Chan Chun Sing
Singapore
“Since 2002, the Ministry of Defence (MINDEF) has worked with the autonomous universities (AUs) to establish arrangements that minimise disruption to National Servicemen (NSmen) who are pursuing full-time studies up to the undergraduate level, while meeting the Singapore Armed Forces' (SAF's) operational and training needs.”
“Secondments help to build up the range of competencies and work experiences of public officers to strengthen their longer-term employment relevance and resilience. The Public Service Division's guideline to agencies is to support public officers even while they are on secondment.”
“The priority of our National Servicemen must be their military duties and operational training, to meet the Singapore Armed Forces's (SAF's) operational requirements.”
“In January 2026, I had informed this House that the Government had convened an independent committee to conduct a review of the political salary framework that was laid out in 2012. The Committee has completed the review and submitted its recommendations to the Government in April.”
“All countries seek to develop mutually beneficial partnerships, and the United States-Indonesia Major Defence Cooperation Partnership is one such example.”
“Since the Singapore Armed Forces Volunteer Corps (SAFVC) was established in 2014, over 1,500 men and women have completed training and served as SAFVC Volunteers (SVs). Presently, there are about 1,100 in-service SVs, comprising 52% male and 48% female. About seven in 10 of our in-service SVs are new Citizens or Permanent Residents.”
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“You agree. So, thank you very much. So, there are qualified accounts where, fundamentally, the issue is whether the accounts can be trusted. There are unqualified accounts, which, fundamentally, means that the accounts can be trusted. But can there be observations, where rules are not followed? The answer, as you have said, is yes. Unqualified accounts means that structurally, the accounts can be trusted, in good order, but there are still observations and those observations need to be acted upon to be improved. So, I hope I have clarified the difference between qualified accounts and unqualified accounts. And I have clarified why before 2013 – what was the qualification? It was a qualification on the basis that the accounts were not consolidated. And we have since consolidated that and we have put right.”
“Do you agree with me that even for unqualified accounts, you can have observations? [(proc text) The hon Member indicated agreement. (proc text)]”
“You do. Do you understand what is the difference between qualified accounts and unqualified accounts? And the reason is that there is a material impact on the reliability of the financial statements? Do you agree with me? You agree. [(proc text) The hon Member indicated agreement. (proc text)]”
“Mr Deputy Speaker, I do not want to belabour the point. Can I make a distinction? Can I just ask Mr Png whether he understands this, and if he does not understand, I can explain it during tea break time. Does the Member understand the difference between qualified accounts and unqualified accounts?”
“In fact, this question was asked by Mr Dennis Tan on 17 August 2015 and we have since answered it. Mr Png might want to check the record of the answer given by Mr Heng Swee Keat to Mr Dennis Tan. Prior to fiscal year 2013, the auditor made a comment to say that the PA accounts on the grassroots organisation should be consolidated. And because prior to 2013, it was not consolidated, that was why they said that it did not fully comply with the standards. In the case of PA, as explained in Parliament on 17 August 2015, we have since taken steps to consolidate all 1,800 grassroots accounts into PA's financial statements to be in full compliance with the accounting standards. And PA has since received an unqualified audit opinion since 2013. Prior to 2013, we did not consolidate statements and that is not the same, that qualification is not the same as that being a material impact that accounts are not correct or cannot be trusted. It was a technical issue because we did not follow the accounting standards to consolidate all the accounts. And if Mr Png wishes, he can refer to the Parliamentary answer given to Mr Dennis Tan in 2015.”
“Mr Deputy Speaker, Sir, if I may just make one clarification to Mr Png Eng Huat's question just now. Mr Png asked whether PA had qualified accounts before. Right? [(proc text) The hon Member indicated assent. (proc text)]”
“We run a clean system and we have every intention to run a clean and open system. Clean, transparent and fair. The fact that we run a large system with many volunteers does not excuse us from making mistakes. But when we make mistakes, we found out, we tighten the process, we improve. We do not shirk our responsibilities or try to diminish the mistake by comparing with other people who have made other mistakes. We put in place our processes to check ourselves ahead of time, even before other people come and check us. And when other people come and check us, we work with them transparently, openly and to improve our system. When mistakes are made, we take the necessary actions to put the system right and to punish any wrongdoing. We do not run away from them. Not like in other cases. And I think the public can have every confidence that this Government takes our responsibilities seriously and transparently. We owe it to ourselves, we owe it to our nation that we abide by the highest standard in our duties to our Ministries, organisations, but, most importantly, to our people and country.”
“Government agencies take AGO's audit observations very seriously and are committed to rectifying the lapses. Where there are lapses, they will openly acknowledge and steps are taken to address them as soon as possible and lessons are shared across the entire Public Service. Government agencies are accountable to the Public Accounts Committee for their corrective and preventive actions taken in response to these lapses. Last, I wish to clarify a key point. The current lawsuit against the AHTC Town Councillors is based on claims for (a) breach of core fiduciary duties; (b) breach of duty in their capacity as fiduciaries to diligently exercise reasonable care and skill in the exercise of their powers and in the discharge of their responsibilities; and (c) breach of duty of care to AHTC under the common law tort of negligence. The lawsuit was instituted in the name of AHTC by an independent panel. The independent panel was appointed under the Town Councils Act pursuant to a consent order made between the AHTC and the Housing Development Board before the Court of Appeal to take such actions as the independent panel thinks it is in AHTC's best interest in light of the inappropriate payments that were identified. The key point is that the lawsuit was not brought by the Government. So, to conclude, it is wrong to compare the problem surfaced by auditors of AHTC to lapses by public sector agencies identified in AGO's reports. Government financial accounts are reliable and public funds are properly accounted for. There are proper rules and procedures in place to ensure checks and balances and, where lapses are found, agencies are prompt in closing the gaps and holding individuals to account. In all these, we do not make light of any mistakes made.”
“The Government does not face similar issues. The Government has rules and procedures in place to ensure proper systems of checks and balances. AGO audits pointed out that the instances of lapses found in the Government agencies were failure to comply with these rules. These lapses were taken in the context of a much larger Public Service with more than 140,000 officers handling hundreds and thousands of transactions every year. The difference is this: our rules are in place. When compliance is not in order, we take officers to task and we improve and tighten up the system. Third, on the Government agencies' response to lapses found by AGO, their responses have been to take firm action against individuals responsible. And if I may add, even before AGO comes in, various of the agencies have their own internal audits, just like PA, to pick out mistakes made and to rectify them ahead of time. Where criminal offence is suspected, the cases are promptly surfaced to the Head of Department or organisation and a report filed with the relevant authority, such as the Police or the Corrupt Practices Investigation Bureau, and this is exactly what has happened. To give an example, following the AGO's audit report indicating possible wrongdoings in relation to the procurement in the National Library Board in 2014, we referred the case to the Police and a former officer has been charged for corruption. There are other past criminal cases reported in the media. We do not hide them, we do not sweep them under the carpet. We face them squarely and we take the actions necessary. For administrative and procedural lapses, disciplinary actions are taken against officers where warranted. These range from counselling and warning to stoppage of salary increment and dismissal.”
“And this is why it is necessary, in the public interest, to explain and distinguish the facts, circumstances and follow-up actions concerning the AHTC's lapse and those found by the AGO in the Government agencies. And I will limit myself to the facts. The issues surrounding AHTC's case are very different from the lapses found by AGO in Government agencies. First, and I repeat, the accounts of AHPETC, or known as AHTC, have been found by its auditors to be unreliable from fiscal year 2012 to 2017. Its auditors, the Member's auditors, repeatedly gave the Town Council a disclaimer of opinion as they were "not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion." When AGO audited AHPETC in 2015, AGO concluded that there was "no assurance that AHPETC's accounts are accurate and reliable or their public funds are probably spent, accounted for and managed". However, the Government's accounts are in order. AGO has consistently given the Government an unmodified audit opinion on its financial statements. This means that the Government's financial statements containing the accounts of all Ministries, departments and Organs of States are reliable and public funds are probably accounted for. But that does not mean that there are no mistakes. Similarly, Statutory Boards have received unmodified audit opinions from their respective auditors in their recent audits. Second, quoting KPMG's opinion in its July 2016 report, the controlled failures in AHTC were "pervasive, cross-cutting across the key areas of governance, financial control, financial reporting, procurement and records management over the course of five years." AGO also found 150 lapses in 2015 and KPMG uncovered a further 70 controlled failures in AHTC in 2016.”
“Mr Deputy Speaker, may I suggest Mr Png ask an accountant to explain to him what it means to have qualified accounts and not qualified accounts. As a layman, let me try again to explain in layman's terms. In every audit report, we can expect to find mistakes made, no excuse. Mistakes made must be corrected and rectified. Full stop. Having made mistakes, does it mean that the set of accounts can be trusted, in layman's term? If the set of accounts can be trusted, because notwithstanding the mistakes made, that means there is no material impact, then we do not need to have a qualified opinion. But if the auditor comes out and say that, "I look at the set of accounts, yes, there are mistakes made, but on top of the mistakes made, I cannot be confident that this set of accounts is correct and can be trusted." Then, people will give a qualified opinion. That is a material difference. And I am not sure that the Member's statement is correct: that PA has a qualified set of accounts. PA has made mistakes, we accept, we acknowledge and we will rectify and put it right. But at no time was it ever suggested that the accounts cannot be trusted; that there is a material impact that the set of accounts cannot be trusted. If the Member likes, I would clarify the following things. I know that the Member has been trying to draw a comparison between Aljunied-Hougang Town Council's (AHTC's) case and PA's, and AGO's findings for various Government agencies. As the AHTC's lawsuit is pending before the Courts, I will limit my comments to what is material. Any lapses in Government agencies can undermine public confidence in the Government as an institution and affects the integrity of our Civil Service.”
“Mr Deputy Speaker, in response to Member Dr Lily Neo's comment, what the AGO found for that particular event was this: all the items were accounted for; they were itemised. The comments refer to specifically this: should the whole set of things be put under the tender or this part we put under tender and the cost, the other portion of the cost that have to be borne, because of the transportation and the storage, be combined together? What the auditors found and suggested for improvement is that not only the tender cost for the products but also the storage and the transportation be considered in full rather than separately. The cost has been made clear, the organisers have been aware of both sets of costs but, perhaps, the inadequacy of the organiser was not to consider the two parts in its entirety. That is the clarification I want to make. So, it is not that the costs have not been accounted for. It is not as if there are no bills and receipts to justify the payment. It is not that there is anything that has not been shown to the public or revealed to the auditors. The question and the suggestion by the auditors are that, going forward, instead of considering the two separately, the tender for the product separately from the storage and transportation costs, that the two should be conducted in its entirety. We will do that and we have done that to rectify it.”
“Thank you very much. Thank you very much for accepting that you have full respect for the AGO's professional work. I have similar respect for my AGO's work. And if that is so, then we take the AGO report as what it is. And I would like to repeat this: there is a material difference to what it means by a set of qualified accounts and what it means not to have that qualification. I think we are very clear in our mind whether the PA accounts were qualified or not. The Member can check that. I suggest the Member invite Mr Chen Show Mao, who is sitting beside him, who is well-versed in this, to clarify what is the difference between a set of qualified accounts and otherwise.”
“Mr Deputy Speaker, I thank Mr Png Eng Huat for clarifying that he is not casting doubt on the integrity of the AGO report. Can I have a confirmation that the Member is not questioning the integrity of our AGO?”
“I do not think that is what the AGO said.”
“Clarification. Can I hear you say that again? Did you say PA has qualified accounts?”
“This means that the Government's financial statements containing the accounts of all Ministries, departments and Organs of State are reliable and public funds are properly accounted for. Similarly, Statutory Boards have received unmodified audit opinions from their respective auditors in their recent audit. Now, this is a material difference between a qualified set of accounts and a set of accounts that have no such qualification. I want to highlight two other differences. In PA, some of the mistakes made were found by our own internal processes and we made it right even before AGO comes. We reviewed the processes, we tightened the processes, we cooperated fully with the investigators to put things right. And when there is wrongdoing, we own up to it and we put it right. I think the public can make their own assessment as to the difference between how we handle our audit very seriously and how others handle theirs.”
“But there is a material difference whether a set of accounts is qualified or not qualified. And I think Mr Png knows the difference. Because it goes to the heart of whether the accounts can be accepted by the public or not. The Member's third question on greater accountability. PA is a large organisation run by professional staff as well as an even larger group of volunteers. This is not an excuse for PA to make mistakes. We are fully aware of the nature of PA's work. We are also fully aware of the type of work that the PA needs to do. A large volunteer base, which is why we constantly simplify our rules to make sure that the rules are compliant with processes and yet easily adhered to. We continuously find a balance between the two: the need for accountability and agility. So, I think it would not be right for us to insinuate that the public officers and, least of all, that the AGO has not done a proper work. If there is a suspicion that the AGO has not done a proper work, we will take the AGO to task. The AGO is independent in its report and it will stay so. So, I want to remind Mr Png, first, there is a serious difference between what we call a report whereby the auditors have a disclaimer of opinion where they are not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. There is a material difference there. When AGO audited Aljunied-Hougang-Punggol East Town Council (AHPETC) in 2015, AGO concluded that there was "no assurance that AHPETC's accounts are accurate and reliable, or that public funds are properly spent, accounted for, and managed". However, the Government's accounts are in order. AGO has consistently given the Government an unmodified audit opinion – unmodified audit opinion – on its financial statements.”
“Mr Deputy Speaker, Sir, let me take the three issues that Mr Png Eng Huat raised, one at a time. First, who is responsible? There is a current process of investigation and whoever is responsible will be taken to task. And that has been the way the Government operates before, now and in the future. Nobody is hiding anything. That has been our system. It has not changed and it will not change. We do a thorough investigation on every lapse, small or big, and we take responsibility for every mistake made and we put them right. Second, the Member alleged that there are serious lapses and fraud. May I know where did the Member get to use the words called "serious lapses and fraud"? If we look at the AGO report, the AGO has done their job professionally, unless the Member is suggesting that the AGO has not done its job professionally. I do not think that AGO used those words. The Member can check the record. I think it is not appropriate for us to put words into the AGO's mouth unless you are making a separate serious allegation, which we will take up seriously. I have no doubt on the integrity of my public officers and their professionalism. I accept that sometimes they make mistakes and, when they do, we will put it right. But please do not use words that do not correspond to the reality or words that the AGO has not used. The AGO and the auditors have never, never made any comment that the PA's accounts are qualified. This is quite different from other cases which Mr Png may be familiar with. There is a material difference between whether an audit report is qualified and not qualified. Audit reports will always find in most, if not all, cases, some areas for improvements, and some areas where mistakes need to be rectified. We accept that.”
“Notably, the China-Singapore Connectivity Initiative's (CCI's) New International Land-Sea Trade Corridor is an important complementary economic route connecting Western China and Southeast Asia. Together with the upgraded CSFTA, companies can leverage increased connectivity to access opportunities in Central and Western China. The Ministry of Trade and Industry (MTI) and Enterprise Singapore will continue to work with Trade Associations and Chambers and reach out to Singapore businesses to help them utilise the upgraded CSFTA.”
“The China-Singapore Free Trade Agreement (CSFTA) upgrade completed this month comprises a meaningful package. It is substantive in terms of market access for Singapore's export of goods and services into China, as well as enhancing the rules and investment regime for our companies doing business in China. Since the entry into force of CSFTA in January 2009, bilateral trade with China has grown from close to S$76 billion in 2009 to S$137 billion in 2017. Our investments in China have also doubled from S$62 billion in 2009 to S$123 billion at end-2016. The upgraded CSFTA will promote greater bilateral trade and investment flows between China and Singapore. For example, the improved rules of origin will allow more petrochemical and plastics exports from Singapore to qualify for tariff savings. Singapore companies in the legal, construction and maritime service industries will be able to expand their footprint and no longer be subject to ownership caps in various parts of China. Singapore investors investing in China can also look forward to enhanced investment protection through a more robust Investor-State Dispute Settlement (ISDS) mechanism. The upgraded CSFTA also includes rules in new areas, such as E-Commerce, Competition and Environment, to keep abreast with new business developments. At the regional level, Central and Western China present opportunities for Singapore businesses. There is significant demand arising from urbanisation and the growth of the middle class. The Chinese government has also placed emphasis on policies to develop industries, such as infrastructure, urban planning, and transport and logistics, areas where Singapore companies have significant strength and interest.”
“The Civil Service's pay philosophy is to keep pace with but not lead the market. We will check that our salaries remain market-competitive every year but only adjust salaries where necessary. We have not made any major adjustments to salaries in the last few years. The last substantive change to the Management Executive Scheme (MXS) was in 2015, where MXS was extended to create a single career scheme for both degree and non-degree holders. Officers with the same potential and performance would be given the same opportunities for advancement and career development, regardless of their academic background. New officers in Executive roles on the MXS are generally paid a monthly salary starting from $3,100. The monthly salary for senior management Superscale officers, comprising around 1.9% of the Civil Service, starts from around $11,000.”
“Specifically, setting rules and standards in new areas, such as e-commerce and intellectual property, would foster innovation and the creation of new industries. The Agreement also aims to promote inclusive trade, with specific provisions that support small and medium enterprises, including through capacity building activities. CPTPP is aligned with the strategies of the Ministry of Trade and Industry (MTI), as well as our economic agencies, including Enterprise Singapore (ESG) and the Economic Development Board (EDB). CPTPP provides a platform for Singapore companies to strengthen their export networks and access opportunities overseas, through tariff reductions and ensuring a level playing field across the Asia-Pacific markets. This reinforces our ongoing efforts to enhance Singapore’s connectivity and help our companies grow through internationalisation. With CPTPP, we will be well-positioned to continue attracting companies from diverse and innovative industries to set up, grow and create new businesses from Singapore. MTI is working with ESG and EDB to increase awareness of CPTPP and help companies fully utilise its benefits.”
“To date, seven countries have ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will enter into force on 30 December 2018. CPTPP will expand Singapore's economic space and promote new sources of growth for trade and investment. Singapore's total exports and gross domestic product can each potentially increase by up to 0.2% as a result.1 These gains are in addition to the benefits we enjoy from our extensive network of Free Trade Agreements (FTAs) with many of the CPTPP members. We also expect deeper economic and trade activities with Mexico and Canada, the two CPTPP countries with which Singapore does not have existing FTAs. CPTPP will make it easier for our companies to do business in the region. It will boost trade and investment flows and integrate the region into a single manufacturing base and market, allowing Singapore companies to operate more seamlessly across the CPTPP countries. There are a number of opportunities for our businesses. First, Singapore-based goods producers will gain from the substantial elimination of tariffs and non-tariff barriers when exporting to the CPTPP markets. Second, service providers will enjoy preferential market access in a wide range of sectors, such as professional services, telecommunications, transport and energy. Third, investors will benefit from the removal of restrictions on foreign equity, as well as improvements in investment protection. Fourth, enterprises will be able to bid for more government procurement contracts in jurisdictions which were previously closed to foreign companies. Beyond these direct benefits, CPTPP also establishes a common set of enforceable rules that address modern trade and investment issues.”
“The Industry Transformation Maps (ITMs) are dynamic plans that will be updated to respond to changes in the economic environment. The Future Economy Council, comprising tripartite representatives, monitors the progress of our ITMs, and ensures that they continue to be relevant to emerging trends. The Council will monitor the situation and adjust the ITMs as the situation requires, in partnership with key stakeholders, such as businesses, trade associations and chambers and unions.”
“The impact of the trade tensions on the Singapore economy has been limited thus far. In the first three quarters of 2018, Singapore's non-oil domestic exports (NODX) grew by 6.2% on a year-on-year basis, with the third quarter of 2018 marking the eighth consecutive quarter of growth in NODX. Notwithstanding this, Singapore’s gross domestic product growth is likely to moderate in 2019 on the back of an expected slowdown in growth in major advanced and regional economies, such as the United States (US), China and the Association of Southeast Asian Nations (ASEAN)-5 economies, in part due to the ongoing trade tensions. The impact of the trade tensions on the Singapore economy will be felt most in externally oriented sectors which are plugged into the US-China supply chains, such as the electronics and precision engineering clusters. However, there is potential for businesses to mitigate some of the impact by redirecting their exports of intermediate goods to other markets. In addition, there could be some offsetting effects when US and Chinese importers source more from the ASEAN region, including Singapore. Our economic agencies are working closely with businesses to identify any disruptions promptly and facilitate linkups with other suppliers and markets to restructure supply chains where necessary. Businesses can also leverage the strong trading networks that we have developed over the years, as well as our extensive network of free trade agreements, to navigate the disruptions and seek out new opportunities and alternative suppliers and demand markets. The Government will continue to press on with efforts to help companies build the capabilities that they need to access new markets, onboard cutting-edge technologies and create good jobs.”
“The Government will continue our efforts to make sure that we have an enabling, pro-enterprise environment for startups and that Singapore is the place of choice for startups in Asia.”
“At Budget this year, the Government has also announced the National Research Foundation (NRF)-Temasek Intellectual Property (IP) Commercialisation Vehicle, which will co-invest in startups whose business models are underpinned by intellectual property generated from publicly funded research. NRF has committed to invest $50 million and Temasek has committed to co-invest at least $50 million into Singapore-based early-stage high-tech companies. Growing a conducive environment for startups goes beyond funding support. Startups also need access to mentorship, talent, local and global networks, co-innovation platforms and infrastructure, in order to build their capabilities and grow. Hence, besides funding, the Government has put in place support to meet the non-financing needs of startups. Under Startup SG Infrastructure, startups have access to spaces that they need to grow, experiment and flourish. The strong network of startups, incubators and venture capitalists at LaunchPad@one-north generates opportunities for collaboration and accelerates the growth of startups. Under Startup SG Accelerator, the Government provides support to incubators and accelerators to take on the role of catalysing growth opportunities for high-potential startups through their programmes, mentorship and provision of resources. The Government also works closely with partners, such as the Action Community for Entrepreneurship (ACE), SGInnovate and our universities to support the growth of startups in Singapore. Through these efforts, Singapore's startup ecosystem is becoming more vibrant. Venture funding activity in Singapore has ramped up, from 80 deals worth US$136.4 million in 2012, to 174 deals worth US$1.37 billion in 2017.”
“Startups are an important driver of innovation and enterprise in our economy. The Government provides funding support to Singapore startups across different stages of their development. In the early stages, Startup SG Founder provides capital grant to first-time entrepreneurs with innovative business ideas, while Startup SG Tech provides grant support for Proof-of-Concept and Proof-of-Value commercialisation of innovative, proprietary technologies. At this point, the uniqueness of the idea or product will be the main consideration. For startups that are more mature and ready to receive institutional investment, funding support is provided through Startup SG Equity which co-invests with independent third-party investors. The private investors help assess the startup's commercial viability and the strength of its business model and management team. These co-investments cover both general tech and deep tech startups, across a range of sectors and domains, such as Advanced Manufacturing and Engineering (AME), Health and Biomedical Sciences (HBMS), Urban Solutions and Sustainability (USS), and Services and Digital Economy (SDE). Between 1 April 2017 and 31 October 2018, the Government has co-invested in a total of 62 startups under the Startup SG Equity scheme. The Government's funding of S$43.8 million for these 62 startups catalysed S$50.3 million of private sector monies from their appointed co-investment partners. Around half of these investments were deployed into deep tech startups, and the rest into general tech startups.”
“(c) Another possible reason for higher electricity bills is that electricity usage could be higher during certain periods of the year, for example, school holidays or hotter months of the year. With the zonal rollout of OEM starting from 1 November 2018, EMA will continue to ensure that the necessary safeguards are in place to protect consumers. EMA will also continue to work closely with SP Group and the retailers to inform and educate consumers about the OEM.”
“The Energy Market Authority (EMA) introduced the Open Electricity Market (OEM) in Jurong in April 2018, providing around 120,000 households and small businesses with the choice to buy electricity from a retailer with a price plan that best meets their needs. This soft launch was well-received. As of mid-September 2018, more than 30% of Jurong households have switched to a retailer. To better understand the public's reception towards the OEM soft launch, EMA conducted a survey involving the Jurong residents about three months after the soft launch started. The survey results showed that the Jurong residents generally felt positive about the OEM, with very high awareness of the OEM and their electricity purchase options. About nine in 10 of the survey respondents indicated that they were aware of the OEM and the electricity purchase options available to them. Of those who had switched to a retailer, about eight in 10 appreciated the benefits of the OEM and indicated that they found the switching process easy. A small number of residents highlighted that they experienced higher electricity bills after switching to a retailer. There are a few possible explanations: (a) SP Group reads electricity meters once every two months. On alternate months when the meters are not read, the consumer’s bill is based on estimated consumption. Any underestimated readings will be carried over to the next bill, which would make the next bill higher. (b) Depending on when a consumer switched, his first bill may not cover a full month. The following month's bill will be relatively higher as it will cover a full month of electricity consumption.”
“The Ministry of Trade and Industry's (MTI's) assessment is that trade between the UK and Singapore, as well as companies invested in the UK's domestic sectors, will not be structurally affected. Nonetheless, as Brexit is a major development, some volatility is to be expected. In addition, companies based in the UK, which use the UK as a gateway to access opportunities in the EU single market, will be impacted. The magnitude will depend on where the UK and the EU land on their future trade and economic relationship where it pertains to their common market today. Access to talent and general labour supply could also be impacted if immigration conditions are more stringent between the UK and the EU. MTI and Enterprise Singapore have continued to work closely with Singapore companies that remain keen to expand in the UK. The UK is home to a diverse range of Singapore companies from sectors, such as engineering, infrastructure, medical technology, digital, transport, lifestyle, real estate and hospitality. In some sectors, Singapore companies1 have made new investments in the UK even after the referendum in 2016, after careful assessment of the UK's continued potential alongside the attendant risks despite the imminence of Brexit, pointing to our companies’ continued confidence in the UK economy. Pending the final post-Brexit arrangements with the EU, MTI is in close discussions with the UK Department of International Trade on how we can strengthen our strong and multifaceted bilateral relationship. Meanwhile, work on the EUSFTA is on track. The EUSFTA will deepen our robust bilateral trade and investments with the EU. Even as the UK prepares to leave the EU, British leaders have continued to reaffirm their support for the EU's free trade agenda, including for the EUSFTA.”
“The United Kingdom (UK) is an important economic partner of Singapore as the second largest economy within the European Union (EU) and the fifth largest globally. Brexit is expected to take place on 29 March 2019. What happens after will depend greatly on the terms negotiated between the UK and the EU. A soft Brexit scenario will include an "Implementation Period" from the day the UK formally leaves the EU to 31 December 2020. This scenario offers the greatest predictability and stability. This is because during the Implementation Period, the UK will continue to be functionally treated as an EU member state and remain a party to EU international agreements. This will include the EU-Singapore Free Trade Agreement (EUSFTA) when it is ratified by the European Parliament as targeted in 2019. Disruptions to trade and investment flows would be minimised and business continuity would be preserved while the UK irons out its future trade and investment relationships with other partners, including Singapore. In the event of a hard Brexit where there is no deal between the UK and the EU, the UK will cease to be a party to the EU’s agreements with third countries when it formally leaves the EU. This would mean that the EUSFTA will not apply between the UK and Singapore even after its ratification. This, in itself, would not impact our trading relationship with the UK as the current tariff and non-tariff regime for Singapore companies are based on World Trade Organization (WTO) terms, pending EUSFTA ratification, which will continue to apply. The UK Secretary of State for International Trade Dr Liam Fox and his officials have affirmed that the UK's priority post-Brexit is to ensure that its bilateral trade ties, as well as companies operating in the UK, are not disrupted.”
“The Energy Market Authority (EMA) introduced the Open Electricity Market in Jurong in April 2018, providing around 120,000 households and small businesses with the choice to buy electricity from a retailer with a price plan that best meets their needs. Consumers who do not wish to switch to a retailer can remain with SP Group and continue buying electricity at the regulated tariff, and there is no deadline for switching. This soft launch has gone well. As of mid-September 2018, more than 30% of Jurong households have switched to a retailer. These households are paying an average electricity rate that is 20% lower than the regulated tariff. EMA will progressively extend the Open Electricity Market to the rest of Singapore from 1 November 2018.”
“" By asking such questions and also comparing what different businesses offer, consumers will be empowered to make informed decisions. In conclusion, we need to strike a balance between safeguarding consumers and enabling business innovation and growth. The risks and controls would be different for different scenarios and while the Government has put in place regulatory measures to safeguard consumers' interests, the industry and consumers also have a role to play. The Government will continue to monitor developments and consider additional sector-specific prepayment protection requirements as necessary, taking into consideration the cost impact on businesses and consumers.”
“For instance, the Committee for Private Education (CPE) has imposed requirements on private education institutions to protect students’ course fees through fee collection caps and insurance schemes. The Singapore Tourism Board (STB) requires travel agents to offer consumers the option to purchase travel insurance that includes protection of their prepayments in the event of the travel agent’s insolvency. The Monetary Authority of Singapore has oversight of stored value facilities under the Payment Systems (Oversight) Act. The Act requires large multi-purpose stored value facilities holders that hold stored value exceeding S$30 million to seek approval from the Monetary Authority of Singapore to operate and appoint a bank to guarantee the outstanding stored value. Besides regulatory measures, the industry also plays a role in uplifting standards. The Consumers Association of Singapore (CASE) has worked with industry associations to develop CaseTrust accreditation schemes for specific industries. A number of these schemes, including those for spa and wellness, renovation, motor vehicles and school bus services have prepayment protection requirements. We encourage consumers to patronise CaseTrust-accredited businesses. Consumers can also manage potential risks by making informed decisions. In this regard, CASE has issued several consumer tips on prepayment protection to help consumers. There are some questions that consumers can ask a business before committing to a prepayment. For example, "Can I choose to pay for the cost of goods or services in parts over a period of time rather than pay for the full cost upfront?"; "What is your refund policy?"; and "Does your business provide any protection on consumer prepayments?”
“Third, businesses may also decide to offer consumers a variety of payment options for their services, such as prepaid packages and coupons. Businesses usually offer a lower unit price for these options. For example, an operator may charge consumers $100 for each session of their service but may offer consumers a better price of $90 per session if they choose to prepay for 10 sessions. Fourth, businesses may also require consumers to make full or partial payment before they deliver the goods and services to consumers in full. Businesses may do this to ensure that the consumers are committed to the purchase before they put in time and resources to engage their own suppliers. Fifth, businesses may also collect security deposits from consumers. The purpose of collecting such deposits is usually to cover the cost to businesses in the event of consumers' damage of rented goods or consumer default in payment for post-paid services. As illustrated, there are many different scenarios under which businesses may collect monies from consumers before they provide their goods and services. Different scenarios carry different risks and require different controls to manage those risks. A mandatory requirement for businesses to ringfence all prepayments in an escrow account would stifle growth and innovation of legitimate businesses and affect the operations of small and medium enterprises in particular. Broad-based regulatory measures would inevitably raise the cost of doing business which would be passed on to consumers. In some cases, this may even undermine the commercial viability of an industry. Instead of imposing broad-based regulatory measures, the Government has taken the approach of assessing the need and scope for specific regulatory measures for each sector.”
“Today, it is not unusual for businesses to collect monies from consumers before they provide their goods and services to consumers. Consumers bear the risk of not being able to recover their monies in the event that a business suddenly ceases operations. This has resulted in public concerns on how companies should handle the monies they receive from consumers and the Member’s suggestion to require all businesses to deposit advance monies collected from consumers in an escrow account. Let me first set out a few broad scenarios under which businesses may collect monies from consumers before they provide their goods and services to consumers. These are not exhaustive. First, a business which is acting as an agent for its clients may need to hold monies in trust for its clients. We have rules that specify how such agents should handle monies that are held in trust. An example of this is for conveyancing transactions. Under the law, lawyers are not permitted to receive and hold conveyancing monies unless such monies are deposited in special conveyancing accounts opened with appointed banks, the Singapore Academy of Law or in an escrow account. Second, businesses may, as part of their loyalty programmes and promotions, come up with their own stored value facilities and offer consumers a better deal when they purchase using these facilities. For example, a business may give consumers a discount off their purchases if they choose to pay using their stored value cards. There are also businesses which offer stored value facilities for payment of goods and services offered by various merchants. These are commonly known as multi-purpose stored value facilities.”
“Mr Speaker, Sir, I think the training is best done by the Elections Department. I do not think that there is anything secret about it. We train thousands and thousands of public officials on how to do it. There is nothing that we need to hide. The rules are very clear. So, with today's amendments, it will be even clearer because, first, we have improved on the layout of the ballot paper, where it is black contrasted with white, and the white boxes where people are supposed to mark are clearly contrasted against all the other areas that are printed in black. And I think the Elections Department would be happy to share with Mr Png Eng Huat how we train our officers. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Chan Chun Sing.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“Mr Speaker, Sir, in answer to both Mr Murali Pillai's and Ms Sylvia Lim's questions, yes, we would hope that the primary mode would go towards e-payment and transactions. But in extenuating circumstances, as the Member has mentioned whereby the electronic payment system failed, then we are able to accept cash. Or if you are talking about last-minute crowd-sourcing, so if there are extenuating circumstances, I think candidates can let the Returning Officers know and they will exercise the discretion.”
“The answer is yes, the Member's interpretation is correct.”
“We have gone through this debate previously in this House. We had also debated this during the Constitutional amendments. May I make a humble suggestion? If the Workers' Party feels that it is not in its Party's manifesto or beliefs to support the NCMP scheme, then we have two choices in front of us. One, it is for the Workers' Party candidates, during elections to publicly declare that he or she will not take up the NCMP seat even if offered. The second option is for the Workers' Party to impose a rule on all its Members to not take up an NCMP seat even if it is offered and this will be the Workers' Party's guideline. I think with these two options, the Workers' Party can take its pick on what it wants to do. But it would be rather disingenuous to say that we oppose the NCMP scheme and, at the same time, to take up the NCMP seats. So, I leave it to the Workers' Party on the choice that it wants to make going forward, and I am sure that enlightened Singaporeans will understand why and what the Workers' Party wants to do. Mr Speaker, Sir, as I mentioned at the start of my speech, this Bill makes changes to improve the administration of Parliamentary elections while ensuring the secrecy of the vote and the integrity of the election process. They are part of the continuous improvements to strengthen election administration and to improve services to voters and candidates. With that, Mr Speaker, Sir, I beg to move. I urge all Members to give your support to the Bill.”
“After counting, the ballot boxes are then transported back to the Supreme Court to be kept together with the local ballot boxes for six months before they are destroyed. On Mr Gan Thiam Poh’s and Mr Png Eng Huat’s comments on election officials, let me first emphasise that the elections are administered by public officers who have been trained to do their election duties according to the law, in an impartial and transparent fashion. Election officials are not allowed to influence voters on who to vote for. Each voter decides for himself who to vote for. Where election officials have to communicate with voters, for example, in the case of visually handicapped voters, to guide them on using the stencil, they do so in an audible voice so that candidates, agents and other election officials around them can hear the conversation. I thank Mr Gan Thiam Poh for welcoming the use of maps to show the boundaries of polling districts. Assoc Prof Walter Theseira asked if the move to an online-only publication of polling districts will adversely affect historical records and, hence, future research. I would like to assure Assoc Prof Theseira that the Elections Department will maintain a proper archive of the boundaries of polling districts and electoral divisions. Members of the public can also continue to view electoral boundaries interactively using the Singapore Land Authority (SLA) OneMap. They can also inspect or purchase these maps in hardcopy at the offices of SLA and the Elections Department. As with other public records, the maps would also be kept with the National Archives in due course. Mr Speaker, Sir, with your indulgence, let me just make a few comments that are not entirely relevant to today's debate, and that is the issue of the NCMP.”
“They will adjudicate based on their professional judgement on how best this is to be done. Election officers are trained to adjudicate based on whether the voters' choice is clear, according to the law. Now, with the amendment to only consider markings in the demarcated area of the ballot paper, we will remind voters to mark their choices with an "X" for the candidate, or, in the case of a GRC, the group of candidates they are voting for, in the demarcated area of the ballot paper. And Mr Png Eng Huat may like to help us to remind voters to mark the "X" in the demarcated area, rather than to exercise their artistic talent in the polling station. Mr Gan Thiam Poh also asked if there had been previous cases of tampering with ballot boxes during an election. The answer is no. There is a rigorous process to ensure that there is no break in the chain of custody of the ballot boxes from the polling stations to the counting centres, and from the counting centres to the Supreme Court where the ballot papers are retained in safe custody for a period of time before they are subsequently destroyed. For transparency, the process is open to observation by candidates and their agents. When sealed ballot boxes are transported from polling stations to counting centres, candidates and their polling agents may also board the buses to observe the process. For overseas votes, there is similarly a secured chain of custody. Sealed ballot boxes are transported back to Singapore by two election officials and they are kept at the Supreme Court. They are then transported from the Supreme Court to the counting place to be counted.”
“The Registration Officer will reply to the claimant, and if the claimant so chooses, he or she may make public the reasons for the rejection. So, it will not be the Registration Officer who makes public the reasons for the rejection, but it is made available to the claimant, and he or she can make the necessary public announcement if they so choose to. I will now touch on other points raised by Members. On the design of the ballot paper, we share Mr Png Eng Huat’s and Mr Gan Thiam Poh's concern for the elderly. And this is, indeed, the reason why we have recently refreshed our polling paper design. The use of black as the base colour was introduced at GE2015 to help focus voters’ attention on the box to mark their voting choice. The background for the parts containing the candidate’s photograph and symbol remain white, so that these parts are clearly visible, and in clear contrast to the voters. The Elections Department took in the views of voters of different age groups when coming up with the new ballot paper design. Mr Png Eng Huat asked about the adjudication process. We have very clear adjudication rules and process set up, and the Elections Department routinely conducts training for all the Assistant Returning Officers (AROs), the Group Assistant Returning Officers (GAROs), so that they can do their job professionally. But we should also put in context, such as how many of these votes actually go into adjudication. Actually, the answer is very few, but notwithstanding that it is very few that really require adjudication, we constantly make sure that training of our AROs and GAROs are all done systematically and professionally. And they are not partisan to any particular party.”
“And, if, indeed, ballot boxes get lost or damaged, the amendment in today’s Bill would lay out clearly in the law the steps to take to deal with such a scenario to ensure the integrity of the election process. Members have also asked has there been any event that triggered us to review the current existing procedures. The answer is that this has always been part of our ongoing work in the Elections Department to make sure that our processes are kept afresh. As Assoc Prof Walter Theseira said, we need to think long term, we need to anticipate what may happen even though it may not have happened yet. Assoc Prof Walter Theseira asked if providing the Minister with powers to decide how a re-poll is to be done will be a conflict of interest. Now, let me assure Members that the new section 56DA spells out clearly the procedures to be undertaken by the Returning Officer when a ballot box is lost or destroyed after the close of polls in Singapore. This includes informing the candidates of the affected electoral division, publishing a notice in the Gazette that the Returning Officer has abandoned the counting of the votes cast at the affected polling station and, if there is a need for a fresh poll, to specify the date, hours of the poll and location of the polling station. The provision in section 56DA(8) is to provide the Minister with the powers to prescribe other operational details in the regulations, if required, such as the notice to be placed outside the polling station. In response to Member Mr Dennis Tan, we are thinking ahead of possible contingencies, rather than being triggered by any recent or past occurrence. Mr Dennis Tan also asked for the grounds of rejection.”
“It will not be possible for us to ascertain which voters cast their votes in the affected ballot box. So, that is why it goes by the polling station, rather than the individual voter. And this will only be done if, as I have explained, it affects the polling results for the electoral division. And how do we know whether the affected votes might affect the election results? This is when the sum of the total number of affected voters and the total number of overseas voters from the affected electoral division are equal or more than the difference between the votes already counted for the top two candidates. The procedure we are proposing is not new. This contingency procedure has been in place for Presidential elections. Now, what is new is the proposal to apply the same contingency procedures to Parliamentary elections as well. Assoc Prof Walter Theseira suggested to minimise the need for fresh polls by changing the polling procedures in the polling station. There is a downside to that because the current procedure is designed to allow voters to drop their ballot paper into any ballot box, so that voters can be assured of voting secrecy, as an added check. So, this has served us well, and I think we will continue this current arrangement. There are also contingency provisions and procedures that we want to put in place. Assoc Prof Walter Theseira observed that if there were lost or damaged ballot boxes in an SMC, chances would be higher for a fresh poll to be conducted. Let me assure Members that there has been no instance in past elections of lost or damaged ballot boxes prior to the votes being counted. Consequently, there was no instance of re-polling as a result of loss or destruction of ballot boxes.”
“That is because, in our review, we made a distinction between operational matters which can be done in the subsidiary legislation, and the legislative matters which are required in the Act. So, we are not removing the clauses that the Members have mentioned, but we are shifting them into the subsidiary legislation, so that we simplify the Act itself. On the issue of the number of polling agents required, we have simplified this so that it is according to the number of voters, rather than the number of polling places. There is no intention to decrease or increase the number of polling agents overall, but this will allow us to better match the number of polling agents with the number of voters, and it would be an easier way for everyone to understand the processes. The third issue raised by Mr Leon Perera is the issue of notifications. It will be done simultaneously via the Gazette and also available on the Elections Department website, so that it is easily available for everyone to check when there is an announcement to be made by Elections Department. Next, let me touch on the management of contingencies. Mr Gan Thiam Poh and Assoc Prof Walter Theseira spoke about the proposed procedures should a ballot box be lost or destroyed. Let me state that if ballot boxes go missing or are destroyed, the proposed new sections 56DA and 56DB spell out the processes to handle such contingencies to maintain the integrity of the election. Fresh polls will be conducted if the number of votes affects the election results for the electoral division. All voters assigned to the affected polling station will then have to re-cast their votes. And now, this is key. This is because when voters drop their ballot papers into the ballot boxes in any polling station, they have a choice.”
“The Elections Department will also return the election deposits using electronic funds transfer, and it is as per the current process, the candidate has the choice to which method of refund that they would like to use. As for cash, this is something the Returning Officer may allow when there are technical issues with the electronic funds transfer system. So, we have increased the number of choices, rather than narrow it. Mr Gan Thiam Poh also suggested automating nomination forms. The Elections Department is looking into expanding its range of e-Services to candidates and election agents, and we will consider Mr Gan’s suggestion as part of their study. Mr Murali Pillai spoke about possible unintended consequences from removing the need for candidates to submit supporting documents, such as bills and receipts, in their returns on election expenses. As there have not been any issues with these returns in the past, we propose to remove the need to submit these supporting documents to improve administration efficiency. But we are only doing away with supporting documents. The rest of the submissions are still required. This will not dilute accountability. The process for public inspection remains. Candidates are also required to keep these supporting documents for a period of one year, and the Returning Officer may require these documents for checks, where needed. So, the candidates still need to submit the necessary declarations and it is just that the supporting documents need not come with it, unless there is a public enquiry, a public interest in this. Mr Leon Perera and Mr Dennis Tan asked why some of the issues are moved out of the Act.”
“Mr Speaker, Sir, let me first thank all the Members for speaking on this Bill. I will address the specific points raised. These can be grouped into three broad sets of issues. The first set of issues has to do with the provisions related to election candidates. The second set of issues relates to management of contingencies. The third set of issues has some unrelated issues which the Speaker has reminded us that are not relevant to this Bill, but nevertheless, I will make a few short remarks, in particular, on the NCMP scheme. Let me begin with the provisions related to election candidates. Mr Gan Thiam Poh suggested reducing the election deposit. The purpose of the election deposit is to ensure that only those who are serious in contesting in the elections step forward. I agree with him that we should not set the amount so high that it becomes a barrier to entry. But we also need to strike a balance. Setting at the current rate of one month of a Member of Parliament’s allowance has worked reasonably well since we first had elections in Singapore. And under the law, candidates who contest and gather more than one-eighth of the votes will have their election deposits returned to them after the election. Mr Murali Pillai suggested that we continue to allow cash payment of election deposits. We agree. The amendments will increase the options, not decrease the options in the mode of payment. We are encouraging candidates to use electronic funds transfer to make it more convenient for aspiring candidates so that they no longer need to withdraw cash or visit a bank to purchase a bank draft and go to the Accountant-General’s Department to make the payment.”