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.”
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“The positive comments received thus far are indeed a testimony to our progressive training methodologies that develop our soldiers to meet the exacting standards of physical and combat fitness and soldiering skills. Mr Chairman, Sir, I thank Mr Alex Chan for his concerns on the commitment of our youths to National Service. MINDEF conducts regular surveys to see where our youths stand in the defence of Singapore. Our surveys show that commitment levels to defend Singapore remain high, at more than 90% of those surveyed. The vast majority has strong support for National Service (NS) and Total Defence. This is comforting for all of us. Notwithstanding these encouraging results, MINDEF has spared no effort in continuing to strengthen youths' commitment to national defence. For example, MINDEF holds regular security seminars and organised visits to SAF units, including SAF open houses, for students in our junior colleges, centralised institutes, ITEs and polytechnics. These events are very popular and well attended by the students. Similar programmes are also organised for all trainee teachers graduating from the National Institute of Education as they help imbue the values of serving NS to our school children. MINDEF recognises that the commitment of our NSmen is related to their NS experience. Therefore, we are committed to enhance their experience in NS. We regularly review our NS policies to ensure that they remain relevant to the changing environment. We do not keep our full-time National Servicemen any longer than it is necessary to meet the SAF's operational needs. For this reason, amongst others, we have reduced full-time NS duration from 2 1/2 years to two years from December last year.”
“Our regular servicemen, full-time National Servicemen (NSFs) and NSmen (operationally ready national servicemen) are required to maintain a defined level of physical fitness. We use the Individual Physical Proficiency Test (IPPT) to assess their fitness. First implemented in 1980, the IPPT system has undergone regular review and has been benchmarked against other military forces to ensure that it remains current and relevant to our needs. I am pleased to report that the physical fitness of our regular servicemen, NSFs and NSmen has been good. Over the last five years, an average of 80% of these NSFs and NSmen, who participated in IPPT, obtained at least a pass in the test, with 47% attaining Gold or Silver awards. NSmen who fail their IPPT would also be made to undergo progressive remedial training. While the IPPT assesses fitness at the individual level, the SAF has benchmarks to evaluate the fitness and operational standards of both our active and NS units at the organisational level. Such evaluation is done on a competitive basis among SAF units. Examples of such competitions are the Annual Best Unit Competition and Best NS Unit Competition. NSmen, NSFs and regulars in the participating units are subjected to the same rigorous assessments and are required to fulfil various test factors, such as the Combat Proficiency Evaluations which measure combat fitness. The SAF also continually benchmarks against other professional military forces through participation in multilateral and bilateral exercises. Feedback on our soldiers from such exercises serves as a good gauge of their physical fitness and combat endurance.”
“In addition, equity is one of the key principles of our NS policies. It would not be fair to defer those studying overseas to complete their university studies before enlistment, when this is not allowed for those who pursue local university studies. If we do so, it will undermine support for NS amongst our people and unravel the very foundation upon which the security and stability of Singapore is built on. Sir, the Member has argued that NS default rate will fall if we allow NS-liable males to defer their enlistment and remain overseas for an extended period of time until they complete their Bachelor's degree, Master's degree and so forth. I am not sure about that. MINDEF's policy is to enlist them at the earliest opportunity when they reach 18 years of age. During these two formative years in NS, our men share a common rigorous training programme, bond as a team and exercise as a cohesive fighting force. They begin to understand the limitations and needs of the nation, make common sacrifices and contribute to nation-building and the defence of the country. They literally grow up together and this bonds them to their comrades and to our country. I believe that requiring them to return to serve NS with their peers early in their lives and avoiding extended stay overseas would actually reduce NS default rate, and not increase it. The facts will bear this out. The total number of NS-liable males asked to return after their overseas high school but defaulted in the last five years averages about four a year. Sir, Mr Chay Wai Chuen asked about the fitness level of our NSmen. Physical fitness of individual serviceman is critical to the operational readiness of the SAF.”
“We could do this, from an operational viewpoint, because this group of students is very small as most students would enter university after they reach 18 years old. Dr Tan Cheng Bock has suggested that the provision for deferment for overseas university students be further relaxed so that more overseas university students can defer enlistment. Let me explain why this is not desirable. Sir, NS-liable males are enlisted at the earliest opportunity upon reaching the age of 18 years old. We require them to perform NS while they are young and fit, as this allows them to better withstand the rigours of military training. Sir, if we liberalise the deferment policy further until they complete their degrees, regardless of their age on enrolment to both overseas and local universities, then some 5,400 or 20% of our NS-liable males will be enlisted at a much later age - 22 years old or so. They will generally find it harder to keep pace with the rigours of military training. Our operational readiness will be affected. NS is a significant phase in the life of young Singaporean males. It marks the transition from adolescence to adulthood. Enlisting a cohort of NS-liable males after they have attained the basic educational qualification, and in their formative years, allows them to undergo a shared collective experience in NS and establish stronger bonds within their cohort, before they embark on their further studies and careers. These strong bonds are an integral part of NS. They form the basis for the camaraderie and comradeship which makes for a cohesive fighting force. If we allow NS-liable males who are pursuing overseas university courses to serve NS at an older age, they would find it much harder to fit in with the younger cohort who are enlisted together with them.”
“From December 2004, all full-time National Servicemen (NSFs) are enlisted for a period of two years. The training systems for units and commanders have been adjusted to take into consideration the shorter effective deployment period. With a shortened full-time NS duration and a more compact and optimised NS training regime, we will naturally have less flexibility to grant disruption. However, a shortened NS period will also mean that there is less need for disruption because many more NSFs will be able to complete their NS before proceeding for higher education than was the case before. There should not be any case of NSFs who would proceed for higher education later than they do before the reduction in NSF duration. The principle we will continue to adhere to for disruption is that of equity by school cohort. This means that we will allow NSFs of the same school cohort to commence further studies in the same academic year. This will ensure that NSFs who are enlisted later are not disadvantaged in their pursuit of higher education vis-a-vis their peers of the same school cohort who are enlisted earlier. The disruption guidelines are now being finalised and will be disseminated to the unit commanders and NSFs once they are ready. Sir, MINDEF currently allows those who have commenced overseas university studies before they reach 17 1/2 years old to complete their first degree. This is because we only enlist NS-liable males at the earliest opportunity upon their turning 18 years of age, and we would not want this group to have to wait unduly for enlistment if they had already commenced university studies before 17 1/2 years old.”
“The value of the offset work the contractor gives out would also often not be priced based on true market value, but what the contractor deems it to be worth. Our experience in the 80s showed that the higher cost of procurement will negate the benefits received. For example, as part of an offset for defence purchase, one of our local companies was offered the opportunity to manufacture an aft door for a commercial aircraft in return for our defence procurement. The offset credit value would include items such as huge chunks of the non-recurring R&D costs that the contractor has invested over the many years. In addition, as it turned out, our local company would be making a loss for each door that they produced. So, although there is new work for our local company, it was experiencing negative benefits. The company therefore even explored outsourcing the work to China! The lesson that we learnt is that our companies must be fundamentally competitive in their own right. Sir, we have since discarded the practice of offsets and have no plans to reintroduce it. Straightforward, clean and clear contracts ensure that we get good value for money. In this way, our contractors could be held accountable for the primary product that they are to deliver, and would not be distracted by trying to fulfil peripheral offset requirements. Additionally, waste and leakages from complicated and obscure offset arrangements are also avoided. 12.15 pm Mr Leong Horn Kee has asked about the progress of the two-year NS full-time programme and prospects for NSFs to disrupt their NS for further studies. The two-year full-time National Service (NS) duration was implemented smoothly with an immediate reduction of two to four months for in-service personnel since last July.”
“This rapid diagnostic system has been used to diagnose and type dengue virus infections, and will be used for typing the bird flu virus as well. The company will sell affordable rapid molecular diagnostic systems to all users. Finally, on defence technology, let me assure Dr Teo Ho Pin that MINDEF has been focusing on defence technology development since 1972, some 33 years ago, when 'ETC', the predecessor of DSO was set up by Dr Goh Keng Swee. Today, DSO and DSTA have over 2,000 highly capable and committed scientists and engineers. They also offer many scholarships each year to ensure a 'pipeline' of talents so that we will not only remain at the cutting edge but continue to produce our own secret-edge measures and counter measures. Sir, Dr Wang Kai Yuen has asked some very thoughtful questions about offsets in defence procurement. Unfortunately, MINDEF's experience with offsets in the 1980s was not encouraging. Our experience showed that the benefits accruing from offsets are much less than they appear to be on the surface. The price of the product would inadvertently be raised and, often-times raised disproportionately to the benefits received by us by way of offsets. Our experience showed that the contractor could mark up the price by as high as 7-8% in return for their offset obligations. This amount goes towards the administration and funding of such offsets. Essentially, we would have to pay for what we get. So Dr Wang's initial reservations about offset programmes are indeed well founded. The large offset credit values quoted by the contractor look appealing. However, the actual benefits that the purchasing country gets would only be a fraction of it. For example, a contractor might multiply his cost by a factor as high as 10.”
“Its high throughput diagnostic services were used to test clinical samples. This high throughput capability will be extremely useful in other outbreaks such as the bird flu, if it should come. In the recent tsunami, DMERI was the first field public health laboratory to deploy at Banda Aceh, as part of the SAF's humanitarian relief efforts. One of the threats facing the survivors of the tsunami was an outbreak of infectious diseases, following the destruction of public health infrastructure there. The World Health Organisation warned of diseases such as cholera, malaria and dengue fever. DMERI established a field microbiology laboratory in Banda Aceh alongside the SAF medical team. The laboratory supported the medical doctors by providing laboratory tests for infectious diseases and for water samples to ensure potability. It also shared the laboratory data and experience with the teams from WHO which were coordinating the public health relief efforts. Dr Warren Lee also asked about R&D relating to the smaller Asian body frame. In order to ensure proper man-machine interface with our smaller body frame, DMERI conducts human factor studies for SAF equipment development and acquisitions. An example of the benefits of such studies is the SAR 21 assault rifle, which was developed indigenously in Singapore. Mr Ravindran and Dr Warren Lee want to know the scope for the commercialisation of our defence R&D. Let me state that the primary mission of MINDEF's R&D outfits is for the defence of Singapore. However, where defence technology can be transferred to private entities to benefit public health in general, our outfits will do so. An off-shoot of DMERI's infections research is the establishment of a bio-tech start-up company based on its invention of a microfluidic bio-chip.”
“Also developed for our hospitals during the SARS period was the "Contact, Track and Trace" system. This was based on Commercial Off-The-Shelf Radio Frequency Identification Technology. So, as proposed by Dr Warren Lee, Commercial Off-The-Shelf or COTS technology is used whenever practicable. Recently, in the tsunami relief operations, a new product of ST Electronics, a mini VSAT satellite communications terminal, was also rapidly fielded. The mini VSAT satellite allows video streaming between the remote parts of Aceh and Singapore. Sir, Dr Warren Lee has also asked about the Defence, Medical and Environmental Research Institute (DMERI). This is a division of DSO. Amongst others, it conducts R&D in chemical and biological defences to enhance the safety, survivability and performance of our soldiers. Examples include studies to mitigate heat load, management of heat stroke, studies to identify the genes that cause myopia, soldier injury prevention and combat care. In the chemical defence area, DMERI is the national authority representing Singapore in the Organisation for the Prohibition of Chemical Weapons (OPCW). It is one of 16 internationally designated laboratories of the OPCW. It conducts tests on samples of chemical poisons and toxins, as part of Singapore's contribution to the international efforts against proliferation of chemical weapons. DMERI also supports the Police and SCDF to test and verify both chemical and biological environmental samples. DMERI has also been assisting the Police in testing letters believed to have contained anthrax - post 9-11. During the SARS crisis, DMERI assisted the Ministry of Health to identify and characterise the SARS virus in its bio-safety-level-3 (BSL3) laboratory.”
“Hence, we have started to align the development of our defence industry capabilities to support the new demands of the 3G SAF. Each year, the more significant achievements are publicly recognised through the Defence Technology Prize award. For example, one of the winners last year was the team from ST Engineering that developed an indigenous Air Bursting Munitions System (ABMS). The ABMS enhances the SAF's effectiveness in urban operations, an area of concern raised by Dr Teo Ho Pin. It would enable our soldiers to engage more effectively in built-up areas where the adversaries may have the advantage of fighting from behind windows, on roof tops and at corner of buildings. Last November, MINDEF and the SAF organised a defence technology exhibition called 3G SAF TechX, specially to showcase many of our R&D achievements. This included our capabilities in comprehensive awareness, precision strike, unmanned operations and network-centric warfare. MINDEF's strategy to leverage on collaborative partnerships with the local defence industry has also borne fruit. The partnership with ST Engineering has allowed MINDEF and the SAF to progress from being a pure buyer to one who has the ability to integrate and adapt systems from a wide variety of sources. This partnership has brought about the local development of systems to meet our specific needs, such as the Primus self-propelled artillery and our naval frigates. It has allowed us to develop a strategic capability to respond robustly and quickly to deal with unforeseen situations. One of the best examples was when we developed the Infrared Fever Sensing System, more commonly known as the thermal scanner, which was deployed at all our checkpoints during the SARS outbreak in 2003. This was done all within a week.”
“Sir, on behalf of the Defence Minister, let me, first, address the comments raised by Mr Ravindran, Dr Warren Lee and Dr Teo Ho Pin on defence technology. Defence technology is a crucial force multiplier to overcome the constraints of a small country. Over the years, we have built up defence technology capabilities in the Defence, Science and Technology Agency (DSTA), DSO National Laboratories, the Temasek Laboratories and Singapore Technology Engineering. Although DSTA, DSO and the Temasek Laboratories conduct the bulk of the defence R&D, we have also established partnerships with our local universities and research institutes to tap on all available talent pool to carry out the more upstream research. We also collaborated with foreign R&D partners from countries such as the US, France, Israel, Sweden and the UK to complement what we can do on our own. To ensure that our defence R&D funds are prudently invested, there is a dedicated agency, DSTA, to manage the investments and ensure that we invest in areas with potentially high pay offs for defence. The R&D agency best able to deliver each of the pay offs is contracted by DSTA to conduct the R&D, whether it be the DSO, our local defence companies, the laboratories in our educational institutions or foreign agencies. In the coming years, the key priority for MINDEF and the SAF is to transform our fighting force into the third generation (3G) SAF. Advances in areas such as sensors, communications, networks, precision weapons, unmanned systems, modelling and simulation, open up many new possibilities. It is not so much individual platforms but the synergy from networking different platforms, sensors and weapons that will give the SAF much greater potency on the battle field.”
“Yes, we will do our best to see how we can resolve any dispute between the contractors and the households. PUBLIC SERVICE COMMISSION AND FIREFLY SCHOLARSHIPS The following Question stood in the name of Mdm Ho Geok Choo - 13. To ask the Prime Minister and Minister for Finance (a) how many of our students on PSC and Firefly scholarships have guarantors who are not their parents and what are the reasons for their parents being disqualified as guarantors; and (b) how many incidents of non-fulfilment have led to guarantors being liable subsequently.”
“The Member is correct. The number (20), which Imentioned just now, is the number of cases that sought compensation, not rectification works. If we combine those who sought rectification works as well, indeed, only 3.6% of the number of units -which to us is 3.6% too many,and we are trying to reduce that - or 118 cases require rectification works, of which the contractor has rectified 106 cases. So the majority has been done with. Twelve of them have requested for rectification works to be done after the Chinese New Year period. I suppose they are being carried out right now.”
“Sir, there are a total of 20 cases in the Sengkang/Punggol area which have sought compensation from the contractors. Out of the 20 cases, eight of them have already been compensated, with 12 cases still under negotiation with the contractors. I suppose the main point is what is the extent of damage. So long as the house owner is reasonable in his demands for rectification works, the contractors would normally oblige. Also, if they need alternative accommodation -some of them have large families with in-laws with them and so forth - and if that need is clear, the contractors will oblige as well. So, in rare cases, where the tenants are more demandingand they want to be compensated more thanthe damagethat they haveincurred, this is when there may be a stalemate. In such situations -whichare very few, only 12 casesremaining -HDB can assist to see what is reasonable.”
“HDB also requires a demonstration of tiling work method to be done in the presence of the HDB consultants' project engineers and site supervisors before the tilers can carry out the actual works. In addition, HDB has specified the use of only pre-approved tile adhesive which is more durable than the conventional cement and sand binder for laying of floor tiles. For ongoing premium flat contracts where floor tiling works have just commenced, HDB has replaced the conventional cement and sand binder with the new tile adhesive. Miss Penny Low (Pasir Ris-Punggol): Sir, are the compensations granted on an automatic basis and according to a particular schedule or through a process of negotiation? I understand from residents that, currently, HDB allows the contractors to negotiate directly with the affected residents. As a result, depending on who is a better negotiator and, in some cases, who is the fiercer negotiator, the person gets an upper hand and the compensation is agreed upon as such. This resulted in unequal treatment for similar cases even if the defect occurred just a few doors apart. Could the Minister clarify whether this should be the modus operandi and whether residents can seek further recourse should they find out that they have actually had a really bad deal?”
“Sir, popping tiles are likely to be caused by localised poor workmanship during installation. In most cases, the tiles dislodge due to poor adhesion. The tiles then become hollow when tapped upon and they tend to pop out. Such defects are latent in nature and are usually not detectable at the time of completion of the flats. According to HDB, four contracts in Sengkang and Punggol design-and-build and design-plus type of contracts completed between 2001 and 2003 are affected by this problem. When popping tiles occur innew flats, HDB will work closely with the building contractors to carry out rectification works quickly so as to minimise the inconvenience to the flat owners. If the dislodged tiles are due to poor workmanship, it is the responsibility of the contractors to repair the defects at no cost to the flat owner. The compensation given by the contractors would depend on several factors, amongst which the degree of rectification works required, the impact on the existing fittings and fixtures that are already installed. And if the repair works involve replacement of all the tiles in a particular room and the removal and subsequent reinstatement of fittings and fixtures in that room, the owners might have to stay elsewhere temporarily. For such cases, the contractors would consider the owner's request for compensation for the cost of alternative accommodation. Sir, the more important point is preventing the recurrence of such defects. HDB has specified the use of only skilled tilers for all its building projects since January 2004. These tilers would need to have the skills evaluation certificate from the Construction Industry Training Institute and be equipped with the knowledge to carry out proper tiling works.”
“Sir, the Prime Minister has announced that to meet the needs of our aging population, we will need to speed up lift upgrading, and we will try to complete the programme in 10 years for all eligible blocks, budget permitting. Lift upgrading is an expensive programme which involves major structural works to a HDB block. The Government has to ensure that the resources for lift upgrading are used prudently and effectively and therefore have to prioritise the lift upgrading programme accordingly. We will continue to review the programme including exploring the use of innovative solutions to increase its cost effectiveness. The provision of lift upgrading for low-rise blocks is something that the Ministry of National Development is currently looking into and we will announce more details on how lift upgrading programme will be speeded up and how blocks will be prioritised for the programme during the Committee of Supply debate. HOUSING AND DEVELOPMENT BOARD FLATS (Popping tiles) 12. Miss Penny Low asked the Minister for National Development in view of the phenomena of popping tiles in relatively new design and build or premium HDB flats, what are (a) the steps taken to rectify the problem; (b) the type of compensation can affected residents expect; and (c) the steps taken to prevent similar occurrence in future.”
“Sir, as I have said in my answer to the Member, we will review the levy rates regularly to ensure that they will not be higher than the market subsidy that we will be giving for the second subsidised flat, particularly for those who are living in smaller flats, which is consistent with our objective that we want to encourage those who live in smaller flats to upgrade. So we will review those rates regularly. STATE LAND (Prohibition signs) 4. Mr Zainudin Nordin asked the Deputy Prime Minister and Minister for Law, in view of efforts to encourage our citizens especially the young to be involved in outdoor recreational activities and sports, why are there still prohibition signs or boards on open state land even though these lands are not earmarked for projects for long periods of time.”
“Sir, we want to give a subsidy for all first-time homeowners, which is one of the key objective of our housing policies. So I would not agree that we will not give a subsidy for the first flat. We will not impose a levy on the first flat either, as I have said before, only unless they come back for a second subsidised flat.”
“The resale levy is not to take back the original subsidy. The original subsidy was given to the flat owner who bought the first subsidised flat. He decides when to buy and what to buy. Whatever profits he makes, he can keep all of them. Actually, the Government has no intent to recoup the first subsidy. What the resale levy does is to reduce the second subsidy for those who come back, after having enjoyed one subsidy, to have another bite of the cherry again. Therefore, the original purchase price is not relevant.”
“Sir, for people like that, there are many other options available to them. In other words, we should not confuse that with allocating more subsidies specifically for this group of people, who have, in many instances, speculated. For example, they have the option of buying a smaller resale flat where they do not have to pay for the resale levy at all. And in extreme cases, of course, under our universal housing policy, rental housing is also an option for them. I do not think we should confuse how we allocate the second subsidy with how we want to help this particular group of people because there are other options open to them.”
“Sir, let me repeat the policy intent of the resale levy. As the Member would agree, there is a limited amount of public housing subsidy that the Government would give out each year. Our first priority is for the first-timers, those who have not enjoyed any subsidy from the Government to start with. Therefore, those who come back for the second bite of the cherry, we must ensure that they are not allocated more than their fair share since they have already enjoyed one subsidy. If we were to entertain the Member's suggestion, ie, if you make a loss, you do not have to pay the second levy, that means you will get another big bite of the market subsidy for the second subsidised flat that you are buying. Using such a basis would really be quite inequitable. In the extreme, I think those people who are forced to sell are those who have over-leveraged - they have bought homes larger than they could afford. In the event that they make a loss on the first home, if we take the Member's suggestion, they will be entitled to another second bite again. I do not think we want a policy that will encourage people to speculate and to over-consume. So I think the most equitable way is to let the flat owners take personal responsibility and make prudent financial planning for their first subsidised flat. And for those who are living in smaller flats who have not enjoyed a big subsidy, to start with, to encourage them with this graded resale levy system for them to upgrade and have a second small bite of the cherry. We should not treat how well they have invested as a condition to allocate the second subsidy. I think that will not be consistent with the policy intent.”
“Sir, as I have said, the resale levy is to ensure that the second subsidy that a person gets is reduced because he had already enjoyed the first subsidy. Basically, the Government's position is this. We give you one subsidy to buy your first subsidised flat. When you buy it, how large a flat you choose, how long you stay in it, how much first subsidy you receive and whether you make a profit at the point of sale of the first flat are not so relevant to the allocation of the second subsidy. What the resale levy seeks to do is to reduce the second subsidy when you come back to have a second 'bite of the cherry', in other words, to enjoy the market subsidy of the second HDB subsidised flat which you intend to buy. So as a proxy, we have used the resale value of the first flat and take a percentage of it so that this amount would be subtracted from the market subsidy which is implicit in the sale price of the second subsidised HDB flat. That is the purpose of the resale levy.”
“Sir, if the Government were to invest the next dollar of its budget, we could do what the Member suggested, drop the requirement for pairing up, allow each one to rent individually his own flat. What does that mean? We would have to double the number of rental flats currently let out to joint singles. Today, as I said, there are 9,400 units. If you double that, say, another 9,000, at roughly $100,000 per unit, it is $900 million. And is that all? I think many at the margins will say, "It is not too bad; total privacy for $30 rental a month. Let me also join the queue." And, willy-nilly, we would have enlarged the safety net and unwittingly fallen into the trap of the welfare state. So, I say, we are better off if we invest this money to expand our economy to create the jobs and incentivise workers to retrain so that, that way, we can increase or at least maintain our high home ownership rate and, more importantly, preserve our work ethos.”
“Sir, as I said, there are currently 9,400 rental units let out under the Joint Singles Scheme. So there are many who are able to find another person to pair up with. Yes, in isolated cases, they cannot get along, in which case, HDB allows this remaining tenant six months or so to find another flat mate to live together with. So, by and large, yes, it is not ideal, but it has worked well and there are now 9,400 such cases.”
“Sir, I have said that we do not track the number of people who have failed because they cannot find another partner to pair up with to rent a flat. How would HDB know? They apply if they can find another person to pair up with, and we provide them with a rental flat. If they cannot find another person, we will help them, because we have a list of other applicants who are also similarly looking for a pairing-up arrangement. So those who actually failed to find a flatmate and decided not to apply (on that reason alone), we really do not have records of these people.”
“Sir, a divorced person, with custody of at least one child, is considered a proper family nucleus under HDB's eligibility criteria for subsidised rental, so we will allow such cases.”
“I think we can consider it. Mr Speaker; Mr Zainudin, your next Question, please. Column No : 1252 PRE-SCHOOL EDUCATION CENTRE (Approval process of licence) 4. Mr Zainudin Nordin asked the Minister for Education (a) how many applications for pre-school education centre licence has his Ministry received in the last 5 years; (b) what are the criteria for approval of the licence; (c) what other Government agencies are involved in the approval process; and (d) whether these agencies work closely on such approvals or do they merely focus on their respective areas of concern.”
“Sir, when we introduced the new system in Queenstown and Toa Payoh, these are posts that are affixed on both ends and parallel to the ledge. The disadvantage is that you will have to hang your clothes a piece at a time rather than to bring out the entire bamboo pole of clothes at one go. However, it avoids the need to buy bamboo poles. So it is a safer system, and safety is indeed a primary consideration.”
“Sir, normally, a working committee will be set up for the Interim Upgrading Programme or the Main Upgrading Programme. The working committees, at ground level, would make such decisions and trade-offs as to what works they would like to undertake. I think we will have no objections if the working committee feels that this is an area of work which they would like to undertake in lieu of other works which the budget would allow.”
“Sir, the Lift Upgrading Programme is purely for the purpose of upgrading lifts to serve all floors. The Interim Upgrading Programme generally looks at the common areas in the precinct. Therefore, the MUP is the only programme right now that includes the provision of new clothes drying system. I recognise the fact that our population is aging and there are more elderly people in our midst and especially when HDB builds high-rise buildings, the existing clothes drying system may not be ideal. But it is safe, if used properly and the cost involved is also not trivial. Therefore, I think it is prudent for us to adopt new systems as material science improves and new designs come up, and we will do so progressively.”
“Sir, the pilot project is currently implemented in two areas in Queenstown and Toa Payoh. Once we have gotten the feedback from the residents and have reviewed the implementation; if it is successful and accepted, going forward, we will start to use it for all new flats.”
“Mr Ang Mong Seng asked the Prime Minister and Minister for Finance, in view of the current weakness in the retail business sector, whether the Government will consider extending the rental rebates for JTC factories, HDB shops and the Ministry of the Environment and Water Resources hawker stalls beyond the end of this year.”
“Sir, there are two situations here. One of which is if the adjudicator rules in favour of the claimant. When the adjudicator rules in favour of the claimant, the claimant is then entitled to the payment by a certain due date. In such a case, the respondent may feel aggrieved and opined that the adjudication determination is unfair. Therefore, we have stipulated that for amounts where the difference is larger than $100,000, a right of review by the respondent is covered in the Bill, and this is really to be fair to all parties. Beyond the review, I think the right of appeal to a court or to an arbitrator is always available to anyone, and it is not correct for this Bill, while trying to solve one aspect of the problem faced by the industry, to deny that right of appeal to a court of law itself. There may be other issues under Tort Law that needs to be addressed. But I would like to assure the Member that the very cost associated with litigation is a deterrent for anyone to bring about frivolous or vexatious appeals to the courts. The costs and the time needed are sufficient to deter people from doing so unless they have a genuine case which they feel strongly about and which they think they will prevail in a court of law. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mr Cedric Foo Chee Keng]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn." - [Mr Mah Bow Tan]. Adjourned accordingly atFive Minutespast Seven o'clock pm. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 3.00 PM RENTAL REBATES 20.”
“Because, as this House has heard, since "pay when paid" terms are used today, sub-contractors down the line are not aware of when or if the public agencies have paid the main contractors. So in order for them to be made aware and as an interim measure to this SOP Bill, HDB has published and put on their notice boards such work progress payment certificates. Now that "pay when paid" terms or whatever name they may be called are unenforceable, there really is no need for HDB to put up such work progress payment certificates any more because the claimants can take their case for adjudication. Whether or not the party above him (which is the respondent) is paid or not paid is really irrelevant with the passage of this new Bill. So I would like to assure Mr Ang that this will no longer be an issue with the passage of this Bill. Sir, let me once again thank all Members for their support of the Bill.”
“Currently, the Bill applies to all construction works including renovation works in commercial buildings. So I would like to make this clarification. Only renovation works in residential buildings engaged by private homeowners - be it interior decoration, re-tiling of floors, replacing a set of windows - will not be included in the Bill as they are normally of small contract value and may not be worth the while for homeowners to take their case to an adjudicator. Such disputes, however, can be resolved through mediation or the Small Claims Tribunal, which will be the proper body to do so. This is also the practice with other SOP legislation in Australia and the UK. Mr Ang Mong Seng also proposed that the period for responses to payment claims be shortened from 21 days to seven days. It is also suggested that all new contracts must stipulate payment terms. Otherwise, the contract in its entirety should be null and void. Contracts generally contain more than just payment terms. So some parts of the contracts will still be operative and we should not render the entire contract null and void. What we have done in the Bill is to specify a very short default period, for that matter only seven days. Therefore, I think most of the respondents will find it worthwhile to have a period specified, rather than to have a default period of seven days. The other point that Mr Ang Mong Seng mentioned is the HDB's work progress payment certificates. Currently, these certificates serve to inform the construction industry players of a particular project, that a public agency has already made progress payments.”
“I have encouraged them to work with SCAL and both parties are looking into how to come out with a form of standard contract. I believe that was the last point raised by Dr Khor. As for Mdm Cynthia Phua, she felt that the Bill is complex. Yes, it is complex and can be quite complex for sub-contractors. On top of seminars and training sessions that BCA will do, I take her suggestion that it is useful to set up a hotline, an inquiry centre of sorts, at least for the initial period of the Act, and I will ask BCA to look into it. She also made a remark on the long process of adjudication. Let me say that the periods that are mentioned in the Bill are mostly maximum allowable periods. For example, the maximum period that a claimant can make an adjudication application is seven days, but it does not mean that the claimant has to take the full seven days. I think it will be in his interest to make the application early. Similarly, for the appointment of adjudicator by the ANB, the maximum period is seven days, but it does not mean that the ANB will take the full seven days. And I think, in most instances, an adjudicator will be appointed before then. The adjudication response from the respondent is something that only the respondent has control of. The claimant has no control, and that is likely to be seven days. Also, the maximum period for the adjudication is between seven and 14 days, depending on certain conditions, and there is also a maximum stipulated period. I think if all parties move quickly, the period may not be as long as Mdm Cynthia Phua is concerned about. Sir, Mr Ang Mong Seng suggested that renovation works in private residential and commercial buildings be included in the Bill.”
“So this priority should not be upset just because of the payment woes in the construction industry. So we have therefore left insolvent cases alone so as not to disrupt a process which is working well. As for reviews and appeals, she asked why do we allow them whereas some other laws do not allow them. I want to reiterate that while we allow reviews on the part of a respondent who felt that the adjudication is not in his favour, the payment that the adjudicator has determined has to be paid to the claimant in the first instance, prior to the review process. So the Bill does fulfill its mission and purpose of facilitating smooth and prompt cash flow. Why do we allow the review? The industry practitioners have told us that sometimes amounts can be very large, and a single arbitrator sitting in determination of the case may not do sufficient justice. In a case where the difference between the adjudicated amount and the response amount is larger than $1 million, the Bill will allow three adjudicators to sit and review the original determination. Nonetheless, payments must first be made. The original adjudicated amount must first be paid to the claimant notwithstanding the review. The last point that Dr Khor made was about standard form of contracts. This is indeed a good practice. It has been done successfully, eg, in the shipping industry where parties that charter ships use a standard ship charter hire agreement. They go through standard clauses and strike out what do not apply for a particular ship charter hire arrangement. I think a form like that would be useful. I have spoken to the 6+6 TA and they have told me that they would like to see such form of contracts as well.”
“The adjudicators will first be selected by the ANB and to start with, the Singapore Mediation Centre will be the first ANB. It will be responsible to set the standards as well as the qualifications of the adjudicators and to uphold such standards. It will also conduct training, which is a point Dr Khor made, and will promulgate a code of practice as well as hear complaints as regards the conduct and professionalism of the adjudicators. The main criteria are a degree or diploma in architecture, building, engineering, environmental studies or law that is recognised by the ANB, and also recognised by the relevant professional bodies. Adjudicators are also expected to have at least 10 years of working experience in the construction industry in Singapore and must have successfully completed pre-qualification assessments and the training courses run by the ANB. Dr Khor asked whether or not we will increase the number of ANBs. The answer is yes. We will start off with the SMC first and we have allowed more time for the Act to take effect principally because we need time to train and prepare a group of competent adjudicators. Therefore, the Act will not take immediate effect but will take effect only in April next year. Other ANBs that we can consider is the SIAC or the SIArb. These are two bodies which have persons who would be suitably qualified to become adjudicators for this particular Bill. She also asked why insolvency is not dealt with here, although payment woes in the construction industry are indeed a form of injustice. But in the area of insolvency, there is a higher justice that must be served. There is an established priority of payments that have to be made to different parties who have suffered as a result of a party going insolvent.”
“Mr Deputy Speaker, Sir, I would like to thank all Members for their comments and for their support of the Bill. This Bill is the outcome of active consultations with the public, the industry, all other stakeholders as well as MND's GPC. Even then, I am sure Members will agree with me that the problems in the industry are more complex than that, and this Bill is not a panacea for all the payment woes in the industry. Let me now address some of the questions posed by Members. I agree with Dr Amy Khor that the industry is indeed shrinking and the good old days of $24 billion worth of construction contracts in Singapore would not come soon. Therefore, in my speech, I had highlighted that the industry needs to reassess their competitive position and see what needs to be done to improve their productivity and to enhance their competitiveness. Dr Khor also talked about "pay if paid" contracts. All these contingent payments by whatever name they may be called, will now be disallowed and become unenforceable once the Bill comes into force. She highlighted the wide application scope of the Bill. Yes, because many of the victims of today's situation are smaller contractors, sometimes involving values that are not very large. So formal contracts drafted by lawyers are usually not the norm. So any written form of contract, eg, a fax, a written quotation, would constitute a contract under this Bill. The New South Wales Act does allow orally agreed to contracts, but we have found that very difficult to enforce because the adjudicator will have no basis to decide what was actually agreed to and not agreed to since it was done orally. So we have decided, in our case, not to accept oral contracts. As for the qualifications of adjudicators, it is an important point raised by Dr Khor.”
“For main contracts awarded after 1st April 2005, the Bill will apply to all the sub-contracts under these main contracts. To further help the industry to understand the Bill's provisions, I have asked the BCA to organise seminars and to publish an industry guide before the commencement of the Bill. Sir, this Bill cannot be expected to resolve every payment issue and all the payment woes in the industry. However, by upholding the rights of any party in the industry to seek payment for work done or goods supplied, this Bill will help to deter and weed out the practice of delaying or withholding payment without valid reasons. The speedy and low cost adjudication process will expedite the resolution of genuine payment disputes so that cashflow will not be disrupted. It will identify contractors who are facing financial difficulties early, before they cause more problems downstream. Sir, I wish to reiterate that the Government can only help provide a more equitable operating environment for all parties in the construction industry. Construction firms on their part should re-assess their competitive position, and consider restructuring, consolidating, building niche competencies or forming consortia. This is necessary for them to remain viable in the small domestic market here and to venture successfully into high-growth overseas markets, such as China and India. Sir, I beg to move. Question proposed.”
“If the principal is a licensed housing developer with a Project Account under the Housing Developers Act and has given notice of his intention to pay directly to the claimant, the claimant cannot suspend work or exercise a lien for 21 days. This is to allow the principal sufficient time to make payment from the project account. Payment disputes involving insolvency are not covered under the Bill. If any one of the parties involved is insolvent, the provisions allowing direct payment and lien on unfixed materials will not be applicable. This is to avoid upsetting creditor priorities under existing insolvency laws. For example, if a respondent is unable to pay the adjudicated amount because he is insolvent or under judicial management, the principal, in this case, cannot pay the claimant directly either. Sir, if approved, this Bill will be implemented from 1st April 2005 and will apply to all contracts signed after this commencement date. This will allow the industry to make necessary adjustments to their business. However, main contractors have highlighted a problem in the transition period. Given the nature and duration of construction projects, some sub-contracts will be signed after the commencement date, which will however be linked to main contracts signed before that. The concern in such a situation is that the sub-contractors can claim against the main contractors, but the main contractors cannot then claim against the developer/principal, as the SOP Act will not cover them. Sir, we recognise that more time may be required for on-going construction contracts to adjust to the new legislation. Hence, all sub-contracts awarded during the six-month grace period from 1st April 2005 will be exempted if their main contracts are awarded before 1st April 2005.”
“Besides administering the adjudication process, the ANB will train, certify and maintain a register of adjudicators, including establishing their fees. The fees will be capped so that adjudication will remain affordable. Sir, to expedite cashflow, the respondent has up to seven days after the adjudicator's decision to pay the claimant the adjudicated amount. Otherwise, the claimant can suspend work or stop supply. A supplier may also exercise a lien on unfixed goods supplied under the contract, if the goods have not been paid. In addition, the claimant can file the adjudicated amount as a judgement debt in court. To prevent abuse and minimise the negative impact of work suspension on the progress of a project, several safeguards have been incorporated in the Bill. Firstly, the claimant is allowed to suspend work or exercise a lien only when the adjudicated amount is not paid after the adjudicator's decision. Secondly, the claimant must serve a 7-day notice of such intention on the respondent, the owner and the principal before he can do so. This gives ample time for the principal or the owner or developer to assess the consequences and take action if necessary, including making a direct payment to the claimant. Thirdly, the suspension must be lifted within three days if the respondent pays the adjudicated amount. Any other third party affected by the work suspension will also have rights to extension of time in the project. To further avert work suspension, the principal has an option to pay directly to the claimant, in the event that the respondent fails to pay the adjudicated amount. The principal may then recover the amount by deducting it from subsequent payments to the respondent.”
“In contrast, arbitration or litigation could go on for several months and cost as much as $100,000 per case. Mediation can also be long-drawn (up to three months) and is not binding on the disputing parties. The claimant will have a valid reason to make an adjudication application under the following situations: (a) Payment response has not been received from the respondent within the specified period; or (b) Amount in a payment response is disputed; or (c) Payment is not received by the due date. Adjudication does not require the consent of both parties to proceed. The entire process will be completed within three weeks after application unless the parties agree to a longer period. The adjudicator will determine the amount to be paid by the respondent to the claimant, the pay-by date and the adjudication fees payable by both parties. The adjudicator's decision on the particular progress payment in dispute is binding. The respondent could apply for the decision to be reviewed only if the adjudicated sum differs by more than $100,000 from the amount that he is willing to pay in his response to the claimant. However, the adjudicated sum must be paid up first prior to the review so that payment to the claimant will not be delayed further. Although the adjudicator's decision is binding, it is not final. Parties may still pursue their right under the contract to challenge the adjudication determination in any court proceedings or arbitration. The Minister will appoint an Authorised Nominating Body (ANB) to administer the adjudication process. For a start, the Singapore Mediation Centre (SMC) will be appointed as the ANB. SMC is familiar with payment disputes and issues in the construction industry. More ANBs may be considered in future, as and when necessary.”
“For supply of goods contracts, the maximum limit is 60 days and the default is 30 days. These payment periods are within the current industry norms. Sir, a cap on the maximum payment periods is needed to override unreasonable contractual payment terms. Experiences in other countries have shown that parties with greater bargaining power are likely to impose longer payment periods on the other parties so as to circumvent the rights to payment in the SOP Act that these countries have. BCA will monitor the situation and will recommend adjustments to the response and payment periods, if necessary, to ensure that they remain aligned to the industry's best practices. "Pay when Paid" or "Pay if Paid" clauses Currently, "Pay when Paid" clauses in sub-contracts stipulate that the sub-contractor will be paid only when the principal has paid the main contractor. One undesirable consequence is that a sub-contractor who has completed work may not get paid for it if the principal withholds payment from the main contractor for reasons unrelated to the sub-contractor's performance. Sometimes, the sub-contractor may not even be aware when payments have been made to the main contractor. Hence, on the pretext that the principal has not paid him, the main contractor can delay payment to the sub-contractor. In the meantime, the sub-contractor has to continue funding the on-going work. This is tantamount to bottom-up financing by parties lower down the chain and is against the principle that any party should be paid for work done or goods supplied. Sir, to address this imbalance, the Bill makes it clear that "pay when paid" or "pay if paid" clauses in contracts are void and unenforceable. The Bill provides for adjudication as a faster and less costly process to resolve payment disputes.”
“However, it does not apply to construction work on residential properties that do not require the submission of building plans under the Building Control Act. These are mainly home renovation works of small contract value, often carried out without formal contracts. Framework for progress payment claims, responses and making payments The Bill sets out the framework for: (1) Making progress payment claims; (2) Responding to the claims; and (3) Making progress payments. Progress payment claims and responses Under the Bill, a claimant, ie, the party who is entitled to progress payment for work done or goods supplied, serves the progress payment claims for work done to the respondent. The respondent must then respond by stating the amount he will pay. If the respondent does not wish to pay the full amount claimed, he must give reasons in his response. This is similar to the current practice of issuing the Architect's Certificate to main contractors for private sector projects, or the issuing of the Superintending Officer's Certificate for public sector projects. The Bill requires the respondent to issue the payment response within 21 days of receiving the payment claim. If the response period is not specified in a contract, a default period of seven days has been prescribed in the Bill. This will ensure timely response to the claims. Making progress payments Following this, the parties agree on a specific period to make payments. This is normally set out in the contracts from the onset. To prevent unreasonably long periods to be set for payment, the Bill has stipulated maximum limits and default periods for payments to be made. For construction contracts, the maximum limit is 35 days and the default is 14 days.”
“For example, parties downstream are subject to the "pay when paid" clause, whereby they get paid only when those upstream have been paid. The parties who have not been paid for work done are also not permitted to suspend work. In some instances, they are also required to pay liquidated damages if they suspend work. The SOP Bill will preserve the rights to payment for work done and goods supplied of all the parties in the construction industry. It also facilitates cash flow by establishing a fast and low cost adjudication system to resolve payment disputes. Affected parties will have the right to suspend work or withhold the supply of goods and services, if the adjudicated amount is not paid in full or not paid at all. This Bill is modelled after similar legislation in other countries such as Australia, UK and New Zealand. For more than a year, the Building and Construction Authority (BCA) has consulted extensively with various stakeholders in the industry. These include the developers, professionals, main contractors, subcontractors, suppliers, and Government procurement agencies. The features of this Bill have been adapted to suit local conditions and have taken the stakeholders' suggestions and views into account. Sir, let me now elaborate on the key features of this Bill. Key features of the Bill First, the scope and the application of the Bill. The Bill will cover all written contracts in Singapore for construction work and related goods and services. These include building and civil engineering work, mechanical and electrical work, and any of their related preparatory or follow-up works. It affects all parties from developers, consultants, contractors, down to sub-contractors and suppliers.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Background Sir, the construction industry is going through a difficult time. Annual construction demand has declined from a peak of $24 billion in 1997 to about $10 billion in 2003. However, while the construction pie has shrunk by more than half, the number of contractors has increased by 8.5%. The number of construction firms registered with BCA's Contractors Registry was 5,012 as at September 2004, compared with 4,618 firms in 1997. With too many firms chasing too few projects, the result is severe price competition, with firms prepared to accept marginal profits or even losses in order to remain in business. There are still too many A2 and B1 contractors. The financial problems affecting some construction firms have in turn affected sub-contractors and suppliers further downstream along the construction value chain. They face delays or non-payments for work done or materials supplied. Sir, whilst the Security of Payment (SOP) Bill will not resolve the structural problem of overcapacity in the construction industry, it will address payment problems. The SOP Bill will create a more conducive operating environment and a level playing field for all parties in the industry. A construction project involves many parties and could take a few years to complete. Progress payments are made periodically throughout the project's duration. Parties lower down the value chain usually fund their work in advance and collect payments thereafter. These downstream players will therefore be adversely affected if those upstream fail to make prompt payment for work done or materials supplied. Contractual terms also tend to favour those higher up the chain.”
“Let me reiterate that, for election rally purposes, it is really the police who decides whether or not it would be used for election rally purposes, and some of the criteria the police uses are safety and disamenity. On the two occasions that the hon. Member cited, my understanding is that the dates of the events which he wanted to hold clashed with that of the CCC. 3.00 pm”
“Sir, as I said, the Potong Pasir CCC plans to install some simple playgrounds, jogging tracks, benches and so forth. So, they do need some certainty of tenure before they would be prepared to invest in such equipment. Nevertheless, if the hon. Member would have use for this site, he could apply through the Potong Pasir CCC for such use. Mr Speaker: You have half a minute, Mr Chiam.”