were obligated to clean and not discard a trap costing almost two and a half times more than Woolworth's other trap, sales were low. A patent would not have improved the appeal of Woolworth's invention. Yet, each year, independent inventors spend millions of dollars on patents. If established manufacturers can make as big a mistake as Woolworth's, imagine the odds of commercial failure faced by those with less experience. Nevertheless, in the context of a rapidly global environment, I believe it is critical, as the Minister does too, for us to keep pace with changing ideas about creativity, incentives and respect for individual inventions, and also with changes in the new communications media and markets, from printed books to digital television broadcasts. My modest discussions within the SME community, our creative sector, MNCs and academia reveal a general thumbs up for these amendments. The majority heralds the proposed amendments as necessary to be on par with other developed nations and also to gain wider respect of our IP protection environment. I share their optimism that these tools will enable our island nation to enhance its status as a beacon of strength in a fast transforming sea of change. These laws should help harness an individual's or a company's potential and provide a deterrent, at the very least, to unscrupulous business intentions. While it is noted that a relatively large portion of these amendments takes reference to the US-Singapore FTA, I do not believe that these amendments consequentially behove us to embrace the American or any western system.”
“Mdm Deputy Speaker, thank you for allowing me to speak on this Bill. It is my understanding that the Bill seeks to amend a number of past Acts that fall under the umbrella of intellectual property (IP). In approaching IP broadly, it is important to appreciate the extent to which competition is increasingly pre-eminent in our law. This was indeed acknowledged by the Minister earlier. Since the introduction of our intellectual property protection laws in the 80s and 90s, I am glad to note that Singapore has progressed up the ladder as a nation with an environment that encourages creativity and innovation and has correspondingly expanded the recognition of the value of IP in encouraging innovative activities. However, as we do this, it is important that we tread cautiously and not fall into the "mousetrap myth" . I am sure quite a few of us would have heard of this quote in one form or another: 'If a man can ... make a better mousetrap than his neighbour, though he builds his house in the woods, the world will make a beaten path to his door.' The quote may be somewhat ambiguous, but many construe it to mean that anyone who invents a new mousetrap will be wealthy, particularly if they can patent it. Well-informed patent lawyers know this as the "mousetrap myth". Looking back briefly into history, this is a myth illustrated by the experience of Chester M Woolworth, president of the Animal Trap Company. In the early 1920s, the company sold a mousetrap for five cents. In 1928, Woolworth succeeded in improving the trap, but the improved version cost 12 cents. Unfortunately, Woolworth failed to consider that once a mouse had been caught, people usually disposed of both the mouse and the trap.”
“Sir, the policy of having Operationally Ready NSmen has been the key pillar in our total defence policy in deterring any potential aggressors. I wholeheartedly support this policy. However, Sir, I would like to ask the Minister for Defence if there is room for some flexibility to accommodate our intended shift to an entrepreneurial economy, without sacrificing the effectiveness of our reservist policy. A start-up entrepreneur does not have it easy if he has to attend to the call of reservist duty for several weeks a year. A start-up entrepreneur puts in much longer hours than the average working people and his absence from work will have a significant impact in his budding business. Is there room to review the duration of reservist duty? And if shortening the training period is not feasible, could the training be split into two or three segments in a year to make it easier for our entrepreneurs? Sir, the Minister for Defence earlier, and hon. Members, Dr Wang Kai Yuen and Mr Arthur Fong have just also spoken at length about the dramatically different conditions under which our NSmen currently operate. Application of state of the art and leading edge technology has enabled the requirements of much lesser manpower resources to deploy sophisticated equipment in much shorter time. Nation Building”
“Sir, as our economic activity becomes more and more knowledge and technology intensive, the need to manage and retain talent in organisations becomes increasingly critical. Knowledge and expertise will reside in the heads of individuals or in a small team, especially in our SMEs. I believe many SMEs lack the understanding of the importance of talent management and retention. I know of quite a number of SMEs which have run into difficulties when their key technical people leave, more often than not due to small internal issues. When the dust finally settles, they find themselves stranded not knowing where to pick up the pieces and, in many cases, take a long time to recover. Some even go out of business. In view of this scenario, I would like to ask the Minister to consider the setting up of a talent retention and management centre for SMEs, whose primary function is to provide advisory and consultancy services on managing talent. In browsing the Internet, I found a large number of such centres in many countries in Europe, the United States and Australia. I believe this will go a long way in alleviating the loss of productivity arising from the loss of talent, especially in our small businesses. Retail Business”
“Sir, the gist of my cut is on SME innovations. I have covered this topic on innovation at length during the Budget Statement debate, but would like to reiterate some points with specific reference to SMEs. I am particularly heartened to note what the Minister has just said about our kids doing creative things which even their parents sometimes wonder about. These are our future innovators and, we should, therefore, lay the groundwork to encourage and enable those ideas to blossom and, subsequently, successfully commercialise them. I would like to ask the Minister to consider: (a) the speeding of the process of reducing red tape so as to enable our technopreneurs to more easily take advantage of Government assistance schemes, particularly those administered by A*STAR. Many have, in fact, sounded out to me that the forms that they have to fill up for A*STAR schemes seem to be quite cumbersome; (b) creation of a platform to harness ideas and nurture promising start-ups with innovative products or services. This should also include assistance in creating markets for commercialisation of their creation; and (c) make the process of protecting intellectual property less cumbersome and affordable to start-ups.”
“Sir, I just have one very brief point to make in addition to the many good points that have been raised by those who have spoken before me and, that is, the extent of the awareness created amongst our SMEs of the benefits that they can reap from FTAs. I think it would be beneficial if some kind of a programme could be packaged to disseminate this information to SMEs so that they can really take full advantage of the many FTAs that we have signed. 4.30 pm Venturing Overseas”
“Hence, low cost as it may be, it is imperative that service standards cannot be that much different from the current plethora of services and efficiency that Changi has been world-renowned for. We must preserve Changi's reputation at all costs.”
“Sir, budget airfares provided by low-cost carriers, something that was unique in America and Europe, are now becoming the trend in Asia too. These low-cost carriers offer travellers attractive and relatively cheap airfares coupled with promises of efficient service and reliability. The growth in the number of low-cost carriers will be a boon to budget-conscious travellers in the region who are eagerly waiting to see if competition amongst budget carriers will result in even cheaper travelling. It is imperative that Singapore, being the region's international airhub, moves fast to position itself to adapt and respond to this growing market. I am heartened to note that CAAS is considering building a new airport terminal to specially cater for low-cost carriers. However, Sir, I am concerned that if we do not move fast enough, we will be overtaken by our competitors who already have the infrastructure to cater for low-cost carriers. I therefore urge the Minister for Transport to urgently decide to build the new airport terminal and, in the meantime, to also make accommodation in the infrastructure to cater to the specific needs of the operators of the low-cost carriers. It will mean that airport charges may have to be lower for these airlines, but we should not lose the big picture in wanting to position ourselves as the leading airhub of the region. As the Minister for Transport himself has eloquently put it, this new form of air travel requires not only a mindset change in terms of nimbleness in adapting to this new trend, but also take into account the perception of the travelling public who has long been accustomed to the high standards of our Changi Airport.”
“In this regard, I would like to ask if the Ministry could consider including in the training of CD volunteers basic nursing care in addition to learning of first-aid, so that these CD volunteers can, for example, assist Home Nursing Foundation nurses when these nurses visit discharged patients from hospitals and visit them in their own homes to follow up on their nursing needs. These discharged patients could be their own family members or their neighbours, eg, a single elderly person or an elderly couple living on their own where one of the spouses needs such nursing care. This would actually help enlarge the scope of CD volunteers, particularly where it comes to helping neighbours. The CD volunteers can play a useful role in promoting neighbourliness and, therefore, we achieve twin purposes. There is also the promotion of people sector involvement in encouraging family and community bonding. So, this is something new, but I hope the Minister could consider this and collaborate with the Home Nursing Foundation, for instance.”
“Sir, the issue of accidents occurring at or near school zones came to the fore last year when two school children were knocked down and died in my constituency division, Pasir Ris East. Research has evidence that it is the design of the street rather than the posted speed limit that determines how fast people drive. Hence, apart from education and enforcement, engineering methods should be considered as part of a holistic approach to traffic calming. Changes in road surface, including changes in paving materials or colour can make the road appear narrower than it is and, therefore, can augment the visual message to tell motorists to slow down. The use of interlocking concrete blocks has been successfully applied in many European countries. These concrete pavers, available in various colours, effectively provide the visual and physical contrasts causing motorists to quickly react and reduce the speed of their vehicles. I would like to ask the Minister if he would consider the use of interlocking block pavers in school zones, especially on roads leading to a pedestrian stop, to enhance the safety of our school children crossing within school zones. Civil Defence Assoc. Prof. Ngiam Tee Liang: It is good to hear from the Minister earlier this morning of new developments in enlarging the role and functions of civil defence volunteers. It shows the Ministry's innovative and pioneering spirit in adapting existing resources to meet new needs and changing societal circumstances.”
“No, that was the first and third cuts. I am sorry.”
“They ride on pedestrian pavements, pedestrian crossings, in the parks, and do not stop for passengers alighting from buses. I have had a number of complaints from residents at my meet-the-people sessions complaining about irrational cyclists. The irony is that the police seems to be not too willing to take action on irresponsible cyclists. Where does the safety of pedestrians stand relative to cyclists? Do we have to wait for a fatal accident before the police would act? I have nothing against cyclists, and would like to encourage cycling as part of healthy lifestyle, but we need to make them more responsible and wary about pedestrians as well as their own safety. I would like to ask the Minister if stricter enforcement action could be taken by the police on errant cyclists in the interest of enhancing our overall road safety. Can I move on to the next amendment, Sir?”
“In turn, there should be stricter enforcement action on pedestrians who disobey rules, such as jaywalking, as what Mr Tan had said earlier, across dual-lane carriageways, or those who fail to use pedestrian crossings properly. Second, motorists. Aggressive driving starts with lax laws. Stop signs are becoming more and more irrelevant in Singapore, as motorists nowadays tend to not yield at stop signs and drive continuously without stopping. This increasingly dangerous practice poses a serious threat to pedestrians. In this regard, I would like to ask the Minister to consider stricter enforcement action on motorists, before more lives are lost due to this irrational act. I also feel that there is a need to calm traffic down in residential and some industrial areas. Too often, motorists behave as if the highway starts as soon as they move their vehicles from the parking lot and have no respect for the speed limit of pedestrians around them. I would suggest that we continue to find ways in calming and slowing traffic down in such environments. The present speed limit of 50 kilometres per hour may be relatively high, considering a 10-kilometre per hour margin. Perhaps, lower speed limits in high density environments could be considered to protect pedestrians. Another suggestion is to require headlights to be turned on round-the-clock when motorists travel in urban and high population density areas. This is implemented in Canada, and the results have been very encouraging. Turning on headlights in busy areas increases the alertness of people to approaching vehicles and improves their distance judgement. Let me now turn to cyclists. I note, Sir, that cyclists too are increasingly posing a danger to pedestrians.”
“Thank you, Sir. I am taking road safety and pedestrian-first policy together, followed by traffic in school zones. Sir, building on what Mr Tan Soo Khoon has just said, the topic of road safety is becoming an increasingly perennial issue in this House. Pedestrians are increasingly left at the mercy of motorists and cyclists on our roads, car parks and even at pedestrian crossings. As a larger number of Singaporeans use public transport, the Government needs to ensure that the free mobility and safety of pedestrians are at the top of the hierarchy of road users. In essence, it affects all of us also, as we too are pedestrians at some point in our journey. I would like to propose for the consideration of a balanced approach to divide and increase the responsibilities of road users among the three groups, namely, pedestrians, motorists and cyclists. 1.00 pm Pedestrian-first Policy First, pedestrians. I suggest that we move pedestrians to the top of the hierarchy. Our present set-up places pedestrians behind motorists and cyclists in terms of getting the right of way, particularly on minor roads or in residential areas. We need to create an environment where motorists and vehicular traffic develop greater respect for pedestrians in such areas. I would like to ask the Government to review and improve current conditions to keep pedestrians within proper sidewalks to enhance their safety. This could be done by (a) improving and quickly restoring damaged sidewalks in various parts of the island; (b) broadening sidewalks in busy road zones to keep pedestrians off the road; and (c) to use more street walk signs to indicate proximity of crossings and forewarning poor crossing spots.”
“In addition to SPRING's SEEDS, which is extendable to smaller SMEs, it would be perhaps beneficial to explore the possibility of setting aside funds for "Micro Seeds" aimed specifically at providing funding support of, say, up to $5,000 to the micro-entrepreneur. In addition to funding, SPRING Singapore could also extend one of the schemes for on-going business counselling for a limited period to help the micro-entrepreneurs get off the ground. Sir, for long-term sustainable competitiveness, we need to create the conditions that nurture both individuals and small firms as they will increasingly own intellectual capital and provide the flexibility and innovation that are essential for Singapore's survival and growth. To conclude, allow me to quote Noel Treacy, the Minister for Science, Technology and Commerce of Ireland, a country which ranks high in the World Competitiveness Yearbook ranking, who said: "Our experience with local initiatives in Ireland lends support to the idea that an 'entrepreneurial culture' can exist in a much wider part of the population that was historically the case, and encompasses a much wider view of what an enterprise is. With this objective in mind we have adopted a pragmatic approach to enterprise development, working in close and continuing partnership with the other social actors, employers, unions and voluntary groups, to build up sustainable economic growth and prosperity through rigorous continuous assessment of our overall competitiveness." - (Noel Treacy in OECD Report 2002). I believe it will augur well for Singapore if we could approach entrepreneurship along these lines. On that note, Sir, I support the motion.”
“For example, this could be done by organising a street fair, along the lines of those found in big cities like New York, that showcases ideas and inventions of start-ups and SMEs to gauge the reaction of the public. Encourage our students to also participate in such activities early in their lives. (e) Remove fear of failure. The stigma of bankruptcy, the fear of being impoverished and the lack of anonymity in Singapore send chills down the average citizen thinking about entrepreneurship as an option. This fear, coupled with an opportunity cost of switching from a comfortable 9 to 5 job, severely reduces the chances of one taking an idea and putting it to work by himself. Failure is indeed one of the prominent features of the new economy, but one must be willing to pick up the pieces and bounce back after falling. We need to find more effective ways to get Singaporeans to be more diverse, understand that second chances are becoming more and more of the norm and move away from a risk-averse mentality. My last point, Sir, is on micro-enterprises. Older workers with less than secondary education and menial skills are finding it increasingly difficult to find suitable jobs. For this group, micro-enterprise development should be seen as an option to prevent poverty and enable economic self-sufficiency. Micro-enterprises are quite prevalent in many developed countries such as the United States, the United Kingdom and Australia. Micro-enterprise development organisations work closely with welfare recipients to get them out of the poverty cycle and reduce their reliance on public assistance programmes.”
“This is exemplified by the Government's willingness, for example, to accept many ideas, including some entrepreneurial ones, emanating from the Feedback Unit as well as from citizens communicated through the Cut Waste Panel. However, Sir, innovation could be hampered at many stages of the entrepreneurial chain. Allow me to cite some of these along with suggested ideas on how they could be improved upon or overcome: (a) Continue to review policies and regulations that inhibit and stifle innovation. For enterprise development to take off, we need to aggressively reduce red tape. Minister of State Raymond Lim has stated some time back that rules and regulations should be date-stamped. I would like to take this step further to suggest that we should even consider stating expiry dates on some time and environmental sensitive policies to force their regular reviews and ensure that they remain relevant with changing times. Mandating a thorough house-cleaning of rules and regulations every five years by Ministries may be too long and, therefore, not good enough. (b) Create the vehicles and platforms to harness ideas. This includes providing business support services to assist innovative start-ups and the commercialisation of their products or services. (c) Publicise studies of successful companies which employ innovation as a model for business positioning and success. Showcase success stories of Singapore companies and those from the region to spark new ideas and inspire our budding entrepreneurs on how others have done it successfully. The success stories of companies such as OSIM, Hyflux (whose CEO is an hon. Member of this House) and Mil-Com are worth highlighting. (d) Assist in creating markets for innovative ideas.”
“What we may not have considered is the fact that satellite TV opens our nation to a wealth of views and ideas in the outside world, beyond what is currently made available in the current set of channels through cable TV. It took us many years before opening the 'bandwidth' of broadcast media to our citizens which we are all benefiting from today. We are one of the few developed nations in the world that does not provide satellite based pay-TV as a choice to our citizens. The technology is advanced, able to be regulated and relatively cost effective. What wireless is to land-based phone lines, satellite technology provides another dimension to cable-based technology. On a lesser note, we might have an entire generation that will grow up without benefiting from this technology when it matures and becomes redundant. As a technology, it competes and provides a solution to the issue of 'who owns leased cable lines' between the incumbent players. And, in this House, it provides a small advantage to us parliamentarians in that it frees us from having to tackle such issues unnecessarily. But the bigger picture is that exposure to a variety of sources of information enhances our entrepreneurial drive, creates a more robust society and discourages monopolies. Let me now turn to innovation, which is an important component of entrepreneurship. It is the pursuit of innovation that raises an organisation or a nation to a level beyond its competition and effectively carries them into the future, despite changing times. It is laudable that the Yellow Pages rule, as recommended by the Economic Review Committee, has been embraced by the Government. This should see the boundary between the state and market gradually shifting in favour of the market.”
“To operationalise this, I suggest that we forge a powerful and competitive sense of mission with key performance indicators (KPIs) that are effectively cascaded down, which every member of society can identify with and where people are inspired and motivated to achieve them. Sir, research shows that there is a strong link between personal freedom and innovation and entrepreneurship. Our citizens therefore should be given the freedom to unleash their creativity through approaches that they are comfortable with - not just confined only to those which are top-down driven. We need to find new ways to make a quantum leap in our ways of doing business. This is especially so for the larger MNCs and SMEs which will be overtaken by competitors in our neighbouring countries and region that have the benefit of more affordable labour and less governmental controls. We must be able to adapt to meet the challenges of a constantly changing environment in the region. In such an environment, it is imperative that successful companies, especially the MNCs and larger SMEs, share with other companies the creative and innovative ideas they have implemented which have contributed to their success. This culture of sharing is very much alive in the developed countries such as the US, and many countries in Europe and Australia. I therefore urge business federations, such as the Singapore Confederation of Industries and the Association of Small and Medium Enterprises, to organise seminars and other forums to facilitate the dissemination of innovative ideas for doing business. Relative to personal freedom is the issue of media censorship, specifically with respect to satellite-based TV. Perhaps this is for fear of bad influences that our locals may be exposed to.”
“Mr Speaker, Sir, thank you for permitting me to participate in this debate. I join others before me in applauding the wisdom of this year’s pro-enterprise Budget which augurs well for the continued prosperity and growth of Singapore and the well-being of Singaporeans. The various new initiatives proposed will most certainly boost entrepreneurship in our country. Sir, hearing what Prof. Low Seow Chay had to say a moment ago, perhaps we should consider engineering some blackouts at random in certain parts of the island to see if we could get a bumper harvest of babies! But this is not the topic that I am addressing today. I would like to focus on what I feel that we could do better to instill the entrepreneurial spirit across the economy, which is expected to be one of the propellants of growth in the not-too-distant future. While good initiatives, such as tax incentives and better accessibility to financing, have been introduced in recent years, these changes have brought about, at best, only incremental improvements. We really need to look into policies that tackle the root causes of structural weaknesses in our economy, and that will bring about transforming changes. Sir, for this to come about, some degree of mindset shift is called for. First, Sir, to turn Singapore into a land of opportunity, one with boundless opportunities, we need to create a national sense of urgency about solving old problems in new ways. We need to explore new frontiers in how we create a nation of self-inspired people, focused and committed to be the best that they can be, and having a high sense of urgency to continually improve the way things are done.”
“Mr Speaker, Sir, I leave this House with a quotation borrowed from Mr Kofi Annan, Secretary-General of the United Nations, that he made during the 18th Singapore Lecture in February 2000, and I quote: "All great traditions and religions overlap when it comes to the fundamental principles of human conduct: charity, justice, compassion, mutual respect, the equality of human beings in the sight of God." Sir, the inclusion of Muslims will benefit all of us and I urge the Ministry to take steps to consider implementing it as soon as possible.”
“Sir, I would like to further propose that to overcome the issue of the sacrosanct rights of the waris over the deceased Muslim cadaver, the amendment should allow making provision that in the case of Muslims opting out of HOTA, it should mean that they are doing so not only on their own behalf, but also exercising their rights over those family members they are a waris to. For example, assuming that Muslims are included under HOTA, if I, as a Muslim, choose to opt out, then all my family members, whom I am an immediate waris to, would be deemed to have opted out as well. However, if my unmarried son chooses to opt out while I am still alive, he does this only in an individual capacity. It should not affect me or his other siblings. Having said this, I realise that this may not be as straightforward as it seems, but it could be further refined and developed. I thank Mdm Ho Geok Choo for questioning the exclusion of Muslims from HOTA in a Singapore which aspires equal treatment and opportunities for all. In a secular society like ours, we need to find creative ways to surmount some of these religious difficulties which I believe are matters of interpretation. There should be some give and take in order to make further progress. MUIS, as the supreme religious body for Muslims, can help facilitate this. The inclusion of Muslims as part of the fabric of this Bill has been delayed for too long. It is timely indeed to seriously look into their inclusion in HOTA, as we deliberate this issue during this revision exercise.”