Cedric Foo Chee Keng
Singapore
“Chairman, indeed digital technology will be a key enabler for a brighter future for Singapore. Listening to Senior Minister of State, Ms Sim Ann, Senior Minister of State, Dr Janil and Minister Iswaran, I am sure my colleagues share my view that we are in good hands.”
“Chairman, some months ago, we had a healthy discussion between Mr Pritam Singh and myself about POFMA; whether the Judiciary is best party to act, or whether the Executive branch is better placed to act on the issuance of Correction Notices. I think the recent COVID-19 outbreak is a good example of when to use POFMA.”
“Mr Chairman, my cut is to ask about the tangible benefits to citizens and local businesses arising from our Smart Nation initiatives. Digitalisation has opened up new possibilities for businesses and for our society.”
“I am also particularly concerned with school children from lower income families who may not be able to afford a computer or broadband access at home. In today’s learning environment, a computer and broadband access are like "paper and pen" of the past and, therefore, no child should be denied that.”
“Chairman, this question is for Minister Chan. Historically, many Government agencies and Ministries design systems and processes from their points of view. I think the public will be well served if Government agencies can think "the other way around" and try to design processes from the citizens' or businesses' points of view.”
“Yes, probably the last engagement to give others a chance to speak. POHA is for private matters, and if somebody felt that they had been harassed, as a private individual, they will go to the Courts.”
The complete record
Every one of 423 lines we hold for Cedric Foo Chee Keng, in date order, each linked to its source. Free to read, in full, without an account. Page 4 of 9.
“Madam, I join Mr Sitoh Yih Pin in paying tribute to the many fine men and women when they tackled SARS and when they lifted the nation out of the crisis. I also recall that at that time, we had the Courage Fund. I would like to ask the Minister if we have used it well to recognise the many contributions of these fine men and women. 1.30 pm Madam, as our population grows and ages, many people will require access to primary healthcare facilities. In Jurong West, for example, the population has grown significantly, and we have seen a corresponding rise in the demand for primary care. The nearest polyclinic for Jurong West residents is at Jurong East, and many elderly residents find it very inconvenient to get there. The waiting time at Jurong East Polyclinic has also increased. Could I ask the Minister to consider setting up a new polyclinic, perhaps at Pioneer constituency and near the transport hub there? Madam, the Community Health Assistance Scheme (CHAS) is an excellent one. With a stroke of the pen, MOH increased the access for needy residents to primary healthcare. They no longer need to visit just polyclinics, but they can visit private GPs as well. However, the number of private GPs who have signed up for CHAS remains limited, especially in Pioneer constituency. So, I would like to ask if the Minister can work on this and see if more GPs can sign up. Secondly, a suggestion to extend CHAS to dental care: whether that can be done, or is it already done? And if so, can more dental clinicians be brought into this scheme? Polyclinics”
“I would like to ask the Acting Minister if he feels it is appropriate for essential services, even beyond statutory issues, that MOM be proactive rather than passively receiving complaints, whether he will consider things like human resource best practices audits of Page: 25 essential services companies, and whether the intelligence aspects can be improved as well.”
“I want to thank Minister Yaacob and Minister of State Dr Amy Khor for their replies. They have covered a broad canvas from air to water, to waste management, to pollution, to public health, to mosquitoes – the male ones, the female ones, the Cayman Island, Malaysia – and so forth, and in many of these areas they have done well. We want to commend the Ministry for their achievements but, at the same time, we urge the Ministry to set even bolder targets. And why? So that we can bequeath to future generations a more beautiful and a more pristine Singapore. With that, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $727,030,500 for Head L ordered to stand part of the Main Estimates. The sum of $410,964,400 for Head L ordered to stand part of the Development Estimates. Head O – Ministry of Health”
“I would like to ask the Minister about electric cars in Singapore. Does he have a sense of how much they will cost and how successful they will be? Assoc. Prof. Dr Yaacob Ibrahim: As I have mentioned in my reply, MTI has replied earlier that they are trying this out. We really do not have a feel for it at this point in time but the pilot is being tested together with EMA. NEA is supporting this process. I think when the time is right, we will make public whether or not this programme is successful.”
“Do we need an Energy and Emission Bill now so that our companies can start in earnest to prepare to meet carbon emission regulations coming out of future international regimes on climate change? Lastly, on cars, would the Minister update us on the review for the Green Car Rebate and would something be done for environmentally-friendly diesel cars? Green vehicles”
“Sir, Singapore imports almost all our resource needs especially energy, and we heard that during the MTI debate just now. With prices of energy likely to remain volatile and, in fact, many expecting it to go up, we should have a comprehensive strategy for energy efficiency. This is to manage the demand side, targeted not just at individuals but also at our industries and businesses as well. This is especially important as the efficient use of energy will enhance our cost competitiveness and allow us to develop more sustainably. I am glad that the Government has implemented measures to encourage energy efficiency for consumers and businesses such as energy labelling of appliances, as referred to by Dr Teo Ho Pin, co-funding the training of energy managers for companies and tax rebates for green cars. Can the Minister update the House on what is our overall progress on energy efficiency to date and the measures that I have discussed earlier, and what are Government's plans going forward? Since energy efficiency ultimately results in reduced electricity bills, how do we encourage our citizens to save more money? Discouraging the purchase of inefficient appliances which may be cheaper to purchase but end up costing more to the household in the long run due to higher electricity consumption may be one way. Labelling, as Dr Teo Ho Pin talked about, will enable consumers to make informed choices. But I would like to suggest that we move a step further and to make mandatory minimum energy efficiency level for all major appliances before these can be sold in Singapore. In other words, maybe take away those that do not have a tick or just one tick. What about our industries? Is there any more we can do to spur our companies to be more energy efficient?”
“The Government, therefore, should do all it can to help households and businesses to become more environmentally friendly. Can the Minister give an update to the House on what more the Government will do to help ensure we continue developing at a sustainable pace for the years ahead? Water resources”
“Sir, I beg to move, That the total sum to be allocated for Head L of the Estimates be reduced by $100. Sir, sustainable development is about growing the economy while preserving the environment so that today’s success and development are not achieved at the expense of tomorrow’s and we meet the needs not only of the current generation, but also the needs of generations to come. It means economic development with fewer resources and waste, without polluting the environment, while preserving the nature we now enjoy. I am glad that the Government has made environmental sustainability a priority, and a key milestone was the release of the Sustainable Singapore Blueprint in 2009. Could the Minister tell us about the progress Singapore has made in developing sustainably over the last few years? Could the Minister also illustrate our achievements for each of the various sectors like households, transport and industry? I note that some business owners are less inclined to devote resources towards developing and implementing environmentally-friendly initiatives as they see environmental degradation as something which is borne by the public at large, that is, a negative externality. Hence, there is a market failure. But the quality of our environment should be maintained because the environment is fundamental to every part of our daily lives and well-being. A clean environment is the basis for our health. The environment and the economy are also closely linked. Clean healthy communities are more prosperous and vibrant. They attract people looking for a place to live or set up business. Resource-efficient businesses are more competitive and resilient.”
“Sir, it was good to hear the Minister affirming loud and clear that Singaporeans, so long as they hold on to their jobs, can aspire to own their homes, and the Government is committed to high ownership of homes in Singapore. I want to thank the Minister, Senior Minister of State Grace Fu and Senior Parliamentary Secretary Dr Mohamad Maliki Osman for their replies, explanations and insights in this debate. With that, I withdraw my amendment. Amendment, by leave, withdrawn. That the sum of $1,030,798,017 for Head T ordered to stand part of the Main Estimates. That the sum of $5,659,240,100 for Head T ordered to stand part of the Development Estimates. Head V – Ministry of Trade and Industry Building capability of companies”
“Sir, I would like to thank the Minister for his replies. I would like to raise the subject of rental housing again. If I hear the Minister correctly, he said that the subsidies that the Government provides for a single rental unit amount to something like $100,000 over 10 years. That is a lot of money that goes into subsidising the rental units. Secondly, if I hear him correctly again, he said that those who are in the queue for rental flats, about 90% of them, had owned an HDB flat before, or majority of them had owned an HDB flat before and had subsequently sold the flat. There are two possible responses. One is to build as many rental flats as there is demand for them and I suspect this is a bottomless pit. That is just to meet the symptoms of it. The other way is to look at the root causes. I feel the root cause of this is probably those who have owned a flat before but had then subsequently sold it and they are now in the queue for rental units. Could we then channel this $100,000 per rental flat subsidies – or even half of that – into higher subsidies to enable first-timers to buy a flat on the condition that they keep the flat for a longer period of time?”
“Mr Chairman, the results of the URA Lifestyle survey show that 83.8% agree or strongly agree that Singapore is a great place to live, work and play. Interestingly, almost 30% of respondents also identified participation at signature events such as the National Day Parade and Marina Bay Countdown as events that make Singapore special. Marina Bay has endeared itself into an important hub for Singaporeans as a venue associated with celebrations and national identity. To tourists and the international community, the iconic skyline featuring the Marina Bay Sands, Singapore Flyer and even the race route for the Formula One night race have become part of what it meant to visit Singapore. Endearing as it already is, I understand that Marina Bay today will not be the same in one or two years from now. I would like to request the Minister to update the House on the various new attractions that will add to the vibrancy of the Marina Bay. Sir, for the Concept Plan 2011, I do have some similar questions as Dr Lim Wee Kiak. We know MND will launch it very shortly. Can I ask the Minister about the planning parameters that will go into this concept plan? What is the assumption, particularly on the resident population, for the purpose of city planning this time round? Would we see some shifts, for example, more "work activities" in the east of Singapore and more "live activities" in the west of Singapore? How do we tackle the very important public transport needs into the future? Ultimately, how would future Singapore look like? How would it feel to live here in 10, 20 and 30 years' time? Can the Minister share his vision with us?”
“Elderly-friendly amenities, such as barrier-free movements, transport facilities, access to nursing care, delivery of basic amenities and monitoring of single elderly who live alone, etc, could be relevant considerations in the estate rejuvenation exercise planned for the next 10 years. Sir, a variety of options and solutions can be considered for the various mature estates on the island, where both the community and Government organisations can partner one another to devise ways to plan for the next phase of Singapore's urban development. This will have significant implications on whether the 25% of our population will experience a "grey" or a bright "silver" lifestyle by 2050. Minister Lim Boon Heng has also spoken on this. Can Minister Mah expand on this subject, please? Remaking Our Heartland”
“Mr Chairman, Sir, the budget this year has provided $10 billion to upgrade homes and rejuvenate estates over the next 10 years. Would the Minister elaborate on some of the estate renewal programmes in store for Singapore? Which estates have been identified as potential areas for rejuvenation and what is the proposed time-frame to complete them? Sir, the Government has also announced that the Lift Upgrading Programme (LUP) will be completed island-wide by 2014 - three years from now. And also now that the Main Upgrading Programme (MUP) has been replaced by the Home Improvement Programme (HIP) and Neighbourhood Renewal Programme (NRP) respectively, when would both HIP and NRP be completed island-wide? So far, the Ministry has not clarified on this issue. What are the criteria for selecting estates for prioritisation under such renewal programmes? Sir, let me move on to discuss Urban Planning, especially for the elderly. The theme of "people-centric" urban planning was raised in the last report of URA Focus Group on Quality of Life. URA has said that this theme will cater to diversity while being elderly-friendly. The URA Lifestyle Survey found that 78.5% of the population prefers to stay in regular housing in old age. This highlights the need for existing HDB estates to "grow old" with its residents to facilitate "ageing-in-place", so as to maximise the active ageing process and minimise unnecessary dislocations of communities from familiar surroundings. Sir, considerations should also be given to ways to "rejuvenate" certain estates with larger proportions of ageing residents by introducing younger families to prevent the development of "grey enclaves".”
“In some instances, it may be prudent to avail to certain families a higher SHG in return for a longer Minimum Occupation Period (MOP) so that they do not sell their flats prematurely. Would the Minister consider such an idea?”
“I understand from HDB's annual report last year that about 2,000 of such flats have been completed. This means that another 5,000 will come on-stream in the next two to three years. This may be necessary as interim housing to alleviate hardships but, as a long-term objective, I feel strongly that Singapore's social fabric would be weakened if we allow our home-ownership ratio to drop as we build more rental flats. Rental flats are heavily subsidised as we all know. I feel it is much better for MND to channel such subsidies into higher housing grants to aid home ownership rather than through the rental system. Therefore, I was particularly heartened when the Finance Minister announced the Special Housing Grant (SHG) which is over and above the Additional Housing Grant (AHG). These grants, taken together with Workfare, and other measures the Government has put in place to help lower-income Singaporeans, will help them own their homes. Sir, I am reminded regularly of the plight of families when their flats are sold and they have no choice but to appeal for rental flats. I can see how disruptive it is, especially for the school-going children. They often had to withdraw from their present schools, only to start all over again in a new estate and the uncertainty looming over their heads about when they will get this rental flat. Now, this state of affairs is often presented as fait accompli when they visit their MPs. Would the Minister consider setting up a Home Ownership Promotion Unit whereby HDB counsels potential HDB lessees who are contemplating selling their flat? Its role will be no different from the Health Promotion Unit.”
“I would like to discuss the subject of rental flats. This House has heard from Members that many residents are appealing for rental flats. The queue for rental flats seems to be getting longer. Anecdotally, many of these appellants for rental flats had owned HDB flats before but they had subsequently sold, sometimes not just one but two, previously owned flats because of financial difficulties or other hardships. As Minister Mah said, a high home-ownership ratio has distinguished Singapore from other states. This is particularly important when Singapore was newly independent back in 1965. I would argue that in the context of nation building, 46 years is but a brief history in time. On that count, Singapore is still a newly independent state and we still have many new citizens in our midst and I believe that we would do well to continue to strive for a high home-ownership ratio. It is heartening to hear the Minister affirming this goal for Singapore. In 2009, URA did a survey and 95% of the respondents stated that they prefer to own their accommodation, while only 4.9% prefer to rent them. This demonstrates that Singaporeans still aspire to own their homes rather than to rent them. Home ownership has many advantages other than creating a sense of belonging for the populace. As our country progresses, the value of flats will appreciate gradually over time and this value can be unlocked in old age whether through downgrading, renting out a room or the Lease Buyback Scheme. All good things to have provided one owns the flat and do not sell them prematurely. Mr Chairman, Sir, the Minister announced last year that HDB will be building 7,000 more rental flats over the next three years to increase its stock to 50,000.”
“But if they have prudent financial planning, if they can wait for the BTO flats, and HDB can assure them that these are forthcoming, then I think we would have addressed most of the concerns of Singaporeans. Mr Chairman, Sir, let me next ask some questions on the new Special Housing Grant (SHG). I note and welcome it for low-income first-timers. This was announced by the Finance Minister in this year's Budget. It will cater to families with household income below S$2,250 per month who purchase a BTO flat. However, no details were given at that time. Can the Minister elaborate on the size of such grants that a typical eligible household will receive and how many families in Singapore would stand to benefit from this new scheme? Stable property market”
“Can the Minister re-affirm the above? 1.15 pm Next, I want to talk about universal housing. Mr Chairman, Sir, let me take this scenario I just painted further, and ask the Minister a pointed question. And knowing Minister Mah, I am sure the House will get a similarly pointed reply. Is MND prepared to say that "Universal Housing" is a policy objective for Singapore? In other words, every eligible family in Singapore will get to own a flat. Of course, to avoid moral hazards, perhaps we could state unequivocally that all eligible working Singaporean family would eventually own a flat in Singapore. I think if we can say that, the worries of Singaporeans will be addressed. Sir, if I could do the math for a young couple with household income of $2,000 per month. They can enjoy the Additional Housing Grant of $35,000. If they have worked for five years, then the family would have accumulated a balance of about $28,000 in their CPF Ordinary Account. So that is more than $60,000 in grants and CPF savings. I checked out the website and a new 3-room BTO flat in Sengkang now sells for about $180,000. If we take away $60,000 from $180,000, the balance of $120,000 to be financed through a HDB loan will yield a monthly mortgage payment of $468. So, this family which earns about $2,000 household income, would have monthly CPF contributions that can go to pay the mortgage payment. Deducting from CPF, the monthly mortgage payment is actually only $8 in cash each month. If we include the recently announced Special Housing Grant, the flat will be even more affordable. The contention is that many Singaporeans feel that resale flats are unreachable because the resale flat prices have been bidded up with COV, and so forth.”
“Secondly, we have elected to sell instead of rent out these flats. Because of this policy to sell flats, HDB has also assumed the role of a mortgage loan financier and holds a loan portfolio of more than S$40 billion as of 2010. Thirdly, HDB has sold flats at "market prices (with a subsidy)" rather than "at cost (with a discount)". So there are three basic policies: firstly, the public sector to develop flats for the general public; secondly, to sell, rather than to rent out these flats; and, thirdly, to sell at market prices rather than at cost. Can the Minister comment on the effectiveness of these three basic policies? Was Singapore well served by them? How have these policies evolved over time? Would the HDB devolve more public housing roles to the private sector? What is a realistic long-term owned flat to rental flat ratio? Would HDB step back as a mortgage loan provider? Is selling at market prices still the way forward? Sir, I believe that if we re-visit these fundamentals, explain them fully and re-affirm them, then many of the worries and concerns of Singaporeans about the short-term price gyrations of the resale market will be assuaged. New HDB flats are built exclusively for Singaporeans (and their Permanent Resident spouses). Singaporeans with high incomes and foreigners are ineligible to buy these flats. So, if the HDB prices these new flats out of the reach of this addressable market, which is Singaporean households, then no one else will buy them. Under such a scenario, would HDB not be forced to reduce the prices of these new flats to be in line with eligible Singaporean household incomes? If the above is indeed true, then the anxiety of Singaporean parents about whether their children can afford their own flats would be largely unfounded.”
“Mr Chairman, Sir, I beg to move, That the total sum to be allocated for Head T of the Estimates be reduced by $100. Sir, the subject of housing has been discussed in this House many times. Yet, discussions on this subject continue – in the coffeeshops, the newspapers and the Internet. Singaporeans are understandably concerned with recent increases in the price of resale HDB flats. Parents worry for their children. They feel helpless as resale prices spiked. They asked: "Can my child ever afford a flat here in Singapore?" Most of these concerns had arisen over the past couple of years, post-global financial crisis of late 2008. But this is a period of extreme volatility and a confluence of factors had caused the sharp spike in HDB resale prices – low interest rates, high liquidity, lack of alternative investments, and so forth. It would have been good if HDB have had a pipeline of supply to inject into the market at that time. Forecasting is a hazardous business, and that was not to be. However, to put the matter in perspective, Singaporeans should be very proud with Singapore's track record on public housing. Going back a little into history, the vision of our founding leaders to sell flats to early immigrants has enabled them to sink roots here. Singapore's high home ownership ratio is the foundation upon which this nation was built. As of last year, about 80% of resident population lives in HDB home-ownership flats. Also, the quality and sterling maintenance of our public flats are the envy of many countries. In arriving at where we are today, the way I see it, the Government has abided by three basic policies. Firstly, the public sector, which is the HDB, has been largely responsible for developing flats for the general public.”
“Sir, I would like to ask the Deputy Prime Minister if he would recommend to the manufacturer to look into the redundancy issue. The Apache has two engines and, as I understand it, it can fly with one. But if both engines can fail at the same time, then the issue of redundancy has not been properly addressed. My follow-up question is: would the Minister comment on how our pilots perform when both engines failed on them?”
“However, I would like to know if there are any steps to discourage any frivolous complaints to the Council. I am sure we do not wish to see tremendous resources being wasted in investigating frivolous complaints. 4.32 pm”
“Otherwise, they may end up no better than someone selling "koyok ", the traditional medicine, and before you know it, they may stand at street corners beating the gongs to attract customers. Since salespersons are now required to undergo training, may I ask if there are sufficient qualified training service providers to run the courses? I also wish to know what measures will be taken to keep these courses affordable for the real estate salespersons, to encourage them to keep honing their skills and knowledge to cater to their customers' needs. And, what about the need to continually update and upgrade themselves since there will be new regulations and other laws being amended from time to time? Also, within the industry, there are currently many grievances spanning a wide range of topics from false marketing to Cash-Over-Valuation pricings, salespersons conniving with buyers or sometimes sellers to give a false price and con one party for the benefit of the other. There are also salespersons who would sleaze themselves into a deal and then flip the property for a tidy profit, depriving the owner from getting a better price. I hope the Council will be strict in enforcing the rules to clean up the industry of the variety of malpractices. Improving the calibre of our housing salespersons through proper professional policing will certainly enhance the image of the real estate industry. I hope the real estate salespersons can be counted on to stand up and face the challenge like the insurance agents, many of whom are now practising as financial and wealth planners. With the bright outlook for the real estate industry, I foresee even more people joining this industry in the years to come. In fact, I have already seen many young professionals becoming salespersons.”
“From feedback I gathered, there are quite a number of housing salespersons who are foreigners. I do not doubt their ability or integrity, but would they be in a position to advise on local laws relating to property purchase matters? After all, the information they need to know is not simply limited to the buying and selling of the house itself, but extends to many other non-housing specific issues, including loans, parental grants and CPF, not to mention local cultural sensitivities and beliefs. I would like to suggest a minimum domicile period in Singapore of a few years for foreigners before they may enter the industry. This measure will also ensure that our local salespersons will not be put out of job. Competition among housing salespersons has become increasingly intense. While competition is good as it encourages salespersons to provide better services to customers, it can also result in salespersons using underhand tactics to close a deal, or going aggressively to market themselves. Walk past any HDB estate in the morning and you will most probably see the floor near the letter boxes littered with fliers of different shapes and sizes advertising the services of various property salespersons. And yet these fliers are not limited to being shoved into the letterboxes. Residents have complained of fliers being slipped under their doors and stuck onto their gates, and also on car windscreens. Clearly, such aggressive marketing is an indication that the competition among housing salespersons is extremely intense. I hope the Council will establish guidelines for these salespersons to raise their level of professionalism and bring some prestige to those in the industry.”
“Also, it would be helpful for industry practitioners to understand what the new mandatory industry examinations would be like. How will they be different from the current industry examinations? There will also be a lot of interest to understand the content and the purpose of the Continuing Professional Development module which has been prescribed as six hours per year. The last point that I would like to raise is the introduction of what is called a "standard form" to replace customised Commission Agreements between a Principal and Salesperson. Can the Minister also elaborate on this particular aspect? With that, I support the Bill. 4.25 pm Er Lee Bee Wah: Mr Speaker, Sir, I support the introduction of the Estate Agents Bill, which I am sure will also be welcomed by not just the practitioners but all who have dealings with them. This is especially for those who intend to buy or sell their properties. A property purchase, be it an office unit, a HDB apartment or a landed house, is a significant financial transaction. Often, it is the biggest ticket item we transact in our lifetime. To many, the procedure and the process are complicated. There are important deadlines to be met and contractual obligations to be complied with, failing which the deal will fall through. Therefore, it is essential to ensure that salespersons are sufficiently qualified to educate their clients on the transaction process and that their services are of the highest standards befitting the commissions that are to be paid to them when a deal is successfully concluded. The Bill allows anyone, including foreigners, to enter the industry. It is very easy for one to become a licensed property salesperson. All he needs is to undergo the required training and qualify for certification.”
“The Minister has also highlighted that there will be exemptions made for those who had already passed industry examinations (eg, the Common Examination for House Agents (CEHA) or Common Examination for Salespersons (CES) and the National Skills Recognition Scheme). This would be very helpful for existing practitioners. Also, those who do not have such qualifications will be given up to one year to complete the examination. I would like the Minister to clarify that this one-year period will commence only from the date of the introduction of the examination, rather than from the introduction of the Bill. There is one other area which concerns the registration of salespersons and this criterion relates to undischarged bankrupts and those with past criminal records. I would like to urge MND and CEA to adopt a "Yellow Ribbon spirit" when faced with such reviews. Just because someone had a previous business failure or committed a minor crime many years ago, we should not automatically disqualify him from the trade. Many of these people deserve a second chance, so a balance has to be struck between helping these people get back on their feet and consumer protection on the other hand. Also, can the Minister explain how the registration fee for each salesperson at $230 per year, as I understand it, is arrived at? Would he assure salespersons that these fees would be kept as low as possible? Would he also consider charging a fee for consumers who bring cases for dispute resolutions under the Bill. This will prevent frivolous and vexatious cases as well as defray some of the costs involved in such processes. If any of such cases were later found to be with merit, such fees can be refunded in full or in part.”
“Mr Speaker, Sir, the Minister has explained quite clearly the reasons for the new Bill – the rising number of complaints against agents, the need for consumer protection as the purchase of a home in Singapore is often the largest financial investment for many individuals here, and the lack of criteria for salespersons. Also, as a fact, only about 6,000 out of 30,000 salespersons have passed industry examinations. Sir, as the Minister has highlighted, the objectives of the new Bill are to protect consumers and also to upgrade the professional standards in this sector. These are important objectives which I support. The establishment of a new statutory board – Council for Estate Agencies (CEA) – is a timely move. What is quite significant about the Bill is the removal of dual representation of a single salesperson for both the buyer and the seller. This removes the "conflict of interest" that is inherent with such practices today. This is a good thing and it will enhance consumer protection. However, there are certain questions that I would like to raise and I hope the Minister can address them. It is heartening to note that in transition to the new Bill, certain provisions are provided such that existing practitioners can adapt and will not be denied a livelihood. So I support the arrangements made by the Ministry of National Development (MND) to help existing salespersons by exempting them from the new minimum requirement of four GCE "O" level passes. However, for new practitioners, I would like the Minister to elaborate on the need for four GCE "O" levels and whether or not there are other equivalent qualifications that such persons can meet before they can be registered.”
“Sir, I thank the Senior Minister for his reply. I have a supplementary question which is to ask the Senior Minister for his take on how the international climate change regime will evolve. How long would it take and in what form?”
“Sir, in Budget 2008, Minister Tharman announced the revision of the special tax for Euro-IV diesel cars. As a result, since July 2008, the annual special tax for a Euro-IV diesel car will be computed based on $1.25 per cubic centimetres of energy capacity, subject to a minimum of $1,250 a year. This is an improvement compared to what was previously four times of the equivalent road tax for a petrol car. Notwithstanding the revised diesel tax, 99% of the passenger car population in Singapore still runs on petrol, while cars running more efficient engines including diesel IV and V are still a small minority. Sir, to encourage the use of "greener" vehicles, I would like to propose to the Minister to change the current special diesel tax in favour of taxes to be "charged at the pump" based on volume usage rather than at a flat rate per car per year. This seems to me to be more appropriate because in other words, what we are doing would be to make the tax a variable tax which translates to a variable cost to the driver rather than a fixed cost, just like what we do for petrol taxes. This would be consistent with the goal of minimising car usage and, more importantly, such taxes "charged at the pump" is also consistent with our goals on energy conservation as well as environmental protection. 3.45 pm However, if such a scheme is implemented, I would urge the Ministry to also consider the effects that it may have on the incomes of our taxi drivers, most of whom are using diesel vehicles, to ensure that they are not adversely affected by it. Road tax”
“Mr Chairman, I would like to thank Minister Yaacob and SPS Amy Khor for their comprehensive replies. I also like to congratulate them especially for the ABC Water Programme which was very well received by the public. Sir, with that, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $769,773,400 for Head L ordered to stand part of the Main Estimates. The sum of $321,100,800 for Head L ordered to stand part of the Development Estimates. Column No : 3462 Head O – Ministry of Health”
“Because unless we get some of the large food outlets to adopt some of these practices, it is very difficult for us to achieve the last two or three points that we want in terms of our recycling target of 60%.”
“Sir, I would like to ask the Minister to address the question which I raised, which is whether or not there are best practices in recycling in other cities which we can adopt in Singapore. Assoc. Prof. Dr Yaacob Ibrahim: Sir, my apologies. Of course, there are. In some other cities, for example, there are laws to mandate food recycling in some outlets. We have studied across many different types of cities, from Tokyo to Melbourne, to London, and see what are the best practices we can adapt to Singapore. So, in fact, some of the things that we are doing now are not new. They have been adopted in some other cities like Sydney and Melbourne. I do not have the list here. After today, I can pass it to Mr Foo some of the ideas that we have learned from other cities. But having said that, the thing that we have to remember is that of course every city differs. In the case of Japan, there is a law to mandate the recycling of e-waste. Automatically, when you buy an electric appliance, for example there is already a built-in cost in which you have to recycle that television set or whatever to the same company that you buy because they are obligated to pick it up. So these are some of the things in which we have to study because there are impacts on the business sector in Singapore. But having said that, on some on these things, we will be consulting the various stakeholders in Singapore on what is the best way for us to move forward. I mentioned food waste just now as one of the areas that we want to target. The legislation that is available in other countries may be too onerous for our companies but we have to study what is the best way for us to do this.”
“Sir, our approach could begin with concerted efforts and programmes to educate and motivate Singaporean homes and businesses to use energy-saving alternatives such as LED or compact fluorescent lamps (CFLs). A systematic approach could be made to encourage the HDB and other developers to use energy efficient light sources and gradually increasing conversion rates within existing homes. Sir, I note that not much has been done in this area and I am told also that, for example, in Indonesia, the government is considering the issue, in certain cities, energy-efficient light bulbs so, perhaps, we could do something along those lines. Or issue a voucher for them to redeem energy-efficient light bulbs. This could be part of the U-Save Programme. Sir, my next point is about air-conditioning in public areas. It was rather amusing to read a letter in the Straits Times recently entitled "It's too cold for comfort" written by Loren Howerton. She described her discomfort with the temperature levels in Singapore's cinemas, libraries and offices, despite growing up in Alaska where temperatures there can plunge to minus 40 degree Celsius. Six other similar letters followed regarding the same subject on air-conditioning in Singapore. To quote one of the Forum writers, Lee Hunsen, "What we need here in Singapore is ventilation, not refrigeration." So, could the Minister comment on how we could impose a more sensible approach to recommended temperature settings on our thermostats in public places to ensure both comfort as well as a reduction in our energy consumption and carbon footprint?”
“One suggestion would be to re-design the current common rubbish chutes to improve the rate of recycling in a more effective way. Sir, visitors to Japan are often impressed by the cleanliness of the country – their Shinkansen (trains), streets, estates, their very high social ethics etc. Japanese commuters have developed very strong recycling ethics and practices to discard all their packaging items into recycling bins. Could the Minister comment on whether there are any plans here to equip our hawker centres, food courts and other public places such as MRT stations, parks, places of interest with convenient and effective recycling facilities? I believe more could be done to increase the coverage and effectiveness of our recycling processes. Also, I believe that many cities – for example, in Japan, Europe and Australia – are ahead of Singapore in terms of recycling. Could the Minister outline what these cities are doing and whether or not we can benefit by studying from them and what are the practices that are in place now in these cities that are also practical for Singapore? Energy efficiency Sir, my next area involves energy efficiency. I would like to ask the Minister to elaborate on our efforts to increase the usage of energy-saving equipment and appliances, both in households and in industries. Are there plans to replace all incandescent light bulbs, for example, through public awareness programmes or even an outright ban, as in the EU and Australia, for very high energy-consuming appliances? As early as 2007, the Australian Federal Government announced minimum energy performance standards (MEPS) for lighting products to cut down greenhouse gas emissions.”
“Mr Chairman, Sir, I beg to move, That the total sum to be allocated for Head L of the Estimates be reduced by $100. Sir, I will first talk about climate change. I note that Singapore's support of the Copenhagen Accord and our longer term target of meeting the 16% reduction below BAU by 2020. Singapore also has a commitment to improve energy efficiency by 36% from 2005 levels by 2030. However, these are very long-term targets – 2020 is 10 years away and 2030 is 20 years away. I wonder if it would be good for the Ministry to share with the House and to outline more concrete medium-term milestones, say, targets for the next three to five years. It is important to do that as I feel that the climate change regime will come upon us. It is a question of when, and the earlier we can get our industries to adapt, the more we can mitigate the effects of the changes that will be upon us. 5.00 pm Sir, could the Minister also give details on how Singapore will achieve these mid-term targets? In other words, what needs to be done by our industries, our transport sector and our households, so that we can start the changes now and see how they track with these mid-term targets. Chairman, my next area is on recycling. The overall recycling rate in Singapore stands at about 57% in 2009. This is encouraging but it also highlights the potential for further improvement. While there are systematic ways of collection at HDB estates, these are manual and cumbersome. Very often, well meaning residents who make efforts to recycle discarded bottles, cans, etc, have to store these items in their homes till the once-a-week collection takes place or they have to bring down to the lift landing and sort them out. This process penalises those who make efforts to recycle.”
“Sir, thank you for your indulgence. Indeed, the Minister, the Senior Minister of State and his team have given us comprehensive replies. I would like to thank them on behalf of the GPC. Also, I totally agree with the Minister when he shared with us that Singapore's entire skyline has been transformed. Every time, I pass the city, I can see the new skyline emerging – you have the Marina Barrage, the Sail Condominiums, the Promenade and soon the Gardens by the Bay, my two beloved "durians" of the Esplanade, you have the Marina float, the Helix Bridge, the Flyer. These, I think, would not be possible without the passion and the dedication of the fine men and women at MND. They have made us proud. With that, Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $1,066,357,600 for Head T ordered to stand part of the Main Estimates. The sum of $6,077,864,200 for Head T ordered to stand part of the Development Estimates. Column No : 3312 1.45 pm Head V – Ministry of Trade and Industry Capitalising on recovery”
“Sir, one very quick question. The Minister has lamented the fact that a lot of prospective buyers like to choose flats that are in the right location, near a MRT station, with the right view, and so forth, and those flats with poorer attributes are not selling as well. Is it a question of pricing? Are we not pricing them correctly which is why flats with poorer location and attributes are not selling?”
“Sir, can I use up the entire four minutes?”
“The Minister was talking about how to make HDB flats affordable last Friday and also in reply to Mr Ang Mong Seng's question. I would like to ask if it is possible to make the DSR progressive for 3-room, 4-room, 5-room, etc. In other words, the DSR for a 3-roomer should be lower than a 4-roomer and 5-roomer. What is the Minister's view on that?”
“Sir, can I just ask a couple more short questions?”
“Sir, it is interesting to listen to the Minister talking about the Concept Plan 2010. I would like to ask the Minister about the planning norm that has been used for the Concept Plan, as regards the end-state population for Singapore and also the pace at which this population growth was assumed.”
“Sir, we are encouraged by the prospects of greener building. The pilot case in Punggol, dubbed the "Eco-town", is a good example. The use of solar panels, rain water recycling, modern energy and waste management methods, are developments that would be welcomed at HDB estates nationwide. Could the Minister share with us some of the measures taken to use modern building technologies for HDB estates under construction to create more sustainable communities? As quick wins, for example, have we mandated energy efficient fittings and recycling chutes for HDB new projects? It would seem timely for the Government to put out a plan for Sustainable Green Buildings in general, both HDB or otherwise. Following the launch of the Sustainable Singapore Blueprint in April last year, could the Minister provide an update of the measures to improve energy efficiency in the building sector, especially with the large stock of the existing buildings?”
“Can the Ministry share with us what are some of the measures the Government will put in place to help the industry move towards technology adoption and reduce our reliance on foreign workers. Besides precasting and modular design, is there anything else that we can do to improve productivity? Is there any grant to help the designers upgrade their computer software and hardware? I must declare my interest as a design engineer. What else can be done in terms of capability building? Certainly, we hope that the transformation will not be translated to higher costs and more expensive flats.”
“Sir, we heard during the Budget debate that when benchmarked with other countries, our construction sector is lagging in productivity to a larger extent than other sectors in our economy. With the latest $250 million shot in the arm for the construction sector, by the way of the National Productivity Fund, can the Minister elaborate on initiatives that are planned to facilitate the industry's transition to greater use of productive building methods and technologies, a point which my colleague, Mr Heng Chee How, has mentioned? Will measures be in place to incentivise local contractors who embraced more productive building techniques and also how do we support those impacted by the increase in foreign worker levy? Er Lee Bee Wah (Ang Mo Kio): Sir, the construction industry has of late been in the limelight. Today, because it has kept pace with the times through upgrading, substantial precast system has been used. It is good. However, with the rapid building boom in the last few years, the industry is once again struggling, trying to find its feet as job demand outstripped this capacity to cope. The result: an industry that became somewhat bloated with foreign workforce, including foreign workers, foreign engineers, foreign architects and foreign construction firms. With imminent revision of foreign workers' levy, will the industry players take a hard look at their manpower needs and invest in training and capability building or will just simply price in the cost? The construction industry has always been perceived as labour intensive, highly reliant on foreign workers with low productivity. The ESC has recommended that measures are needed to encourage investments in technology and innovation.”
“Thank you, Sir. It is good to know from the Minister that there is a staggered downpayment scheme, but this applies to young couples – if I understand it, either of them below the age of 30 years old – purchasing a new HDB flat and, in that case, their LTV will be at 90% and they can pay 5% upfront at, I guess, booking, and the last 5% on collection of keys. But for couples who are buying a private property, that would not apply to them because they will be taking a bank loan, so they will have 80%. So, I would like the Minister to also address that group of people as well as those who are buying resale flats, in which case the staggered downpayment does not really address it. Can I take the other one as well, very quickly? My point on COV is not to control the overall market price. If you like, there is a valuation and there is a COV, so this is the total price that a particular buyer needs to pay. The problem is that if the COV grows, the buyer can only finance the basic valuation without the COV, so there is a financing burden to him. My suggestion of having more frequent data releases is to reduce the COVs, so that he is more able to finance it but not necessarily to try and control the overall market price.”
“Sir, I thank the Minister for addressing many of the points that I have raised and even agreeing to one or two of them. But nevertheless, there were two points which I had raised which the Minister had not replied to. One of these is the Loan to Value (LTV) ratio. I have recommended that we allow young couples who are getting married, one or both of them, say, less than 32 years old, buying their first owner-occupied homes, to be able to have a LTV that is higher than the average base now allowed by MAS, which is, I am suggesting 95% and not the 80%. My second point relates to the COVs. The Minister talked about COVs, that it is inevitable – they rise sometimes, they may fall. The point I was making was: how do we keep the COVs as low as possible? Not by interfering with market forces but by providing the market with more prompt data. As I understand it, HDB today provides transaction prices for resale flats quarterly. So, my point is, if we can do this, say, monthly, would the market be able then to reflect better valuations, thereby having a smaller gap between the transacted price and the valuation price which may result in lower COVs. Could the Minister help us address this point?”
“Sir, for the past 20 years, the Ethnic Integration Policy (EIP scheme) has had the good effect of ensuring a healthy mix of races within HDB estates. This has been effective in preventing the formation of ethnic enclaves within the community. Approximately half a million permanent residents now own 5% of HDB flats islandwide .and their purchases in the HDB resale market are subject to the EIP programme which applies to both Singaporeans and PRs. The HDB announced in January 2009 that it was considering, over and above the EIP, a separate ethnic quota for PRs. I would like to seek the Minister's update on this particular subject. Also, it seems that the category of "Indian/Others" is growing since immigrants from Sri Lanka, Bangladesh and Pakistan are all classified as "Indian/Others". In addition, people like Filipino as well as Myanmese are also classified as "Indians/Others". Would the Minister update and consider increasing the "Indian/Others" quota – up from the 10%-13% currently? Social integration and permanent resident distribution”
“So, I would like to know if HDB can improve the "price recovery mechanism" by disclosing transaction of past HDB resale flats prices more regularly. I understand HDB does so quarterly today. Finally, I would like to make a plea for second concessionary loans for downgraders. This has been something that this House has discussed many times but have yet to be successful. Demand and supply of affordable HDB flats”
“In a rising property market, valuations of properties lag behind the prevailing prices, which is climbing day by day. If valuations were conducted "real-time", that can be done. Then they should reflect that prevailing transacted prices and logically there should not be a Cash-Over-Valuation. The reason that Cash-Over-Valuation has happened was because of the lack of the timing of valuation versus the market place happenings.”
“In order to reduce the supply lead time, another method which may be worth considering by the Ministry, is to construct a "base load" of units under Build-to-Sell (BTS) scheme rather than Build-to-Order, in other words, you build ahead of demand, but only a base load. This base load could be determined, for example, by looking at past demand and drawing a line where it is a "safe level" of supply across the property cycle that will be met with demand without inundating the market. If you do that, this will become a ready stock for prospective HDB buyers. Then, the BTO scheme which is really constructing to demand, can then be layered-on to meet fluctuations of demand at each stage of the property cycle. I would like the Minister to consider whether this is viable. Some people consider the inability to afford the cash downpayments or cash-over valuations as an "affordability issue". I see this more of a financing issue and this leads me to my next cut. Financing of HDB flats Sir, MND and MAS have reduced the Loan to Value (LTV) from 90% to 80% recently for all buyers – private properties as well as bank loans. I would like MND to consider allowing newly married couples under the age of say 32 years old, who are buying their first owner-occupied homes, to be able to obtain a higher LTV, of say, 90%-95% if they pass credit evaluation test. This is a group of buyers who has a genuine need for a first home and they are clearly not speculators. Also, because they have many years of working career ahead of them, they could repay these loans better than older couples and their DSR will decline over time as most would enjoy some degree of salary increases. The other issue is COVs, this is the other "bugbear" which has been bothering many prospective buyers.”