Ang Mong Seng
Singapore
“Lihua is also my alma mater. I am very proud that Chen Zhixiang became the top student in Singapore in the "A" level examinations. Use more. Parents should speak Chinese more with their children at home. I also hope Members of Parliament would speak more Chinese in Parliament. When *Cols. 4059-4060.”
“After the cooling-off period, flat sellers can make a final decision. Some unscrupulous housing agents would use various means to persuade people to sell their flats in order to earn commission. They would tell the owners that should they have any problems, just see the MPs.”
“[For vernacular speech, please refer to Appendix A *.] Mr Chairman, the construction industry requires a lot of foreign workers, including both skilled and unskilled workers. However, the MOM has decided to reduce the number of unskilled workers.”
“[For vernacular speech, please refer to Appendix A *.] As our population ages, we see more and more retirees selling tissues at hawker centres, coffee shops and malls to help with their expenses. They do not have CPF, yet they do not want to live by Government welfare – they want be independent.”
“Mr Chairman, may I ask the Senior Parliamentary Secretary what is the main concern for the Ministry in not issuing licence to the elderly to sell tissue papers in the hawker centre. We are asked to refer all these people to the Community Development Council (CDC).”
“[For vernacular speech, please refer to Appendix A*.] Madam, at the moment, 10% of our population is above 65 years old. Twenty years later, by 2030, about 25% of our population will be above 65 years old. If at that time, our population is five million, this will mean that we will have one million people who are over the age of 65.”
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“They should not recall loans. They should do so only as a last resort. I now move to the property sector, Sir. The last two years have seen property prices decline, in some cases as much as 60% from the peak. Nobody knows when we will reach the bottom. Had the Government not intervened in 1996, we would have a sad story today. Nevertheless, I urge the Government not to allow the property market to collapse. It will not be good either for the property market or for the banks or the country. What the Government should do is to take away some of the restrictions it had imposed earlier. I ask the Government to reconsider its position. Moving to manpower, Sir, manpower is our main asset. One area which we should look at is our birth rate. Those who can afford should be encouraged to have more children. We cannot forever depend on guest workers. Sir, in order to get talent, we should start young. We should encourage the bright students from other countries to come and study here. They will stimulate our students. Some of them may want to stay back and even those who return to their countries would be our life-long unpaid ambassadors. In this respect, companies could offer scholarship. SIA has such a scholarship scheme. I urge other Government-linked companies to do so. We should encourage more international schools to be set up here. We have the potential of becoming the educational hub of Asia. Sir, I share the Government's concern in attracting foreign talents. Let me take the example of the print media in Singapore. The Straits Times has a number of expatriate journalists. They have helped to improve the quality of the newspaper. Sunanda Datta Ray and Asad Latif are just two names. They are senior leader writers, very sensitive positions. Yet we have them there.”
“The NTUC has done a remarkable job in getting the workers to accept less CPF and less pay. Sir, I was moved when my fellow NMP, Mr Cyrille Tan, related the question of retrenchment. He knows the problem because he himself has been a victim. He painted a graphic picture. Only a person who has been retrenched can show this. Sir, whilst the workers are asked to make some sacrifice, I am disappointed to read in the Business Times that the corporate world is not showing the same trend. Whilst the employees are asked to sacrifice, some of the captains of our corporate world are taking more pay, when, in fact, their company's performance has declined. I appeal to the corporate world to be realistic and not to be marginalised by their action. The directors cannot persuade the workers to take a pay cut when they themselves are not prepared to live by example. There is no room for double standards. Similarly, those companies which are doing well must reward their workers. Sir, I now move to the financial sector. Our financial sector is in good health. Our system is transparent. Thanks to the MAS and its officials. My complaint is that our banks are too over cautious. They are too conservative. Permit me to elaborate. MAS does not believe in getting involved in the management of credit and bank interest. It may be so on paper. However, it can - I emphasise on the word "can" - persuade the banks to be more market oriented. When savings interest rates go down, the banks must try to lower their interest rates. The banks must not be over anxious over loan portfolios. They must not stifle enterprise. There may be some companies that may be going through difficult times now but they have a potential of growth in years to come. They should give a helping hand to them.”
“This is not a Government White Paper, but largely a product of private sector's efforts. Sir, the goals set out in the Report are achievable. We all have to work for it. We are fortunate that our fiscal management and budgetary measures have left us surplus in good years to meet the difficult years ahead. However, there is some pessimism in some sectors that the present economic slowdown will last for a few years. Some say it is the worst - and I agree with them - economic crisis that we are facing. Only time will tell how long the present condition will last. Much depends on our neighbours as well as on Japan. Sir, I am more optimistic. We can be masters of our own destiny. The acid test of a society comes in times of crisis. We are going through such crisis now. We have gone through the previous crisis and we have overcome. We will overcome the present crisis, provided we have the will and determination and resolve as a united people. Sir, yesterday DPM Lee announced the Government's measures. The Government has acted very swiftly in facing the problem. He has given solutions to the short-term problem, but the Committee has also recommended some long-term measures and I hope the Government will take the opportunity at the appropriate time to debate them as well. The wage cut has been accepted by the employees. In many countries, such a move would have caused political crisis, perhaps even crisis in the standing of the government, but we are fortunate. And it is to the credit of the NTUC and its leadership that it has persuaded the workers to accept some temporary cut. It is laudable that there is a stable industrial climate in Singapore. Labour, Government and employers all have worked in achieving this.”
“But our businessmen can do it. They are the experts. They know how to talk business. The CSC has been far-sighted in recommending the eight long-term strategies. It is not possible for me to go into every one of them. Of course, we may have other opportunities in a future forum to discuss all these. Here, suffice for me to say that I support the recommendations put forward by the Committee. I like to thank the Government for accepting these recommendations. In the past, many people used to say, "Whatever recommendation that is made, once you come to the Government, they will dilute it by 40%." But this time, the Government did not dilute it. As a matter of fact, the Government enhanced it. The Committee recommended cost-reduction of $10 billion but the Government gave another $500 million to make it a $10.5 billion package. This is indeed unprecedented! Sir, I support the motion. Mr Shriniwas Rai: Mr Speaker, Sir, I am obliged to you for giving me this opportunity. Sir, I rise to support the motion moved by the Minister. Allow me to share some of the observations which I am going to make this afternoon. Sir, the Report is bold and imaginative. Some of our best minds in the Government, the private sector and the academia have worked long hours to put up this Report. Those of us who have read this Report feel a sense of gratitude in the way they have confronted the issues. The Report is farsighted, comprehensive and well written. Sir, may I ask this House to acknowledge the contributions made by all the people involved in the Report, from the main Committee to the sub-committees. It is interesting to note that most of the members are from the private sector. This is encouraging. It shows the Government's faith in the private sector, and this faith has been well rewarded.”
“They say, "Cooperating with Government companies can be very frustrating because the civil servants who are running the business are often too rigid and inflexible." I would suggest that if we set up such a company and it is managed by civil servants, let them take care of administration and finance. But when it comes to sales, business dealings, etc, leave it to the businessmen to do it. Because between businessmen, they speak their own language. Only they can understand the nuances in the language they use. We should take advantage of their expertise in this area. For example, if you talk business with people in certain countries, whenever you start negotiating, they will ask you to cheng shang ming biao lai. To the bureaucratic Singapore civil servants, this simply means, submit your company's profile. But, in fact, what they really meant was "present us with branded watches." When you squarely submit your company's profile, it will most probably end up in the wastepaper basket. But, if you are smart enough to hand in your Rolex or Omega, your chances of success are definitely better. If it is a big project that can bring in big money for you, it is probably worth the while entertaining them. After you have cheng shang ming biao (presented them with branded watches), the next thing is, they will invite you to yanjiu, yanjiu, which on the surface sounds like "consider and discuss", but in fact it is just another hint for you to send in the yan (tobacco) and jiu (liquor). Toe the line, make the right move, and you get the contract. If not, then it is too bad, you are out of contention! If you want to deal with these foreign businessmen, you need to have a tacit understanding of the way they operate. This is something our law-abiding civil servants cannot do.”
“At the moment, for a three-room flat, you pay 20%; for a four-room flat, you pay 22.5%; and for a five-room flat and above, the resale levy is 25%. I suggest that we reduce the levy by 5%. Let the resale levy for a three-room flat be 15%; four-room flat, 17.5%; five-room flat and executive condominium, 20%. In the early days, those who sold a three-room flat paid only 10% in levy. It has been increased to 15%, and then 20%. Now that the tide has gone down but the boat is still so high up, I think we should allow the boat to go down with the tide. Let us follow the trend. I think it is more equitable that way. I hope that HDB will consider this matter. Another point I would like to raise is on building up world-class companies and improving the competitiveness of our local companies in the international market. This is a very far-sighted and creative approach recommended by the CSC. It recommended that many small companies could merge together to form a big company. But we all know that in our oriental society, it is very difficult for two or three companies to merge. In the past it was difficult, now it is also not easy. Even in the future, I do not think the prospect is good. However, the Government can take the lead to form a company and then invite all the companies in the same trade to join in like, for example, Temasek Holdings. We can invite these small companies to join in, help each other and then form a big company with strong foundation. After that, invite bankers and financial institutes to join in and give financial support, and then we have a huge local company which can be developed into a world-class company to venture overseas. I have heard the views and feedback from some of the businessmen.”
“It has already done so? Then, let us go for the 1,600 mark. I believe that if we can put in a concerted effort, with cooperation between the people and the Government, we can achieve some good results. Now I would like to talk about the foreign worker levy. As the DPM has already mentioned, the foreign maid levy will not be lowered, and I understand the rationale behind it. However, during a dialogue session of the Feedback Unit, someone raised the point that since some tax reliefs are already in place for working mothers to offset the levy, why not extend this benefit to the husbands as well. As taxpayers can enjoy tax reliefs up to $8,280 per year for a foreign maid, it may not be a bad idea to let the husband and wife claim the relief between them, so long as it falls within this ceiling of $8,280. Whether the husband claims or the wife claims, so long as it does not exceed $8,280, there is no loss to the Government. Secondly, the levy on HDB resale flats. Dr Vasoo has raised this and the Parliamentary Secretary has already explained. But I still hope that HDB would re-consider this matter and allow those who are living in three-room flats to upgrade to bigger flats without having to pay the high resale levy. Let me quote an example. In 1997, a three-room flat could be sold for $160,000. To upgrade, the owner would have applied for a four-room flat which was then sold at about $150,000 by HDB. But now three-room flats in the western part of Singapore are selling at just $110,000, a drop of some $50,000. At the same time, the applicant is required to pay a 20% resale levy of $22,000. Thus, the applicant is left with very little money. I hope that HDB would consider helping these people who want to upgrade but are now being caught in this economic downturn.”
“However, to promote such a campaign, we need to have the support and help from all the traders. When I spoke to a coffee-shop owner about the campaign, he told me, "If I reduce 10 cents from each cup of coffee, with a thousand cups of coffee sold every day, my daily income will be reduced by $100. However, if the Government would reduce our property tax, rental, transportation charges, we would gladly participate in this campaign." Eventually, he agreed to participate in the Bukit Gombak Constituency Sales which we are planning to have just before the New Year. This National Sales Campaign can help the lower-income families to reduce their cost of living. However, if we want to do it, we must do it in full strength. I remember once I consulted Minister George Yeo on a certain project. After listening to me, he said, "If you feel that you are doing the right thing, go ahead and do it. I will support you." This signal that he gave to me was a great encouragement to me. He gave me a lot of confidence and courage. Here, I would like to take this opportunity to tell the traders, the coffeeshop owners, "If you think you are doing the right thing, do not be afraid, go ahead and do it!" Nothing ventured, nothing gained. Only then, can we get good results. The National Sales Campaign may not be restricted only to the retailers, even the banks can join in. I remember that the Minister for Finance mentioned in a television interview that the banks are going to reduce their interest rates. If that is so, the banks might just as well join us in this National Sales Campaign, by announcing a cut in the lending rates. I think if the bank loan interest rate is lowered, the property market will pick up, and our shares index can break through the 1,500 mark. An hon.”
“Thirdly, when they asked me whether I could ask the shopkeepers to bring down the prices of goods, it shows that after reducing costs for the business, the next thing to do is to reduce the cost of living. So today, I will focus on this point, that is, hereafter, how are we going to help the people of Singapore so that they have a better standard of living and our quality of life will not be affected by this economic crisis. In order to achieve this, I hereby urge all trade associations, coffeeshop owners' associations and retailers to join in a nation-wide sales campaign. Our Singapore Government has been very successful in promoting various campaigns, such as the Speak Mandarin Campaign, the Courtesy Campaign, the Healthy Lifestyle Campaign, etc. We have achieved very good results. At this point of time, it may be appropriate for us to have a "National Sales Campaign". Why should we have a National Sales Campaign? Because I think we can achieve three objectives. First, we can offset the additional burden imposed on our workers due to wage-cut measures. Secondly, Christmas, Chinese New Year and Hari Raya are coming. With all these festivals coming, if we can have a National Sales Campaign, it will also help to stimulate business activities so that our economy could recover faster. Thirdly, through this National Sales Campaign, coupled with propaganda by our Government agencies such as the Singapore Tourism Board, we could attract more tourists from other countries to visit us. At a time when the other countries are having problems, we can attract tourists to come to Singapore and shop here. I feel that with these three objectives in mind, we would be able to herald in some good news during this time of crisis.”
“Mr Speaker, Sir, I met a few workers when I went to my office this morning. I took the opportunity to ask them what they thought about the cost-reduction package introduced by DPM Lee in Parliament yesterday. Spontaneously, they said, "Oh, lucky, no need to cut salary and I still get to receive the year-end bonus. Not bad!" So I asked them, "What do you think about the 10% cut in the employer's CPF contribution?" They said, "Oh, we know some time ago that our CPF will be cut by 10%. In order to reduce business cost for our employers to survive, we are prepared to accept this temporary measure, for the sake of our nation." When they are about to leave, they asked me, "As a Member of Parliament, can you help us to get the shopkeepers to bring down their prices? Then we will be very happy." Three things came to my mind. First, they said, "Oh, lucky, no need to cut salary and I still get to receive the year-end bonus." This proves that when accepting the recommendations of the CSC, the Government has carefully considered the plight of our workers, and they have also listened to the feedback from the MPs and the public. I would like to commend our Government for making the right decision in not having involved our lower-income employees in this round of wage reduction. Secondly, they said, "Yes, we knew that our CPF is going to be cut by 10%." On this point, it also proves that our labour MPs, the NTUC and union leaders have done a good job in explaining to the workers the rationale for this round of CPF reduction so that all the workers understand why this cut is necessary. So when the Government announced that the CPF would be reduced, they accepted it spontaneously.”
“So long as our stand is correct, the principles are right, the matters will be eventually resolved. I feel that the imminent task before the Government is how to implement appropriate measures to help the businessmen tide over the difficult times. At the same time, we should use effective ways to help the retrenched workers in securing alternative employment. The Ministry of Manpower (MOM) has already provided this service. However, MOM alone is not enough. I feel that the CDCs and the community centres in all the 83 constituencies in Singapore should set up "Employment Services" counters. We should combine the resources of the Ministry of Manpower, the Ministry of Community Development and the CCs to establish a National Employment Network to help Singaporeans find jobs and tide over the difficult times. If everybody has a job, then socially we will have no big problems. We would be able to maintain a peaceful society and to work hard to get us out of the recession. So long as we stand united as a nation, we will be able to take one step at a time to get out of this financial crisis, and position ourselves in better conditions and solid foundation for our future economic development.”
“We have to depend on the cooperation and assistance of our neighbouring countries and the super powers for an early recovery. So long as the economic crisis does not evolve into a political or social crisis, the Singapore Government should have the ability to lead us out of the crisis. The economic recession in 1985/86 is a good example of our Government's capability. However, all the people of Singapore must have full confidence in the Government's ability to lead us out of the bad times. We must stand united with the Government so that we would be able to resolve these economic problems together. At this time when we are facing an economic downturn, it is a test on the degree of unity between the Government and the people. We should also make use of this opportunity to strengthen our social cohesion. Just as we are facing the regional economic crisis, our neighbouring countries adopted an uncooperative attitude in our removal of CIQ from Tanjong Pagar to Woodlands. They have also issued some erroneous statements aimed at undermining the unity between the Government and our people. This is very dangerous. With regard to the background of the removal of our CIQ from Tanjong Pagar to Woodlands, the Minister has already given us a very detailed explanation. I feel that so long as the policy is for the benefit of the people, we should implement it. So long as the people and the Government stand untied, we would not be affected by erroneous arguments coming from outside. Mr Speaker, Sir, the country belongs to us. The Government is elected by us. We should give the Government 100% confidence and to give it our full support so that the Government will have the full authority to deal with its foreign policies.”
“Mr Speaker, Sir, thank you for giving me this opportunity to speak in support of the motion. The recent regional financial and economic crisis can be said to be the most serious one in 30 years. Various countries in Southeast Asia are suffering from its serious impact, resulting in many companies closing down and many workers unemployed. There was even social unrest in some countries where properties were destroyed and many lives were lost. This economic crisis which has been evolved into a political and social crisis has serious undermining effect on the prosperity of the societies that have been painstakingly built up over the years. In order to avoid such incidents from happening again, leaders of the various countries are actively trying various ways and means to buffer the deterioration to the economy. The various countries in ASEAN have manifested their cooperative spirit to help these countries which are in trouble. Singapore has participated in the economic action of the IMF to save Thailand. We have also committed a US$5 billion guarantee for the letters of credit used in bilateral trade between Indonesia and Singapore. At the same time, we have lobbied for the assistance of the United States and the IMF with the hope that with the cooperation of the various quarters, we would be able to prevent the economy from deterioration, with a view to an early recovery. For the moment, we are most concerned with the stability of the renminbi. Once the renminbi devalues, there will be another round of economic crisis for the region. The economy of the whole of Asia, even that of Europe and the United States, will be affected. A regional economic crisis is not an easy problem to resolve. It is not something which Singapore can overcome by itself.”
“I would like to thank the Parliamentary Secretary. I wish to withdraw my amendment. Amendment, by leave, withdrawn.”
“At this time of economic uncertainty, we should be more sympathetic to these small-time businessmen by giving them more breathing space to pull through these difficult times. The third question is, since the 30-year lease has the support of the shopowners, will the Government consider selling more of the remaining shops, and how many such shops can be sold per year? Sir, I also hope that the Minister will consider selling some of these 30-year lease shophouses to the existing shopowners in Bukit Gombak, in the next round of sales of shops. 4.30 pm”
“Sir, I beg to move, That the sum to be allocated for Head U of the Development Estimates be reduced by $10 in respect of Code UI 5100. (In Mandarin): So far, about 7,000 units of shops with 99-year lease have been sold since the implementation of the HDB Shop Ownership Scheme. In 1997, for the first time, about 200 shops were sold with 30-year lease. The response was very good and the take-up rate is as high as 97%. In Bukit Gombak Constituency, I believe we have 100% take-up rate. Shop tenants who bought these shops are now paying monthly instalments which are actually lower than the rental they were paying prior to the purchase. This will help them to cut cost in their business, and a great help to the shopowners. They are very happy about it. I would like to thank the Minister for helping these small-time businessmen with this kind of scheme to help them tide over the difficult times ahead. Sir, from the feedback I received, I understand that some shopowners who bought the 99-year lease shops are paying very heavy monthly instalments. I hope that HDB will consider allowing them to convert the 99-year lease to 30-year lease, so as to lighten their financial burden, especially at this time when the economy is not so good they need help to tide over. Sir, I have a few questions to ask the Minister: Firstly, how many shopowners have bought shops with a 99-year lease? How many of them have applied to convert the 99-year lease to 30-year lease? Secondly, according to my understanding, the closing date for such applications is at the end of this month. I hope that the Minister will consider extending the closing date or even completely abolish the closing date, so as to give these shopowners more time to consider whether or not to apply for the conversion.”
“Thirdly, would the Minister consider setting an upper limit of RON for all newly registered cars and ban petrol that exceeds the limit at the expense of the limit for benzene?”
“On more than one occasion, readers of The Straits Times wrote in the Forum page about the benzene level in automotive gasoline (petrol, in short). Sir, benzene is classified as a carcinogen and it can cause blood disorder cancer, called leukemia, if there is prolonged contact of about 20 parts per million. Regarding the benzene level in the petrol, to my understanding, it is not a mandatory control item. However, the oil companies and the Ministry of the Environment agreed among themselves not to have it excessively dosed in petrol. However, due to competition, oil companies might use higher research octane number, in short RON, to attract customers. One of the ways to boost the octane grading of petrol is to increase the level of benzene component in the brand of petrol. Sir, every car is designed to consume a certain grade of petrol. The RON of petrol which is higher than what the car is designed for, normally it is about 95 RON, has no advantage in performance of a properly maintained car. The rise of the RON in petrol at the expense of more benzene component, which is harmful to human health, is really unnecessary. The people whose health could be affected are the petroleum workers, petrol truck drivers, petrol station attendants and the motor mechanics who frequently use petrol as a cleaning agent for certain sensitive engine components. Sir, I would like to ask, firstly, whether the Minister will consider the control of benzene in automotive gasoline. Secondly, would he consider initiating a consumer education programme on research octane number (RON), so that the higher than necessary RON product promotion gimmicks at the expense of having more benzene component in the fuel could be discouraged?”
“Most of these are imported from other countries. Under the new regulations, only those who burn the joss-sticks will be fined but not those who sell them. Sir, Singapore is a free entrepot. If such joss-sticks are imported for re-export to other countries, then it is all right. But, we should ban traders from importing such joss sticks for use in Singapore. Once the supply of these over-sized joss-sticks is banned at source, it will not be necessary for the Ministry of the Environment officials to check on the illegal burning of over-sized joss-sticks, and the precious resources can be better used for other purposes. Thirdly, we should be more liberal in implementing such new measures. Burning joss sticks is part of the religious rites among the Chinese community in Singapore. We should allow the people more time to understand these new measures. We should understand the Seventh Moon festival is part of the culture of the Chinese people in Singapore, and burning of joss sticks is a religious rite practised at such festivals. So, in order to ensure that people do not break the law, we hope the Government should explain to the people first. We must not forget that these organisers of the Seventh Moon festivals are also contributing to our charitable organisations. They have contributed quite a lot to our charitable organisations. So they must first understand what the benefits of these new measures are, and then I believe all the organisers and devotees would do their best to comply with the regulations laid down by the Ministry of the Environment. So I hope that during this first year of implementation of this new regulation, we could be more liberal in our enforcement actions. Assoc. Prof. Low Seow Chay: Sir, I would like to talk about the topic of benzene in petrol.”
“Sir, haze is a problem which the people are very concerned about. Because of the big forest fire in Indonesia, there was a heavy haze in Singapore last year, resulting in the pollution of our air, and the health of our people was affected. The Ministry of the Environment took a serious view of the matter. It not only helped the Indonesian government to control the forest fire to reduce the effect of the haze, but also explored the possible causes of air pollution in Singapore. In the process, it was discovered that the giant joss-sticks and candles burnt during the Seventh Moon festival and at religious ceremonies of the temples was also one of the causes of air pollution. For this reason, the Government is regulating the burning of giant joss-sticks and candles, with effect from 1st March this year. The regulation clearly provides that the giant joss-sticks to be burnt shall not be longer than 2 metres, and not more than two sets, that is 6 sticks, of these joss-sticks shall be burnt at any one time. The new regulation which takes effect from 1st March, provides that anyone who violates the regulation may be fined up to $2,000. In order to avoid any misunderstanding arising from the enforcement of this new ruling, I would like to suggest: Firstly, we should explain such measures to the people through an education campaign. The Ministry of the Environment should coordinate with the grassroots organisations and relevant religious bodies to invite the organisers of the Seventh Moon festival to a talk and explain the new rules to them, so that they could understand the need for such regulations. I think it is better to get them to abide by the law through education rather than by way of fines. Secondly, we should prohibit the import of such giant joss sticks.”
“In order to help these businesses to tide over this period, I would recommend certain measures to the Government. First, the JTC and HDB should consider curtailing their rental on land and factories to reduce their cost of doing business. At present, JTC and HDB rental is based on the rental they formulated three years ago when times were good, the so-called market rental. But in the present situation, the market rental has gone down. For example, the tender prices for the two pieces of land offered for sale by URA have gone down by many times as compared to those in 1996. Therefore, during this critical period, the Government should adjust the rental for land and factory spaces, so that a more reasonable rental could be formulated. I suggest that JTC and HDB should consider reducing rental by 10% for two years. In this way, they could directly help to bring down business cost in order to enhance their competitiveness. Secondly, they should liberalise the subletting of factory space. During an economic recession, many tenants need lesser factory space. Therefore, the authorities should consider letting these tenants to have more flexibility to sublet their factory spaces in order that the usage of their factory space could be maximised. This will also reduce their operating expenses, and more optimum use can be made use of such space and land. Therefore, I suggest that JTC and HDB should consider increasing the ratio for subletting from 50% to 75%. This will effectively help the tenants to tide over this period and also help those who want to launch new businesses to find the factory space. This will provide good opportunities for those who are interested in entering the manufacturing industry. Sir, I hope the Minister for Finance would consider my suggestions.”
“But taxpayers feel that their tax return was based on 1997 income and yet they have to pay tax from this year's income. This year, they are faced with economic recession and there will be a reduction in their income. Hence this is an increased burden on them. So they hope that the Government, during this economic slowdown, would give them more tax rebates in order to lighten their burden, especially those businessmen who fail in their business or those workers who have been retrenched. I hope the Minister would explain to the people why such tax rebate has been reduced by 5%. If the taxpayers understand the rationale for such a reduction, they will support the Government's policy and be more united in order to work for a better future. Mr Deputy Speaker, Sir, Singapore is a commercial and financial centre. Our Government's policy has been to encourage our local enterprises to be more enterprising. At the same time, we attract foreign investors to come here and invest. These are the twin engines for our growth. This year, our budget has provided for certain beneficial measures to the financial and property sectors, so that they can grow satisfactorily even in the midst of a financial crisis. However, there is little assistance for the industrial and commercial enterprises. Because of the regional financial turmoil and the slowdown in the economy, many companies have received less orders from the region. However, their cost of business has not come down. Therefore, these companies are faced with dwindling orders and they have cash flow problems. According to the Chinese Chamber of Commerce's survey, about 54% of the companies said that their business has been affected and about 45% of the companies said that they are faced with cash flow problems.”
“Mr Deputy Speaker, Sir, when the Finance Minister was formulating the new Budget for this year, many countries in Asia were facing the financial crisis and Singapore, to a certain extent, has been affected by this. Therefore, in formulating the new Budget the Government is bound to be prudent in its attitude. When the new Budget was disclosed, we knew that the Minister was adopting a moderate and prudent strategy to cope with the financial crisis, and to make adequate preparation in case the turmoil deteriorates so as to cope with the difficult years ahead. The Minister also ensures that we have a balanced budget in order to maintain our long-term economic competitiveness and to accumulate massive surplus so that we will move forward when the financial turmoil subsides. I believe this is a correct and farsighted Budget. Mr Deputy Speaker, Sir, when our neighbouring countries are urging their people to donate money and other valuables to help their countries weather the economic crisis, our Government has been able to provide tax rebates and rebates on S&C and utilities charges to the people so as to lighten the burden of the people. During this critical period, the Government has been able to provide assistance to the people. Although this is not a big red packet, it nevertheless is something we are happy about. There are some taxpayers who say that the tax rebates have been reduced from 10% to the present 5% and they are quite disappointed. Tax rebate is normally given only during good times. It is a measure to return some of the wealth to the people. But because of this year's economic slowdown and the tightening of our monetary policy, the budget has been reduced. This is to be expected.”
“Sir, I understand that people who are qualified to take the CEHA examination must have at least 3 `O' levels. My question is: for those who do not have 3 `O' levels, will the HDB consider conducting a separate course for these people? I understand that if half of the staff of a company are not qualified, the whole company is not allowed to be a housing agency, thereby affecting the employment of a number of staff who have been doing housing agency work for many years.”
“Thank you, Mr Minister, for the reply. I withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, presently, heavy vehicle owners have to pay $6 for a VPC. With this system, will the vehicle owners have to pay any fee?”