Bernard Chen
Singapore
“The increase in health expenditure is as inevitable as the sun rises. The major part of this expenditure is on manpower. Doctors and nurses and other operational staff have to be paid at market level wages. They have to compete with other demands for the scarce labour resources.”
“Question No. 12, Sir. Assoc. Prof. Ho Peng Kee (for the Minister for Home Affairs): Sir, investigations into the case are still in progress. When investigations are completed, a Coroner's Inquiry will be held during which the full facts of the case will be presented.”
“Question No. 16, Sir. Assoc. Prof. Ho Peng Kee (for the Minister for Home Affairs): Mr Speaker, Sir, Police is investigating the incident which occurred outside the Kallang Theatre, not at the Singapore Recreation Club, as stated in the Question. Investigations are in progress.”
“If you can license dogs, what is the difference for licensing cats? Dr John Chen Seow Phun: If something is not necessary, why do you want to create that machinery and system, just to do something which some people want. SINGLE SESSION SECONDARY SCHOOLS (Adjustment to reporting time) 5.”
“Although cat is not my problem, I am asking on behalf of somebody else. If the Minister of State is in agreement that we should control cats, why do you not license them so that at least we do not shoot the wrong cats, to begin with, and whoever is the owner will have a responsibility in making sure that the cat does not stray around, but…”
“I agree with the Minister on the need to retain flexibility. I think we should leave it to the patient. But can the Minister confirm that the rates that the patients are paying to the specialists are, in fact, market rates so that there is no subsidy by the Government on all these consultations and there is no impact on the cost efficienc…”
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“But if the business has to close because of high costs, then there are no benefits to be enjoyed at all. Having said that, it is paramount that our people, as I said, whether we are employers, workers or civil servants, must come together or, as they say in football or rug by, bunch together and face these challenges as one unit. If we hope to carry Singapore into the major league and achieve the vision set out in the President's speech, we must not take growth for granted. And for those of us who have grown too used to this prosperity, we must snap ourselves out of this complacency and prepare ourselves for the tasks ahead. We should perhaps take a lesson from our forefathers who have found this out the hard way in the last 25 years and perhaps learn from them to face the more difficult problems ahead with the same kind of determination that they have done in the past. It is only through this way that we could scale the last 5,000 feet of this mountain. It is not true to say that the people of Singapore have been left out of it all in the last 25 years, as has been put by the Member for Anson this morning. Without the efforts of the people, nothing would have been achieved and we would not find ourselves in the situation we are in today where we can still enjoy a vision of things to come because we have already got the basics. But let us not forget how we got here and much better to learn how we got here and apply the same lessons, the same techniques, to achieve what we have set out to do in the next 15 years. 4.05 p.m.”
“No doubt part of this was due to the tight labour market situation that prevailed, but in the world economy where cost-effectiveness dictates how efficient your product or your services will be, cost will be one of the major considerations. And it is my view the costs have just come to the level of being unbearable. As an example, if a private sector employer employs a person, the cost to him is not just the pay. To his salary must be added at least 40% more to allow for Central Provident Fund contribution, Skills Development Fund levy, bonus, sick leave and other benefits. It is not that the manufacturer or the employer grumbles about giving all these benefits, but it does make the cost of the products that much less competitive. I am not quarrelling with the overall policy of bringing more efficiency to our industries, to our services, to one of capital intensive rather than labour intensive. But one has probably got to take into account that these policies may apply over a period of time, and therefore adjustments must be made from time to time to take into account particular circumstances that may prevail during certain periods. When we are in a period of stagnation, it is perhaps unwise to load on more and more because the only end-result that may come about is that these corporations or the services would cease to exist. Therefore, I would urge that in addition to giving incentives to manufacturers, to those who provide services, whether it is in tourism or trade, the Government should perhaps take a look at the various policies that have cost impediments for the private sector to do what they want to do, to be competitive once more and to be able to fight in the world market. Incentives can only be enjoyed when there is a business to run.”
“The question then must be asked: What we can do together to generate economic growth and produce the fruits of labour which we can all share, the people of Singapore. The first thing that comes to our mind must be that nobody owes us a living. In the world map, Singapore cannot even be seen but we are here. If nobody owes us a living, then we create our own. And the economic growth and prosperity must come from the efforts of all of us in Singapore, whether we are in Government, whether we are in the private sector. In other words, at all levels, in all segments of the population, each and every one of us must do our share, and it will have to be more than the normal share to bring Singapore magnitudes higher than what we have brought them to today. Here, perhaps I could comment on one of the Addenda of the Presidential speech, outlined by the Minister for Trade and Industry. True, the Government can only provide the infrastructure of growth, it cannot generate growth. It is up to the private sector to pull themselves together to compete in an increasingly competitive world. But the private sector can only do so much because, like it or not, competition is getting more fierce. And in the last 4-5 years where we experienced a period of high-wage adjustments which formed part of the economic restructuring programme that the Government has introduced to prepare us for the high-technology environment, most private sector employers, whether they are in the service or the manufacturing sectors, have come to the realization that cost increases have been the major factor impeding our competitiveness in terms of the products they produce and the services they offer.”
“There are two factors that we have to take into account when we look at the future. In the last 15 years Singapore had achieved; to my mind, all the easy goals. All that can be done without much effort has been done. By way of analogy, it is like climbing a mountain of, say, 20,000 feet. The first 15,000 feet is a breeze. You walk up and you enjoy the scenery. But the last 5,000 feet will be pretty difficult. First of all, it is going to be steeper. Secondly, you cannot do it alone anymore. You will need more equipment. You may have to have oxygen, and you suffer every single foot of the way until you reach the apex. This is what will happen to Singapore. The easy solutions have been found and we have reached where we are without sweating too much. From now on, as we transit from a low-technology country to a high-technology one, we have got to quit the minor league and enter the major league. And more than the usual effort has to be exerted in order for us to get there. In order to achieve the more difficult tasks, we may have to bear with policies which are not likely to please everybody because nobody likes change, but change there must be. And in order for these policies to be fulfilled, our people must be ready to cope with these changes, no matter how painful or how inconvenient it may be for them. This transition from a minor league to a major league for Singapore is also taking place in a period of stagnant growth in the world economy. If we had done this when the world was booming, it would have been that much easier for us to be more flexible and to absorb the inconveniences that may come along with it. But the world economy is not within our control. Time is not on our side, and we have to make this move now.”
“Most important, I think, is that in times of crises, whether it was the oil crisis in 1974 or, going back a bit further, the withdrawal of British troops in 1968, or the era of high inflation in the late 1970s, these people can come together and tackle the problems as one. This is the hallmark of the Singaporean people - to come together in moments of crises to achieve objectives, even at the expense of making some sacrifices in the meantime. It is quite clear that in the last few years, there have been a number of danger signals in Singapore. Firstly, because of the unprecedented growth that we had experienced in the last 15 years, particularly for the younger generation, the people have come to regard growth as self-sustained, that nothing more need to be put into this engine to ensure that future growth can be sustained. Worse, in the absence of any major crisis in the last 15 years, our people may have gotten used to living in periods of prosperity, to the extent that when a crisis does arise, not only are we unprepared to face it, worse still, we may got into a panic and start throwing our hands up in despair or running in all directions, losing touch of the real aim of what we have set out to achieve all these years. In this regard, we may well look at our neighbours in Hong Kong, who despite many crises - major ones, minor ones - have adapted themselves to face up to them squarely and to seek solutions to overcome these crises. These danger signals should be recognized now because as we look forward to the next two decades and set out to achieve the vision, as outlined in the Presidential Address, we must ask ourselves whether these dangerous trends will stand in the way of what we want to do.”
“Mr Speaker, Sir, may I lend my full support to the Motion standing in the name of the Member for Ayer Rajah. In the speech the President, in his opening remarks, mentioned that the Government's duty is to improve upon what has been achieved in order for us to arrive at a better society. It may be useful for us at this point of time to pause and reflect on what we have achieved, what we are going to achieve in the coming 10 to 20 years and what are the impediments that may prevent us from achieving what we set out to do. If we cast our minds back 25 years, the sustained economic growth which brought about social development, as well as prosperity for all our people, did not come accidentally. Underlying this prosperity was the political stability that we enjoyed since 1965. This stability is created by an honest, effective government headed by the People's Action Party. The honesty and effectiveness of the policies have enabled a firm framework to be laid for the people of Singapore to participate in, to create and generate economic growth. The President's speech has pointed out quite rightly that the Government cannot create wealth, it can only provide the infrastructure for wealth to be created b the components of a corporation or by the people of a country. The people of Singapore in the last 25 years demonstrated that wherever they may be, whether they are in the working class, whether they are entrepreneurs or civil servants, they have cooperated with Government policies in ensuring that these policies generated the results.”
“It may be sufficient for them to keep, say, 50% of their savings in CPF to overcome any uncertainties and allow them to withdraw the other half at the age of 55. In this way, their post-retirement needs can be adequately safeguarded, and yet allowing them to have a lump sum payment for whatever interests they may pursue on retirement. Finally, I would like to join the Member for Bukit Ho Swee, who is a senior citizen in his own right and who understands the issues affecting the elderly, to thank the Committee for the commendable efforts in tackling what is a very difficult problem. 5.45 pm”
“The Committee rightly argued that CPF withdrawals be tied to the retirement age. This was the purpose when CPF was introduced. It would not make much sense for withdrawal to take place at 55 when a person keeps on working till he is in his late 60s. However, I would say that the determination of retirement age would seem to deserve more study before it is raised. Not all jobs are sufficiently well catered to workers of all ages. Some demanding jobs may limit the working age to less than 55. In the public service, in fact, retirement age for certain jobs have been raised to 60. I would suggest that a deeper study be made of the implications of extending the retirement age, probably in consultations with the NTUC and the unions before the matter is finally decided. Even assuming that the retirement age is extended for some workers and therefore the CPF withdrawal age is similarly raised, there is the question of who should be affected and where should we draw the line. The improved life expectancy applies mostly to the generation born in the 60s and 70s; in other words those now in their 20s. Those who are in their 30s and 40s and were born before the 5Os, in fact, would have a lower life expectancy. It will therefore be wrong to. assume that those in the 40s will live to the ripe old age of 70 and expect them to work till the late 60s. While the Committee has suggested that the cut-off point for total CPF withdrawal exemption be made at 50, I would propose that we could lower this exemption to 40 years to take into account the life expectancy of this category of people. Further, when those who are now in their 20s and 30s retire at 60 years, their CPF balances would have been substantial, given the much higher rate of contributions and a longer working life.”
“For the acute sicknesses, hospitalization will be the only recourse. The present hospitalization programme, supplemented by the Medisave Scheme, will provide the means to treat such illnesses. More prevalent, however, are the chronic illnesses which befall many of the older people. Such illnesses are often not serious enough to warrant hospitalization, yet they need professional attention. In fact, the lack of such attention has caused much hardship on families whose members have to cope with parents and grandparents who are victims of chronic-illnesses. With the vast majority of our people working it has become increasingly difficult for them to do both, earning their livelihood and looking after the aged. Some of them have resorted to pushing their parents and grand-parents to hospitals and old age homes. But facilities in these institutions are limited. I believe that many of them are able to pay for professional health care or at least bear part of the burden. It is in this context that the Health Ministry's Home Nursing Foundation provides home nursing care to the aged sick. The Committee has recommended that the Foundation's efforts be enhanced with more volunteer nurses. I would urge the Ministry to speed up the expansion of this facility. If the aged sick can be well looked after in their own homes, we would have eliminated one major area of concern for the aged and restore the harmony that has been disrupted by illnesses in the family. In the same way that child-care centre charges are based on income levels of the parents, perhaps charges for Home Nursing services can be similarly based to enable the families to avail themselves of the service. May I now come to the proposal on raising the CPF withdrawal age from 55 to 60.”
“There is a limit to automation and mechanization which a company can introduce, especially those in the services sector, and it is in the services sector that the elderly are more likely to be employed. If we consider that the present contributions are aimed at the general workforce, we cannot really impose the same system on the elderly workers who are in many aspects different and thus be treated differently. Otherwise, we may constrict the demand for elderly workers through retaining these constraints. As for generating job demand for the elderly, I believe that the public sector can take the lead in identifying suitable opportunities. An example would be in teaching where experience is always an important asset, especially when it comes to the inculcation of moral values. Retiring teachers when they can still continue to contribute, although on a part-time basis, can be wasteful. Another area could be in the services provided, especially by the statutory boards. Such service jobs can be designed and modified to fit the elderly workers. If these measures prove successful, the private sector, I am sure, will not lag far behind in following the examples set. Ultimately, I am afraid, the private employers' main concern would really be whether they can get value for money. Turning to our elderly who suffer illnesses of varying degrees, I agree with the Committee's recommendations that a comprehensive health maintenance programme should be developed for the elderly, including systematic recreational programmes and activities and annual screening health examination. However, just like any other machine, the human body must deteriorate with age and, inevitably, our elderly will find their incidence of illnesses increasing as they grow older.”
“The Committee's recommendation to encourage more employment of the elderly must, therefore, be accorded with all seriousness, and ways and means found to implement them as quickly as possible. The problem we face is that the present employment systems, both in the private and public sectors, are designed to employ younger workers on a full-time basis, thus leaving little room and flexibility to meet the specific needs and constraints applicable to the elderly workers. Such restraints include regular hours of work, statutory contributions and salary structures. The last often makes it too costly for employers to hire older workers because of higher starting salary. The Committee has recommended measures to tackle these barriers, and I give them my full support and endorsement. I would also join the Committee to urge our elderly workers not to compare themselves with their younger counterparts in terms of workload and remuneration. They have to accept the plain fact that they cannot be as vigorous as they were in their younger days and are not likely to be able to put in as much effort into their work as before. They, therefore, cannot expect to be similarly treated in terms of pay and benefits. However, I would suggest that the Committee's recommendations that statutory contributions should continue to be levied on companies employing elderly workers be reviewed with a view to exempt them. The high level of such contributions as well as the number of contributions, such as CPF, SDF and, indirectly, the payroll tax, have already placed a very onerous burden on employers of younger workers.”
“On the other end of the spec- trum, 77% of those in the age group 55-59 years say that they are in good health and 75% for the age group 60-64 years. With better health care and improved nutrition, it is very likely that more of our future senior citizens will enjoy good health even in their 70s. The question then becomes one of what they can do with the amount of time in their hands. Through work, whether part-time or full-time, our elderly can usefully occupy their time, both physically and mentally. There are countless cases in which we can witness the rapid decline an elderly person suffers the moment he retires from active work. Without the mental and physical exercise that he has done for the past three to four decades, he can find himself at a total loss of what to do with all the spare time in his hands. The result could have disastrous effects and often lead to both mental and physical illnesses. Secondly, work enables the elderly to earn a decent living, make them less dependent on their children for support and, more important, let them retain their dignity and self-respect. The last is crucial if the elderly were to consider themselves still having a useful role to play in the society and can make contributions towards its development. On the other hand, without work, they become idle. Without any income, they would have to depend almost totally on their children for support unless their savings can last them through. They will thus feel obliged to their children and, worse, consider themselves a burden to the family. It is not uncommon to find the idle elderly becoming depressed and, in so doing, really become a burden to their families.”
“Mr Speaker, Sir, may I, first of all, join other Members in complimenting the Committee on the Problems of the Aged on. the comprehensive manner in which they have addressed themselves to a very difficult problem, that of looking after our senior citizens in their old age. It has never been easy for any Government to tackle social engineering in an objective and unemotional way. The very fact that human beings are involved makes the issues highly complex. Emotions and feelings run high and sensitivities abound. One would have to tread very carefully on uncertain grounds. Indeed, recommendations, no matter how genuinely made with good conscience, can meet with hard criticisms, simply because they do not appeal to certain segments of the people. In particular, when these recommendations affect long-term interests, we may fail to see their relevance in the current context and tend to be obscured by the apparent ineffectiveness of the recommended measures to deal with immediate needs. However, we should recognize that policies which affect people's way of living must of necessity be long-term ones, and we must go beyond current considerations if we can hope to achieve the results such policies may yield in the next 10 to 20 years. Sir, I would like to touch, firstly, on a major area of the Committee's concern, that of the employment of the elderly. There are, in fact, two groups of elderly people. First, the vast majority of our senior citizens are healthy and could still put in a good day's work, although not as fully as when they were younger. The National Survey of Senior Citizens, 1982, showed that only 1% of those in the age group 55-59 years think that they are in poor health, and 2% for the age group 60-64 years.”
“The introduction of the Medisave Scheme should, in no way, be taken as a signal for the existing benefits to be curtailed. For the benefit of the people, I support the Medisave Scheme. 4.26 p.m.”
“Under this Scheme, Singaporeans are encouraged to be more responsible and to show concern for the cultivation and maintenance of their own health. Adequate incentives will be provided to reinforce the desire to remain healthy. I fully support the principle of prudence and self-reliance which, in fact, has been the guiding principle in our national development since independence. The Government cannot be the provider of all the wants and needs of the people even if it wishes to do so, for the simple reason that it can never possess enough resources to do so. The Government should, instead, provide the leadership to help the people see the way to their wants and needs which can best be met in a genuine and as lasting a manner as possible. The Medisave Scheme is a new and unique way to tackle the problem of health care delivery in a modern society. As in any new Scheme, we should be flexible so that we can make adjustments and modifications that are shown to be necessary as we gather experience in the operation of the Medisave Scheme, I therefore wish to remind the Ministry of Health to bear this in mind. I also wish to urge the Ministry of Health to take great pains to ensure that after the coming into operation of the Scheme, no Singaporean, especially those in the lower-income groups, will be denied adequate health care because of insufficient balances in their Medisave account. The sanctity of life cannot be compromised on the balance sheet. Last but not least, I wish to remind those employers who are already providing medical benefits to their workers either in collective agreements or in established practices should continue to uphold such practices.”
“This tendency to look to the Government for the provision of basic needs is, unfortunately, further strengthened by opportunistic politicians who, under the one-man-one-vote system, readily make unrealistic and financially ruinous promises just to hope to win an election. In Singapore, the PAP Government has never succumbed to such irresponsible practices. We have placed honesty above everything else. When faced with any problem, we have a hard-headed analysis of all the factors and circumstances involved and carefully deliberate the best solution which will be for the long-term good of the country. We then courageously inform the people of the reasons for the decision, even though it may be unpleasant or unpopular for the time being. The Medisave Scheme is a far-sighted proposal. It is observed that as a society becomes more affluent and the people more educated, the demand for health care and services increases. People become aware of the possibility of a better quality of life, and their desire to attain it correspondingly increases. However, the costs for the provision for health care also increase tremendously. This problem of spiralling costs of health care is a universal problem afflicting even the most affluent industrialized countries of the West. In those countries the governments have relied upon the methods of pre-paid health insurance or even outright total funding of the delivery of health care and services from tax revenue. These methods do not appear to have worked well. Instead, the Singapore Medisave Scheme has as its pillar the principle of self-reliance of the people, coupled with adequate provision of infrastructure by the Government.”
“If these schemes are successful, we should also begin to see a decline in outpatient attendances in both the public and private sectors which will, of course, mean lower medical bills for the entire nation. Most important, we will all find ourselves healthier and happier. The proposed National Health Plan, incorporating the Medisave Scheme, contains the critical elements of health care for every segment of the population, be they rich or poor, young or old, workers or housewives. It represents a pragmatic and cost effective way to meet our nation's future health needs. It also contains the required flexibility for the changes to be made in line with changing circumstances. I would like to express my full support for the Plan. 4.22 p.m. Mr M.K.A. Jabbar (Radin Mas)( In Tamil): Mr Speaker, Sir, I wish to thank you for giving me an opportunity to speak on the Medisave Scheme. The Medisave Scheme proposed by the Ministry of Health is a bold and imaginative response to the problem of how to provide an adequate standard of health care to the people of Singapore without causing an unbearable strain on our national economy. Health is a basic need of all people, just like food, housing and work to earn a livelihood. In earlier societies, most people had to depend very much on their own efforts to ensure the satisfaction of these basic needs. As the organization of a society becomes more complex and with the ultimate introduction of democratic form of Government, people have come to depend more and more on the Government to provide these essential needs.”
“Other organizations such as corporations, companies and unions can also play their respective roles to encourage the entire workforce to stay healthy and keep fit. If we assume that on the average, 2-3% of the workforce are on sick leave of one kind or another, excepting the acute cases, and if this percentage can be reduced through a properly instituted health promotion programme, this would, in fact, mean a 2-3% increase in productivity, not to mention that we would have a happier and healthier workforce. Singaporeans have been proved to be quite amenable to incentives. Is it, therefore, possible for employers and unions to come up with some 'stay well' schemes which will provide the necessary incentives for workers to stay healthy? In this regard, everyone will benefit, as the workers themselves will enjoy good health which, incidentally, does not come easily and in many cases can be considered as a blessing. Employers on their part will have improvement in productivity and a workforce that they can depend on. In other words, we need to mount a scheme parallel to the Medisave scheme. Whereas Medisave is geared towards acute illnesses, 'stay well' schemes will be directed at the healthy majority, which covers 95% of our population. Perhaps, in line with the Skills Development Fund concept, we should also consider a health development fund for our workers. I hasten to add, of course, that such funding should not impose further burden on the employers. We can perhaps stretch the definition of skills development to cover health development and allocate a certain percentage of the Skills Development Fund to the 'stay well' schemes.”
“Of course, for the unfortunate few who, for one reason or another, are unable to do this, the Government will, as clearly stated in the Plan, provide the necessary medical treatment for them. I am in full agreement with the Plan's proposal that the Medisave Scheme should cover only acute hospitalization. Let me now say a few words on out-patient services. The National Health Plan has expressed that the Medisave scheme will not cover outpatient charges as these charges are relatively cheap and are within the means of most citizens. There can also be another reason for this exclusion. Sometimes it is difficult to separate the genuine cases from the frivolous ones mainly because outpatient services are cheap and easily accessible in the poly-clinics. For the unscrupulous few, it is also an opportunity to get away from work. Interestingly, while attendances at out-patient dispensaries have increased by an annual rate of about 4% in the last decade. (2.06 million cases in 1972 to 2.88 million cases in 1982), attendances at Sunday/ holiday clinics, in fact, dropped by 15% over the same period (from 24,000 cases in 1972 to 21,000 cases in 1982). It would appear that most people choose to fall sick only during week days! Seriously, however, there is much that can be done in the matter of health education and preventive treatment. Personal hygiene and clean living habits will go a long way to build up a healthy and physically fit population. I would therefore urge the Ministry of Health to intensify their efforts at preventive medicine and health education and, as stated in the Plan, implement a planned programme to inform and motivate the population to stay healthy. Government is not the only one that can promote the health of the individual.”
“Mr Speaker, Sir, the National Health Plan tabled by the Defence Minister and Second Minister for Health has expressed that one of the major objectives of the Plan is to "build a healthy, vigorous, active and physically fit population." It goes on to say that "prevention is better than cure and it will also seek to encourage Singaporeans to stay well and reward those who do." The Plan also emphasizes the "crucial role of the individual in promoting and maintaining his own health." To my mind, these objectives apply equally to the country in general as well as the individual citizen. After all, much of our own time is spent in looking after ourselves whether it is in our eating habits, getting sufficient rest and having enough exercise to keep ourselves trim and fit. It is therefore logical that we should look after our own health needs as far as we can afford them, save for emergencies and acute illnesses, which involve hospitalization and therefore expensive treatment that sometimes we find difficulty in meeting the full cost. The statistics contained in the Plan seem to bear this out. Of the admissions/attendances at Government hospitals, out- patient clinics/dispensaries and specialist outpatient clinics, only about 5% require hospitalization. Most of us are afflicted with occasional minor ailments which, if we exercise some care and take the necessary preventive measures, can be eliminated or at least drastically reduced. As Singapore prospers over the years, increasingly more and more of us will be able to afford to look after our own basic health needs, rather than depending on the Government which can only provide these services at great cost and at the expense of other taxpayers.”
“Sir, I would like to know whether, in fact, the Ministry has been monitoring this new style of NWC, or whether, in fact, any employers have been asked or have themselves initiated negotiations with the unions for workers in their companies. If so, has any teething problem been encountered by either the companies or the unions? Further, in the light of the difficult year ahead, is it timely for both employers and unions to spend a lot of time trying to arrive at an equitable wage level instead of devoting the time to improving their business as well as to various productivity targets that have been set for the workers? Sir, sometimes it may be well said that we leave everything to market forces, but when the market is not functioning properly, with the ups and downs, it is advisable to have at least an invisible hand to guide us all along.”
“Sir, the Member for Leng Kee has touched on the need for the National Wages Council to continue to give guidelines on wage increases. I would just like to add a few of my own comments. Sir, the tripartite relationship of the NWC making up of Government, employers and unions has resulted, since 1972, in a series of orderly wage increases which took into account prevailing economic circum- stances as well as the need for workers to have sufficient wage increases, having taken into account rising income needs and inflation. Last year the Government announced that beginning this year the NWC would take on a new perspective, with the Government component of the NWC withdrawing from the negotiating process, leaving it to employers and unions. Sir, as in all things, nobody is prepared to set a precedent. Employers who are asked to initiate negotiation of wage increases are reluctant to commit themselves to setting levels which other companies have to follow. On the other hand, unions representing employees are also afraid of not answering to the aspirations of the workers in asking for a sufficiently high wage increase. The likely result is that employers will aim for the lowest increase possible while the unions will strive for the maximum. This will result in prolonged negotiations in trying to arrive at a meeting of minds. Considerable time will be wasted and there may be fraying of nerves and misunderstandings which will not do well for the industrial relations between company and union. In the past such negotiation processes have been lubricated by Government's advice and NWC deliberations on the need and the level of wage increase that will satisfy workers and yet meet with the reality of the circumstances prevailing.”
“I thank the Minister for his very comprehensive reply, and I beg leave to withdraw. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head N be reduced by $10 in respect of Subhead NB-01 Object Group 3110 of the Main Estimates. Sir, two years ago, the Government announced a very major programme for the introduction of computer facilities in most of the Ministries to improve their operational efficiency, and subsequent to that the National Computer Board was set up to supervise the implementation of these projects. I notice that in the coming year there has been no provision made in the grant to the NCB. I can only assume that the NCB has managed to secure its funds from elsewhere, probably from the Ministries concerned. What I would like is for the Minister to let this House know what has been the progress in the introduction of the various computer facilities in the Ministries, especially those that are supposed to enhance operational efficiency of the Ministries such as Home Affairs, Police or in the Statistics Department, and how much has been spent so far. Further, whether the training of manpower has been kept up to ensure that when these facilities are ready they will be properly manned.”
“Sir, in the FY 83 Budget there has been a very substantial increase in manpower expenditure, the average being about 19%, but ranging from a low of 11% to 27%. Although in most of these Ministries the explanation given was that it was the salary revision that resulted in such a high increase, there is little doubt that the wage bill of the Government, even after having accounted for the revision, has been increasing quite substantially. The wage bill is dependent on the number of people in the Civil Service. The figures given in the Memorandum shows only reductions in establishments. The question is whether there has been any actual reduction in the number of staff, taking into account the hiving off of departments such as the Postal Services which took place last year. In line with the private sector's drive also to conserve manpower and the fact that the Government is a major user of manpower, I think it is also relevant and pertinent that the Government Ministries as well as statutory boards, play a positive role in trying to reduce the manpower usage, especially at the operating levels. With the introduction of computerization on a large scale and with the improvements in work methods and systems, the formation of Work Improvement Teams and so on, surely these measures would help in reducing the actual number of people employed by the public service. The public sector, being a large user of manpower, should also be the first to try to be economical and efficient in making use of its manpower. I hope the Minister would enlighten us on the steps, if any, that are being taken to effect savings.”
“Sir, at the last Budget debate the Minister of State elaborated on the implementation of the new Religious Knowledge programme in secondary schools and various problems were enumerated. While there are not as many problems in implementing the program- mes of Bible Knowledge and Islamic Religious Knowledge in the various schools, it seems that there will be difficulty in introducing Buddhism, World Religions, and the teaching of Confucian Ethics. In the past year we have received various reports on the implementation of these particular programmes. We have had visits of some Confucian scholars from the United States who did a lot of interviews and suggested a lot of things. It may perhaps be timely for the Minister to inform this House what has been the progress in the implementation of these various Religious Knowledge programmes in the schools, first, whether Bible Knowledge teaching is now applied in all Christian schools and, secondly, whether the syllabi for Buddhism, World Religions and Confucian Ethics are being drawn up, when they will be ready, and whether there are any problems encountered in the writing of textbooks as well as the recruitment and training of teachers. As part of the moral education programme, I think parents would be very concerned about the successful implementation of this programme for their children. If we are to build up the moral fibre in our younger generation, we have to pay a bit more attention to ensure that these programmes are properly drawn up, and see the success of the various efforts. I hope the Minister of State will elaborate on these various points.”
“Given our determination, we and the Government, I am confident that we shall be able to pull through the coming year better than the last. 4.10 p.m.”
“This will be reinforced by the lower absorption of labour in our manufacturing industries as they struggle to recover growth and, at the same time, switch on to high skilled industries which require less workers. Our labour situation will likely remain tight if we do not arrest the higher growth of labour absorption for the services sector. There is a limit to automation and mechanization in providing services. Can we imagine that we would have robotic maids making our beds in hotel rooms in the morning or an iron lady serving a cool and refreshing cocktail at a bar and, as the Member for Chong Boon has suggested, to wind up the evening with a sumptuous dinner cooked by a computer. The answer will probably lie in adopting radically different operating and administrative systems which would require much less labour, helped by as much mechanization as possible, and yet providing similar quality service although not as personalized as one may wish. This has, in fact, been done in many hotels and offices in other countries. We must continue to pay great attention to the judicious allocation of labour in sectors which yield the highest returns and which would be commensurate with the skills that our workers are going to acquire. We have been able to weather the storms of recession in the last year because, as a people, we have continued to work hard and, more important, are ready to change our work habits and adapt ourselves to new situations. We would have to continue to do this, and become even better if we hope to overcome the lean years ahead. To help us do this, the Government has provided a solid economic framework complete with the required infrastructure, especially in skills training and development.”
“Higher economic growth will also be necessary to generate sufficient activities to fill up our offices and shopping complexes. Externally, there must be world economic recovery to provide opportunities to bring business and tourists to Singapore to occupy our hotels. Unfortunately, our control on the world economy is nothing compared to what we can do to our own public sector. There is, therefore, a possibility that we may make the mistake of over-building. It is my hope that we will not repeat the glut in hotels, office complexes and private housing that we have experienced in the mid 1970's. While much can be said about leaving the supply and demand of offices, hotels and housing to market forces, there should be closer consultation between Government and developers to try, as far as possible, to reduce the wide fluctuations between supply and demand which create situations of feast and famine with severe consequences of either spiralling or tumbling prices. The developers themselves should re-assess their building programme to bring it more in line with market demand. Moreover, they should go actively into securing more business instead of waiting for business to come to their doorsteps. I am reminded of the remarks made by a well-known hotelier. When asked what he would do with the empty rooms in his new hotel project because the hotel industry was facing a surplus capacity, he replied that the last thing he would do was to sit down and cry over the low occupancy rate. He would get up and go out to search for new business and bring in more guests. Another longer term effect of our Construction policy is to create additional demand for workers in the services sector, such as those required by our offices, shopping areas, hotels and restaurants.”
“Our manufacturing industries could have performed better than they did last year, even though world demand has dropped if they are more competitive and, in so doing, get a larger share of a shrinking world market. All this means that we must achieve higher productivity and produce goods cheaper and better than our major competitors. The Government's efforts in improving productivity by training our workforce and swinging to higher skilled industries are to be taken very seriously and not just as one of the campaigns that are staged every year. Our workers and employers must give their full support to realize this improvement in order to survive the future economic crises in the years to come. More important, to survive well, we must be fully committed to excel in all that we do, and do it better than others. Coming back to the policy of accelerated construction as an anti-recession measure, let me make a few comments. As far as construction projects in the public sector are concerned, we are on firm ground because these projects involve mainly housing, infrastructure, such as roads and the Mass Rapid Transit, for which there is already an established demand. What is lacking is only sufficient supply. However, construction projects in the private sector which include offices, hotels, shopping complexes and private housing are being carried out without firm indications that there would be a demand for them. The demand for such additional facilities is not certain as it depends on both external and internal growth factors. Internally, income must continue to rise to enable Singaporeans to purchase new houses and apartments. Increases in income can only come from higher economic growth.”
“Even Japan, which has not experienced any unemployment to speak of, is now facing a so-called 'high' unemployment of 2.75%. If the Japanese worry, we had better start doing so ourselves. Lower economic growth would also mean lower income and, therefore, lower spending power. Our shopping complexes and eating houses would not have been as full as we have experienced in the past year. In other words, the multiplier effects of lower growth in our major economic sectors would have adversely affected all other sectors. All these were, however, mercifully avoided with our economy achieving a 6.3% growth rate. Everybody in Singapore has, in fact, been asking, "Where is the recession?" Our young workers therefore have yet to experience the painful problems of trying to secure jobs, because jobs are still abundant. Singaporeans in general still feel as prosperous and happy as in the year before. One other favourable factor was the low rate of inflation brought about by lower oil prices as well as those of other major commodities. This was unlike 1974-75 when we were hit by both recession and high inflation. All in all, therefore, we have fared well by the Government's far-sighted economic policies and the ability of our people to react to rapidly changing circumstances. One lesson we should perhaps learn is that, in the face of difficulties, we must become more efficient in order to survive. For example, we have been able to export most of our manufactured products over the years and remained competitive. However, with dropping external demand, buyers have become more selective and price conscious. Other producers have recognized this change and responded by improving their own products in both price and quality.”
“Mr Speaker, Sir, I would like to join the other hon. Members in supporting the financial policy outlined by the Minister for Trade and Industry for the coming fiscal year 1983-84. The Minister has, in his customary sober manner, painted a realistic picture, although somewhat less cheerful than we expected, of our economic performance in the past year. The world-wide recession has taken a very heavy toll on the economies of most countries, developed and developing, including Singapore. In particular, our manufacturing sector, which has been the mainstay of our economy for the past decade, was hard hit by falling external demand as well as increasing protectionism practised by developed countries which used to take large shares of our domestic exports and are now looking inward to source the supplies from their own manufacturers. Even tourism growth which has averaged more than 10% in the last 10 years or so had also fallen to 4.5%. Our growth would have been much worse if not for the Government's efforts in stimulating construction in both the public and private sectors. The buoyant construction activities have demonstrated, once again, that the Government's economic diversification policy has paid handsome dividends. If not for our contribution by Construction, our economic growth would have been halved. The conse- quences of lower economic growth are not yet apparent to many Singaporeans, especially the younger ones. Lower growth would have meant less job creation and therefore higher unemployment, as the labour market is not able to absorb all the new entrants, as well as provide alternatives to all those who have been retrenched. This is now being experienced by most developed countries, some with an unemployment rate of as high as 10%.”
“Sir, I will take on the Minister another time and show him the books that we got from the extension service. I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $22,710,190 for Head J ordered to stand part of the Main Estimates. The sum of $20,117,000 for Head J ordered to stand part of the Development Estimates. Head W - The following amendments stood on the Order Paper Supplement:”
“Sir, I beg to move, That the sum to be allocated for Head J be reduced by $10 in respect of Subhead JE-05 Project 8101 of the Development Estimates. Sir, the National Library has a Master Plan to introduce libraries in the major housing estates. But since the construction of these libraries has to take some time, the National Library has also provided an extension service whereby library books are loaned to smaller libraries in community centres for the readers until the new libraries are completed. What I would like to find out from the Minister is whether we can improve the library extension service in terms of giving a greater number of books to these smaller libraries in the community centres, and also to make sure that the books sent to these smaller libraries are not old and out-dated. That is what I have understood from those who are using the libraries at the moment.”
“Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“It is a subject of some concern that this increase has not been evident in the registration of medical practitioners in Singapore. If we look at the position for nurses, it is not very healthy either. In 1977, we had about 4,000 registered nurses. By 1981, it increased to only 4,650. And even for assistant nurses, the figure for 1977 was 1,007, increasing to 2,000 last year. If we do not have sufficient manpower in terms of doctors and nurses, then the pace of development of a medical centre is bound to raise the cost of medical treatment. Is there a possibility for the Ministry of Health to look into increasing the supply of doctors as well as nurses? For example, can we admit more foreign doctors, especially those with qualifications that are acceptable here? This should be one way to relieve the supply situation as well as to inject fresh talent and expertise to this area. We have in the course of the past five to eight years built up a reputation for being one of the best medical centres in this region. It would be a pity if we were to lose it by having charges that are beyond the reach of even the more well-off patients from the surrounding areas, not to mention that local patients will also suffer just as much because they are looking towards the same doctors for service. Sir, I would be grateful if the Minister for Health can enlighten the House on this.”
“Sir, I beg to move, That the sum to be allocated for Head P be reduced by $10 in respect of Subhead PA-01 Object Group 1100 of the Main Estimates.* Sir, the Government has in the last several years been actively promoting Singapore as a regional medical centre. This is logical because medical services is something that we can provide efficiently with our increasingly sophisticated facilities as well as skilled manpower resources available. Partly because of this promotion and the relatively high standard of medical services, the demand on our medical services from nearby countries has been increasing very rapidly. This has two potential side effects. First, it may raise the cost of medical treatment for both local and foreign patients because when demand outstrips supply, price mechanism sets in, especially in a state where demand is high and supply is short. Second, if the charges are too high, it discourages foreign residents from coming to Singapore, thereby defeating the very purpose of our developing Singapore into a regional medical centre. As we can see, it is quite simple and easy to introduce facilities as evidenced by the new hospitals and the medical centres that are being established in the last several years. The question is whether there has been a corresponding increase in the supply of doctors and nurses to keep pace with this increase in demand. Based on the statistics on the registration of medical practitioners, in 1977, there were 1,679 doctors on the register. By 1980, the figure reached only 1,771. By 1981, there was at least a more sizable increase to 1,991, bearing in mind that every year our university turns out about 120 to 130 doctors.”
“Sir, I beg to move, That the sum to be allocated for Head T be reduced by $10 in respect of Subhead TC-04 Project 8105 of the Development Estimates. Unlike the Member for West Coast, I have much more cooperation from the Public Works Department than he has and some of the projects mentioned by the Minister of State for National Development have, in fact, come to my constituency. Perhaps the PWD has mistaken Clementi for West Coast! But in the age of computers the Public Works Department has not fallen behind and it has introduced the computerized Area Traffic Control System costing some $12 million. What I would like to know from the Ministry of National Development is whether there has been any substantial relief in traffic congestion in the city with the implementation of this computerized area traffic control system, especially at major junctions. Are there any indicators that can show this improvement or otherwise? We all know that sometimes at these major traffic junctions when human beings take over in the form of traffic policemen, the congestion got worse. I wonder whether the computer has got any luck in doing better than the human beings. Also, if the system is successful in the city area, whether there is any plan to extend this control system beyond the inner city limit and, as the Member for Moulmein has suggested, perhaps we can extend this traffic control system to Moulmein constituency so that the traffic congestion can also be alleviated.”
“Mr Speaker, Sir, find it strange to see that the Ministry of Trade and Industry can produce the statistics on 2nd March on the unemployment rate and we have to wait till June to see the Labour Force Survey. But I look forward to receiving a copy of it from the Parliamentary Secretary should and when it is ready. Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The following amendments stood on the Order Paper Supplement -”
“How much of it is due to economic downturn influenced by world recession and how much of it is due to our policy on economic restructuring? Arising from this slack, is there any requirement or need for retraining because we cannot assume that labour is completely mobile? In particular, workers who have been displaced from the lower skill industries may require retraining before they can be absorbed by industries which have a higher skill content. This is important, otherwise we may find pools of workers who do not belong to either the labour-intensive industries or the relatively higher skill industries. If this pool of labour, if it exists, is not completely substitutable in terms of skill and experience, we would have to depend on the import of certain categories of foreign labour for some time to come, especially those with higher skills who will have to continue to work in our factories. Is there, therefore, a policy by the Ministry of Labour to differentiate foreign labour according to their skill levels? This is especially so at the artisan and technician levels where because of the long time needed for the training programmes that we ourselves are implementing, it will be some time before we can meet the supply or demand by our various industries. I hope the Minister of State for Labour can enlighten the House on these various matters.”
“Sir, I beg to move, That the sum to be allocated for Head R be reduced by $10 in respect of Subhead RE-01 Object Group 1210 of the Main Estimates. Sir, the Minister for Trade and Industry in his Budget Statement this year indicated that that there is a slackening of labour demand because of both the economic downturn in Singapore as well as policies arising from economic restructuring. The annual Economic Survey also shows that the unemployment registration rate has increased by 1% over last year to 3.9% at the end of 1981. We are in an enviable position as being one of the few countries in the world which worries about a rise in unemployment rate of 1%, while other countries more endowed than us have to worry about increases ranging from 5 to 10%, which is also a demonstration that our workers are much well looked after than those in other countries. In an overheated economic situation, the tightness of the labour market is detrimental to economic progress because it induces high wages without a corresponding increase in productivity as well as frustrating training attempts by employers who want to impart better skills and higher skills to their workers. The present trend of a slight rise in the unemployment rate is, ironically, a welcome relief to both employers and workers. It is also quite possible that part of the productivity improvement in 1981 was due to workers having to worry about their jobs and, therefore, stayed longer in their particular workplaces. What I would like to address the Ministry of Labour is, where does this slackening of labour occur? Is it in the trained labour area or does it involve relatively unskilled labour?”
“If we can extend other regulatory measures, such as the Area Licen- sing Scheme, as practised in the city area, to other areas or at other periods, we may be able to postpone the inevitability of the Mass Rapid Transit because it is a heavy investment, claiming resources which could be better put to other sectors. I believe that the bus services in Singapore have not been given the kind of attention that it deserves. Perhaps with sufficient support, the bus services could provide a service - it may not be to the satisfaction of everybody concerned - but it will be within the means that we can afford.”
“Sir, we were informed in the House last year that as a result of the Hansen Team's study on the MRT, another study was embarked upon to look into the possibility of an all-bus system as an alternative to the MRT. I think those of us who have travelled abroad will note that traffic congestion in Singapore does not seem to be very serious compared to other cities in this region and also those in the industrial world. In fact, even in cities which are already served by MRTs the congestions are very much worse than those we have to face in Singapore. Apart from this, the operation of mass rapid transit has also resulted in heavy losses for almost every transit authority including Hong Kong. The cost of constructing the MRT is becoming more and more expensive and because of the need for resources in other priority sectors, such as housing, education and so on, I wonder whether this is an appropriate time to review our decision to proceed with the Mass Rapid Transit system, especially when we bear in mind that in the next few years there will be a heavy demand on resources for construction required for the various development projects that the Government is embarking upon. Separately, if we can devote some of the resources earmarked for the MRT, which is estimated to cost some $4 billion at 1979 prices, or if part of these resources can be diverted to improve the bus services including infrastructure, such as bus stations, terminals, rolling-stock, would it not be possible to alleviate some of the more serious traffic problems in certain areas? It is a matter of usage and the time of use is causing congestion at the moment, not so much the road capacity that we are having in Singapore.”
“Sir, I thank the Minister for Finance for his reply. I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. 7.00 p.m.”
“And if their hardware is manned by inexperienced systems programmers there could be a grave danger of computer frauds being perpetrated by those who know how to run computers better than they do. As in all things, there will be a lead time in providing the necessary manpower. What I would like to address the Minister is whether he can tell us what is the extent of the present shortage of computer manpower. How and when this shortage can be met, apart from those that have been announced recently in the press by the NCB. Is there any way in which a part of this shortage can be ameliorated by getting expertise from abroad on a temporary basis, for example, as turn-key projects where they supply the technical manpower as well as the hardware and software? Can corporations and institutions be given some incentives to employ such expertise from abroad to overcome this problem? Is it possible for the Skills Development Fund to consider granting some kind of subsidy or grant for this category of technical manpower? There can also be a further requirement for major manufacturers of computer hardware, when they import their equipment into Singapore, to also provide as a matter of contract some training to our local personnel so that they would not just be selling equipment but in fact equipping the buyers with the wherewithal to run them. We appreciate that the NCB is doing its best in what is now becoming a very overheated situation in the computer services industry. But if we can give certain incentives for the corporations to at least minimize the impact of these shortages, it will be a welcome relief not only to those in the private sector but also to those in the public sector as well.”
“Sir, I beg to move, That the sum to be allocated for Head N be reduced by $10 in respect of Subhead NB-01 Object Group 3110 of the Main Estimates. Sir, I must first apologise to the Member for Telok Blangah for breaking his monopoly to speak on computerization in this House. Sir, when the National Computer Board was established the Finance Minister, in his Second Reading speech on the National Computer Board Bill, stated that one of the responsibilities of the Board is to guide the growth of the computer services industry in Singapore. While it is relatively simple to get the hardware and software from abroad, it is quite another matter to train the staff, whether it be systems analysts or programmers, to use this hardware and adopt the software to local requirements. The fact is that in Singapore now the computer hardware and software introduction has far outstripped the supply of needed manpower required to man them. This was aggravated by companies and institutions in both the public and private sectors who opted for more computer aids because of the need to conserve manpower costs as a result of wage increases in the last several years. It is also a consequence of our policy on economic restructuring to introduce more automation and mechanization. As a result, in many areas now computer systems analysts and programmers are at such a premium that they demand much higher wages than the job actually required. Moreover, the turnover rate amongst computer trained staff is extremely high. This has proved to be quite upsetting to corporations which need computer personnel to develop a longer-term computerization programme for their own operations.”
“Mr Speaker, Sir, I am most impressed by the Parliamentary Secretary's answer, He has given me information even though I have not asked for it, for which I am most grateful. I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“The scheme should allow for a movement of school children back to schools nearest their homes, as and when these new schools are completed. This will involve moving children back to new schools which are nearer them and have their places taken up by those nearby. I think an option can also be given to those school children who decide to stay on in the schools even though they are further away from them because they have adapted themselves to the educational environment and the teachers. If possible, can the Ministry consider mounting this exercise at the end of this year when it is more convenient to do so or, if it is logistically possible, do it half-yearly as and when the new schools are completed?”
“Sir, I beg to move, That the sum to be allocated for Head L be reduced by $10 in respect of Subhead LC-01 Project 8101 of the Development Estimates*. The Housing and Development Board in moving out its major housing estates to suburban, and now rural, areas has generated a very large demand for school places, especially in primary schools, as the number of school-going children increases in these housing estates. This is also compounded by the fact that relatively younger families have moved away from their old homes into new estates. We were informed earlier in the House that it will take some time for the school building programme to catch up with the demand. In the meantime, pending the completion of these new schools, school children are allocated temporary places in all kinds of schools, some of them in secondary schools, others get crammed into existing schools which have to open a lot of new classes for them. Still others have to be sent to schools three to five kilometres away. Because of the priority system adopted by the Education Ministry as well as the different times of entry of the population into these HDB estates, a situation has now developed where children staying near certain schools have instead to go to other schools a few kilometres away from their homes, whilst students staying further away go to the schools nearer their own homes. This has generated a lot of additional cost in transportation as well as inconvenience for some parents. Many parents accept this as a temporary solution because they realize that it will take some time for schools to be completed. I am wondering whether the Ministry of Education can devise some kind of a reallocation scheme which will rectify this anomaly.”
“Otherwise we get ourselves into a vicious cycle for as we push for further development in both the private and public sectors we will get mired deeper in spiralling cost increases which is particularly hard for the public sector to bear, especially in the public housing programme where income ceilings of the public are not as flexible as those who can afford to buy private sector properties. 5.03 p.m.”