Andy Gan Lai Chiang
Singapore
“Given that Singapore is building more sporting facilities and moving the country towards being a sports hub, physiotherapists are needed here. They are healthcare professionals and ought to be treated as such in order to attract them here.”
“The difference in hospital fees will come in only from the choice of class of beds. So all taxpayers and non-taxpayers are given the same medical attention at the subsidised rate applicable according to the different medical conditions that the patient is in.”
“Tied to the insurance service providers for the maritime industry, a question remains as to what measures have been implemented to make Singapore a more attractive base for specialist insurers to take root in Singapore, for example, regulatory changes and specific GST and tax incentives, to make it conducive for specialist classes of unde…”
“The way for us to move then is summed up by the Prime Minister in the Budget Statement, ie, for there to be "Singaporeans' support for a social compact that looks after the vulnerable in society that will make us a caring and inclusive community". Sir, I support the motion.”
“It is noted that underlying the changes to the TCA, protection of the beneficiaries and social conscience is apparent. Given the foregoing, it is suggested that unless the aims of the TCB are to benefit all persons, a change to the TCA with the implementation of the TCB may not be useful to the wealth management sector of our economy.”
“We are blessed with a good and strong Prime Minister, together with his capable Ministers, who will require our utmost support and loyalty to lead us towards a country that is family-centric, successful and prosperous. Let us all be reminded that no one knows what the future holds for tomorrow, but we can be prepared for it.”
The complete record
Every one of 177 lines we hold for Andy Gan Lai Chiang, in date order, each linked to its source. Free to read, in full, without an account. Page 1 of 4.
“Mr Chairman, Sir, it is alarming that the Avian flu in the form of H5N1 strain has spread across from Asia to Europe. It is, however, heartening to know that MOH has set up a comprehensive influenza pandemic readiness and response plan and influenza pandemic contingency plan. These plans aim to reduce the impact of an outbreak on our social and economic lives to reduce the spread of Avian flu. In the influenza pandemic readiness and response plan, it was hypothesised that if a conservative percentage of 25% of Singaporeans fall victim to influenza, most likely, 11,240 people are expected to be hospitalised. I would like to know whether MOH will be receiving sufficient funds to ensure that implementation of the influenza pandemic readiness and response plan be carried out effectively. And if so, what is the expected budget for doing so? If there is a pandemic, will our quarantine facilities be adequate with sufficient manpower to cope with? Are there further plans to strengthen our protection against bird flu coming to our shores? There now appears, in some countries affected by Avian flu, to be human-to-human transmission of H5N1 virus and with Singapore, being an open society, infected persons may unknowingly bring the virus here and how are we going to cope with such a possibility. If an outbreak occurs, in spite of these measures, will it have the same effect on the country as in SARS? Genetic Counselling”
“If we average that figure over a period of 12 months, this would work out to be about 33,775 admissions a month. Given the overwhelming statistics, it is clear more admissions are to be expected and the need for more healthcare in hospitals should be anticipated. Is MOH planning to build new hospitals or extensions to hospitals to cater for expected or projected increases in the demand for hospitalisation? Are there plans to increase the number of doctors and hospital beds to cater for possible increase in demand from an aging population? Nurses form an important part in providing an excellent medical service and their numbers are always lacking. Training new nurses will not only help to fill in the gaps in the shortage of nurses, but will also contribute to having more adequate hospital services. What are the plans by MOH to ensure that there are enough doctors and nurses to cater to and treat the high-level of patients visiting the hospitals? While increasing the number of intakes for the medical faculty, and in training nurses at technical and degree levels, is there any dependency level that we have for foreign doctors and nurses? Our aging population will certainly put heavy pressure on the demand for hospital services.”
“Mr Chairman, Sir, it is essential that our medical services have the technology and the technical know-how to properly diagnose diseases and illnesses as quickly and accurately as possible. In the past, doctors wanting to know whether a patient's heart is functioning well may resort to angiography, a procedure in which a thin tube is snaked up the heart arteries through a blood vessel in the groin. Now, an alternative is available. Modern technology has made possible for scanning machines to perform a cardiac CT-scan which will show detailed images of the heart in just a few seconds, all these without the expense and risk of any invasive coronary angiography. As patients demand for more accurate and quicker diagnosis of their illnesses, be it cancer or a stiff neck that lasts for days, doctors will turn to such technologies as a useful tool for their answers. Are we seeing such trends in the medical sector and, if so, what are the plans the Ministry has in mind for such heavy investments? Will MOH be looking at the advent of such technologies and its uses nationally and, if necessary, provide guidelines on its usage so that a uniformed approach will aid patients in making an informed decision before paying for these services? To have an economical approach to this scenario, pooling of resources may be necessary to lower individual commitments to such investments and, subsequently, spread out the cost to the paying public who are the users. In cases where it is too expensive for the private sector to invest in such machines for some reason or other, will MOH be looking at buying them and allowing the private practitioners to use them on a pay-as-you-use scheme? Adequacy of Hospital Services In 2004, there were 405,306 admissions.”
“It is remarkable that in February 2003 we signed the FTA, but in February 2006, they gave the FTA a slap in the face. I would like to ask the Minister very quickly whether he could get the decision to be reviewed as quickly as possible. Changi Airport”
“All these do not seem to matter when it comes to SIA seeking to fly and compete fairly along the routes from Australia. Sir, I urge the Australian government to rethink its stand on blocking SIA from this route, as the flying public of both countries will benefit economically from having more choices of airlines and prospect of competitive fares. Sir, I would appreciate the Minister's comments on these views. Assoc. Prof. Chin Tet Yung (Sembawang): Sir, I am very indignant, not at our Minister for Transport or our Government, but at the Australian government and their Minister for Transport for turning down Singapore Airlines' air rights to ply the trans-Pacific route between Australia and the US. The manner in which it was turned down was also very suspect. According to Australian Senator, Kerry O'Brien, who is the Labour's spokesman for transport, there was no transparency. It was a closed-door review and it was described by him as "shambles". The reasons given were far from convincing. Truss, who is the Minister for Transport, for example, said that it would be better to allow their own budget airline, Virgin Blue, to come in, and that would increase competition. Sad to say, Virgin Blue, as the name suggests, is still untried when it comes to flying the trans-Pacific route. Truss himself said that the carrier might be ready to fly in 2007. At the moment, it lacks planes; it has absolutely no infrastructure and it was last reported in the Australian that it was going to come up with a concept plan for flying this route. Qantas probably prefers competition of this type. 4.30 pm Sir, I am sure that many Members of this House have expressed their indignation at something which is anti-competitive, unfriendly and certainly inconsistent with the principles of free trade.”
“Sir, in the Addendum to the President's Address in Parliament on 12th January 2005, the Ministry of Transport stated that it would push for freer skies and of special importance are the ASEAN countries, Australia and emerging markets like China and India. How are the plans progressing on exploring the possibility to negotiate for open skies agreement with these countries and others? On Australia's rejection to allow SIA permission to fly beyond its eastern states to the United States of America, what is the Ministry of Transport's next move to overcome this set-back? This disappointing and inward-looking decision by Australia to block SIA from its Pacific route does not bode well for good business relationship between the two countries built up over years of goodwill and friendship. While Qantas and Jetstar have the right to fly to and beyond Singapore, this advantage accorded has obviously been ignored by Australia to the detriment of its bilateral relationship with us where fair play and free competition are the cornerstones of good economic relationship. Singapore has given the fifth freedom rights freely while others seem to be guarding theirs jealously. Our generosity in offering the fifth freedom rights to Qantas has been taken for granted and unfairly taken advantage of, especially when half of Qantas' flights travel beyond our shores. It is noteworthy that Singapore is Australia's largest trade and investment partner in South East Asia. And in the year 2005, bilateral trade between the two countries was worth A$8 billion. Changi Airport's Terminal 3 refurbishment costing S$2 billion was designed by an Australian architect firm, Woodhead International.”
“Sir, in August 2000, the Port of Tanjong Pelapas enticed away from the Port of Singapore Authority, Maersk Sealand, which was once Singapore's largest operators. In 2002, Evergreen Marine Corporation, then the world's second largest shipping company after Maersk, shifted its operation from PSA to PTP. These moves are not the only threats to our ports as there are others in the region as well as Hong Kong which are ready to replace PSA as the premier port. During a tour around PSA last year, I saw the hive of activities at the container port. I was impressed with the improvements done to enlarge the port handling capacity and improvements made to the efficiency of the port operation. I was thus not surprised that for the first month of 2006, PSA overtook Hong Kong as the No. 1 container port in the world. As competition remains high, our port must continue to be sensitive to the needs of shippers so that it will work as a partner with them to serve their customers whose cargoes need to be delivered safely and timely. Could the Minister inform the House whether PSA has repositioned itself further to attract more shipping lines to Singapore and what are the measures taken so far? Has the unsuccessful venture to purchase P&O ports affected PSA's ability to expand its operation world-wide?”
“I remember some years back seeing the loading and unloading of cargoes at the wharf of the port at Tanjong Pagar. Movements of cargoes involved a lot of manual labour and most of Singapore's early migrants found employment opportunities there. Many shipping lines from all over the world called at the port and the economics evolved around it. However, when it came to complex shipping laws and ship financing, as well as insurance, London was the ideal choice for shipowners and those working in the maritime industry. To develop Singapore's international maritime status, the Singapore Maritime Foundation was set up on 5th March 2004. This was established with the assistance of the MPA, with funding from the Government. The SMF is a public-private partnership set up to serve as a forum for the Singapore maritime industry players to exchange ideas, proposals and projects, which the MPA would then follow up with the relevant Government agencies to bring these ideas to fruition. In short, the SMF will serve as Singapore's maritime ambassador, partnering MPA, in promoting Singapore. I would like to ask the Minister on the result of these initiatives, in particular the following: who are the new shipowners and operators that we have attracted to Singapore since 2004? What are the milestone achievements of the Singapore Maritime Foundation so far and how will the IMC help to strengthen the economic growth of Singapore and place the country firmly on the shipping map of the world?”
“However, redistribution of future budget surpluses, hopefully, will still be sustained, as this year's Budget programme should help Singapore prepare for the challenges ahead and to achieve good growth results. 5.20 pm”
“These efforts seem to be paying off when comparing Singapore with, say, centres such as that in Switzerland, which is the world's top haven for wealth management and private banking, and which seems to be disadvantaged through unfavourable tax changes imposed on them as part of the Economic Union (EU). Thus, a good portion of the trillions of US dollars of private money could slowly move over here in the next few years, if Singapore keeps its tax as competitive within a stable financial and political environment. For the Budget to support in the upgrading and restructuring of the economy and to help Singaporeans progress, our workers, employers and the Government have to forge a strong tripartite partnership. This is ongoing, and it is still a strong partnership. And we have to constantly remain open and nimble so that our enterprises will be able to adapt to the changing conditions under heavy global challenge. Growing our economy this year which is projected to be between 4%-6% is necessary so that new jobs can continue to be created. Inflation, on the other hand, needs to be carefully controlled so that the percentage increases in the cost of living do not exceed our growth. Opportunities are abundant. They are out there. Singapore needs more enterprising employers who are ready to explore different ways of creating wealth than just compete in price, as I have heard my colleague just now mentioning that Creative and Hyflux were one of those examples. Consumers are more educated and the products they demand must be more than just price to attract them. We have to be constantly moving ahead in ideas and in good services to create demand. It is noted that this year's Budget may have used up most of the surpluses accumulated during the Government's term.”
“The setting up of the R&D Trust Fund under the National Research Foundation with an initial fund of $500 million leading to $5 billion over five years is a step in the right direction. This will spur the growth of the knowledge hub that is needed for a global network of ideas where people and businesses can congregate here to share and learn from each other. The setting up of a new national broadband network that is faster than what is available will plug Singapore into a wider pool of knowledge and increase our ability to use technology in more areas. However, how much this will cost the country has not been demonstrated in the Budget. The Government seeks to build on its strength in manufacturing and services. So it is promoting activities that place a premium on trust, quality and service, not just efficiency and low cost. The focus will then be to raise productivity and skills level. Perhaps the Prime Minister could elaborate on how this year's Budget aims to do that, ie, either through a fund set aside or with non-monetary efforts from various Government agencies. Schemes such as the enhanced Designated Unit Trust (DUT) as well as tax exemptions from qualifying domestic trust and the underlying holding companies and foreign trusts are useful in attracting more asset and wealth management industries into Singapore. However, a combination of financial system stability, such as having a good risk-based regulatory and supervisory framework, with an array of competitive tax regime, is needed to strengthen Singapore's effort to market the republic as a sophisticated regional financial centre.”
“The overall picture constructed is one of inequality and we have to attempt to plug the nation's economic gap between the haves and have-nots. The stage has been set in FY 2005 for CPF contributions by both employers and employees to be reduced. This would mean that savings in the CPF account for all contributors would be reduced, thus affecting the amount allocated for the Ordinary Account, Special Account and Medisave Account. With most money going into the purchase of properties, which is still a high sum, less money will be available for savings for old age. With the workers' level of income coming under intense pressure, as companies find their margins of profits being eroded, owing to competition, savings apart from CPF contributions are no doubt going to be less. It is perhaps timely for the Government to explore various approaches to help the lower level of wage earners save for their old age. One area of concern would be the cost of home ownership, which is relatively high. And in spite of the Government's assistance in cheap financing, many are still sacrificing other expenditures just to meet their mortgage payments. If the prices of new homes are set to rise, with the renewed confidence in the economy pushing it higher, then less amount of money will be set aside for savings for old age. Owning a home may be too expensive for some. Then having a rented property to live in may be the alternative. As such, I hope the Government can set aside a greater amount in its yearly budget to provide cheaper homes for those in the lower income group. In remaking Singapore's economy, the Budget seeks to press on with upgrading and restructuring the economy in order to differentiate itself from other economies.”
“Corrective actions by the Government, such as retraining and job-matching programmes, have helped those affected by the economic downturn of the past to adjust to the reality of the present economic environment. Citizens have made self sacrifices and bit the bullet they did, as they move from one job to another until they find a footing again. It is interesting to hear that Dr Tan Cheng Bock earlier said that it is now a fashion for job seekers to jump from one job to another job, gaining experience before they land up with the next job. This year's Budget went further than just job recreation. It allows the Government to extend a compassionate hand to many households by returning to them in cash whatever the country can give. Though it may not be enough for some to bring them back to their former level of economic comfort, the act of such giving is an example of compassion that the society should be proud of in our Government. In our effort to further restore our competitiveness and find future sources of income, a restructuring of our economy has to take place. Globalisation has meant that our workers now face challenges beyond our shores. This has caused many to lose their jobs and while moving to another job, a lower salary is a common occurrence. Inequality of income has taken place. And those who are trained to work in the new industries, such as electronics and biotechnology, are seeing better paying jobs than those in the traditional, less high-tech industries. These inequalities have determined the level of consumption and wealth creation. I feel that the Progress Package, among other initiatives that the Government has ongoing, should in some way narrow the gap between the rich and poor.”
“Mr Deputy Speaker, Sir, there was an air of expectation when the Prime Minister revealed the country's 2006 Budget. This year, people are waiting to hear what the rebates and top-ups are that they will be receiving and the amounts, as many perceived that prior to the General Election, the Government will be generous. As expected, the mood was a feeling of relief and excitement after hearing the Budget announcement. And one of my grassroots leaders who sells chickens in the market told me in the evening of the Budget day that many faces are now smiling. The distribution of $2.6 billion back to Singaporeans in the form of a Progress Package is a very generous package and a compassionate one. The Growth Dividends of FY 2006 are a follow-up to the recent years of giving under the Singapore Shares of FY 2001 and the Economic Restructuring Shares for FY 2002 and FY 2004, and other rebates and top-ups that have cost the Government altogether $10.45 billion. These benefits to households show that the Government cares about the people and is willing to make hard decisions by using its previous year's surpluses to assist the citizens in difficult years. At the same time, it is not forgotten that those who fell along the way are helped to catch up with the rest in life's long journey. Some households have found the going difficult since SARS hit our economy hard and many men and women have lost their jobs. Those in their 40s found it difficult to lift their head high after finding that they no longer are able to find jobs that they are familiar with, nor can they command a salary equal to their last drawn pay.”
“The relief will not change. The process in which the relief is derived will not change. So I think we should not just be fixated on these terms and by association, because I know where Mr Gan is coming from. When you are a plaintiff in a civil claim, you are suing the defendant and, very often, you want something out from the defendant. So it is a matter of association. But let us take that association out and look at it from this standpoint. The starting standpoint is that we are simplifying andstreamlining the procedures, and, in a sense, like I have said, it is policy neutral. It is not naturally evocative if you are a plaintiff. In the past, it could be so. But under the new process, depending on what you are coming to seek the court's help for, in the case of divorce andsome have contested, certainly, it would continue as it is.This has been thoroughly thought through and indeed the courts have already consulted with the present parties, including family law practitioners who are in the Law Society and Family Law Committee, and also the law academicsat the NUS and also, I think, briefings have been made to the GPC, not Home Affairs and Law, but GPC for Community Development, Youth and Sports, and indeed even women MPs and representatives of various women groups, like SCWO, SAWL and AWARE. So let us give the process an opportunity. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill.- [Assoc. Prof.Ho Peng Kee]. Bill considered in Committee; reported without amendment; read a Third time and passed. Column No : 1854 NATIONAL UNIVERSITY OF SINGAPORE (CORPORATISATION) BILL Order for Second Reading read. 4.33 pm”
“Ho Peng Kee: First, I thank Mr Andy Gan for supporting the Bill. He expresses a concern whether or not the new procedures should apply to divorce and family-related matters, in particular, in the context of whether the way in which the divorce proceedings are started, which is currently by way of a petition, should be replaced by that of a writ of summons, so that the petitioner becomes the plaintiff and the respondent becomes the defendant. But, as Mr Gan has himself said, it is really a change in nomenclature,achange in terms, because the parties, really, when they come to court, they are seeking the court's leave vis-a-vis the situation that has arisen before them. In some cases, there may be already acrimony. I do not think theacrimony there would be accentuatedby the fact that the petitioner is now called plaintiff and the respondent is now called the defendant, because, in substance, the law remains the same. Andin terms of the court's approach, the court's approach would also remain the same. In other words, the court will still try to reconcile the parties, as they are doing now. There will still be mediation processes. So, in a sense, the process will not change. We know that there is adjustment required on the part of many people. In fact, lawyers have to adjust to it and, in particular, lawyers were very used to the four processes. But as I have said, the need has come to streamline the process.Certainly, going into the future, with new generations of lawyers and, over time, even with a new generation of people who want to divorce, I think they will come to the courts seeking a divorce, whether they are calledpetitioner orrespondent, orplaintiff ordefendant. People on the ground, what is important to them is that they are coming to court to seek relief.”
“From the word "go" and from the very description of what the law calls them, it is inevitable that the parties may see themselves as combatants -on one side, a party suing for a divorce, and the other defending. This may lead to enhanced hostility and acrimony, making divorces hard to resolve amicably. One can say that this change is not a serious matter as it is just a change in name and that the courts are well equipped to deal with contesting parties through counselling and/or mediation. And it is true that about 90% of contested divorces are settled through counselling and mediation. However, the courts already have a trying time, having to mediate and counsel parties in divorce cases based on petitions. At the moment, the mindset is not one where a spouse is suing the other spouse as in normal civil suits. The petition is a formal request to the court for relief. This is different from a party commencing proceedings to sue the other. It is possible that, with the change in descriptions and proceedings, the mindset will change and proceedings may start off even more acrimonious and hostile. This may make the task of the counsellors and mediators harder. Only the US has adopted the writ process. In the UK, divorces are started by petitions and the parties are called petitioners and respondents respectively. In Australia, the person who applies for a divorce order is called an applicant and the other party is called a respondent. Likewise, the same applies for New Zealand. Section 41A(7) of the to-be-amended Interpretation Act allows the Minister charged with the responsibility for law to determine whether the amendments should apply to divorce and family cases. In view of the social concerns, is it necessary for the amendments to apply to divorce cases? Assoc. Prof.”
“Mr Speaker, Sir, I stand in support of the Statutes (Miscellaneous Amendments) (No. 2) Bill. I wish to speak on Part I of the amendments relating to certain court proceedings, in particular, the amendments to the Interpretation Act, the Supreme CourtJudicature Act and the Subordinate Courts Act where petitions and motions are converted to writs of summons, originating summons or a summons and whether these amendments should apply to divorce cases. I have come across residents in my constituency during the meet-the-people-sessions where they relate to me the acrimony and bitterness they face in divorces, from unreasonable spouseswith unreasonable expectations and demands to recalcitrant and unrepentant spouses.Adivorce is an emotionally trying and difficult experience for the parties and families concerned. These types of cases must be handled sensitively and appropriately. We should strive to encourage people, having noalternative but to seek a divorce,to start their regrettable proceedings with the right attitude. With the amendments, a person starts divorce proceedings with a writ for divorce (Third ScheduleNew Part X of Women's Charter, sections 92, 94 and 95) and the parties are called plaintiff and defendant respectively, like in normalcivil suits.Thisimplies that one spouse is suing the other for a divorce. By contrast, presently, a spouse formally asks the court to dissolve his marriage to his spouse by a petition. We must not advocate a litigious society for divorce cases. Instead, we should try and help these parties resolve their marital problems and issues as amicably as possible. To say that one is suing for a divorce takes a different tone from a request of a court to grant a divorce.”
“In these days of high fuel cost and the possibility of volatile fuel prices, the Fuel Equalisation Fund will prove useful in helping to maintain stability in transport fares. On this point, it may be necessary to note the necessity to recruit personnel with the right skill set for the PTC to determine a strike price or level that will help to maintain a strong Fuel Equalisation Fund from contributions made by the PTOs. This level must invariably be a level reasonable with the economics of running a public transport operation. Although currently a reference fuel price has been determined for the PTOs before they are required to make their annual contributions to the FEF accounts, will the PTOs in future be forced to contribute even if business conditions may not be favourable to them? Some safeguards may have to be put in place to protect the public should there be an anomaly affecting the business of the bus and train operators, thereby affecting their contributions to the FEF accounts. Sir, in conclusion, it seems that the amendments proposed will still enable the PTC to meet its goals in their service to the public, and the addition of new powers and functions are useful in providing improvements to future developments in transport-related needs. The amendment to the Act forces the PTC to take a more robust and interactive role in fulfilling its duties to the public. The proposals suggested are to redefine the scope and powers of the PTC and, with the added policing powers, will help the PTC to regulate for a more transparent public transport system. On the other side, the providers of public transport will be more aware of their need to balance their social responsibilities against their corporate profitability. 4.28 pm”
“The CSS is part of SMRT. For premier services, SBS Transit (Express) has five bus services: Bus Plus Services Private Limited (which is a subsidiary of SMRT) with six services while other operators made up the other three services. It should be noted that the bulk of the premier bus services are provided by SBST and SMRTB. From the above it is clear that, in the main, public bus services are only provided for by two operators - SBST and SMRTB. The introduction of competition in the provision with the possibility of more bus operators offering more public bus services plying on popular and remote routes will enable PTC to achieve and enhance its three-pronged goals. In fact, when TIBS was introduced in 1982, its introduction was to provide some measure of competition to SBS, then the sole operator, and ultimately to improve the level of services provided by the bus operators. However, prospective bus operators smaller in size must also satisfy the conditions set out in new section 18(1) (a) to (j) and Part IVB in relation to licensing of ticket payment services, in particular section 21(1) (a) to (j). This imposition of conditions may stifle competition as the cost of compliance may be prohibitive to would-be bus operators, especially to smaller operators, who may wish to come into the transport market to provide competition by plying along fare-paying routes. So the PTC may have to see whether competitions are hampered through the presence of market powers, especially in the hands of major transport players. Another advantage that the proposed amendment has for the public would be the powers that PTC will have in building up the fuel reserve accounts of transport operators.”
“However, application of such powers seems to be out of place invested in the PTC in its present form. Unless the PTC is given sufficient technical and staff support to administer such powers, apart from just having additional Public Transport Officials appointed by the PTC to collect penalty fees, I do not see how these amendments can be effective enough to serve the public. Perhaps the Minister will be able to enlighten the House on this matter further. Under the present Act, whether a bus company has one bus or a fleet of 20 buses, it is given the same licences under Part IV of the Act. With the proposed amendments, bus companies that have a fleet of 10 or more buses must apply and be granted a bus operator licence. The public has not seen any new competition for a while in the supply of bus services on general routes serving the public. Passengers complain that the cost of transport is greater than the cost of a meal. They complain of long waiting times and sub-standard service provided by bus operators. Added to this is the public perception that the increases in fares are justified by the air-conditioned bus interchanges, television screens and other frills that are not necessary. Although it was explained that the Government, in fact, paid for the interchanges and the advertisers paid for the TV screens, the savings or earnings received by the bus operators are not passed on to the commuters in terms of lower fares, higher frequency of buses, etc. At the moment, two bus operators provide the majority of basic bus services to the public: SBS Transit Limited (SBST) with 178 bus services and SMRT Buses Limited (SMRTB) with 66 bus services. This is supplemented by Scheme B Bus Services with 16 licensed services and the City Shuttle Service (CSS) with only one.”
“Control powers vested in the PTC include imposing financial penalties on the bus operators of up to $100,000 for breach of any licensing conditions such as quality of service standards. Furthermore, the PTC will also be able to levy financial penalties of up to $100,000 on ticketing service providers should they breach regulations. This contrasts starkly to what the PTC does presently, which is largely confined to the issues of fare increases and renewal of bus licences. Furthermore, the PTC functions are more to react to bus operators' applications rather than to engage them in finding alternative solutions to the ever changing transport network. In addition, another question that arises is whether there is a need to add on to the basic character of the PTC as a regulatory body to that of a policing role where financial penalties are now part of the legal framework. This will include the introduction of a penalty fee system for bus and rail services to try and stem fare evasion. Much has been said about it and I am sure that the application of it will be monitored closely. These proposed changes, I feel, must improve the role of the PTC in their service to the public rather than the present administrative powers. As transport system evolved to manage the changing habits of commuters, so must the PTC change to keep up to the demands of the marketplace. The introduction of a regulatory regime for ticketing payment services and system is one such evolution to a better fare control environment, as it is a forward-looking piece of legislation that seeks to prepare the ground rules for a level playing field in the future supply of various ticketing systems and the charges associated therefrom.”
“Mr Speaker, Sir, I stand in support of the Public Transport Council (Amendment) Bill. The key amendments, as proposed, are timely as transport matters are crucial to the support structures of Singapore in that it helps not only the economy but also the social well-being of those living in our country. The amendments contained in this Bill have been explained clearly by the Minister and I will not repeat them. These amendments are in itself well prepared to meet the specific topics that they are meant to address. However, I would like to relook at the present goals and functions of the PTC and to see how effective they have been and following that, whether these amendments to the PTC Act will provide any improvements to the goals. The PTC established in 1987 was tasked with the following goals: (a) to create a comprehensive and integrated bus network; (b) to assure quality bus services; and (c) to maintain affordable bus and train fares for the public. Presently, to achieve these goals, the PTC, under the current Act in section 5, performs the following functions: (a) to receive and consider application for the issue of bus service licences; (b) to receive and consider application for approval of bus, taxi and rapid transit system fares; (c) to regulate the bus routes and bus, taxi and rapid transit system fares; and (d) to engage in such other activities and to perform such functions as the Minister may permit. The amendments seek not only to regulate bus routes, bus fares and bus services. It aims to allow the PTC to control and regulate the bus services, bus service operators and ticket payment services.”
“Given that Singapore is building more sporting facilities and moving the country towards being a sports hub, physiotherapists are needed here. They are healthcare professionals and ought to be treated as such in order to attract them here. The universities should then consider offering degree courses in physiotherapy, and nurses can also be trained in physiotherapy to enhance their career development. These amendments to the Bill, however, are a step in the right direction and will increase the awareness of the important role nurses play in patient care, and the need to have professionals and trained nurses to assist the doctor is of prime importance to us all. Sir, I support the amendments in the Bill.”
“To quote from the NUS Medical Faculty website, it states that, "The Master of Nursing programme prepares registered nurses to assume a clinical role and use research to improve patient outcome. Students undergo a rigorous programme that aims to provide an academic and clinical foundation for Advanced Practice Nursing. This programme will prepare Advanced Practice Nurses (APNs). The Master of Nursing programme has two specialisations, adult healthcare and mental healthcare." To overcome this confusion, the Ministry of Health should set out clearly the qualification for a nurse to achieve before being conferred the APN. There are other healthcare professionals who do not fall within the strict definition of nurses. For example, a physiotherapist who treats injury or dysfunction with exercises and other physical treatment of the disorder. In Singapore, to become a physiotherapist, the entry level is a diploma. Physio therapy is a science that is needed in sports and other areas of healthcare. There is only one school of physiotherapy in Singapore which began in 1992. Prior to this, Singaporeans had to go overseas for their PT education, and most of them were trained in countries, such as the United Kingdom, Australia, New Zealand, Taiwan and the USA. The physiotherapy schools in Asia offer various levels of undergraduate education. Countries like Thailand, Taiwan, Philippines, Korea and Hong Kong offer three to four-year programmes leading to a degree qualification. Countries like Singapore and Indonesia offer diplomas, while Malaysia offers certificates in physiotherapy. Yet other countries, such as Japan, offer a mixture of degrees, associate degrees and diplomas. Other countries in the West offer physiotherapy as a degree course.”
“Sir, I agree with the Minister for Health that the status of nursing profession should be raised. However, I would like to make a few observations which I would appreciate it if the Minister could look into it. Nurses play a big part in patient care and supplement the medical attention called for by the doctors. And in the absence of doctors, nurses sometimes do have to make on-the-spot decisions as time is of the essence in emergency cases. Should the proposal to raise the status of nurses be limited to such a change in job description and title? The amendments tabled create recognition for senior nurses and midwives in the form of Advanced Practice Nurses. Does it go far enough to attract people to the profession and to accord recognition to the nursing profession? The entry into nursing as a profession in some countries requires a degree. In Singapore, a diploma will do. The National University of Singapore does not offer nursing as a Bachelor degree. Neither does the NTU nor SMU, but only the polytechnics. To raise the status of Singapore nurses, opportunities should be afforded to nurses to decide on whether they wish to pursue nursing at the degree or diploma level. Of course, the diploma holders, for example, can assume the title of Assistant Nurses and rise to the limit of Senior Assistant Nurses. The amendments state that nurse specialists may now be known as Advanced Practice Nurses. However, according to the Faculty of Medicine at NUS, in order to be an Advanced Practice Nurse, one needs to go through a Master of Nursing programme. In the amendments tabled, it seems that one does not require going through that route in order to obtain the title of Advanced Practice Nurse.”
“The difference in hospital fees will come in only from the choice of class of beds. So all taxpayers and non-taxpayers are given the same medical attention at the subsidised rate applicable according to the different medical conditions that the patient is in. At the same time, they are free to decide how much more they are willing to pay for their choice of beds. For the case of the less fortunate, further subsidy could kick in from Medifund, if necessary.”
“This system of subjecting the public to different classes of hospital ward through means testing and to decide for them how much they should be paying, irrespective of the class of hospital ward that they are in, may not be fair to the public. I would like the Minister to perhaps look at the way hospitals do their accounting and see whether a new and fairer method of costing could be achieved, that would allow patients to choose, rather than having to be told that they have no choice but to pay according to the class allocated for them. The different options of fees payable under the new scheme should not, at all times, compromise the standard of medical care delivered. A fairer system of hospital billings, without having to subject a patient to means testing, is to, first of all, set a method of standard costing for all classes of wards. Fixed costs would be determined on the type of medical attention needed, and variable cost would be on the types of beds chosen. This means that everyone, irrespective of their level of income or wealth, would pay the same amount of subsidised medical fee. Next, the variable cost will come in when the patients decide on the different class of hospital bed that they are willing to pay for. The total medical bill that the patient will be paying for, eventually, will then be determined by the type of room chosen, and not on the level of medical services that he or she should receive. Thus, the patient will pay less because he chooses to stay in a multiple bedroom, which he could afford, and still being assured of the same medical attention at subsidised rate as a one-bedroom patient. This method of costing is based on the premise that everyone, irrespective of his level of wealth in society, deserves to be treated equally, medically.”
“Given that these treatments may be costly, MOH can consider allowing patients to meet these expenses through Medisave and MediShield.”
“Sir, presently, only day surgery procedures, for example, surgical removal of wisdom teeth can be covered by Medisave. Other non-surgical outpatient dental treatment procedures are currently not covered by the scheme. Children and adults may require specialist treatment from orthodontists to correct their mouth alignment of the teeth and jaws. The common treatments are to correct their growth of irregular teeth, jut-out teeth, open bite, teeth bite, cross bite and space between the teeth. These procedures are not merely cosmetic in nature. A straight set of teeth that support the lips well is important to create a beautiful smile which, in turn, boosts a child's consciousness and enhances self-esteem. Many of the treatments are not only surgical in nature but will require the placement of braces or dental equipment, for example, dentures. These treatments may also be long-term in nature. MediShield should not only be applied to other forms of illnesses that may lead to hospitalisation. Dental health is as important to a person's total well-being as having to operate and mend a broken arm or leg. Must a bad tooth lead to a situation when medical treatment is required to nurse a patient back to health at hospital before he can be considered a medical illness? Medical insurance should be comprehensive and not just be selective in treatment. While the Health Ministry is reviewing the deductible level of claims under MediShield, a relook at the extent of coverage to include dental treatment will be timely. More are conscious about their dental health today as they are to other organs of their body. The earlier we acknowledge the trend, the easier it will be for people to meet their medical expenses.”
“Although advances have been made in diesel engine technology, studies in Europe and the US have shown that diesel vehicles generally emit higher levels of PM2.5 and oxides of nitrogen than petrol vehicles. Petrol vehicles emit negligible PM2.5. In addition, unlike petrol vehicles, the emission performance of diesel vehicles is more dependent on whether and how the engines and pollution control devices are maintained. Therefore, we should continue to discourage the proliferation of diesel vehicles, especially diesel passenger cars. 4.00 pm Sir, Dr Geh Min also suggested a separate COE category for green vehicles to be considered. Sir, we have consulted our colleagues at the Ministry of Transport and they do not think that it is appropriate for us to promote the use of green vehicles by having a separate COE category for them for the following reasons: First, besides the cost, the pick-up rate of green vehicle is also affected by other factors such as consumer preference and the provision of maintenance support by dealers. So their demand, therefore, is best left to consumers to decide. Second, according to MOT, it would be difficult for us to set a quota for such green vehicles. In fact, as with all vehicle categories, their growth annually would, therefore, be capped as a result. But if they do not have a separate COE category for the green vehicles, it would allow the pick up to increase freely in response to the demand, because they have become part of the total vehicle population. So, Sir, in conclusion, by retaining our diesel road taxes and introducing the Euro IV standards for new diesel vehicles, we hope to bring down our PM2.5 levels to within the USEPA standards and make our ambient air cleaner for Singaporeans. Smoking in Public Places”
“Besides being more fuel-efficient than private cars, they also offer an affordable solution for the public to move around. As we know, CNG buses emit less air pollutants, especially fine particulate matter or PM2.5, than diesel buses. PM2.5, as I mentioned in my earlier speech, increases the risks of bronchitis and asthma, and may even lead to premature death. This is a key concern for Singapore. Today, our PM2.5 levels do not meet the standards set by the US Environmental Protection Agency (USEPA). If nothing is done, our PM2.5 levels are projected to further increase in the future. So, we announced in April last year the introduction of Euro IV emission standards for new diesel vehicles from 1st October 2006 to lower our PM2.5 levels to USEPA standards. We expect to achieve these standards when about 80% of our diesel vehicles have moved to Euro IV. This can be accelerated if we have CNG or Euro IV vehicles on our roads early. Sir, to encourage taxi and bus operators to switch early to Euro IV compliant vehicles, we also announced a tax incentive package for CNG and Euro IV taxis and buses. Under this package, CNG and Euro IV taxis can enjoy an ARF rebate of 100% OMV till 31st December 2005, and 80% from 1st January to 30th September 2006; while Euro IV diesel or CNG buses will be completely exempted from paying the Additional Registration Fee of 5% of the OMV till 30th September 2006. CNG buses and taxis also enjoy a 20% road tax rebate till 31st December 2005. These are some of the initiatives that we have put in place to encourage the switch so that we can control the PM2.5 levels in our air. Sir, let me now move on to Mr Andy Gan's suggestion that the punitive road tax on diesel cars be removed.”
“For consumers, we have introduced energy labels for air conditioners and refrigerators to help buyers identify more efficient models. For example, using an air-conditioner with four ticks on the energy label can save a household about $300 a year on electricity bills compared to one with two-ticks. If consumers find such information useful - Dr Khor asked this earlier - we may even consider making labelling compulsory in the future. Sir, now, let me move on to transportation, which I agree with Dr Geh Min that green vehicles generate many positive externalities for the environment. Not only are they more energy efficient and emit less carbon dioxide, they also emit less air pollutants such as carbon monoxide and particulate matter. To encourage the switch to green vehicles, the Government introduced a Green Vehicle Rebate (GVR) scheme in January 2001 equivalent to 20% of the Open Market Value (OMV). Unfortunately, the rebates have not been sufficiently attractive, and as a result of this and the general lack of awareness surrounding green vehicles, there are only 24 green vehicles registered under the GVR scheme to-date. The GVR scheme is up for review by end of this year. MEWR is currently reviewing the rebate with MOF to see how we can make it more attractive for environmentally-conscious people to purchase green vehicles. But, Sir, at the end of the day, the decision to purchase a green vehicle is also a lifestyle choice. With growing awareness, better technology driving down costs, and more models available in the market, we hope that the take up rate of green vehicles will improve. Sir, on the other hand, we know that there is an even more environmentally-friendly option and this would be public transport, as raised by Prof. Low.”
“Singapore's carbon intensity has already improved by 17% between 1990 and 2003, and we target to improve it by a further 8% point by by focusing both on the energy-supply and energy-demand sides. Sir, on the energy-supply side, electricity generation companies (or gencos) have adopted advanced technologies such as combined cycle and co-generation technologies, which harness both electricity and heat in the generation process. This will achieve greater efficiency compared to conventional oil-fired power plants. Gencos are also burning cleaner and less carbon-intensive fuels such as natural gas. Sir, on the energy-demand side, we have introduced several energy efficiency improvement schemes to reduce energy use by industries, buildings and consumers. For the industry, companies that have put in place energy audits and energy conservation measures have already reaped benefits. For example, ST Microelectronics, as a result of its investment in energy saving equipment, has reduced electricity used to make a wafer by 40% while its production output has gone up by almost three times! We will be introducing a new Energy Efficiency Assistance Improvement Scheme with a $10 million fund, which companies can tap on to conduct energy audits. Sir, in the case of buildings and housing estates, we have worked with our Town Councils and HDB to conduct energy audits for the common areas in HDB estates to cut down electricity wastage. We will be introducing a scheme later this year to give recognition to energy efficient buildings. I am pleased to inform the House that several public agencies will also take the lead by participating in a pilot project to improve the energy efficiency of their buildings through energy audits and performance contracting.”
“In order for the alternative choices to be realistic, tax incentives and exemptions should be given to all diesel-powered engine cars and not just diesel-powered engine cars for commercial purposes. Assoc. Prof. Dr Yaacob Ibrahim: Sir, both Prof. Low and Dr Geh Min have asked about our long-term plans to improve energy efficiency and carbon intensity, including our initiatives to encourage energy efficient vehicles. Sir, let me just give some background information. Singapore has since 1997 ratified the UN Framework Convention on Climate Change and is committed to becoming more carbon efficient. We welcome the Kyoto Protocol initiative, which translates the Convention into concrete actions. The Kyoto Protocol came into effect on 16th February 2005, following the ratification by Russia. We are currently studying the timing of our accession to the Kyoto Protocol. Prof. Low can be assured that we believe in promoting energy efficiency as they benefit industries and Singaporeans. Being energy efficient not only lowers our carbon dioxide emissions and air pollution levels, it also lowers energy consumption and energy costs for both businesses and consumers. In the long run, this will help to strengthen the competitiveness of our economy. Sir, it is for these reasons that Singapore developed a strategy to mitigate the effects of climate change, with energy efficiency being a key component. As a sign of our commitment, we have set a national target to improve our carbon intensity, or the amount of carbon dioxide for each GDP dollar generated, by 25% from the 1990 levels by the year 2012.”
“Sir, the Minister for the Environment announced in last year's COS debate that ENV had decided to promote CNG and Euro IV diesel vehicles. By October 2006, it is envisaged that all diesel vehicles should comply with the Euro IV diesel emission standards. The Euro IV emission standard is applied to passenger cars in Europe. Passenger cars and light commercial vehicles are required to conform and comply with the Euro IV diesel emission standards in 2005. No distinction is drawn between private passenger cars and passenger cars used for commercial purposes, eg, taxis. In Singapore, private diesel cars attract six times the road tax of equivalent petrol-driven cars. No ARF exemption or tax incentives have been introduced for passenger-driven diesel cars. This is despite certain car makers producing diesel engines that meet with the Euro IV emission standards. Modern diesel cars can no longer be regarded as dirty and noisy, with poorer performance characteristics. Diesel engines are the most fuel-efficient energy conversion devices in production today. This explains the continuing popularity of diesel-fuel passenger vehicles in Europe. Resulting advances in diesel engines have in recent years produced improvement in engine noise, vibration and harshness. Diesel-powered passenger cars are currently more expensive than petrol-driven cars for the same model and make. Should this still be the same? People who wish to buy and own diesel-powered passenger cars ought to be allowed tax exemptions and incentives that are similar to commercial vehicles. Diesel-powered cars that meet the Euro IV emission standards are as environmentally-friendly as petrol-driven cars. People should be given more choices in their selection of cars.”
“Tied to the insurance service providers for the maritime industry, a question remains as to what measures have been implemented to make Singapore a more attractive base for specialist insurers to take root in Singapore, for example, regulatory changes and specific GST and tax incentives, to make it conducive for specialist classes of underwriters to be based here. While it is noted that the Ministry of Finance has introduced the Approved Marine Field Traders Scheme with easy cashflow and business processes upon successful fulfilment of qualifying criteria set by the Inland Revenue Authority, what other measures can the maritime industry expect that would help boost Singapore's position? Singapore is central to maritime routes. And I urge the Ministry of Transport to promote Singapore as an international maritime centre. Maritime Security”
“Sir, in November 2001, the Economic Review Committee proposed a vision to develop Singapore into a leading global, integrated logistics hub with robust maritime aviation and land transport capabilities supporting the global economy. The Committee had also recommended a review of all fees and regulations administered by the MPA. It was also pointed out that Singapore's aspiration to be a global centre for maritime law challenging London and New York was hampered by protectionist barriers in the legal services sector. Recent reforms have seen the emergence of joint law ventures, formal law alliances and strategic alliances between local law firms and foreign law firms, the objectives of such alliances were to make Singapore comparable with traditional legal services provided such as those in the UK and the United States. In Singapore, we have a handful of local major shipping and maritime law firms with international experience and expertise and about five international law firms with good shipping expertise having a presence in Singapore. Singapore has thrived as a major port since its early days. And the British Empire, in the 19th century, had even found it worthwhile to protect the port of Singapore against foreign intruders. Maritime activities are the mainstay of the island state and the first generation Singaporeans had made their livelihood through maritime trade. Singapore has made its mark as a premier port in Southeast Asia. We have to promote the maritime industry to more people. It can be an additional engine of growth for our economy. It can be shown to be an attractive and rewarding sector to the Business Inc and, thus, creates job opportunities.”
“Another factor to consider would be on subsidies or rebates on fares for senior citizens and students. This should be forthcoming from transport operators instead of from the Government only. If the transport operators are proactive in their community outreach through transport fare subsidies for senior citizens and students, then the perception and emotions of fare increases may be mitigated. In order to promote this approach, perhaps the Government could consider giving tax concessions to transport operators for every dollar of subsidy contributed as an incentive for their contribution to society. Thus, with a combination of efforts from the Government and the private sector and a transparent approach to setting public transport fares, future adjustments to the public transport fares could be less controversial. Even with the best intention, any upward revision in transport cost would somehow not be met with understanding from the public, and the more frequent the adjustment of the fares is, the greater the chances of affecting even non-commuters. So I would urge the Public Transport Council to look at the possibility of matching the expectation of the public through constant feedback from users against the result of transport fares through the application of the new formula. Whatever the final adjustment is decided upon, it should preferably be applicable for a long time. Mass Rapid Transit”
“In addition to the formula, the PTC is further encouraged to track the annual change in the percentage of household income set on public transport by a typical family. The price index derived is then further reduced by half the amount of productivity gain by transport operators. Thus, the maximum fare adjustment formula is a useful tool that the Public Transport Council could use to apply to the process of determining the level of fare increases or decreases. It could also be used by the PTC to make fare adjustments more transparent to the public. On the other side of the coin, we have also to take into consideration improvements made by the transport operators in the level of comfort and reliability of the transport system. This would involve capital enhancement programmes such as improvements to existing buses and trains and the cost of maintaining them. These are costs that have to be recovered by the transport operators in order to remain in business. The question then is how much can the commuters afford for these advancements in public transport. The Fare Review Mechanism Committee has been aware of such matters and so recommended to the Minister for Transport to take these points into account so as to ensure a fair return on assets used by the transport operators. The Committee recommends that the transport operators' ROTA be compared to other industries with similar risk profiles to make sure that the returns on assets are not excessive. Thus, this procedure puts another level of protection for commuters while fares are being reviewed. The task of maintaining a fair level of transport fares to commuters, however, should be shared between the Government and the transport operators.”
“Sir, public transport is a very important aspect of a country's growth. As the economy and people of Singapore grow in wealth and in numbers, commuting becomes a very important part of everybody's life. Improvements in public transport vehicles, together with the increase of communication technology, have made travelling a breeze for all. However, the fares commuters are willing to pay for, for using the modern transport system that our country has, still remain as one of the most emotional issues in modern-day Singapore. Transport fare adjustments have to go hand-in-hand with the affordability of the masses and are cost-sensitive to the public. Under the present system, before any fare adjustments could take place, bus and train operators, such as SMRT and SBS Transit, must first apply to the Public Transport Council for approval. PTC will then review the proposal in the light of the fare review mechanism and deliberate further before making their recommendations to the Ministry of Transport. The fare review mechanism is, therefore, critical in its decision to set the maximum level that fares are allowed to go up. Currently, the Fare Review Mechanism Committee, which Mr Ong Kian Min has elaborated just now, has made recommendations to the Minister for Transport for a new formula to be used in calculating the level that fares should be set. The proposed formula of price index minus X as compared to the previous one, that is, CPI plus X, is more responsive to economic conditions as the price index takes into account the CPI and prior changes in wages, which is the average monthly earnings or the annual national average of the preceding year, adjusted for any change in employer's CPF contribution rate.”
“The way for us to move then is summed up by the Prime Minister in the Budget Statement, ie, for there to be "Singaporeans' support for a social compact that looks after the vulnerable in society that will make us a caring and inclusive community". Sir, I support the motion.”
“So to avoid the temptation of moving on to a dependence on non-traditional sources of revenue, such as revenue from sale of land and dividends, the challenge will then be for the Government to balance its budget within its means. This will mean that the economy must continue to grow to create more opportunities for more people to continue to earn a good income and for there to be lower percentages of less well-offs to be reliant on Government handouts. Although Government policies are targeted to promote creativity and flexibility among the people so that the country can meet ever changing economic conditions, this may at times be constrained by the stiff and inflexible attitude of the bureaucracy. Examples of such behaviours were well demonstrated by the hon. Member Ang Mong Seng yesterday and, today, by Dr Tan Boon Wan, when he cited examples of rules that are contrary to small business practices. VWOs can play a big part in helping the Government look after the less well-off as they supplement the various Government public assistance programmes. Less Government agencies will need to be created for this task and hence less cost for the Government. Here, I join the hon. Member Dr Chong Weng Chiew's call for the Government to reduce certain regulatory requirements on the VWOs so that their running cost will not be unduly increased as a result of tight compliance. Then more self-help groups can be encouraged to mushroom, and charitable giving will take place naturally. Finally, I believe that this Budget is well crafted, and it is now up to us all SMEs and the public at large to take advantage of the various pro-business initiatives and social support measures to strive for a better tomorrow.”
“The caring side of the Government is evident in the importance that this year's Budget places on redistributing Government surpluses. And this is done in a well-intended and targeted approach towards helping the less well-off and senior citizens through top-ups in the Lifelong Learning Fund, ComCare Fund, Edusave, Medisave and Medifund, rather than across-the-board cash handouts as in the past, which may not have served its well-intended purposes. It is also important to note that such redistribution of surpluses may not be possible in the future if expenditures tend to move higher while income is moderating as Singapore moves towards a highly competitive economic climate. Not surprising then that the budget also aims to cultivate a more charitable society through private sector giving to supplement the Government's efforts in reaching out to the less fortunate and senior citizens. Tax concessions have been implemented to promote the spirit of philanthropy, for example, incentives, such as double tax deductions for qualifying donations as well as charities that promote the advancement of sports. While Singapore is recovering from poor growth over the last three years and having learnt to overcome it, opportunities arise for a structural change in the budgeting philosophy which takes into account shorter economic cycles and conservative accounting, such as relying only on a portion of Net Investment Income to balance the budget. But with an ageing population and increasing expenditure, the pressure will be on the Government to utilise additional sources of income other than its yearly operating revenue to finance the ever increasing public assistance programmes.”
“It will be difficult to expect much more changes to such taxes since Singapore has already the lowest taxes among the countries in the Asia-Pacific region. We have accumulated budget surpluses for many years with the over 8% growth on the average over the 1965-1996 years. Now, growth has moderated to about 4-5% (as was pointed out by the hon. Member Mr Iswaran) and is likely to be volatile from year to year. This would mean that unemployment will be on the increase from the low of 2% over the last decade to what seems to be 4% over the next foreseeable future. In the meanwhile, Government's operating revenue seems to be declining since the middle of 1990s to about 23% of GDP to 15% in 2004. This drop in income may have been partly due to the Government's shift in position in revenue collection, forming structural changes, such as a reliance from direct taxes to one that is indirect. Government expenditure at the same time has been about the same level at about 15% to 20% of GDP. If this trend continues, then the pressure of meeting a budget surplus in future years may be unrealistic. If long-term unemployment rises and economic growth moderates, a possible structural shift to a trend of budget deficits may be seen in future. With such a scenario it is heartening to see that the Government is making a tactical shift by using this year's Budget to create opportunities for the services sector and financial sector as well as logistics and tourism to spread the dependence on manufacturing and exports in order to create jobs and revenue. Such a move will also help to mitigate the structural unemployment scene for the short-term by providing the opportunity for job retraining from manufacturing to other sectors.”
“Mr Speaker, Sir, I stand in support of the Budget Statement. Being the last speaker in this Budget debate and after 49 of the hon. Members of the House have spoken excellently before me and with interesting anecdotes, I thought it would be useful to wrap up by commenting on the budgeting philosophy of the Government. Sir, let me begin by saying that those who were expecting a windfall tax-free year from the Budget Statement, from a change to a current year basis of tax as an opportunity to build up their wealth, were disappointed. The philosophy that wealth has to be created from hard work and opportunities arising from economic activities that command competitive advantages has remained so. As the Prime Minister has said, "every dollar spent must be earned". To do so, wealth creation and job opportunities are important ingredients for the economy to thrive upon. This year's Budget emphasis then has been correctly entitled "creating opportunity, building community". This year's Budget is basically tidying up some loose ends, such as consolidating Singapore's position as an international financial centre with an array of measures. These include further tax exemptions and incentives to foreign funds managed from Singapore, such as enjoying a tax rate of 10%, instead of 20%, on fund management fees earned. And in keeping with the promise to maintain Singapore as one of the most competitive tax regimes globally, the top marginal tax rates for individuals have been reduced in two phases to 21% for the Year of Assessment (YA) 2006 and further to 20% for YA 2007. All other income brackets have their marginal tax rates reduced as well. It is not surprising that the Prime Minister and Finance Minister took a cautious view in cutting personal taxes.”
“It is noted that underlying the changes to the TCA, protection of the beneficiaries and social conscience is apparent. Given the foregoing, it is suggested that unless the aims of the TCB are to benefit all persons, a change to the TCA with the implementation of the TCB may not be useful to the wealth management sector of our economy.”
“It is noted that in the original draft TCB of 2004, clause 15 specifically exempted lawyers and accountants from the requirement to hold a trust business licence. This was fortified in the Explanatory Brief on the TCB 2005 by the MAS issued on 25th January 2005. It is suggested that, for the sake of efficacy, lawyers and accountants be included as exempt persons under section 15 of the TCB. Some practical considerations Clause 5(2) of the TCB provides that a trust business licence shall only be granted if the applicant meets such minimum financial and other requirements as the MAS may prescribe. Presumably, the minimum financial and other requirements would be set out in the subsidiary legislation, regulations or directions. It is noted that unlike the TCA, the requirement to place securities with the Accountant General has not been incorporated into the TCB. It is suggested that this requirement be included for the practical reason that if monies belonging to the trust have been misused, misappropriated or pilfered, then there is some measure of recovery by the beneficiaries against the licensed trust company. It is also noted that unlike section 25 of the TCA, the present TCB has no provisions to limit or regulate loans to directors. It is suggested that there be regulations governing such loans to directors. It is noted in the draft TCB 2004, Part V, clause 27 provides a comprehensive regulatory framework for such loans. In conclusion, Sir, the Bill presented to Parliament ought to be complete in the sense that all material regulations must be stated in order for the Bill to be properly debated. By having material omissions to the Bill, the public is left to second guess what these regulations would be.”
“Without an exemption for these family trust type of trust companies, the present family trust type of trust companies may have to be wound up, resulting in the ordinary people not being able to create family trusts to benefit their children. Lawyers and accountants Next, I would like to touch on lawyers and accountants. The other difficulty concerns lawyers and accountants whose practice may include arranging for trustees or in the creation of trusts. These types of work are done by either lawyers or accountants as incidental to their practice. Given the wideness of the definition of trust business, if they are not included as specified persons in the Second Schedule to which the TCB will not apply or included as exempt persons under clause 15 of the TCB, lawyers and accountants may be excluded from performing these types of work which they have been doing as work incidental to their practice. In order for them to render any advice on the creation of express trusts or to arrange for trustees, they would have to incorporate a company and obtain a business trust licence. The obligation to set up a company and to submit themselves to the rigours of licensing may mean that it may not be worth their while to engage in trust law advice. The danger then is that only commercial bodies, such as banks or trust companies, would be the only parties who would be able to advise and execute express trusts, as lawyers would not be able to render any legal advice in respect of the creation of an express trust or the legal issues in the appointment of a trustee. Accountants would not be able to advise on monetary and tax issues in relation to the creation of trusts.”
“It is not inconceivable that these commercial entities will levy a fee or charge for services for the creation of trusts, the appointment of trustees, cost for administering the trust, miscellaneous administrative charges and other charges like photocopying charges, correspondence charges and consultation charges. An example of control in this regard may be seen in section 22(29) of the Labuan Trust Companies Act 1990 which empowers the court to review all commissions, fees, charges or expenses levied by a trust company and, if necessary, to reduce the same. There may be concern that such family trust type of trust companies may engage in undesirable activities such as money laundering or terrorist financing or that some of the directors or officers may misuse the funds entrusted to them without the safety net of a regulatory network. It is suggested that the type of trust companies be exempted from licensing but have regulations tailored to govern their activities, eg, a requirement that they notify the MAS of the extent of their activities, the members of the company and its directors and officers. Conditions for exemption may include limiting the family type of trust companies to hold moveable properties not exceeding a prescribed amount, eg, S$100,000 in cash and/or to limit their holding of immoveable properties of values not exceeding S$500,000. An example of this may be seen in section 11 of the Bermuda Trusts (Regulation of Trust Business) Act 2001 which allows for limited and unlimited trust licences, where limited trust licences authorise the licensee to hold trust assets up to a specified amount and not to act as sole trustee.”