Alvin Tan
Singapore
“And if our companies can use Johor as a complementary base to scale, serve larger markets and strengthen their regional competitiveness while retaining their core capabilities here, that is also additive integration.”
“Sir, I have answered the Member's questions specific to HDB car parks. Specifically, I think, with the provision of hose reels, fire engine access, natural and mechanical ventilations that will help in the event of a fire, and that the HDB carparks must comply with these technical specifications and safety requirements under Technical Ref…”
“Sir, all Housing and Development Board (HDB) car parks are designed and constructed in compliance with the prevailing Fire Code stipulated by the Singapore Civil Defence Force (SCDF). This includes provisions such as hose reels, fire engine access and natural or mechanical ventilation to disperse smoke and heat.”
“What was left unsaid was that in the emails and in the MP Appeal System (MPAS), the Member was informed that: one, he was aware of the fact that AVS had investigated the incident; he was aware of the processes; he was aware that AVS found no professional negligence or misconduct by the vet; he was aware and noted that AVS had found no rel…”
“As we have observed a growth in the range of animal-related services offered by non-vets that may pose a risk to animal health and welfare, Part 4 of the Bill will introduce various offences and penalties to safeguard against unlawful practice and misrepresentation by or about unauthorised persons.”
“Owners are responsible for providing for their pets' needs, including medical care. So, we strongly encourage prospective pet owners to thoroughly consider the full cost of raising a pet before committing to becoming a pet owner. Mr Deputy Speaker, Sir, vet professionals form an important pillar of our animal health and welfare system.”
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“I thank the hon Member for his questions. The Fukushima Daiichi nuclear power plant in Japan and the Zaporizhzhia nuclear power plant in Ukraine were constructed in the late 1960s and early 1980s respectively. These are older nuclear power plants that are designed to rely heavily on active systems, such as electricity, to power their coolant plants and to also keep the plants safe during an accident. I mentioned earlier on the difference between fusion technology as well as fission technology. The older technology is effectively fission technology. The Government concluded in the pre-feasibility study in 2012 that conventional nuclear technologies primarily using fission technology, such as those deployed in Fukushima and the Zaporizhzhia nuclear power plants, are not suitable for Singapore. However, as I mentioned earlier, there are new kinds of nuclear technology, like nuclear fusion technology, that are being developed globally that will have the potential to be much safer than the older designs that the Member had raised earlier. So, we will continue to monitor the progress of these new technologies that are not yet commercially feasible but that are increasingly becoming so, and we will monitor them closely. With regard to the geopolitical or international community, Singapore is a responsible member of the international community supporting international efforts to strengthen global nuclear safety and security infrastructure. So, we will work closely with IAEA and other ASEAN member states on, what I mentioned earlier, ASEANTOM, to build up our knowledge on nuclear security, safety and also to contribute towards the strengthening of regional preparedness to respond to a nuclear emergency.”
“As a responsible member of the international community, Singapore also actively supports international efforts to strengthen the global nuclear safety and security architecture. We work with the International Atomic Energy Agency (IAEA) and other ASEAN member states in the ASEAN Network of Regulatory Bodies on Atomic Energy (ASEANTOM) and this is to help strengthen regional preparedness to respond to a potential nuclear emergency. Our future energy mix will depend on advancements in low-carbon technologies, as well as through collaborations and trading of low-carbon energy across borders. The Government will carefully study the recommendations in the Committee’s report and calibrate our plans accordingly as technologies evolve. In the meantime, we will continue to enhance energy efficiency across all sectors and encourage consumers to play their part to conserve energy.”
“These include Small Modular Reactors (SMRs) and "Generation IV" nuclear technologies, which incorporate enhanced safety systems that may not be possible for old generation technologies. Some of the SMRs are also designed to cool safely and passively without requiring external systems or operator actions, especially during emergencies. Besides nuclear fission, which is the current conventional old technology, there have also been significant interest and advances in nuclear fusion development. Unlike fission, nuclear fusion does not cause chain reactions and will not produce long-lived radioactive waste. Hence, nuclear fusion power plants can, at least theoretically, produce clean electricity to meet our energy needs. However, many of these advanced geothermal and nuclear technologies are still in the research and development phase, and have not begun commercial operations yet. So, we will need to consider any decision to deploy new energy technologies against its safety, reliability, affordability and environmental sustainability in Singapore’s context. These technologies must meet stringent standards of critical infrastructure resilience in line with the international best practices of developed countries which have experience in ensuring the safety of such power plants. Given the technical complexity of nuclear energy technologies, we will need to continue building our ability to better understand and assess their safety, security and environmental implications before we consider them for deployment in Singapore. The Government, through the Nuclear Safety Research and Education Programme, is supporting research in relevant areas of nuclear policy, science and engineering, as well as efforts to train a pool of scientists and experts in local and overseas universities.”
“Mr Speaker, the report released by the Energy 2050 Committee last month sets out several possible pathways for Singapore’s power sector to achieve net-zero by or around 2050, as well as the transformational changes needed to achieve this, and the challenges arising from geopolitical trends and technological advancements. One of these pathways contemplates an energy future where we successfully deploy large-scale low-carbon technologies at lower cost for energy generation. These new technologies may include hydrogen, geothermal energy and nuclear energy. Let me explain how we view these sources of energy and specifically focus on geothermal energy and nuclear energy. First, geothermal energy. Geothermal energy is an attractive energy source as it, potentially, provides a more consistent supply of energy compared to solar, which is intermittent due to Singapore’s weather and cloud cover. Conventional geothermal systems are also not viable here in Singapore due to the lack of adequate hot water and steam resources at shallow depths. However, due to recent advances in geothermal technology, we could possibly harness geothermal heat from deep underground. The Nanyang Technological University (NTU) is conducting exploratory studies to estimate the geothermal resource potential in various parts of Singapore. If found feasible, geothermal energy could be a new source of indigenous clean energy in Singapore. Second, nuclear energy. The Government concluded a pre-feasibility study in 2012. The study found that conventional large reactor technologies were not suitable for deployment in Singapore. However, since then, new designs are in the process of being developed that have the potential to be much safer than many of the plants in operation today.”
“Mr Speaker, may I have your permission to answer Question Nos 24, 25 and 26 together, please?”
“I thank the Member for his question. I think it is a very important question with regard to, particularly, first-time home buyers entering the property market at this juncture where potential interest rates can rise. First, I think it is quite important that we urge all home buyers to exercise caution in their home purchases and in making these decisions, and also in financial prudence of how much they can borrow and their own balance sheets, given potential rise in interest rates. We also note that even as interest rates increase after an extended period when it was uncharacteristically low – we had that whole period where interest rates were just uncharacteristically low over time – household income, as I had mentioned in my original answer, is expected to continue to grow alongside the broader economic recovery as we emerge from the pandemic. Second, the Member would be pleased to know that MoneySense educates the public on property loan issues through a property resource guide on its website and social media posts, where issues covered include the importance of buying within one's means and the features of different types of loans. MoneySense intends to push out more material on the impact of rising interest rates on financial decisions, including on property purchases.”
“I would also like to assure the Member that MAS has also helped consumers who need assistance with their outstanding debt. For example, consumers in financial distress can seek help from Credit Counselling Singapore for debt management assistance or by taking up commercial products such as debt consolidation plans that may alleviate their repayment burden.”
“Sir, I thank the Member for his questions. As the hon Member would know, the outlook for Singapore's domestic interest rates is closely tied to global rates. Accordingly, households and businesses should expect a pick-up in domestic rates and its attendant increase in financing costs. Most Singapore-listed firms continue to hold sufficient liquidity in Q4 2021, with liquid assets, such as cash and cash equivalents, continuing to exceed their shorter-term liabilities. The debt servicing of Singapore-listed firms remains manageable, with most firms having sufficient earnings to cover their interest expenses, even in prescribed stressed scenarios of further increases in interest rates, with cash reserves providing additional buffers in this regard. That said, the highly-leveraged companies, especially those with lower net profit margins, may find the increase in borrowing cost eroding their cashflow. This would also apply to some of the SMEs which continue to underperform due to COVID-19 restrictions. But the broader economic recovery should provide some reprieve as Singapore opens up and emerges from the pandemic. To the Member's questions about personal unsecured lending, credit quality has remained generally favourable and stable over the past year, having improved from pre-pandemic levels. As a share of GDP, outstanding credit card balances have come down from 2.5% in Q4 2019, to 2.1% in Q4 2021. Similarly, rollover balances as a share of GDP have inched down from 1.3% in Q4 2019, to 1% in Q4 2021. The charge-off rate decreased further from 6.3% in Q4 2019, to 4.4% in Q4 2021. In this regard, we urge consumers to be prudent with their new borrowings to reduce vulnerability to further income shocks and the higher interest rate environment.”
“This rate is about two percentage points higher than prevailing interest rates for new private property loans, which builds in a buffer for borrowers to service their mortgages across a normal interest rate cycle. Loan-to-value limits and restrictions on loan tenure have also encouraged greater financial prudence among mortgage borrowers of different profiles. For example, loan tenure restriction limits the duration and, hence, the overall financing that older borrowers can take up, because it is likely that income sources to support mortgage repayment would be more constrained after retirement. MAS also requires that financial institutions (FIs) provide homebuyers with the information they need to make sound and prudent decisions, before extending them residential mortgages. This includes projections on how a borrower’s monthly mortgage instalments would vary under different interest rate scenarios. MoneySense, our national financial education programme, also alerts consumers to important financial considerations when committing to a property purchase, including the recurrent, long-term costs involved.”
“Sir, the household debt situation in Singapore remains healthy, although there is a need for prudence in borrowing as interest rates are expected to rise in the coming years. The overall debt servicing ability of households has remained manageable, with the median Total Debt Servicing Ratio (TDSR) at 43% last year. This is well within the TDSR threshold of 55%, which was tightened last year as part of the Government and MAS’ property cooling measures. Second, the credit profile of mortgages is still healthy, with the proportion of delinquent mortgages at less than 1%. Third, household net wealth grew even through the pandemic, with household assets growing faster than household debt. Households’ liquid assets, such as cash and bank deposits, continued to exceed their total liabilities in aggregate. Most households should still be able to service their mortgages as Singapore’s domestic interest rates pick up alongside global rates from their current lows. MAS’ stress tests suggest that the median household mortgage servicing ratio will remain manageable even under scenarios of significantly higher interest rates or lower incomes. However, there will be a small segment of households with higher leverage, who will be more constrained by interest rate rises. More broadly, all borrowers should exercise caution in their home purchases, to avoid having to cut back on other household expenditures if interest rates rise sharply. The financial resilience of households to service their mortgages reflects the effects of measures that MAS has put in place over the years. The interest rate used to calculate loan repayments under TDSR is the higher of 3.5% or the prevailing market rate.”
“I thank the Member for her clarification. The YCCI programme is one of many different programmes and it is starting in the second quarter of this year. But I wanted to let the Member know that we have other programmes and one of the most appropriate ones is called the Youth Expedition Project (YEP), which is run by Youth Corp Singapore for youths to, in fact, do what exactly the Member mentioned – to serve other communities overseas. Pre-COVID-19, we sent about four to five thousand youths every year for two-week community service stints with overseas youth organisations. The YEP programme usually spans about four to six months if you factor in preparation, planning as well as post-trip reflections. We intend to restart YEP. We have it online now; so, it is YEP Go Online. This is not as ideal as we would love to, because nothing beats being there physically, but we plan to restart it very soon, hopefully, when travel resumes. The other programme is the Asia Exposure Ready Programme (AEP), which will expand support to travel-based programmes, when it is possible, for a more experiential and more community-based experience for youths overseas. So, we have these programmes in place and we hope to restart these programmes when travel resumes.”
“" As we embark on the next arc of our Singapore story, it is now our time, our turn, to build on these foundations and create new bridges to the world, towards our shared future and with one another. [Applause.]”
“Thanks to our citizens' contributions, we have included refreshed content in our e-Journey and new e-Book, such as our arts and culture and aspirations for Singapore's future. You can experience the e-Journey now through the Singapore Journey website and look forward to the launch of the e-Book next month, titled "Welcome to Singapore". I hope these resources remind us about the heart of being a Singaporean. Mr Chairman, in Malay, please. (In Malay): [Please refer to Vernacular Speech.] Mr Chairman, our IRCCs, NIC and SCJ strengthen the ties between our different ethnic and religious communities. The solidarity they foster is our nation's source of strength, which we must not take for granted. Walking across Elgin Bridge towards South Bridge Road, we can see how our diversity exists in harmony. Along this one road, we have the Masjid Jamae Chulia, Sri Mariamman Temple, the Buddha Tooth Relic Temple and the Fairfield Methodist Church. This is the diversity that our forefathers built our nation on. By building stronger bridges across communities, our diversity will continue to be our defining strength. (In English): Mr Chairman, Minister Edwin Tong reminded us that our transition out of the pandemic will not be without obstacles. Great cities, including strong bridges, were not built in a day nor by a single person or group. This mirrors the words that our former President, Mr Yusof Ishak said more than 50 years ago, "In every brick, stone, stool that makes up Singapore, there is contained the effort and energies of generations of men, starting with the early immigrants. The whole fabric of Singapore society is woven out of the thread of human effort, labour and purpose.”
“We must never forget that Singapore's story has always been one of an immigrant nation embracing diversity and being open to the world. As part of our Emerging Stronger Conversations, members of the National Integration Council (NIC) candidly discussed challenges around local-foreigner relations, particularly arising from COVID-19. We developed three key themes that the NIC's Alliance for Action and its projects will focus on. First, to create more shared experiences and interactions through a community orientation programme and volunteering opportunities where newcomers and locals can have meaningful interactions. Second, to share positive stories that inspire us to embrace the vibrancy of our diverse backgrounds and common aspirations. Third, to empower and equip more to speak up on sensitive issues relating to diversity and inclusion by developing workshops and programmes. Together, 20 representatives from 15 different community groups, corporations and grassroot organisations will co-create and drive these projects. Everyone can play a part in this effort. The efforts of the IRCCs and the NIC emphasise our shared Singaporean identity. But what does it mean to be Singaporean and to live in Singapore? Through our Citizens' Workgroup for Singapore Citizenship Journey (SCJ) in 2020, Singaporeans answered this question. They reflected that it is our shared languages and experience. It is how we order kopi with our uniquely Singaporean language, whether it is "kopi-o" or "kopi-c" or "kopi peng". It is our community spirit and shared values where we believe it is our responsibility to care for one another and to leave no one behind.”
“They want to work with us to build what they call safe spaces and also guardrails to do so. That is why Prof Koh Lian Pin's question about opportunities for youth participation on topics of national interest is key, relevant and timely. We will work with our youths to create safe platforms for them to explore and engage in a diversity of views and help them build empathy towards those who hold different views. 6.30 pm From April to September this year, the National Youth Council will partner Mediacorp to launch a digital engagement campaign called "Civic Conversations". We will highlight important norms and values that should guide our conversations and create spaces for respectful and deep dialogue. We will address key topics like race and religion, local-foreigner relations and intergenerational bonding. Our youths can participate in a variety of online platforms like Instagram Live! sessions with expert panels and access the content through a microsite. They will pick up useful tips on how to engage in difficult conversations and converse constructively on complex issues. Mr Chairman, we must consciously strengthen the bridges that connect us, not just across the diversity of our perspectives but also across our different racial, religious and ethnic backgrounds. Mr Mohd Fahmi Bin Aliman asked about our integration efforts to build a cohesive society and bridge societal fault lines. In addition to the work of our Inter-Racial and Religious Confidence Circles (IRCCs) as covered by Minister Edwin Tong, our National Integration Council and Singapore Citizenship Journey are important platforms for this. Both platforms help us to strengthen the bridges between locals and newcomers to Singapore.”
“We will announce more details on the refresh works on the Somerset Belt later this year. Mr Chairman, we have already seen early fruits from the YAC and the Somerset Belt. In time, especially with the upcoming YAC Season 4 starting October, we will see even more youths coming forward to make their impact, and, in fact, I welcome youths to come and join our YAC Season 4. Mr Chairman, I would like to speak in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Prof Koh Lian Pin asked about other plans for youths to take action on social causes. We will continue to empower our youths to make a difference, starting from where they live. We will expand and provide 1,500 locale-based volunteering opportunities through Youth Corp Singapore (YCS)'s partnership with SG Cares Volunteer Centres, SSO ComLink and other social service agencies. We will match our youths to neighbours in need, to support underprivileged families, senior citizens and more. Combined with locale-based offerings, YCS offers a total of 7,500 opportunities where any youth with a heart to serve can step forward to bridge gaps in our society. (In English): I will next talk about building our youths' civic capacity for constructive discourse with one another. Today, with tech and social media as the frontiers for social discourse, we need to strengthen mutual understanding, especially on key and contentious societal issues. While we see more open discussions on social media, we also see growing polarisation, echo chambers and the rise of cancel culture. When I spoke with youths at the launch of the Inter-University Network last month, they shared with me their wish to discuss difficult and controversial issues frankly.”
“Take, for example, the team Skilio, founded by our youths Felix, Dody and Zhi Hui, with a simple but ambitious vision: creating a society where we are recognised for our unique strengths – not defined by the schools we go to, or the letters on our report cards. Skilio puts these ideals into a tangible product – a digital portfolio that helps youths document any soft skills picked up along their educational journey, to pursue their dream careers. With YAC's support, Skilio has expanded its offerings, giving our youths free access to build these portfolios, and connects them to companies based on their unique qualities and skillsets. Thus far, over 5,000 students across 11 different schools and organisations have joined Skilio, with the potential to scale. This reflects how our youths' ideas can and have made an impact, and, indeed, a difference to many. We are also offering our youths a dedicated physical space to prototype their ideas and implement ground-up programmes for social causes through our Somerset Belt. Since 2019, Somerset Belt has supported more than 20 ground-up projects, reaching more than 20,000 youths on causes like arts, environment and more. In the year ahead, we will partner institutes like Singapore Polytechnic and Singapore University of Technology and Design to translate ideas from classrooms and studios into real life. We will also refresh and enhance the spaces within Somerset Belt in the coming years. Thus far, we have sought ideas from over 240 youths on how they envision or want to use this space. Some envision the Belt to be a Creative Hub, with experimental retail spaces. We will continue to grow and make our youth-initiated ideas come alive through funding support.”
“This wider network will be a platform for those who can deliver mental health and well-being outcomes, like Campus Psy and Calm Collective, to come together and spearhead initiatives, with funding support. For those who would benefit from these initiatives, the Network could help you find useful services and initiatives more easily. So, whether you are an organisation, a student, a middle-age PMET, or senior looking for mental well-being support, we welcome you to be part of this effort. MCCY will support this network, which will be advised by the Interagency Taskforce for Mental Health and Well-being. I feel privileged to chair this network with the support of my colleagues Minister of State Sun Xueling and Parliamentary Secretary Rahayu Mahzam. We will announce more details later this year. We have learnt a lot from the YMWBN and we will build upon the learnings and networks to build a more inclusive Singapore that prioritises our mental well-being. Next, we must look ahead, or construct new bridges to our desired future, with our youths. At MCCY, we have already begun the work and are now seeing the early fruits of our labour through the Youth Action Challenge (YAC) and the Somerset Belt. Through the YAC, any youth with an idea and a desire to tackle the problems of our day, can pitch their innovative project idea and receive grants to realise these solutions. Since 2019, we have worked with over 700 youths, who have formed more than 170 project teams, to tackle societal issues, ranging from environment and sustainability, to support for vulnerable groups. Many of their projects have made tangible impact.”
“During the Budget debates, Dr Shahira Abdullah and Ms Nadia Samdin stressed the importance of stronger mental health support in Singapore. I agree with them. Even as the pandemic wanes, mental health issues will not just disappear with it. We need to reinforce support for our youths. We want our youths to know that it is okay to reach out and share about their mental health and well-being without fear of judgement. To build supportive communities, we will expand peer support networks across various settings, be it in schools, workplaces, online and in the community. MCCY and NYC are partnering our Youth Sector Organisations, like Campus Psy and Young NTUC, to run peer support network programmes. We are also encouraging trained peer supporters from ITE, Polytechnics and Universities to continue serving the community after graduation, by joining our Youth Corps Singapore. And our youths are leading the way on mental health awareness. The Happiness Initiative, Calm Collective and Limitless, are just three of the many ground-up initiatives they are spearheading. And to bring together these efforts, the Government started our Youth Mental Well-being Network (YMWBN) in 2020. Since then, more than 1,500 individuals, comprising youths, parents, caregivers, mental health professionals, have started more than 20 ground-up projects to support youths' mental well-being. But mental health issues do not only affect our youths. So, to achieve even greater impact, we will expand the efforts of the YMWBN to a broader network, which will tackle mental health issues across a broader range of population segments, as mentioned by Senior Minister of State Janil Puthucheary in his speech.”
“At the height of COVID-19, we rolled out our Youth Corps Internship Scheme, which provided more than 700 youths with internship experiences since September 2020. We will build on this as we recover from the pandemic. Through the Youth Corps Community Internship (YCCI), MCCY and NYC will partner social and community organisations to offer internships, with priority given to ITE and the Polytechnics. Our youths can pick up skills like event and project management, marketing and community engagement. Third, we will build and strengthen bridges for our youths, with mentors, as they navigate life's many milestones. Ms. Rahayu Mahzam's question about mentoring opportunities to support our youths emotionally is thus key. Mentoring will play a key part in the upstream. That is why we launched our Mentoring Alliance for Action (AfA) last year, to build a stronger mentoring culture in Singapore, especially for youths undergoing life's many transitions, be it from school-to-work, or when switching careers. So, to any youth looking for a mentor, the Mentoring AfA has established WeConnect, Singapore's first dedicated online mentoring platform, where you can find programmes, ranging from mentoring opportunities to community groups, for your personal life-stages. Through WeConnect, you can connect with a pool of over 1,000 volunteer mentors, which is growing, coming from companies like P&G, Unilever and Meta. You can learn from mentors who have traversed career journeys across industries like tech, logistics, media. By the end of this month, you can register on WeConnect. And I highly encourage you to do so. Next, building bridges of mutual support. Ms Tin Pei Ling asked how we are supporting youths struggling with mental health.”
“For example, we are building bridges all the way with Latin America – a region with immense growth potential, to help Singapore startups enter. Singapore established a memorandum of understanding (MOU) with Colombia, and a partnership with venture capital (VC) firm, Latin Leap, to promote closer collaboration with companies in Latin America, especially in areas of artificial intelligence, fintech and sustainability. Our youths who are setting their sights beyond Singapore can, therefore, look forward to more global opportunities. During the Budget Debates, Mr Desmond Choo referred to our youths as "Generation COVID-19" – coming-of-age during the pandemic, in an era of many opportunities, but also, unique challenges. Our youths need the confidence to seize opportunities by acquiring concrete skills and knowledge, and we have developed three initiatives on this. First, our Asia-Ready Exposure Programme (AEP) helps bridge our youths to the region. Through online content and physical trips when possible, we are developing our youths' cross-cultural skills for opportunities in Asia. Our AEP recently collaborated with the Ministry of Trade and Industry Academy on a webinar programme titled "Regional Economies and Trade", to equip our youths with insights on market economies, like ASEAN, China and India. Our youths learnt first-hand from industry leaders in Asia, from companies like Quest Ventures, a top VC fund in Asia; YCH Group, a leading regional supply chain management partner; and Riverwalk Holdings, an India-focused VC fund, on what it is like to work abroad and what skills you need to succeed in the region. Second, we are creating opportunities to bridge our youths to local organisations, in the community and social sectors.”
“Mr Chairman, Minister Edwin Tong spoke about our transition out of the pandemic – to build towards a strong, caring and inclusive Singapore. Our national monuments embody our foundational values and where we come from. Elgin Bridge, located just next to this House, is one of them. It quietly symbolises our openness to the world, our strength in diversity, our adaptability for the future. It symbolically connected Singapore and the world, through facilitating trade for our city's growth. It connected the culturally different towns of our Indian and Chinese migrants living on South Bridge Road, to the Malay and European community living across on North Bridge Road. The Elgin Bridge that we walk on today is a result of four major reconstructions over two centuries, adapting to the times of our society. Elgin Bridge continues to bear witness to our Singapore story – where we build connections with the world, re-invent ourselves for the future, bridge our differences and forge a shared identity amid our diversity. Mr Chairman, I will first touch on our youths, who will realise our future. Together with them, we will continue to build bridges to the world, towards our shared future vision of Singapore and with one another. I chat regularly with our youths, and two issues that they deeply care about are the future of work and mental well-being. I will focus on both. Ms Hany Soh asked how we can better support our youths, especially in their jobs, finances and mental well-being. Our youths know they need to prepare themselves for their future careers and desire three things: (a) opportunities to learn, (b) concrete skills to offer, and (c) guidance along the way. That is why we are building bridges to our region and beyond, to help them to seize new opportunities.”
“I thank the hon Member for his supplementary questions. I want to assure the hon Member that we do actually allow our charities and our organisations to raise funds for foreign charitable causes. In fact, in 2021, COC granted a total 78 permits for organisations to conduct fund-raising appeals for foreign charitable purposes. The COC, as I have mentioned earlier, can, on a case-by-case basis, waive this 80:20 rule, such as for appeals in aid of providing immediate disaster relief and for private donations raised for foreign charitable causes. In fact, they have done so, including for private appeals and appeals for relief efforts going to causes, such as for COVID-19 in many different countries, for the Malaysian floods in December last year and January this year, and also for Typhoon Rai, which affected and afflicted the Philippines in December. It is really encouraging to witness, during these challenging times, how Singaporeans have stepped up and also have been moved by foreign charitable causes overseas; and we are helping to facilitate that as well. It really speaks to who we are as a nation and our role in the global community. At the same time, as the Member had suggested, it is important that we provide the necessary safeguards as well as due process to help ensure that the funds go to verifiable and legitimate causes and to mitigate the attendant risks. In this regard, the COC carries out reviews of the charity regulations on a regular basis. We will consider the Member's feedback and, in fact, welcome the Member's feedback in the next review.”
“Sir, I thank the hon Member for his supplementary question. Consumers may, indeed, approach banks to request for fee waivers, as the hon Member has mentioned earlier and there are many ways in which they can do so, like writing in. I think there are a few new initiatives where you can also call in and there is an automated service. However, consumers also must be mindful that not all fee waivers will always be granted. The criteria for these kinds of waivers, of course, differ across credit card products as well as issuers. So, before taking up or signing up for a credit card, consumers should take note of the relevant terms and conditions, such as the expiry period of guaranteed fee waivers and the quantum of fees that are chargeable. And for customers and consumers who want to learn more, there are many more tips that can be found on the Association of Banks in Singapore's Consumer Guide on Credit Cards, that is available readily on its website.”
“Mr Deputy Speaker, fees charged by banks for their services and products are commercial decisions. MAS does not interfere in these decisions, but expects all banks to deal fairly with their customers. In this regard, MAS requires banks to clearly and conspicuously disclose late payment fees and interest charges in credit card statements, including how such charges are computed. These are the most significant potential charges for credit card users. Where a customer has not paid the prior month’s credit card bill in full, the bank is required to provide in the current month’s statement a projection of the length of time and the total amount, including principal, interest, fees and charges, that the customer will take to fully pay off the entire outstanding balance. The Association of Banks in Singapore’s Code of Consumer Banking Practice further specifies when and how banks can effectively communicate to customers, relevant information on a broader range of principal terms and conditions, including annual fees, repayment grace periods and interest rates. For example, this code sets out disclosure standards for specific customer engagement touch points, such as when marketing credit cards, when cards are dispatched to customers and in monthly statements. With transparent credit card fees and charges, consumers can make an informed choice on the product that best suits their needs.”
“Mr Deputy Speaker, Genting Hong Kong and Dream Cruises have appointed provisional liquidators to facilitate the restructuring of both companies. We are closely monitoring the impact of these developments on those who have booked upcoming sailings on Dream Cruises' ship, World Dream, as well as the impact on Marina Bay Cruise Centre Singapore (MBCCS) and also on Singapore's cruise industry. While new bookings with Dream Cruises have been suspended from 21 January 2022, World Dream currently continues to sail from Singapore. Singapore remains an attractive cruise hub for many cruise lines, given our year-round tropical climate and strong market potential here and in the region. Royal Caribbean has recently brought forward its deployment of Spectrum of the Seas from October 2022 to April 2022, which will provide business opportunities for MBCCS. The Singapore Tourism Board is also in discussions with other cruise lines on their interest to resume sailings from Singapore. Pre-COVID-19, Singapore had the most cruise ship calls amongst ports in Asia. As Singapore transits towards living with endemic COVID-19, we will continue our efforts to anchor more cruise ships in Singapore and maintain Singapore's attractiveness as a cruise hub in the region.”
“I also wanted to supplement this by saying that we regularly get feedback from companies on their challenges to find and also retain talent. Our agencies will continue their efforts to ensure that Singaporeans are equipped with the relevant experience and skills to seize these new opportunities that agencies like EDB bring in and create. At the same time, this highlights also the necessity of welcoming complementary global talent with the skills, networks and expertise to enable our businesses to grow. We are also being more focused to attract investments which are capital- and skills-intensive, rather than labour-intensive. In fact, many of the investments that we attracted last year – for example, those from Global Foundries, Sanifi, Dell Technologies – are expected to be highly productive and also to operate with lean workforces.”
“I thank the Member for her questions. If I could share about the commitments of the companies and also the incremental number of jobs that will be created when the investments are fully realised, for the investments that EDB has attracted – and I focus on 2021 and these are the companies' own projections – approximately 80% of the jobs with salaries of more than $4,000 will be held by locals. However, this will, obviously, ultimately, depend on prevailing labour market conditions and also the ability of the companies themselves to identify suitable local talent. On the Member's question how do we then encourage or put our local workforce in the best possible stead to take on these jobs, I want to assure the Member that we take a multi-pronged approach to ensure that Singaporeans can benefit from all of these investments and all of these jobs that are being created. EDB and other agencies, like ESG, SSG and WSG, partner our companies on initiatives to develop their workforce and to create better career pathways for Singaporeans. Bosch and Siemens, which I mentioned in my main reply earlier, are such examples. We will also continue investing in Singaporeans through our education system and through various continuous education and training programmes such as Adapt and Grow, the Professional Conversion Programmes and SkillsFuture initiatives, for Singaporeans to upgrade themselves and to gain the relevant skills and experience to access these new jobs that we have brought in and the new jobs that are being created. We also have strong measures in place to ensure that Singaporeans are not discriminated against recruitment practices, such as the Fair Consideration Framework.”
“The Government will continue to calibrate changes in our foreign manpower policies to allow companies to access the talent and skills they need to grow our economy and to also ensure that these growth opportunities will create even better jobs for Singaporeans.”
“For example, Workforce Singapore's Career Conversion Programmes help locals to take on jobs in growth areas, as well as in redesigned job roles due to technological changes. The Government also works with larger companies to become "Queen Bees" by providing training opportunities for the whole ecosystem. For example, Bosch Rexroth partnered Singapore Polytechnic, Singapore-German Chamber of Industry and Commerce, SSG and JTC to establish the Bosch Rexroth Regional Training Centre, which aims to train 1,500 workers in Industry 4.0 methods and technologies over the next five years. Last year, Siemens also expanded their Advance Manufacturing Transformation Centre (AMTC), in partnership with JTC, SSG and other partners. AMTC will showcase Siemens' digital and industrial software, provide R&D platforms and resources for SMEs, expand training facilities and curricula to help upskill local and regional talent in Industry 4.0 capabilities. Besides training, MTI has also been working with industry players and IHLs to make engineering and manufacturing careers more attractive to locals, as part of our Manufacturing 2030 strategy. More details will be announced in due course. Even as we continue to grow our local timber, employers have provided feedback that they find it increasingly challenging to access the talent they require, especially in areas where there are skill shortages. This is a critical challenge we must overcome together, given the slowing growth in our local workforce and the aggressive competition posed by many cities and tech hubs for talent from all around the world. To stay competitive and resilient, Singapore must remain open to complementary talent.”
“EDB attracts investments in a wide range of sectors including manufacturing, professional services and infocommunications and media. Over the years, the profile of investments has moved towards higher value-added and innovation-focused activities, including in the semiconductor and biomedical manufacturing industries. For example, best-in-class companies, such as GlobalFoundries, Arkema and Sanofi, have chosen Singapore for their new manufacturing investments. We expect to attract more investments in advanced manufacturing, the digital economy and the green economy in the coming years. We attract these investments so that Singaporeans can benefit from the jobs that these investments create and to secure our economic future and resilience. Each investment strengthens our ecosystem and competitiveness, each investment creates more opportunities for firms to collaborate with one another, including between our SMEs and MNCs, and these, together, make Singapore more relevant to the world. Over the last three years, EDB attracted investments which created about 54,000 jobs across functions, such as production, digital, business services and innovation. These include jobs, such as software engineers, data scientists, lab technicians and consultants, and the majority of these are good paying jobs which are filled by locals. One reason why companies choose Singapore is our talent pool of local and complementary global talent. The Government and Institutes of Higher Learning (IHLs) work closely with industry and the Labour Movement to equip our local workforce with relevant skills which companies need. By doing so, we can respond swiftly to the changing global economic landscape and opportunities.”
“Mr Speaker, Sir, can I have your permission to take Question Nos 46 and 47 together, please.”
“And this is important because the fund, FSDF, as I have mentioned, is to drive growth and create good jobs for Singaporeans in a very dynamic and fast-evolving financial sector in the coming years. With that, Mr Speaker, I beg to move.”
“SGX has made progress in its strategy to build a multi-asset exchange. In addition to the equities market that Mr Saktiandi had mentioned, SGX is a key bond listing venue in Asia and offers a strong suite of derivatives for risk hedging across a wide range of asset classes. So, you have equities, you have bonds, you have derivatives. In recent years, SGX has been building up its bond trading and FX capabilities and pursued initiatives to enhance connectivity, including the latest collaboration on an ETF Product Link with Shenzhen Stock Exchange. But as Ms He and other Members mentioned earlier, SGX faces keen competition, not just regionally but also internationally from many different exchanges across the world. So, it will have to continually evolve its strategies, evolve all its offerings in response to the emerging competition, so that it is not standing still. They could include innovation, digitalisation efforts to streamline their processes and enhance efficiencies for the industry, harnessing new trends such as the growth in sustainable investing and building synergistic links with other exchanges. Ms He also asked for MAS' position on allowing SGX shareholders to increase their stakes to be above 5%. MAS' position remains the same. MAS will allow suitable, strategic investors who can promote SGX's growth and development to acquire substantial stakes of 5% or more in SGX and such strategic investors must first seek MAS' approval. Mr Speaker, Sir, to summarise once more, MAS seeks with this Bill to provide SEL the flexibility to receive new SGX shares, just as any other SGX shareholder can. This will also provide FSDF with an additional option to generate income for the fund.”
“Similarly, the decision for SEL to participate in subscription offers and how SEL funds its participation in any subscription offers, will also have to be approved by the Minister-in-charge of MAS. Second, FSDF's current financial position is in fact strong. FSDF has tripled in size since its inception in 1999. This is so because MAS has been prudent in managing FSDF's total grant expenditure and especially because of the compounding effect of the returns on its investment of FSDF funds over the years. This has enabled FSDF to provide significant support to the financial sector, especially during the recent COVID-19 crisis period and FSDF is also geared up to meet potential future demands as the industry responds to new trends in digitalisation and sustainability. But should SEL choose to elect for scrip dividends, this should not adversely affect FSDF's ability to support the financial sector. Next, Members were interested to understand how, in the absence of voting rights, FSDF is kept assured that the value of its holdings in SGX is upheld. In a related vein, Ms He and Mr Saktiandi had also asked about how SGX plans to keep up with competition and technological disruptions, given that the FSDF is partly funded by SGX's dividends and shares. As I just mentioned, FSDF's fund size has tripled since its inception in 1999. MAS will continue to be disciplined in managing FSDF's grants and investing the surpluses in a diversified investment portfolio, so as to sustain FSDF's ability to support financial sector development initiatives over the long term. On SGX's efforts to build and retain competitiveness, an area of interest by all of Members who have spoken on this Bill, please allow me to reply briefly at this point.”
“In addition, the FSDF has also supported over 280 outstanding Singaporeans to acquire specialist skills through postgraduate studies in areas, such as data science, financial engineering and risk management. As for the Cybersecurity Capability Grant (CCG) scheme, it aims to develop local cybersecurity talent in our financial services sector. How? By supporting financial institutions to set up or expand regional and specialised cybersecurity teams in Singapore. Since 2019, five financial institutions have tapped on this CCG to anchor their regional cybersecurity capabilities here in Singapore, generating 60 new cybersecurity positions here. To Mr Saktiandi Supaat’s question on FSDF's support for nascent areas, such as blockchain technology and carbon credits, FSDF has, indeed, supported such projects where they have the potential to strengthen our competitive advantage as a financial centre. Given that FSDF provides funding for a wide range of initiatives that support the development of Singapore as a global financial hub, Mr Saktiandi Supaat and Ms Foo Mee Har have asked whether giving SEL the option to elect for scrip dividends, in lieu of cash, could constrain FSDF’s ability in supporting the financial sector going forward. Ms He Ting Ru has also asked how SEL would fund its participation in SGX subscription offers. First, the decision for SEL to participate in SGX's scrip dividend scheme and the proportion of scrip dividend that SEL will elect for, as I mentioned earlier, will have to be approved by the Minister-in-charge of MAS, based on FSDF's expected financial needs over the medium term.”
“Mr Saktiandi Supaat also asked about recent trends of FSDF's expenditure, how the pandemic has affected FSDF's expenditure and the take-up of specific FSDF-funded schemes, while Ms He Ting Ru also sought an update on the role of FSDF. FSDF currently supports a wide range of initiatives across talent development, technology and innovation. It also supports other initiatives on financial sector activities and consumer education. Pre-COVID-19, FSDF's annual expenditures were within $90 million. In FY2020/2021, FSDF's annual expenditure increased to $247 million as new support schemes were launched to sustain and strengthen capabilities in our financial services and fintech sectors, amidst all of the COVID-19 disruptions. This includes the $125 million package that was launched in April 2020 alluded to by Mr Saktiandi Supaat. As part of the support package, MAS increased course fee subsidies for relevant IBF courses and extended the subsidies to include local employees of fintech firms. As a result, we have seen a very strong response from financial institutions in tapping on the funding available to upskill and reskill their financial professionals. Training participation has increased significantly since the launch of enhanced support in April 2020. In fact, the level of training participation in the first 10 months of 2021 was already triple that, compared to the whole of 2019. The FSDF also supports efforts in developing multiple pathways to build our pipeline of local financial sector talent. This has resulted in financial institutions committing in 2020 and 2021 to hire and to train close to 1,100 Singaporeans as part of their structured management associate programmes.”
“Shareholders' decisions are, typically, not announced while the election period is ongoing. Mr Saktiandi Supaat and Mr Liang Eng Hwa asked about the governance structure of FSDF and how MAS ensures that FSDF’s expenditures are aligned with FSDF's objectives. MAS takes a rolling five-year view for planning of FSDF's grant expenditure. This is in view of the relatively long gestation period of most development initiatives, such as developing industry-wide infrastructure, developing local talent in emerging finance areas and promoting financial innovation and technologies. The Minister-in-charge of MAS approves the strategic allocation of FSDF's monies on a rolling five-year basis and based on that approved allocation, the Managing Director of MAS approves FSDF's annual budgets and MAS publishes FSDF's financial statements annually. Grant schemes are developed and, periodically, also reviewed to ensure that the funding provided does, indeed, meet industry’s needs. In recent years, there has been an increase in FSDF's funding to support skills upgrading and reskilling initiatives and financial institutions' push to adopt financial technology and innovation. Individual projects seeking FSDF's funding are also subject to robust governance and controls. To ensure the prudent usage of FSDF's funds, the fund is administered in compliance with MOF's guidance on grants governance, notwithstanding that FSDF is not funded by taxpayers' monies, given that it was set up using the proceeds from the demutualisation of privately-owned exchanges, which I described earlier. Taken together, these measures help to ensure that FSDF's expenditure is aligned with FSDF's objectives and that the funds are used prudently.”
“Mr Speaker, Sir, I thank Members who have spoken on the Bill and for their support of its introduction. Let me first deal with the questions on safeguards and governance over FSDF before addressing the impact of electing to receive scrip dividends on FSDF’s ability to carry out its function. Ms He Ting Ru and Ms Foo Mee Har had asked about safeguards over potential conflicts of interests when MAS both regulates SGX and also administers the FSDF. Ms Foo Mee Har had also asked whether more could be done to clarify the nature of SEL's holdings and if SEL could, inadvertently, influence the outcome of a scrip dividend exercise by signalling its intent. First, on potential conflict of interest, MAS' independence as a regulator should not be affected. MAS does not derive any income or loss from SGX shares. Dividends from SGX shares are channelled to FSDF for the benefit of the financial sector as a whole. Further, even as SEL derives income from holding of SGX shares and this benefits the FSDF, SEL is not accorded voting rights for its SGX shares. The Bill has provided that this same safeguard on non-voting rights will also apply to new shares received. The non-voting nature of SEL’s shareholdings is disclosed in SGX’s financial statements. In addition, SEL has independent directors who owe a fiduciary duty to SEL. The directors are nominated by MOM, MTI and both public agencies have economic and manpower development mandates that are similar to the objectives of FSDF. Next, regarding any SGX scrip dividend scheme, all shareholders would make their own assessments, taking into account their individual circumstances in deciding whether to elect for new shares in a scrip dividend scheme or not.”
“The Bill will also provide that SGX shares acquired through such participation will be treated in the same manner as the Original SGX shares. In particular, consistent with the Original SGX shares: one, SEL will hold the new SGX shares for the benefit of the FSDF; two, SEL will not be allowed to transact with the new SGX shares without the prior approval of or direction from the Minister-in-charge of MAS; three, SEL will not be able to exercise the voting rights attached to the new SGX shares; and four, the dividends paid in respect of the new SGX shares and any proceeds in respect of any sale of the new SGX shares, less expenses incurred in the sale of the new SGX shares, will accrue to the FSDF. Mr Speaker, Sir, this Bill does not alter the basic objective of the Act, or SEL's purpose of supporting the FSDF. It only enables SEL to participate in corporate actions taken by SGX under which SEL may elect to receive new SGX shares. The new SGX shares will be treated the same way as the Original SGX shares. Mr Speaker, Sir, I beg to move. [(proc text) Question proposed. (proc text)]”
“It should be highlighted that under the EDMA, SEL is not able to exercise or control the exercise of the voting rights attached to the SGX shares. This feature remains unchanged in the proposed amendments to the EDMA. This is important because it is not intended for MAS, in its capacity as FSDF’s administrator, to impinge on SGX’s capacity to make business decisions. This safeguard further enables MAS to play the roles as SGX's regulator and FSDF's administrator without conflict of interest. SGX announced on 5 August 2021 that it would be implementing a scrip dividend scheme (SDS) to offer its shareholders the option to receive all or part of their dividend entitlement in SGX shares. SGX has explained that this scheme would allow shareholders to re-invest their cash dividends in SGX’s medium-term growth journey. Currently, the EDMA allows SEL to receive new SGX shares where there is no election or choice on the part of the shareholders, such as when bonus shares are issued. However, it does not allow SEL the flexibility to elect to receive new SGX shares when these arise from corporate actions taken by SGX, such as scrip dividend schemes. Amending the EDMA will give SEL flexibility to elect to receive new SGX shares arising from SGX's corporate actions, where doing so is in line with FSDF’s interests. Mr Speaker, Sir, I will now go through the broad areas of amendments in the Bill. The Bill will allow SEL, with the Minister-in-charge's approval, to participate in SGX's corporate actions under which SEL may opt to receive additional SGX shares. For instance, SEL could elect to receive scrip dividends in SGX scrip dividend scheme (SDS), which it is unable to under the current EDMA.”
“Mr Speaker, Sir, on behalf of the Prime Minister, I beg to move, "That the Bill be now read a Second time". In 1999, the Exchanges (Demutualisation and Merger) Act (EDMA) was passed to facilitate the transfer of ownership of the Stock Exchange of Singapore (SES), the Singapore International Monetary Exchange (SIMEX) and the Securities Clearing and Computer Services (SCCS), to an integrated exchange, Singapore Exchange Ltd (SGX). The exchanges were demutualised and merged into a single non-member run entity. The essential aim was to put the integrated exchange in a stronger position to hold its own internationally and develop new growth opportunities. Through this demutualisation process, members of the two exchanges, SES and SIMEX, received a fixed dollar amount of shares in SGX and the remaining SGX shares were issued to SEL Holdings Pte Ltd (SEL), a special purpose company designated under the EDMA. SEL placed out some of the SGX shares to new investors and retained the rest. This portion of SGX shares that SEL retained, which I shall refer to as the "Original SGX shares", are currently held by SEL for the benefit of the Financial Sector Development Fund (FSDF). MAS set up FSDF in 1999 to support the development of Singapore as a financial centre. FSDF is controlled and administered by MAS, subject to the directions of the Minister-in-charge of MAS. The dividends and any proceeds in respect of the Original SGX Shares are channelled towards the FSDF to fund financial sector development initiatives in Singapore. These include initiatives which develop sector-wide capabilities and infrastructure, promote financial innovation, upgrade skills and expertise, and support financial education.”
“Mr Deputy Speaker, I thank Ms Denise Phua for her question. This is with regard to the overall tourism strategy and our strategy with regard to MICE. I would say that, as Members are aware, the tourism sector, be it the aviation sector or the associated sectors, have been hard hit by COVID-19 due to travel restrictions and safe management measures (SMMs). But that does not mean that we should hold back or not invest in our tourism capabilities and capacity for the long run. This is because the tourism landscape, as I mentioned earlier, is getting competitive and we must position ourselves for when tourism upticks, for when regular travel resumes and for when events, such as MICE, tourism, start to resume some form of normalcy. Last year, we were preparing the tourism and MICE sectors for such an eventuality and, so, we undertook four MICE pilots and those pilots went well. This puts us on a strong footing. With regard to the IR expansions, these are also necessary, as the Member noted earlier, to put the IRs in a good position as a tourism enabler for Singapore in the long run. And that is why the IRs are expanding. And most of the offerings are catered towards tourism and developing this capability for when tourism and travel resume. And we must be prepared to take that uplift and we must be prepared to carry that wind when it comes.”
“This is because non-gaming areas will expand by a much larger amount. As a pre-emptive measure to minimise the social impact of problem gambling, the Government raised the casino entry levies for Singaporeans and Permanent Residents by 50% in April 2019. In response to Mr Gan Thiam Poh and Mr Louis Chua's questions on the expected completion of the two IR expansions, the IRs remain committed to the expansion plans. However, with the disruption that COVID-19 has had on the construction industry, both IRs have indicated that there will be potential delays in the completion of their projects. And this is not altogether surprising or unique to this project or this industry. COVID-19 has impacted construction timelines, both locally and globally. As the COVID-19 situation continues to evolve and, in fact, is evolving, and the IRs' expansions are complex multi-year projects, the full extent of the delay is not yet clear. Mr Deputy Speaker, Sir, the IRs' expansion aims to provide new world-class tourism and MICE facilities. This will enhance Singapore's tourism appeal, provide more entertainment options and jobs for Singaporeans and benefit local businesses. To this end, clauses 46(1) and 46(2) of the Gambling Duties Bill make amendments to the Casino Control Act related to the exclusivity period.”
“As an example, last week, I witnessed the launch of the Resorts World Sentosa and the National University of Singapore (NUS) Living Laboratory project. The living lab brings together NUS' capabilities as a leading global research institute and RWS' strengths as a world-class tourism destination. The project focuses on biodiversity and energy conservation and will help preserve and restore our natural heritage. This is in line with our Singapore Green Plan 2030 and Sentosa Development Corporation's plans to transform Sentosa into a carbon-neutral destination by 2030. Again, it will, in turn, enhance Sentosa's appeal as a tourism and conservation destination. These are hefty investments and a further extension of the exclusivity period was required, as the casino is a small but essential part of the IR in that it makes the larger development and slew of activities which I mentioned earlier financially viable. The duration of the exclusivity period was arrived at after considering factors, such as what the parties could offer, the social impact, competitive dynamics and what the IRs deemed necessary from a financial viability viewpoint. Clause 46(1) amends section 41 of the Casino Control Act to introduce this exclusivity period. Clause 46(2) amends section 42 of the Casino Control Act to reflect this updated exclusivity period. For the new attractions and facilities in the expanded IRs to remain commercially viable, the Government also announced in April 2019 that the IRs would be allowed to have additional gaming machines and the option to purchase additional Approved Gaming Area, or AGA. However, even if the IRs fully utilised their options, AGA, as a proportion of total floor area, would be reduced from 3.2% to 2.4%.”
“Mr Deputy Speaker, Sir, let me touch on the provisions of the Bill pertaining to the Casino Licence Exclusivity Period. When the IRs were first introduced, we provided an exclusivity period of 10 years, during which the Government would not introduce any other casinos. This was necessary as the IRs had made substantial investments and needed some business certainty. In 2019, the two IRs committed around S$9 billion in investments to build new world-class tourism and MICE facilities. Marina Bay Sands (MBS) will introduce a state-of-the-art entertainment arena which would host world-class performances and an iconic new tower comprising hotel and rooftop attractions. There will also be additional MICE space to host exhibitions and conventions. Resorts World Sentosa (RWS) will expand Universal Studios Singapore by almost 20% with two new themed zones – Minion Park and Super Nintendo World – and create a new Singapore Oceanarium. It will also redevelop its waterfront promenade and introduce a driverless transport system along the Sentosa Boardwalk to improve accessibility into Sentosa. These investments will enhance the attractiveness and tourism appeal of Singapore, amid stronger competition for travellers post-pandemic. Singaporeans can also look forward to more lifestyle and entertainment options. To Mr Gan Thiam Poh's question on the potential increase in economic contribution, based on our initial projections, the IRs' expansions are expected to contribute S$500 million annually to GDP in a steady state. The expansions will also create up to 5,000 new jobs directly and benefit local businesses, especially in the construction and services sector.”
“But the key part of this is we need to make sure that we upskill, which is a key factor in our ITM and we make sure that there is a good job and skills match such that our people can take on better jobs, increase their productivity and make use of the technological advances available so that as a whole, across multi-sector, productivity advances can be seen over time.”
“So, while not a 100% accurate indication, I think this particular measure, for now, manages to capture productivity in the most accurate form. But we will be open to looking at other ways to measure, given the changing nature of work across the world and given how COVID-19 has also looked at productivity across workplace and at home. With regards to the outlook for productivity, both Minister of State Low and myself have shared earlier on that the growth as well as recovery across sectors are uneven. There are domestically oriented sectors and there are the outwardly oriented sectors. The domestically oriented sectors experienced a steeper contraction in value-add in 2020, a reduction in 15.9% as compared to the outward oriented sector's decrease in 0.9%. But our productivity performance tends to be pro-cyclical and so it has resulted in an uneven productivity across various sectors. I wanted to also just share a little bit that what we are doing is we are not being stagnant in this regard, productivity has been an issue in advanced economies and in particular, Singapore has been managing or trying to increase productivity for decades. Our refresh of the Industry Transformation Maps (ITMs), the 23 ITMs that Minister of State Low had mentioned earlier on, seek to find ways to increase productivity. The increase in technological advances and progress in the way in which we work and how we work, will help in no small measure to help us to increase productivity.”
“I thank the Member for his two supplementary questions. I will take the measurement of labour productivity first and then go into the outlook across sectors. First is on how is labour productivity typically measured and what are the differences between existing labour productivity measures? Labour productivity measures actually measure how effectively or efficiently labour inputs are used to produce output. They are computed in terms of, as I mentioned, real value-added (VA) per actual hour worked, or real VA per worker. There are differences between these two because of changes in the average number of hours worked per worker over time. I think that also has been quite accentuated during COVID-19. Of the two measures that we talked about, real VA per AHW is recognised internationally including, as I mentioned earlier, by ILO, to be a better measure of labour productivity, because the actual hours will capture the intensity of labour input more accurately. In Singapore's context, this measure has also become more relevant in recent years with the rising number of part-time workers in the economy and the cyclical changes in the number of hours worked by full-time workers. If you look at TFP or Total Factor Productivity, which is also known as multi-factor productivity, is also an alternate measure of productivity and captures how efficiently both capital and labour are used together in the production process. It is computed as a residual on an annual basis and is defined as a change in GDP not attributed to changes in capital and labour inputs. So, for example, an increase in TFP may be due to factors such as a rise in technology, improvements in management practices and organisational structures or maybe even the diffusion of technology across firms.”
“In the context of a hybrid model of working, real value-added per actual hour worked also provides a more accurate measure of labour productivity, as it accounts for the varying intensity of labour input by employees under different types of work arrangements. These include (a) flexi-time arrangements that grant employees flexible work schedules, depending on their work, of course, and personal commitments; (b) flexi-load arrangements that involve employees who are hired on a part-time or project basis; as well as (c) flexi-place arrangements that allow employees to telecommute and record hours worked in both workplace settings and at home.”