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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“The changes will ensure that our electorate continues to have high trust and confidence in our electoral system. Mr Speaker, Sir, I beg to move. [(proc text) Question proposed. (proc text)]”
“This amendment gives flexibility to the Elections Department to design polling stations for efficient operation. To illustrate, Elections Department plans to introduce electronic voter registration or e-registration. This will result in a faster registration process for voters. With a faster registration process, the same number of voters in a polling station can be served by fewer polling places. To ensure an adequate number of polling agents for each polling station despite fewer polling places in the polling station, we propose to peg the number of polling agents to the number of voters in the polling station. The amendment Bill also replicates relevant changes made to the Presidential Elections Act last year through the amendments in clauses 7, 9, 10, 11, 14, 15 and 28(n). These relate to the notices to voters on voting procedures placed outside polling stations, the design of the ballot paper, recounting of votes, and election advertising. All these changes were elaborated during the amendments to the Presidential Elections Act last year and I will not repeat them today. Lastly, consequential to amendments made in 2016 to the Constitution, clause 16 amends section 52 to increase the number of Non-Constituency Members of Parliament (NCMPs) to be declared. Currently, the number of NCMPs to be declared is nine, minus the total number of elected Opposition Members of Parliament. The clause increases the number of NCMPs to be declared to 12 minus the total number of elected Opposition Members of Parliament. Allow me to conclude. The amendments I have described today will improve the administration of Parliamentary elections while ensuring the secrecy of the vote and the integrity of the election process.”
“Clause 3 amends section 11 to enable the Registration Officer to reject, without having to hold a public inquiry, a claim for a name to be included in a Register of Electors for an electoral division if the claim is clearly without merit. To safeguard claimants' interests, the grounds on which the Registration Officer may reject a claim without holding a public inquiry are tightly scoped in the new section 11(9B) as follows: (a) the claimant was not a citizen of Singapore on the relevant cut-off date for the Register; (b) the claimant was below 21 years of age on the relevant cut-off date; (c) where the claimant claims to be entitled to be included in the Register on the ground that the claimant's address has changed, the new address provided by the claimant is not the address of any premises within the electoral division, such as a P O (post office) box address. The clause improves administrative efficiency in processing the claims specified in a new section 11(9B). For other types of claims, the Registration Officer will continue to hold a public inquiry before deciding whether to accept or reject such claims. Claimants whose claims are rejected without an inquiry have a right to appeal to the Revising Officer, appointed by the Minister, under the current section 12. Clause 8 amends section 39 to empower the Minister to prescribe in regulations the method for computing the number of polling agents for each candidate or a group of candidates who may enter a polling station. This will enable the number of polling agents in a polling station to be made proportionate to the number of voters allotted to the polling station instead of the current pegging of polling agents to the number of polling places in the polling station.”
“These are covered in clause 13, which amends section 49A to empower the Returning Officer to extend the time taken for sealed ballot boxes from overseas polling stations to reach Singapore; clause 19 which inserts new sections 56DA and 56DB to spell out the procedures to be taken when marked local ballot papers are lost or destroyed when they are being transported after the close of polls to counting places and when marked overseas ballot papers are lost or destroyed when they are being transported from overseas polling stations to the counting place in Singapore; and clause 12, which amends section 48A to remove the current requirement for the Returning Officer to inform candidates or their election agents in writing as to the places where the votes will be counted or the postponement of counting due to certain contingencies described in that section. Instead, the Returning Officer will publish the information in the Government Gazette. The third category of amendments deals with other election processes. Clause 2 amends section 9 to remove the requirement for the Registration Officer to publish in the Government Gazette the polling districts within an electoral division. Instead, the Registration Officer will publish maps or other images of the polling districts on the Elections Department's website. This will make it easier for members of public to view the polling districts compared to the current method of using text, such as road names, to describe polling districts. The Registration Officer will continue to publish in the Government Gazette a notice when an electoral division is subdivided into polling districts. The notice will provide details of the website and the physical locations where the maps can be inspected by the public.”
“If a contingency arises before the start of nomination proceedings on nomination day, the new section 56BA provides the Returning Officer with the powers to change the hours of the nomination proceedings, change the place of nomination, or to do both, or abandon nomination proceedings. If the Returning Officer decides to change the hours of nomination proceedings, the new hours must enable the nomination proceedings to start and conclude within the same day. If a contingency arises during the nomination proceedings, the new section 56BA(3) provides the Returning Officer with the powers to suspend the nomination proceedings for a period of time and continue with the nomination proceedings at the end of the period at the same nomination place or at a different place on the same date, or abandon the nomination proceedings. Should there be a need to conduct nomination proceedings on another day, the President will issue a fresh writ stating the new date for nomination as provided under existing law. Before making a decision under the new section 56BA(3), the Returning Officer may suspend the nomination proceedings for a period of up to two hours in order to assess the situation and decide on the course of actions to be taken. Similarly, for polling and counting proceedings, clauses 18, 20 and 21 amend sections 56C, 56E and 56F respectively to empower the Returning Officer to suspend the proceedings for up to two hours to assess the situation and decide on the course of action to be taken. We will also be replicating various changes to deal with contingencies, which we made to the Presidential Elections Act last year.”
“However, for accountability, the names of candidates, election agents and donors will continue to be reflected in full with their identity card numbers partially redacted. The clause also extends the period of time for which the Returning Officer must keep the returns and statements on election expenses from the current six months to one year. Next, I will discuss the proposed amendments to section 83. Section 83 of the Parliamentary Elections Act currently prohibits certain classes of people, such as foreigners, from taking part in any election activity and also requires the persons conducting election activities for a candidate to be authorised to do so by the candidate or his election agent. Section 83 currently defines "election activity" as including an "activity which is done for the purpose of promoting or procuring the election of a candidate at any election". Clause 26 amends the definition of "election activity" mainly to elaborate that an activity which is done to prejudice the electoral prospects of other political parties or candidates is also election activity. The Bill does not make any changes to the substantive rules in section 83 on election activity. Let me now address the second category of amendments which deals with the management of contingencies during an election. The Bill spells out various procedures to strengthen the current provisions to manage various types of contingencies, such as a riot, fire or flood, which may occur during nomination, polling or counting proceedings. I will now take Members through the key changes being proposed. Clause 17 inserts a new section 56BA to enable the Returning Officer to deal with contingencies affecting the conduct of nomination proceedings on the day of nomination.”
“In the case of a Group Representation Constituency, additional requirements apply, including that at least one member in the group must also have a certificate from either the Malay Community Committee or the Indian and other Minority Communities Committee. These requirements are also necessary for successful nomination. With the proposed changes, election officials can focus on processing the nomination papers of those who are serious about meeting the requirements for nomination. The next set of amendments deals with the returns on election expenses. We will streamline and simplify the submission of returns on election expenses without diluting accountability. Clause 23 amends section 74 to remove the current requirement for election agents to submit to the Returning Officer the supporting documents for election expenses, such as bills and receipts. To ensure accountability, clause 25 inserts a new section 75A to require a candidate and the candidate's election agent to maintain the supporting documents for the return on election expenses for a period of one year after notice of the return is published by the Returning Officer in the Government Gazette. The clause also empowers the Returning Officer to require, during this one-year period, the candidate or the election agent, or both of them, to furnish any supporting document or any other information relating to the return. Any contravention of the requirements of the new section 75A constitutes an illegal practice. To protect personal data, clause 24 amends section 75 to require the Returning Officer to redact certain personal details when the returns and statements on election expenses are open for public inspection. Addresses and contact numbers will be completely redacted.”
“Mr Speaker, on behalf of the Prime Minister, I beg to move, "That the Bill be now read a Second time." The amendments being proposed to the Parliamentary Elections Act seek to improve the administration of Parliamentary elections. They can be grouped into three categories. The first category of amendments involves changes to processes related to election candidates. The second category improves the management of contingencies during an election. The third and final category deals with other election processes. Let me begin with the first category of amendments related to election candidates. Clause 4 amends section 28 to simplify the computation of election deposits. The election deposit will now be based on an elected Member of Parliament's fixed monthly allowance, rounded to the nearest $500. The clause also deletes the reference to cash payment and, in its place, provides the option for candidates to pay the election deposit by electronic fund transfer or in such other form or manner as the Returning Officer allows. The other methods of payment currently provided in the Act by bank draft or certified cheque will continue to be available. To facilitate smooth and orderly conduct of nomination proceedings, clause 6 amends section 31 to provide that a person seeking to be a candidate in an election may be refused entry to the place of nomination unless the aspiring candidate satisfies the requirements set out in the new section 31(2). These requirements are that the aspiring candidate must have a political donation certificate issued under section 18(4) of the Political Donations Act and be accompanied by at least six other individuals, namely, his proposer, seconder and at least four assentors.”
“While Singapore is generally recognised as one of the top aircraft leasing hubs alongside Ireland, which is the industry leader, as reported in industrial reports and news articles, other cities in our region are also competing to capture opportunities arising from Asia's increasing demand in air travel. We will need to continue to partner one another to strengthen Singapore’s position as the preferred base for the world to access Asian markets, and for regional companies to access the world.”
“Singapore's competitiveness as a base for aircraft leasing companies is founded on several factors, including our extensive network of Avoidance of Double Taxation Agreements (DTAs); our strong financial industry and professional services ecosystem which provide supporting services to aircraft leasing businesses; and our established aviation and aerospace industries which complement the aircraft leasing industry with their deep knowledge and quality services. Several companies of varying sizes seeking to develop aircraft leasing capabilities in Singapore have availed themselves of the Economic Development Board's (EDB's) Aircraft Leasing Scheme (ALS). The ALS is just one of the ways in which EDB works with aircraft leasing companies to capture growth opportunities for the industry, strengthen the larger ecosystem of related industries, and create good jobs for Singaporeans. While Singapore's competitiveness cannot be attributed solely to our tax regime, factual details of tax regimes across jurisdictions, including Ireland, Hong Kong and Singapore, can be found in the respective government publications. Eight out of the top 10 aircraft leasing companies have offices in Singapore and are registered with the Accounting and Corporate Regulatory Authority. Aircraft leasing companies in Singapore may undertake activities, such as sales, leasing and financing, depending on their business models. In addition, they are required to comply with accounting and tax filing requirements under Singapore law.”
“At the recently concluded 50th ASEAN Economic Ministers Meeting, two new agreements on services and trade facilitation were signed and an ASEAN Agreement on e-Commerce was endorsed. These agreements2, when they take effect, will give Singaporean businesses greater access to ASEAN's services markets and save costs and time for Singaporean businesses by making customs procedures less burdensome. The ASEAN Agreement on e-Commerce will lower the costs for Singaporean businesses by improving the speed and reliability of supply chains in cross-border e-commerce transactions. The Government is firmly committed to continuing to support our companies to seize overseas opportunities and grow.”
“Examples of partnership with companies include the Youth Talent Programme which targets to send 1,000 students each year for work opportunities in overseas markets, the Professional Conversion Programme for Southeast Asia Ready Talent which integrates job-matching and reskilling to help professionals gain new skills for job roles within the Southeast Asian region, and the ASEAN Leadership Programme, which trains C-Suite business leaders on strategies to leverage ASEAN’s growth. Together, these programmes help to build up groups of Singapore students and professionals with more specialised knowledge and, in time, experience and networks in the Southeast Asia markets. Third, Enterprise Singapore's (ESG's) international network of offices and in-market partners facilitates leads and connections for companies venturing overseas. In 2017, ESG (then-International Enterprise Singapore) successfully facilitated over 450 overseas projects for Singapore companies. The Plug and Play Network, which helps SMEs access new markets by providing in-market assistance in business advisory services, business matching and market set-up, was also launched in 2017. SMEs can now gain access to assistance in over 45 major cities across six Asian markets, including Jakarta, Kuala Lumpur, Ho Chi Minh City, New Delhi and Shanghai. ESG also partnered Trade Associations and Chambers to facilitate visits by about 6,000 businesses to overseas markets through business missions and participation in international trade shows. As the ASEAN Chair this year, Singapore has also worked with member countries to deepen regional connectivity and improve trade facilitation.”
“Helping Singapore companies internationalise is a key thrust of Singapore's economic strategy. The Association of Southeast Asian Nations (ASEAN) alone represents a market of US$2.55 trillion in gross domestic product and a population of some 650 million1. The Government supports companies' internationalisation in several ways. First, we provide targeted grant support for small and medium enterprises (SMEs) making their first foray into overseas markets through the Market Readiness Assistance (MRA) scheme. In 2017, 1,629 MRA grants were disbursed, which included support for SMEs expanding into regional markets like Indonesia, Myanmar, Vietnam, India and China for the first time. To help companies that have had overseas exposure but which need more tailored assistance to expand overseas or access additional overseas markets, we provide help in the form of the Global Company Partnership (GCP) programme. In 2017, the GCP, which comes with a grant, assisted 419 companies in the areas of capability development, market access and manpower development for internationalisation. Of these, about 40% was for companies expanding within Southeast Asia. The Ministry of Trade and Industry and our agencies regularly review these grant schemes to provide more customised support to local enterprises seeking to develop new capabilities to scale up and internationalise. Second, we support businesses' efforts to develop their manpower and talent to better understand regional markets.”
“In general, the Government adopts a balanced approach of supporting a pro-enterprise environment and safeguarding consumers' interest. Consumers are encouraged to take steps to protect themselves before making their purchases. This would include checking the terms and conditions of contracts which they are about to enter into; what they are paying for; and the supplier’s refund policies. If consumers are unsure about any terms and conditions, they are encouraged to clarify with the suppliers. Suppliers should also be upfront and transparent with consumers about material terms and conditions in their agreements so consumers can make an informed decision. If consumers have reason to believe that the suppliers have engaged in unfair trading practices, they can approach the Consumers Association of Singapore (CASE) with details of these practices for CASE to assist them in seeking redress from the suppliers. The Consumer Protection (Fair Trading) Act (CPFTA) protects consumers against errant retailers which engage in unfair trading practices, including attempts to conceal information or mislead consumers. Under CPFTA, CASE can invite suppliers to cease their unfair practices through a Voluntary Compliance Agreement. The Competition and Consumer Commission of Singapore, as the administering agency of CPFTA, is also empowered with investigation and enforcement powers to take action against errant retailers who persist in unfair practices. We note the Member's suggestion regarding pre-ticked boxes and will study it further, taking into account feedback from relevant stakeholders and global best practices.”
“Between 2015 and 2017, nine in 10 officers in the Civil Service who retired and wished to continue working were re-employed at age 62. Seventy-seven percent of these officers were re-employed on multiple-year contracts. Twenty-two percent of them were re-employed on one-year contracts. The remaining officers were re-employed on contracts of less than one-year duration with mutual agreement between the officers and their agencies. Of the officers who were re-employed on one-year contract at age 62, 87% continued to be re-employed in the following year. The Public Service Re-employment Guidelines take reference from the Tripartite Guidelines on the Re-employment of Older Employees, including the guidelines on employment assistance to officers who wished to continue working but were not offered re-employment. As a best practice, agencies will work with these officers to find alternative employment, which may include referring them to vacancies within the Public Service and providing career resources and refresher training to facilitate officers' search for jobs.”
“The Government does not have data on overseas spending by Singaporeans and Permanent Residents. Singapore retailers face competition not just from shops in Malaysia, but also from other countries due to online shopping and more convenient air connections. This increases competition for local businesses, but it benefits Singapore consumers. Competition is a two-way street. Our businesses can also draw customers from overseas by offering greater value, higher quality products, or better service levels. Indeed, tourist spending on shopping in Singapore has grown by 4% from 2016 to 2017. Some of our small and medium enterprises (SMEs) have developed creative marketing strategies. For example, homegrown furniture brand Commune has a retail experience centre at Defu Lane that enhances the shopping experience of its customers. The retail experience centre's 3D floor planner and virtual reality simulation allow customers to recreate their homes and visualise Commune's furniture within their spaces. The Singapore economy has thrived because of competition. It drives us to improve our capabilities and up our game, including expanding our international presence and exporting our products and services to overseas markets.”
“Singapore's manufacturing ecosystem has become more diverse over the years, with a shift towards higher-value activities. This includes a rise in the number of Factoryless Goods Producing Firms (FGPFs). These are firms that undertake pre-production activities, such as research and development (R&D) and product design in Singapore, but outsource the physical production to another company, which could be located in Singapore or overseas. FGPFs contribute to our economy in several ways. First, due to the high-value nature of their activities in Singapore, FGPFs contributed to 5.2% of the value-added of the manufacturing sector in 2016, even though they accounted for around 0.5% of manufacturing firms. They also provide business to firms in supporting industries that are engaged in logistics, sales and marketing. Second, FGPFs generate skilled and well-paying jobs. In 2016, FGPFs accounted for around 2,700 jobs in the manufacturing sector. Around two-thirds of these jobs were filled by Singaporeans. About 80% of the 2,700 jobs were skilled jobs that provide higher salaries for the workers. Third, FGPFs conduct R&D with local contract manufacturers and equipment suppliers to jointly develop advanced production processes. Such partnerships help to strengthen the capabilities and competitiveness of our manufacturing sector. Manufacturing remains an important part of Singapore's economy. The Government will continue to strengthen and upgrade our manufacturing capabilities by attracting investments in both production and production-related services and helping Singapore companies to raise their productivity and move into higher-value manufacturing activities.”
“The intent of the contract framework is to allow public agencies the flexibility to employ officers to undertake specific projects over a fixed period, or as a means to assess their suitability for the job. As at 31 December 2017, about 10% of all public officers or 14,600 public officers are employed on contracts, excluding those on re-employment contracts. Contract officers generally enjoy the same leave and medical benefits and are paid according to the same salary structure as permanent officers1. Public agencies can appoint officers on contract for up to four years to assess their suitability for the job. For officers who perform well in the job and are assessed to be suitable for a long-term career with the Public Service, agencies will offer them permanent positions after one or two years. When contract officers are emplaced as permanent officers, their period of service is considered continuous from the contract employment episode. Agencies also consider the period of contract service when determining the substantive grade and corresponding salary to offer at the point of emplacement. As adopters of the Tripartite Standard on Grievance Handling, public agencies have grievance handling procedures in place for officers, whether contract or permanent, to raise their grievances and for these grievances to be properly investigated and resolved.”
“A study by the Ministry of Trade and Industry showed that young firms are key contributors of jobs in Singapore. These are firms which have been formed for five years or less. Between 2012 and 2016, young firms created an average of more than 106,000 jobs per annum, accounting for close to 90% of the 120,000 jobs created each year. Many of the jobs created by young firms are in sectors that provide good wages and career development prospects for Singaporeans. In particular, around one-third of the 106,000 jobs created by young firms from 2012 to 2016 were in key growth sectors, such as wholesale trade, manufacturing, information and communications and finance and insurance. These are sectors which pay higher monthly wages compared to the economy-wide average. The Government will continue to work with industry and other key stakeholders to encourage entrepreneurship and attract new investments into Singapore.”
“Based on data from the latest Household Expenditure Survey published by the Department of Statistics, the mobile phone ownership rate is high across all household income groups. For instance, the proportion of resident households with mobile phones ranged from 88.7% for the lowest 20% of households by income to 99.7% for the 61st to 80th percentiles of households by income.1 Mobile phones and their related subscription fees and call charges are included in the consumption basket used to compute the Consumer Price Index (CPI-All Items), which, in turn, is used as a proxy to measure changes in the cost of living of resident households. Between 2012 and 2017, the communications category of CPI-All Items, which largely consists of mobile phones and related services, saw a price decline of 0.2% per annum on average, compared to the 0.6% per annum increase in the overall CPI-All Items. The decline in communications costs faced by households reflects the increasingly vibrant and competitive telecommunications market. More broadly, the Government recognises that mobile phones are an important enabler for many of the digital services that we want to provide to our citizens. Guided by the Digital Readiness Blueprint, the Ministry of Communications and Information is looking into providing support to those who do not have access to such devices. In assisting low-income households with financial difficulties, the Ministry of Social and Family Development (MSF) also includes their communications needs in the ComCare assistance provided.”
“Strong business leaders are critical to a company's success and viability. They are also important to our economy as a whole. We need leaders with vision, know-how and a "can-do" spirit to build and grow globally competitive businesses. The Government will continue partnering industry to help more Singaporeans realise their full potential as effective leaders. As to LDI and the ASEAN Leadership Programme specifically, these initiatives are still in their early stages. We have received good feedback so far. LDI participants have affirmed that such programmes are important to their development and provide them with useful networking opportunities and industry insights. We will continue to engage employers and participants to assess the effectiveness of these programmes and make improvements along the way.”
“The SkillsFuture Leadership Development Initiative (LDI) aims to develop more Singaporeans as business leaders in their respective fields. This is achieved in two ways. First, LDI supports companies’ efforts to provide promising employees with on-the-job leadership opportunities. Second, LDI supports training providers to develop market- and sector-specific leadership programmes. To date, companies have committed to develop about 450 Singaporeans under LDI. The scheme is designed to address leadership development needs across different industries and career stages. Accordingly, participants come from diverse industries, including Electronics, Biomedical Sciences and Consumer Businesses, just to name a few. They also have a wide range of professional experience, from the entry level to more advanced stages of their career. Participants are identified by their companies based on merit and performance, regardless of age or gender. So, we do not track these statistics. In addition to company-centric programmes, another 80 Singaporeans have completed LDI programmes which focus on sectors and markets, such as the Singapore Semiconductor Leadership Accelerator Programme and the Asian Retail Leaders Programme. There are more cohorts in the pipeline. In particular, the Association of Southeast Asian Nations (ASEAN) Leadership Programme is a new initiative that seeks to help business leaders better understand emerging markets, build networks and advance their companies' growth throughout Southeast Asia. This will help develop Singapore leaders with the necessary expertise in ASEAN markets to operate confidently in the region. The inaugural run of the Programme will be in September this year, with a projected class size of 20 participants.”
“Thus far, the Precision Engineering and Electronics ITMs, as "live" roadmaps of transformation, are supporting our companies in harnessing advanced manufacturing technologies, and our people through skills deepening and upgrading efforts. The ITMs will be reviewed continually to take into account industry feedback and prevailing economic conditions. We will continue to work with our tripartite partners in this joint transformation journey.”
“Since the launch of the ITM, EDB has worked with Enterprise Singapore (ESG) to support and grow more than 15 electronics startups through accelerators and incubators. ESG also supported seven startups in featuring their solutions at the Consumer Electronics Show 2018 in Las Vegas. As we shift the Precision Engineering and Electronics industries towards higher value-added and innovation-intensive activities, both industries will also see the creation of jobs that require greater depth of knowledge. EDB has worked with SkillsFuture Singapore, unions and industry stakeholders to roll out Skills Frameworks to help our people identify the key skills, competencies and training programmes that they will need to capitalise on new job opportunities and advance in their careers. We have also put in place programmes to attract young talent and support the leadership development of our people. For example, with the support of EDB, the SSIA launched the Semiconductor Leadership Accelerator in October 2017 and has since trained about 40 Singaporean professionals over the course of two runs. In addition to the ITM initiatives, EDB has worked with TÜV SÜD to develop the Singapore Smart Industry Readiness Index, a comprehensive tool to help companies identify challenges in adopting Industry 4.0 technology. EDB, in partnership with six trade associations and ESG, has targeted 300 funded assessments of the Index. To date, more than 170 funded assessments have been awarded, of which 40% were to SMEs. More than a third of the assessments were awarded to Precision Engineering and Electronics companies. Industry feedback has been positive, with several companies sharing their experience at industry seminars.”
“The Precision Engineering Industry Transformation Map (ITM) and the Electronics ITM were launched in October 2016 and September 2017 respectively. Both ITMs were developed and are being implemented in close collaboration with industry, unions, institutes of higher learning, and trade associations and chambers, such as the Singapore Precision Engineering and Technology Association and the Singapore Semiconductor Industry Association (SSIA). The Economic Development Board (EDB) is the lead Government agency coordinating both ITMs. Both ITMs aim to transform their industries by strengthening existing growth sub-sectors, diversifying into new growth opportunities and deepening the capabilities of our Precision Engineering and Electronics companies. The Precision Engineering industry is characterised by a large number of small and medium enterprises (SMEs). To help these SMEs grow, we will need to lower their barriers to innovation and technology adoption. One specific initiative aimed at doing so is the development of model factories, which allow SMEs to experience and experiment with advanced manufacturing technologies in a real-life production environment, before deciding whether to implement them in their own premises. As part of the Precision Engineering ITM, the Model Factory @ SIMTech was launched in October 2017. Another Model Factory will be launched by the end of this year. For the Electronics ITM, one area of focus is strengthening our innovation ecosystem to enable our companies to harness new growth opportunities. The ITM has outlined a few strategies that are being implemented, such as fostering "one-to-one" collaborations between multinational companies and SMEs and building up structures to groom Electronics SMEs and startups.”
“Initiatives, such as JTC's SolarRoof project, are part of our plan to raise solar adoption further to 350 MWp by 2020, and one gigawatt peak (GWp) beyond 2020.”
“Singapore relies on imported fuel to meet our energy needs, with natural gas accounting for about 95% of our electricity generation. Our electricity prices are thus largely driven by movements in the global energy markets, given that we are a small country and price takers for natural gas. Nevertheless, the Energy Market Authority of Singapore (EMA) has pursued various measures to improve the price-competitiveness of our electricity supply. EMA has progressively introduced competition into our electricity market since the 1990s, so that companies would strive to be more cost-effective and offer better service in competing for customers. This includes our retail electricity market, which EMA has gradually opened up to competition since 2001, by allowing larger businesses to purchase electricity from retailers, instead of buying from SP Group at the regulated tariff. EMA is working to open up the rest of our retail electricity sector through the Open Electricity Market (OEM), which would allow all households and small businesses to choose an electricity supplier and price plan that best suits their needs. We introduced a soft launch of the OEM in Jurong in April 2018 and are on track to begin the nationwide rollout from the fourth quarter of this year. We will be sharing more details in the next few months. Beyond promoting competitive markets, the Government has also sought to diversify our sources of generation to reduce our reliance on fossil fuels and exposure to volatile global fuel prices. For instance, we have been working to facilitate the adoption of solar power, which has grown from 0.4 megawatt peak (MWp) in 2008 to around 145 MWp by end-2017.”
“The Local Enterprise and Association Development-Plus (LEAD+) programme was introduced at Budget 2016 to encourage TACs to raise their internal competencies to be more effective champions of industry transformation. At the Committee of Supply 2018 this year, MTI announced the consolidation of several grant programmes for TAC initiatives, including LEAD+, into a single enhanced LEAD programme to drive comprehensive industry upgrading and internationalisation efforts. The combined LEAD programme budget for 2016-2020 is about $115 million. TACs can now tap on the enhanced LEAD scheme to strengthen their leadership and secretariat teams, improve organisational processes, and deliver new and value-added services to their members. As of June 2018, Enterprise Singapore has provided almost $10 million to nine TACs to upgrade their internal capabilities. We expect more TACs to come on board over the next few years. The enhanced LEAD programme covers all areas that were previously supported under LEAD+, including the secondment of public officers. Efforts to second public officers to TACs are not new. Prior to Budget 2016, then-Standards, Productivity and Innovation Board (SPRING) had seconded over 10 public officers to TACs to drive the implementation of key programmes, such as the SME Talent Programme and SME Centres. Since Budget 2016, three more officers have been seconded to the TACs. We will facilitate more secondment arrangements for TACs which are keen to play a constructive role and can organise themselves to work with the Government to transform their sectors and upgrade the capabilities of their members.”
“Trade Associations and Chambers (TACs) have an in-depth understanding of industry needs and growth opportunities and are connected to extensive business networks. They are able to complement efforts by Government agencies to support and reach out to a wide pool of enterprises. Our TACs play important roles to help companies transform their operations, enhance their competitiveness and capture new growth opportunities in domestic and overseas markets. As we move into a new phase of economic development, we must continue to evolve and strengthen the partnership between the Government and TACs. Many TACs have stepped up to work closely with Government agencies to catalyse enterprise and industry transformation. For instance, the Singapore Food Manufacturers’ Association and the Singapore Manufacturing Federation worked with JTC to jointly conceptualise the development of JTC Food Hub @ Senoko, which lowers business costs for food companies through features, such as a shared cold room and warehouse facility. The Singapore Business Federation has also been working with the Ministry of Trade and Industry (MTI) and Enterprise Singapore to organise training workshops for our companies, so that they know what the benefits are under the free trade agreements which we have signed with other economies. In the area of sector-specific training, the Singapore Precision Engineering and Technology Association and the Logistics Alliance have also worked with SkillsFuture Singapore (SSG) to curate a list of SkillsFuture Series courses for their respective industries. These are some of the important roles which we want our TACs to focus on.”
“CPTPP will come into force shortly after six countries have ratified it. So far, we have three. We are on track to see three more countries come on board by the end of this year and we should see this enter into force by the first quarter of next year. As for the US, our focus at this point in time is to get CPTPP to enter into force and, subsequently, the US can then make its decision as to whether it wishes to join.”
“Third, investors will benefit from the removal of foreign equity restrictions that would otherwise apply in certain CPTPP markets, such as the private healthcare, telecommunications, courier, energy and environmental services sectors in Brunei, Malaysia and Vietnam. Fourth, enterprises will be able to bid for government procurement projects in Malaysia, Mexico and Vietnam, which were previously closed to foreign bidders. Beyond specific business opportunities, the value of CPTPP is in establishing a common set of enforceable rules that govern trade and investment in the 21st century. These include rules in the areas of e-commerce, innovative industries and provisions to help small and medium-sized enterprises. The Ministry of Trade and Industry (MTI) is working with our agencies, and the Singapore Business Federation (SBF) and other trade associations and chambers to conduct outreach sessions to our companies on how to benefit from CPTPP. Our economic agencies, including Enterprise Singapore (ESG) and the Economic Development Board (EDB), are also at hand to facilitate companies' plans to access or establish supply chains in the CPTPP markets.”
“Mr Speaker, the ratification and pending entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a strong affirmation of the Parties' commitment to free and open trade and a rules-based trading system. The benefits include greater business and investment opportunities. It will also enhance market access opportunities for Singapore businesses in CPTPP markets, especially Mexico and Canada, with which Singapore does not currently have bilateral Free Trade Agreements (FTAs). For the 11 CPTPP countries as a whole, accounting for approximately 13.5% of the global economy and a market of 500 million people with a combined gross domestic product (GDP) of US$10 trillion, the Agreement is expected to generate an additional S$147 billion in global income. For Singapore, total exports and GDP are each expected to increase by 0.2% by 2035 arising from the CPTPP. Many industries and sectors will be able to benefit from CPTPP. First, Singapore-based goods producers will benefit from preferential tariffs when exporting to a CPTPP market. Processed food, textile and apparel manufacturers, in particular, will benefit from preferential tariffs under CPTPP, which will be easier to qualify under CPTPP rules, to markets, such as Japan, Australia and New Zealand. Second, service providers will benefit from preferential access in a wide range of sectors. Examples include transport and distribution services in Australia, energy and telecommunications in Mexico, and professional services in Canada.”
“Officers in the Civil Service are paid salaries that are pegged to market benchmarks and practices, taking into consideration their job roles and responsibilities. Within a job, the specific pay of officers would differ given differences in factors, such as experience, skills and performance on the job. For candidates with no work experience at the point of recruitment, their starting salaries may be differentiated by qualification given that it is useful as a proxy for depth of knowledge and skill. However, once the officer is in service, his progression depends on his performance and potential and is independent of starting qualifications.”
“Between 2013 and 2017, the Civil Service1 hired an average of about 2,800 officers per year for roles at or above the entry-level grade for fresh graduates. Of these new hires, an average of 65% were from local autonomous universities, 4% were from local private educational institutes and 24% were from overseas universities. The remaining were non-graduates.”
“Hospitals also carry out regular and preventive maintenance to ensure that both their electrical installations and backup power systems are in good working condition.”
“For example, SPPG will be introducing mandatory video recording of maintenance work, which would be reviewed by senior officers before the equipment can be switched on after maintenance works are completed. The Energy Market Authority (EMA) treats each blackout incident seriously and will thoroughly investigate each incident and take appropriate regulatory action, such as imposing financial penalties, against the relevant parties. Under its existing contractor performance management system, SPPG can also impose strong disciplinary actions, such as immediate suspension of errant contractors. EMA will continue to work closely with SPPG to ensure high standards of reliability for our power system. Essential services, such as traffic signalling systems and public hospitals, have contingency plans to ensure that they are not affected by power outages on the national grid. For instance, Singapore’s road systems are monitored round the clock. In the event of any power outage affecting traffic signals, the Land Transport Authority will work with the Traffic Police to quickly deploy resources, where needed, to assist with traffic control at affected junctions. Concurrently, backup generators can also be deployed onsite to provide temporary power supply to mitigate the impact to traffic signal operations. For public hospitals, they are provided with dual supply sources, each of which is able to take the full load of the hospital if the other one fails. If there is any disruption from the main power source, backup power systems, such as diesel generators and Uninterrupted Power Supplies (UPS) systems, would automatically kick in, to support all critical equipment and critical facilities.”
“The Government recognises the importance of a reliable and secure power system. SP Power Grid (SPPG), the national grid operator, has a comprehensive infrastructure planning and maintenance regime to increase system reliability and minimise disruptions. This includes building in redundancy for critical components, continuous monitoring of the transmission network, and conducting preventive maintenance. We have adopted a calibrated risk-based approach in systems planning, with a framework in place to enable quick restoration of power when needed. So far, this approach has served us well, with our power system being among the most reliable in the world. For instance, from financial year (FY) 2013 to FY2017, Singapore's average annual disruption per consumer ranged from 12 seconds to 45 seconds, compared to latest FY2015 figures of four minutes for Tokyo and 23.4 minutes for Hong Kong. Our investigations show that the blackout in the Central Business District (CBD) on 1 June 2018 had occurred due to human error on the part of SPPG and its contractor while carrying out maintenance work at a substation at Ann Siang Hill. Nonetheless, SPPG was able to progressively restore supply to all affected consumers within 34 minutes, which included conducting the necessary tests to identify and rectify the cause of tripping. SPPG has since tightened its maintenance and training protocols to prevent similar incidents in the future. It has also reminded its officers of the need to adhere strictly to standing operating procedures, and instituted additional checks for similar maintenance works.”
“Mr Speaker, Sir, MTI already does that. So, as Members can see from the charts, we do have various ways to look at the data differently. One dimension would be by income, the bottom 20th percentile, the middle 60th and the top 20th percentile. That is one dimension. The other dimension that Mr Leon Perera mentioned, for example, is retirees, because they generally have no income from work and may be living on their savings. So, we are particularly concerned. That is why MTI started monitoring the data. But it takes us some time to build up by different demographic groups, and we will make available those data when we have them.”
“Mr Speaker, Sir, just two comments in response to Er Dr Lee Bee Wah and Mr Yee Chia Hsing. First, on the issue of the leases, I think we cannot mandate the length of the leases because it is a commercial decision between the commercial entity renting out the place and the one taking it up. But we accept the point and I think Mr Yee Chia Hsing has made the point during the Committee of Supply that the contract must be fair to both sides, and I think that is something that we will certainly encourage and look into. But I think we cannot mandate every lease to be of a certain length because the businesses also require certain flexibility because of their different business models. On the other issue, I would just like to reassure Er Dr Lee Bee Wah that when there are issues that have to deal with anti-competitive behaviour, then MTI, together with the Competition and Consumer Commission of Singapore, will make sure we take these up. But in all these things, we will have to strike a balance between protecting the consumer and facilitating the business and innovative practices, especially in the current era whereby there is a proliferation of new business models, including the ones that the Member has mentioned. We will have to strike the right balance to make sure that we protect our consumers and yet, at the same time, not stifle innovative practices. We have to find a balancing point as we continue to go along.”
“" We can understand that kind of psychology. But, over time, through consumer education, we have been able to expand the market share of the $30-plus brand, including some of the house brands that NTUC FairPrice has brought in. But today, if I am not wrong, the $80-plus brand is still the most popular range segment. It has come down but it is still quite high. That shows that, actually, all of us can play our part to assure family members of the quality of the products. And NTUC FairPrice has a lot of house brands. But, again, when I was the NTUC Secretary-General, they would not always sell the most or be the most popular brand. But it is okay. So long as we have a variety of choices for our consumers, we let them choose within their means to see what best suits their family needs. So, consumer education is very important. We agree with Mr Seah Kian Peng's second point that utilities, rents and labour will be concerns for businesses, which is why we are extending the open electricity market to more consumers and small businesses. For rents, as I have mentioned, we will closely monitor the trend to make sure that their rents do not spike because of insufficient space for our businesses to do their business. Last but not least, we thank NTUC Enterprises for continuing to show leadership in the pricing of its many products and services beyond groceries today, including healthcare, eldercare and also childcare.”
“I thank Mr Seah Kian Peng for his questions and comments. First, consumer education is my strategy No 7. That is why we work closely with CASE to enable consumer choices. Let me say this. We are not here to judge whether somebody should buy this or buy that and what should be necessary for your particular lifestyle. If you can afford it and want to do it, by all means. But I think our job is to enable consumer choice through consumer education. Let us take the recent example of milk powder. I was the one who sent Mr Seah Kian Peng – I think he still has the photo. One day, when I was shopping at NTUC FairPrice, I was very perturbed because when I walked down the food aisles, the only food item, single item that costs more than $100 for some of the products was milk powder. And I was very intrigued. Why is it that milk powder – same size, same volume – can cost $30-something, $80-something and $120? I took a photo and sent it to Mr Seah Kian Peng and I asked him which is the most popular brand, that means, from sales. It was, on average, the $80 brand. And I was very puzzled what is the difference between the $30 brand, $80 brand and $120 brand? So, the $120 brand was because some children might be allergic to some ingredients and that is why there is a special formulation. So, I can understand that. Then what about the $30 brand versus the $80 brand? I asked Mr Seah Kian Peng if he could bring in more of the $30 brand. His answer was also quite telling. They have tried before but it did not sell well. Why? I did ask some consumers and parents. Maybe because we will always want the best for our children and we wonder should we stinge on that $50 extra for one can of milk powder. And we ask, "What if there are real benefits which my child is not getting?”
“I thank the Member for the supplementary question. Let me answer this question the following way. Yesterday, when we talked about the impact of the trade wars, I briefly mentioned this. Likewise, for any interest rate hikes across the global markets, there is the direct and indirect impact. The direct impact is that it adds to the cost of doing business and the second impact is that it will affect the relative exchange rate, which will then affect the strength of the Singapore dollar to contain imported inflation. But the most important third-level impact of any interest rate hike across the world is the impact on global business confidence. If, because of the trade wars and because of the interest hike, it leads to an overall dampening of the global confidence level and people's investment, then what affects us most severely is job creation. If we cannot continue to create good jobs for our people, the rest of these other help schemes are actually secondary because, first and foremost, we must have good jobs for our people. When our economy grows, our people have jobs and we have the means to help one another by redistributing some of the gains from this entire economic system. But if the economy shrinks because of the downturn in global market confidence, then there is a significant impact. So, there are three levels of impact: (a) the direct interest rate cost that the Member mentioned on business; (b) the impact on the exchange rate which affects our ability to contain imported inflation; (c) and most importantly, and together with the headwinds that we face in the global trading environment, how it affects our economy and our ability to continue to create good jobs for our people to earn good incomes.”
“Having said that, I am quite sure NTUC FairPrice will be working very hard to source from multiple agencies to try and reduce the prices, including the recent effort on milk powder, the number of house brands as they continue to expand their products and so forth. So, I think that is the commitment of NTUC. One very interesting question that I have always wondered in my mind is not so much whether Sheng Siong or Dairy Farm is able to meet and beat NTUC prices. The question is that, if we do not have social enterprises to benchmark some of these things, would the other competitors still charge those prices? That was actually the story of the "Welcome Supermarket" in the 1970s. It was not that they just meet or try to beat NTUC prices once in a while, but it was because of the benchmark. And this is not just groceries. Today, NTUC in the sector of eldercare, early childhood education also performs the same role, which is that they help and work with the Ministries to understand the benchmark and the drivers for those services. And because of that, the entire market has an anchor point, if you like, in their pricing strategy and will not be carried away with just price competition.”
“That would not be very useful. And you also want a certain deterrent effect that people do not spread false rumours. For example, what the Member has suggested, some people said that "I am increasing my price because of the GST hike", but the GST hike is not even coming in yet and not for a few years' time! So, that is obviously not the right reason that they do what they are doing. I hope that through such open platform and open sharing, we can have a faster response to some of these ground issues. Last but not least, I hope I am not stealing the thunder from the Member Mr Seah Kian Peng. This is a common question which I have always been asked: "Why is it that, once in a while, NTUC, as a social enterprise, has other companies which beat their prices?" On behalf of Mr Seah Kian Peng, from what I understand from him, NTUC FairPrice has a basket of 500 items. And NTUC FairPrice monitors the 500 items every day – their own 500 items and what the market is selling. They will make sure that, on average, their 500 items will be 4%-5% below the whole basket of goods. But that does not mean that every item is 4%-5% below the market price. On the other hand, if we study marketing, we will also know that from part of the sales strategy, it is in my interest as a competitor to NTUC FairPrice to make sure that, every day, I have a few items below NTUC's prices, in order to attract people to go there because, when you are there, you would not just buy the few items that are on discount. This is quite common in the Fast-Moving Consumer Goods (FMCG) market.”
“The second thing, whether we will set up the Anti-Profiteering Committee, I have thought long and hard about this and we have previous experiences on how to be more effective, which is why for strategy No 7, I have proposed to do things a bit differently to give us better and faster results. If you set up a committee to go and look at coffee price in one coffee shop, and there will be many of these places, the speed is just not fast enough. And you ask a committee to decide whether the price is fair or not, it is also quite difficult. But today, we have a better platform that can do this for us. Today, with the crowd-sourcing platforms, when people put their prices there, you can do an instant comparison. I think this is even more effective in deterring those merchants that may be pricing their goods unfairly. For example, in Yishun, our favourite constituency, supposing we can set up an area to tell people where in Yishun is the cheapest coffee, the cheapest kaya toast and, if your residents can access the information easily and people can freely put and make available the prices that they are offering in Yishun, then it will help consumers to stretch their hard-earned dollar; and it will be a much faster process than trying to submit a coffee price increase to someone else and come back later in that process. In this open and transparent platform, I think it will help to deter those people who may want to price their products that is out of the norm. This is why I asked to work with NTUC and CASE to proliferate or promote this platform so that we can get a faster response time. Surely, as the Member said, we do not want the situation where for one coffee shop, we send the matter to CASE then wait for two weeks and come back with the result.”
“I thank the Member for the supplementary questions. It is actually a valuable opportunity for me to clarify some things. I would not speak on behalf of NTUC FairPrice. I would share my experience as a previous and immediate-past NTUC Secretary-General. And I think this is important. Let me first share on the charts that I shared. The way to read the chart is that it is not that the food prices are decreasing. The rate of increase has come down. The lines show the rates of increase. The one that the Member referred to, I think, is the second chart, right? That means food prices are still increasing but the rate has come down from what used to be 3.3%, to 2.1% to 1.4%. It is an increase but a slower rate of increase. Then, how is this computed? That is why I mentioned at the beginning of my speech, some of the food items and the prices will have a disproportionate impact because, in our psychological perception, we use it every day. For example, coffee prices at coffee shops will be one very clear example. But in the overall basket of goods, coffee is but one item in a basket of goods. So, how a basket of goods is constituted statistically is by the spending pattern of the different household types. Different household types have different baskets of goods. So, the first clarification is that it is not that the prices are not increasing, but they are increasing at a different rate and it also depends on the basket of goods if you look at the charts, for example, in the top chart. That is why we have broken it down into the bottom 20%, middle 60% and top 20%. Each of the three groups, including the retiree households, also have a different basket of goods because their consumption patterns are different. That is the first thing.”
“Second, we must help Singaporeans stretch their hard-earned dollar, that while pursuing their ambitions and aspirations, that we are also realistic about our options and how we should distinguish the needs and the wants, so that our families can have a better quality of life that is sustainable. Last, but not least, with the resources that we have, either as a family or as a society, we must make sure that we give the most help to those who need it a bit more than us.”
“I must make sure that I earn enough to take care of the family. It is a reminder to urge us to study hard, to acquire the correct skills and that, so long as you are prepared to work hard, there will be an opportunity in Singapore for us to succeed. And this is also the same philosophy and commitment that I bring with me to MTI, NTUC and MSF, that we must help our workers, first and foremost, to have those opportunities to realise their aspirations and ambitions. The second lesson that my grandmother always drummed into us is that we should aim high. Singaporeans, like all of us here – it is not a sin to aim high. We should all aim high but yet, at the same time, we must know our own strengths and weaknesses so that we do not stress ourselves or overly stress ourselves and our families. We must know what our capabilities are, what we are good at. But as we aim high, we must also be realistic in how we achieve those ambitions, like the Chinese say 适可而止 – knowing our own limits. The third thing that my grandmother always reminded me was that, regardless of our family's circumstances, we must always have a care for those who are less fortunate than us and who may need a bit more help than us. During my time, I never knew that there was something called "MPS" – to go and see the Member of Parliament (MP). We did not have Social Service Offices (SSOs). We had 福利部 but I was always reminded that, that is really for those who really, really need help and we should always try to take care of ourselves and, at the same time, take care of other people. And I think these three rules are quite instructive in how we approach this issue of cost of living. First, we must make sure that every Singaporean has good jobs that can allow them to fulfil their potential.”
“First, we try to do as much as we can to take care of our seniors to relieve the burden from the middle-income households with elderly parents. Second, we want to make sure that the children's education remains affordable and everyone will have similar opportunities to excel and to fulfil their potential. Our promise as a Government is that, so long someone is capable and committed, they need not worry about their means, their family's circumstances. That is why we give away as many scholarships/bursary awards as possible to help our students excel. So, by relieving the pressures from the older folks and the younger folks, we hope to relieve the pressures on the middle-income middle-aged families. And I would like to add one more point. We were all looking at the averages. I have personally asked my staff to look at each of the decile band because, while our averages are moving up, we are obviously conscious that not everyone will move up at the same pace or the same rate. And we have to pay particular attention to the group that I mentioned just now who have lower wage increases or stagnating wage increases because their industries are going through rapid transformation. This is where we will work closely with the Ministry of Manpower (MOM) and NTUC to help our workers transit to a new industry, to acquire new skills and take on new jobs before they are displaced. Finally, I would like to share the story that my grandmother used to tell me. Members would probably know that I came from a single-parent family, so my mother had to work two jobs when we were young, so I was brought up by my maternal grandmother. There were three things that I always remember her teaching me about managing our family's finances. First, she always reminded me that I must get a good job.”
“Mr Speaker, Sir, I thank Mr Liang Eng Hwa for his supplementary question. Let me, first, make a clarification. The Government is concerned not just with the lower-income. That is the reason why I have asked the Ministry of Trade and Industry (MTI) and the various agencies to look across the entire spectrum of families in Singapore – retirees, middle-income group – because they all face different pressures. Of course, as a general policy, we try to do more for those with lower income and, perhaps, the retirees first. Having said that, the Government is very aware of the aspirations and the needs of the middle-income group. That is why we have a broad-based swathe of measures that I have alluded to, to help everyone in Singapore. But specifically for the middle-income group, there are also various schemes that the Government will extend to help them. It may not be in the same quantum as the lower-income group but, generally, they do get different forms of help and different tiers of help. Members might recall that, once upon a time, when I was in the Ministry of Social and Family Development (MSF), I showed everyone a chart, a diagram, which is now euphemistically known as the kueh lapis chart. We try to help everyone in Singapore by making sure that those with the least get the most. But that does not mean that those with more did not get anything. It is just a tiering of the different help schemes that they have. So, for many of the middle-income, I think their concerns would be the education for their children and, perhaps, the utilities bill that they have to face. Also, many of them will be taking care of their elderly parents as well. We are very aware of this and the way we help them is as follows.”