Chee Hong Tat
Singapore
“The National Parks Board (NParks) resumed crow shooting operations in March 2026 across nine districts, including Yishun. These sites were prioritised based on several factors, including the volume and severity of public feedback on crow-related issues, as well as the technical feasibility of conducting shooting operations safely at each…”
“To drive sustainable construction and reduce reliance on conventional diesel generators, the Housing and Development Board (HDB) has required the use of battery energy storage systems (BESS) or synchronised generator set systems at Build-to-Order construction worksites for all building tenders called since February 2025.”
“The Housing and Development Board (HDB) tracks resident feedback on maintenance-related issues, including spalling concrete and structural cracks within HDB flats. Such issues are much less common in younger flats, compared to older flats above 30 years old.”
“The Building and Construction Authority (BCA) provides resources on its website to guide building owners and Management Corporations Strata Title (MCSTs) on lift modernisation.”
“Private retail developments sold through the Government Land Sales Programme are intended to complement the commercial offerings in public developments undertaken by agencies, such as the Housing and Development Board.”
“The National Parks Board (NParks) is reviewing both the Animals and Birds Act and the Code of Animal Welfare (COAW). The former will include pet sector businesses and the latter will include and start with pet groomers.”
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“Thank you, Sir. Members may also access the handout through the MP@SGPARL App. So, Mr Speaker, if we, first, refer to Table 1, the Prevailing Quota Premiums (PQP), which is the average COE price over the past three months and the price which vehicle owners pay to renew their COEs, have fallen across all vehicle categories, by about 4% to 21% over the past year. If we, now, look at the breakdown of successful Cat A and B bids from 2022 to Oct 2024 in Table 2, Singapore Residents account for the large majority of successful bids, increasing from 66% in 2022 to 84% this year. The proportion of bids won by foreigners remains low and has decreased to about 2% this year. The proportion won by car leasing companies, which bid for vehicles that are then leased out as Private Hire Cars, or PHCs, has also decreased from 26% in 2022 when COE prices were relatively lower, to about 10% this year. The data show that the main drivers for the increase in COE prices in recent quarters are likely due to strong demand from local individual buyers and not from foreigners or car leasing companies. The decrease in the proportion of bids won by car leasing companies also illustrates why the suggestion of having a separate COE category for PHCs and moving existing quota from Cat A and B into this separate category, is not a straightforward exercise. Demand for COE from car leasing companies can vary quite a bit from quarter to quarter and from year to year. It is difficult to ascertain upfront the quota required to meet the needs of point-to-point drivers and commuters.”
“We have introduced measures to increase supply since last year, including "cut and fill" and now the additional injection. All else being equal, an increase in COE supply should help to moderate prices. However, we are not able to predict how prices will move as that would also depend on the demand from motorists. If we look back at how prices and demand factors have changed since we increased COE supply from late last year, there are some observations which I would like to share with the House. With your permission, Mr Speaker, may I ask the Clerks to distribute a handout showing two tables?”
“It will also enable LTA to more quickly introduce new “virtual gantries” where necessary, based on the latest traffic patterns. This allows for more flexible and responsive congestion management. Given these considerations, LTA assessed that it will be able to inject up to about 20,000 additional COEs across the vehicle categories from February 2025 over the next few years, without the worries of causing traffic gridlock. Twenty thousand additional COEs are about 2% of our total vehicle population. We had earlier said that the COE quota for Categories A, B and C will continue to increase every quarter before reaching the projected peak supply from 2026. The additional COEs will give us more flexibility to meet this commitment and further increase the COE supply in the next few quarters before we reach the peak supply from 2026. LTA will continue to closely monitor traffic conditions and, where necessary, adjust ERP charges to keep traffic congestion in check. Sir, I want to be clear that this injection of up to 20,000 COEs is not linked to the implementation of distance-based charging. We have not made a decision on whether to implement distance-based charging, though ERP 2.0 gives us the option to do so. We will need to study this further, including with the data from ERP 2.0, as there are trade-offs we need to think through carefully. If we were to proceed with distance-based charging in future, this will give LTA an additional tool to manage congestion and there is scope to consider a further injection of additional COEs in tandem with the implementation of distance-based charging. Mr Melvin Yong asked if the planned injection would help to stabilise COE prices. COE prices are a function of supply and demand.”
“This is why we have and will continue to make significant investments in our public transport infrastructure through upgrading and expanding our rail and bus networks, and subsidising public transport journeys for commuters. Roads and vehicles will complement our public transport infrastructure and offer additional transport options for Singaporeans. Having a car-lite vision does not mean that our total car population cannot increase. The key is to avoid road congestion through the use of both ownership controls and usage-based pricing, which is what we have been doing over the last few decades. As LTA explained when it announced the move to inject up to about 20,000 COEs, travel patterns have evolved after the COVID-19 pandemic and total vehicle mileage decreased by around 6% from 2019 to 2023. We have also observed lower traffic demand in the central business district (CBD) and ERP gantries in the city cordon remain un-activated. The ERP gantries at arterial roads, including the one in my constituency at Toa Payoh Lorong 5, have also been switched off since the pandemic. An increase in the vehicle population does not automatically lead to an increase in the total vehicular usage, as there are car owners who may choose to take public transport to work, as well as those who use their cars mostly on weekends or during off-peak hours. This is why it is useful to have both ownership controls and usage-based pricing, so that we can enable some families to own cars while keeping congestion in check, especially during peak periods. With ERP 2.0, LTA will have more tools and better capabilities to manage traffic congestion. ERP 2.0 will provide more comprehensive aggregated traffic information.”
“Thank you, Sir. Members have raised two broad categories of questions. The first is in relation to the Land Transport Authority's (LTA’s) recent announcement that it will inject up to about 20,000 additional Certificates of Entitlement (COEs) from February 2025, across the different vehicle categories over the next few years. The second is about the impact of electric vehicle (EV) subsidies on COE prices. I will address these in turn. On the injection of additional COEs, Ms He Ting Ru asked if this aligns with Singapore’s car-lite vision, while Mr Yip Hon Weng asked about the impact on traffic congestion. Mr Melvin Yong and Assoc Prof Jamus Lim asked if we could review the total size of our vehicle population, given the capabilities of Electronic Road Pricing (ERP) 2.0 to better manage congestion. The Government remains committed to Singapore’s car-lite vision, where walk, cycle, ride, particularly the use of public transport, are the predominant travel modes. This is necessary given our land and carbon constraints. If we rely mainly on private vehicles to meet our mobility needs, we will face severe traffic congestion and gridlock, like what some overseas cities are experiencing. As roads already take up about 12% of our total land area, we cannot keep on building more and more roads, because that will take away land from other important needs such as housing, hospitals and schools. Next, an accessible and affordable mass public transport network is the central pillar of our car-lite vision. Compared to other transport options, mass public transport enables the greatest number of people to get to their destinations with the least land take and carbon emissions.”
“Mr Speaker, may I have your permission to provide a combined response for oral Question Nos 3 to 6, in today’s Order Paper, as well as related questions for subsequent Sittings?”
“Noise barriers are installed along stretches of Mass Rapid Transit system (MRT) viaducts where there are residential developments that are located close to the viaducts and where noise levels exceed the National Environment Agency's guidelines. In addition to the installation of noise barriers, the Land Transport Authority (LTA) also works with train manufacturers and operators to reduce noise at the source. This includes, fitting trains with noise-dampening wheels, using ballast and concrete sleepers on elevated tracks to better absorb vibration and noise and servicing train wheels and tracks more frequently, as needed. The MRT viaduct near Nuovo condominium has not been identified as a location for the installation of noise barriers, as the nearest residential developments are beyond the distance where noise barriers are typically required, including Nuovo condominium which is about 70 metres away from the viaduct. If the Member has specific feedback about noise, he can also reach out to LTA.”
“I thank the Member for the Question. This Question has been addressed in the reply to Question Nos 7 and 8 for Oral Answer at the 11 November 2024 Sitting. [Please refer to "Inspection for Structural Integrity of Oil Pipelines, Measures to Prevent Oil Spills and Penalties for Recent Incidents", Official Report, 11 November 2024, Vol 95, Issue 145, Oral Answers to Questions section.]”
“Since 2018, all new pedestrian overhead bridges (POBs) are installed with lifts to provide barrier-free access. The Land Transport Authority (LTA) has also been retrofitting some POBs built before 2018 with lifts. We have focused on POBs near Mass Rapid Transit stations, bus interchanges and healthcare institutions, such as hospitals and polyclinics. These POBs experience higher footfall and serve more seniors. Priority is also being given to POBs without nearby street-level or alternative barrier-free pedestrian crossings. In Fernvale, LTA has included the POB along Sengkang West Way near Blk 469B under its lift retrofitting programme. LTA will continue to assess other POBs in Fernvale for lift retrofitting.”
“We have received related questions for the subsequent Sitting. I will address them together in my reply at the 12 November 2024 Parliament sitting. [Please refer to "Review of Zero Vehicle Growth Policy, Vehicle Quota System and Rebates Given High COE Prices, Increased E-vehicles Adoption and Rollout of ERP 2.0", Official Report, 12 November 2024, Vol 95, Issue 146, Oral Answers to Questions section.]”
“The Land Transport Authority welcomes private bus operators to operate additional bus services to complement our public transport services and provide more travel options for the residents. Besides City Direct Service 671, Fernvale residents are presently served by the privately-operated Premium Bus Services 550 and 592 to the Central Business District. Residents may access these bus services along Sengkang West Avenue, Sengkang West Way or Jalan Kayu.”
“Rail projects are major public investments that require careful consideration of various factors, such as current and future land-use needs, engineering feasibility and potential environmental impact. Residents in the North and North-East are presently served by the North-South Line, North-East Line and Thomson-East Coast Line. Under our bus and rail enhancement plans, we will further improve the connectivity for residents in the North and North-East regions. These include new and improved bus services under the Bus Connectivity Enhancement Programme, the opening of Punggol Coast station in December this year, and the Cross Island Line Phase 1 and Punggol Extension in the early 2030s.”
“All public buses are currently fitted with cameras which record video footage from multiple perspectives during bus service hours. These cameras support the work of the Bus Captains to enhance passenger safety, and the video recordings can be used for investigations when an incident happens on and off the bus. To improve operational efficiency, the Land Transport Authority (LTA) will use the existing road-facing cameras on board our buses, including detecting vehicles which encroach onto bus lanes and illegal parking, as well as road and infrastructure defects that could pose safety risks. LTA has no plans to use the video footage to identify faces and link them to the National Registration Identity Card database. Government agencies’ usage of data for official purposes are subject to prevailing laws, or where it may be in the public interest. Such usage must adhere to security guidelines that are in place.”
“As of end September 2024, there are about 8,800 electric vehicles (EVs) registered with season parking at Housing and Development Board (HDB) car parks. The average EV charger utilisation rate at HDB car parks is currently under 10% and remains sufficient to meet the demand from EV drivers. We closely monitor EV charger utilisation at all HDB car parks, and work with the EV charging operators to scale up deployment of EV chargers where necessary.”
“Mr Speaker, I thank Mr Singh for asking this question about the MKBF. Indeed, the target of one million was set some years ago, I think by the then-Minister Khaw Boon Wan, as a focus for the One Transport Family to work towards a shared goal. It is also a meaningful indicator because it allows us to then benchmark against the other operators, especially those who are top of class around the world. So, the one million was chosen because that represents – and I think it is still relevant today – what the best, most reliable operators, like Taipei, Guangzhou and others, have managed to achieve in their system. If we look at it today, I think it is still a relevant and valid target, something that is useful for us to focus on and that is something which we will continue to work towards. But whether we should raise it further, I think that is something that we have to assess carefully because there is a trade-off between raising MKBF further and what is the cost incurred, which would then ultimately have to be borne by either taxpayers or commuters. So, we will study this carefully. At the moment, I think that one million is still a relevant and valid target, and that is something that the One Transport Family will work towards, will continue to maintain, to ensure that our system can keep above this one million target.”
“Mr Speaker, I thank Mr Chia for raising this question on behalf of his residents. Indeed, I think we are aiming to see how we can do better with the system upgrades and also the train upgrades. With a better signalling system, we can certainly run the trains with a higher frequency and that will then help to cater more capacity for our commuters. But we have to go through a period of the upgrading works before we are able to arrive at that outcome. So, I want to thank Mr Chia as well for working with us to explain the situation to his residents and also to continue to share the feedback from the residents with LTA.”
“Mr Speaker, I want to, first, clarify that investigations are still ongoing. So, I cannot quite give a definite answer on what is the root cause. I have explained what we have gathered so far in my main reply. But if we look at the past track record of the BPLRT, the last time we had a similar incident that affected the gears of the wheel assembly was in 2010. So, that was quite some time ago and it has not recurred since. So, this more recent episode, we will have to look into exactly what was the root cause. But I think it does not suggest that there is something systemic in this particular instance. We will take a look more closely during the investigations. To Ms Yeo's second question regarding the two-car trains to be added to the Sengkang-Punggol LRT, LTA has procured 25 new two-car trains for the Sengkang-Punggol LRT, with the first new two-car trains arriving in December this year. These trains will undergo rigorous testing and commissioning before they are put into passenger service starting from the second half of 2025. When all the new trains are delivered, it will double the number of two-car trains in the Sengkang-Punggol LRT fleet, which will allow the Sengkang-Punggol LRT to be operated entirely with two-car trains by mid-2028, increasing passenger capacity to better serve our residents.”
“And we are grateful to commuters and to residents for their kind understanding and patience during this period because our end outcome is something that I hope will lead to a more reliable, safer and more comfortable ride for our commuters.”
“During the early closure, we will also put up information, such as posters, at the affected stations to inform commuters of the service adjustments. And there will be public address announcements in the stations and trains to remind passengers to make alternative travel arrangements, if needed. To Mr Liang's other question, we will certainly do our best to ensure that the testing and the integration works can proceed smoothly and as planned. And if, touch wood, we were to experience any disruptions during this period, we will certainly do our best to respond quickly and effectively. The rail operators have in place robust response plans in the event of a service disruption. These include the incident recovery procedures as well as the provision of alternative transportation options, such as free buses, that will serve the journey between the affected stations. And we will certainly take on board the learning points from past incidents and also when we do exercises and reviews that can help LTA and our operators to be able to make continual improvements to our incident response plans. And this will include the timeliness and clarity of our public announcements in the event of a disruption and also how we can better manage the crowd that will be affected during the disruptions. Sir, I want to end by saying that while I am unable to give Mr Liang a more definite date at this point in time, the assurance I want to give him is that we will do our best to not delay this further, but we will also want to do it in a thorough manner, for safety and for reliability.”
“Mr Speaker, I thank Mr Liang for raising these important questions. If I could give him a more specific date, I would be happy to do so. But I think it is important for us to monitor the progress closely. And along the way, we will certainly provide updates to Mr Liang and to the other grassroots advisors who are looking after the Bukit Panjang area. The commitment I want to give to Mr Liang and to the House is that we will do our best to expedite the upgrading works. But we want to do so in a manner which is safe for the workers and also for commuters. So, we will do our best. Mr Liang also asked about the services and the reliability during this period. Indeed, this upgrading journey has been a long one and it involves bringing in new trains, upgrading existing trains, as well as upgrading all the BPLRT core systems, such as power and signalling. And because it is done on multiple fronts, we need to make sure that this is done safely and, to make it even more challenging, because you have to run the BPLRT services during the operating or revenue hours, we could only do some of the maintenance and some of these works during the engineering hours. So, that is why we seek the understanding of our residents and commuters, that we will need to have early closure during this period to give more time for the upgrading works to be completed. I want to also assure Mr Liang that commuter safety is a top priority. That is why we want to plan the renewal works very carefully and to cater for thorough and comprehensive testing. And we will certainly try to do so with minimal impact on the existing BPLRT operations so that the renewed BPLRT system will become even better and the rides will be more reliable, smoother, more comfortable for commuters.”
“SMRT has invited representatives from LTA and the National Transport Workers' Union (NTWU) to join this Workgroup and will also engage overseas metro operators in Guangzhou and Taipei for mutual learning. LTA welcomes this initiative and will work together with SMRT and NTWU in this tripartite workgroup to identify areas for improvement and maintain safety and reliability standards for the benefit of commuters. I would like to inform the House that the overall mean kilometres between failure, or MKBF, for our MRT network up to end October 2024 has improved from about 1.8 million train-kilometres in end September, to almost two million train-kilometres as at end October this year. Importantly, all the MRT lines have continued to achieve our target MKBF of at least one million train-kilometres. Sir, my colleagues and I will continue to pay close attention to keeping MKBF above the one million train-kilometre target as we know that safety and reliability are important for commuters. This is a priority for the One Transport Family. I thank our tripartite partners for the support, especially our workers and union leaders for their hard work and dedication, to provide a safe, reliable and resilient rail system for Singapore. This is our common mission and our shared goal, and we will work closely together and do our best to achieve it.”
“The power supply system for the BPLRT has been fully upgraded with increased capacity, including enhancements such as dedicated power supply monitoring and control systems. LTA is currently upgrading the Operations Control Centre and replacing the power rails to improve operations and system reliability. To support these upgrading works, LTA recently announced the need for early closure of the BPLRT from 14 November 2024 to 31 October 2025, where train services would end one hour earlier every Thursday to Sunday, excluding public holidays. When in operation, the new signalling system will allow better control of train speeds, so that commuters can enjoy smoother and more reliable rides. We have fully resumed dual-loop services on BPLRT for all hours on weekends and public holidays since 28 September 2024. LTA aims to resume dual-loop services for all hours on weekdays in the coming months. We are on track to complete the BPLRT renewal programme in 2026. We recognise that the improvement works have been a long journey, but we have to go through this process to fix the legacy problems and deliver better service for our commuters. We thank commuters and residents for their understanding and patience during this period when we are carrying out the renewal programme. When completed in 2026, the upgraded BPLRT will provide commuters with a more reliable, more comfortable and smoother travel experience. Mr Speaker, I want to take this opportunity to give some updates on the safety and reliability of our Mass Rapid Transit (MRT) network since my Ministerial Statement on 15 October 2024. First, SMRT has formed a tripartite Rail Safety and Reliability Review Workgroup to review its systems and processes, including its maintenance practices and lifecycle management of assets.”
“This then resulted in a bar below the carriage of the incident train to come into contact with the power rail, which caused damage to the power rail and led to the power trip. For the safety of commuters and repair workers, SMRT assessed that recovery works on the stalled train and damaged power rail should only take place after the affected stretch of the BPLRT is shut down. To complete recovery works before service commencement the following day, SMRT decided to end the shuttle train service along the affected stretch earlier at around 10.00 pm, compared to the usual closing time of 11.30 pm. Free bus services between the affected stations continued until 1.00 am. SMRT carried out repair works throughout the night. Thorough checks were then conducted to ensure safety before BPLRT services resumed at 5.00 am the following morning. Mr Edward Chia and Mr Liang Eng Hwa asked about the progress of BPLRT renewal works and the resumption of double loop service. The BPLRT renewal works are progressing well. First, LTA is bringing in new trains and upgrading existing ones. Second, we are upgrading all the BPLRT core systems such as power and signalling. We have four new third-generation vehicles that have entered passenger service, with another two currently undergoing testing. The remaining 13 new vehicles will arrive progressively over the coming year. The second-generation vehicles are also being enhanced – six of these have completed their upgrades and are in passenger service, while the remaining seven will be progressively upgraded over the next 12 months. We target for the new and upgraded vehicles to enter service by end-2025.”
“Thank you, Sir. On 22 October 2024 at about 5.08 pm, a Bukit Panjang Light Rail Transit, or BPLRT, train moving in the direction of Choa Chu Kang station stalled before Teck Whye station. To preserve service along the affected stretch, SMRT activated a shuttle train service using the other bound of track between Bukit Panjang and Choa Chu Kang LRT stations at 5.19 pm. SMRT also activated free regular bus services to provide commuters with another alternative travel option between the affected stations. BPLRT loop services between Bukit Panjang and Petir stations via Service A, and between Bukit Panjang and Senja stations via Service B, were not affected and continued throughout the evening. In accordance with standard operating procedure, SMRT deployed an empty recovery train to couple with the stalled train. To ensure commuter safety, all passengers on the incident train disembarked onto the station platform at Teck Whye station by 5.40 pm. Thereafter, the recovery train proceeded to move the empty incident train back towards the BPLRT depot, where further checks could be done. During this movement, a power trip occurred and the coupled trains stalled due to a loss of traction power. Investigations are ongoing. Based on the Land Transport Authority's (LTA's) initial findings, the incident was caused by a gear failure in one of the wheel assemblies of the incident train. As a consequence, the pair of wheels on the damaged wheel assembly were unable to rotate normally. LRT trains run on rubber tyres. As the affected wheels on the incident train were unable to rotate, the friction between the rubber tyres and the guideway caused the tyres to deflate.”
“Mr Speaker, may I have your permission to take Question Nos 3 to 5 of today's Order Paper?”
“This question has been answered in the Ministerial Statement at the Sitting on 15 October 2024. [Please refer to "A Safe, Reliable, and Resilient Rail System", Official Report, 15 October 2024, Vol 95, Issue 143, Ministerial Statements section.]”
“This question has been answered in the Ministerial Statement at the Sitting on 15 October 2024. [Please refer to "A Safe, Reliable, and Resilient Rail System", Official Report, 15 October 2024, Vol 95, Issue 143, Ministerial Statements section.]”
“There is no international norm for compensation and refunds for flight delays, as different countries adopt different approaches. In Singapore, passenger interests are safeguarded under the national-level consumer protection framework through the Consumers Association of Singapore or the Small Claims Tribunal as set out under the Consumer Protection (Fair Trading) Act. Passengers who experienced flight delays can pursue claims through these channels against the airlines involved.”
“Service 992, formerly known as Service 944, was extended from Bukit Batok West to serve Tengah in September 2023. As residents progressively moved into Tengah, the Land Transport Authority (LTA) improved the peak and off-peak frequencies of Service 992 in 2024. As of August 2024, Service 992 operated at an average frequency of about four minutes during peak hours and about eight minutes during off-peak hours on weekdays. This is an improvement compared to the average frequency of about eight minutes and 14 minutes during peak and off-peak hours respectively for the former Service 944 in August 2023. LTA will continue to monitor ridership and work with the bus operator to make necessary adjustments.”
“The Inland Revenue Authority of Singapore (IRAS) adopts a risk-based approach to select higher-risk cases for targeted audit and investigation. It leverages data analytics and artificial intelligence models, as well as information from members of the public. The amount of tax recovered fluctuates from year to year depending on the value of tax adjustments made for the cases completed in that year. In financial year (FY) 2023, IRAS recovered about $857 million in taxes and penalties, a 72% increase compared to FY2022, through its audit and investigation efforts. This was largely due to an increase in the amount of taxes and penalties collected from a handful of high-value outlier cases involving corporate income tax and Goods and Services Tax (GST). The Government takes a serious view of non-compliance. There are stringent penalties to deter non-compliance. IRAS’ powers of enforcement have also been enhanced in recent years. For example, the recently operationalised section 62C of the GST Act allows IRAS to more comprehensively target the various parties involved in complex fraud cases. IRAS also collaborates with law enforcement agencies, such as the Singapore Police Force, to counter tax crime. Prosecution cases are also publicised regularly. In addition, IRAS continually enhances its capabilities by upskilling its tax officers to strengthen their audit skills, tax expertise and use of technology. It also develops staff competencies to handle complex investigations into sophisticated fraud schemes. Besides educating taxpayers on their tax obligations, IRAS will continue to monitor tax compliance performance, identify emerging compliance risk areas and refine existing audit and investigation methods.”
“These questions have been answered in the Ministerial Statement at the Sitting on 15 October 2024. [Please refer to "A Safe, Reliable, and Resilient Rail System", Official Report, 15 October 2024, Vol 95, Issue 143, Ministerial Statements section.]”
“The Malaysia Vehicle Entry Permit (MVEP) is a requirement from the Malaysian Road Transport Department. The Land Transport Authority has shared with its Malaysian counterparts the feedback received from Singapore motorists on the MVEP.”
“The Malaysia Vehicle Entry Permit is a requirement which falls under the jurisdiction of the Malaysian Road Transport Department.”
“The Malaysia Vehicle Entry Permit is a requirement which falls under the jurisdiction of the Malaysian Road Transport Department.”
“Now, Sir, I beg to move that Parliament will immediately resolve itself into a Committee on the Bill. [(proc text) Question put, and agreed to. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Chee Hong Tat]. (proc text)] [(proc text) Bill considered in Committee and reported without amendment. (proc text)]”
“So, if you look at the reaction from Allianz, they said they understood the Government's decision and I think that is important because we want to continue to be a place that foreign investors, companies want to come to, create more good jobs for our people. I think that is important.”
“Mr Deputy Speaker, I will address the first question that Mr Leong raised. I have explained earlier that we have engaged Allianz and what their response is. Along the way, because they were submitting business plans, there were certainly discussions between MAS and Allianz on what they have submitted. I do want to make a point, Mr Deputy Speaker, that the Government, when it comes to dealing with our licensees and with industry players, we would like to take the approach of being open and transparent, and that if we have concerns with the deal, we have our reasons, we would rather do it in a manner like what we are doing now, come to Parliament with the proposed Bill, explain why we are doing it, rather than — and I hope that is not what Mr Leong is suggesting, because to go to the company and say, as a regulator, "I don't think you should be doing this and I think you should be backing off." I think if you do that, you may actually send more uncertainty and create more worries in the industry. Mr Leong is shaking his head. I do not know whether that means he agrees with me that that is not what we should do, or he thinks that that is what we should do. If he thinks that that is what we should do, then I would say that we have to disagree, because we believe that as the regulator, to uphold the reputation of our regulatory system and the transparency of our financial sector, to be able to continue to attract investors, as what several Members had spoken about, I think it is important that we deal with our licensees in a manner which is above board and that they understand.”
“Mr Deputy Speaker, I also do not want to prolong this debate, but just to clarify, I was not asking Assoc Prof Jamus Lim to withdraw his comment about the communication breakdown. He is entitled to use that phrase if he prefers to. I was referring to his comment that the public officers are unable to share information due to constraints imposed by the government of the day. That was what I would like to request that Assoc Prof Lim to withdraw, that comment, because that is not true. We do not put barriers to prevent our public service officers to share information. In fact, in this case, the decision to share information was proposed by the public officers and supported by the political office holders on the MAS Board.”
“Mr Deputy Speaker, I have already explained the reasons from the Government's point of view. I accept that Ms He Ting Ru may have a different view, but I have explained why we want to provide greater certainty on the decision and on the changes to the legislation for the different stakeholders, including the shareholders but also other parties who are involved in this deal. That is the reason why we are doing it with a Certificate of Urgency, but, it is, of course, subject to Parliament's approval.”
“Mr Deputy Speaker, I would like to confirm that there is no formal application from Allianz to MAS. The provision that Ms He mentioned, that is inserted more for avoidance of doubt. The second point that Ms He raised, this Bill is urgent. We need a Certificate of Urgency because the deal is under consideration by shareholders. So, to have a long period between the First Reading and the Second Reading before the amended law takes effect, will actually give rise to more uncertainty in the market and for the parties concerned. That is why we are putting forth this Bill for Parliament's consideration and for approval.”
“Mr Deputy Speaker, I thank Ms Hazel Poa for acknowledging my explanation that there is no explicit provision under the Insurance Act for MAS to take into account the views of MCCY relating to social mission. Sir, if we depart from what MAS has been doing all these years as a prudential regulator under sections 26 and 27, where we assess applications from financial institutions, to suddenly say that we now will take into account social mission because we interpret this very broadly. First, that itself could lead to more uncertainty for the industry players because they will be wondering, the next time, would you then change the interpretation to something else again without being clear about the reasons why you are doing it and being transparent about how you are doing it. That is why, as Ms Jessica Tan mentioned earlier, we prefer to take a more open and transparent approach of coming to Parliament to seek Parliament's approval for this change, to address the concerns that we have but to do so in a tightly-scoped manner so that the rest of the industry who are not co-operatives or who have no links to co-operatives need not worry that this new provision taking into account social mission will also apply to them.”
“Thank you. So, this is what I said earlier, that the Bill does not affect any completed transaction because there is no formal application yet by Allianz to obtain effective control and become a substantial shareholder of Income. And, therefore, there is no retrospective application of the law. So, that is what I have said. There is no formal application yet by Allianz. Second, the point about why MAS does not have the powers, I have also explained this, that in the existing sections 26 and 27 of the Insurance Act, there is not an explicit provision under the Insurance Act for MAS to take into account the views of MCCY, which will include questions relating to social mission in assessing a proposed acquisition of an insurer with co-operative links. [Deputy Speaker (Mr Christopher de Souza) in the Chair] So, we cannot rely on the existing provisions without this set of amendments. And because it is a proposal that is under consideration by shareholders, there is urgency. So, yes, we do not disagree that there is a deal that is being considered. But it is a fact, Sir, that there is no formal application by Allianz to MAS.”
“Mdm Deputy Speaker, I had actually covered both points in my closing speech earlier. But Ms Sylvia Lim may have missed it. So, with your permission, Madam, can I just read those sections again?”
“But because there was no regulatory approval given, there was no decision or pronouncement by the Government. The second point that Mr Leong raised, Mr Deputy Speaker – I find it quite odd that Mr Leong on one hand would say he is not trying to characterise it negatively and, on the other hand, he has made it quite clear that this is a bad deal. We have explained why the capital reduction plan on its own would not be something that is uncommon. An entity, whether Income or another insurer, another financial institution, to do capital optimisation, I think Minister Edwin Tong explained this, I explained this as well and Mr Leong, I am sure, understands. Financial optimisation is something that entities, companies do regularly. So, this, by itself, is not wrong. When MAS was looking at this initially, they were looking at it from a prudential point of view to see – if you do this, would Income still have the necessary capital to meet its capital adequacy ratio? From a prudential point of view, is this something that we would be prepared to consider? But as I mentioned earlier in my closing speech, there was no application by Allianz on the capital reduction. They only submitted a preliminary business plan in mid-July. So, I would like to suggest that, perhaps, it is not very useful and productive for us to argue about different adjectives being used. But as Ms Hazel Poa said earlier, we let the public decide which phrase was used by Mr Leong and which phrase was used by me to describe this exercise. And the Hansard will reflect that Mr Leong did, indeed, say it is an asset stripping exercise.”
“Mr Deputy Speaker, I was quite dismayed to hear Mr Leong Mun Wai describe the 6 August discussion in Parliament as, in his words, "a waste of time". It provided the opportunity for Members to ask questions, and for MCCY and MAS to clarify what is the status of the situation at that time; and then, to hear the concerns of the Members. I think it is not correct and I hope Mr Leong could withdraw that comment too, to describe that process as a waste of time. The point about whether information should be made known during a discussion, I had clarified repeatedly that when we came to Parliament on 6 August, both Minister of State Alvin Tan and I made it clear that there was no regulatory approval given to the deal. It is something that is still being evaluated, considered and, therefore, in response to Mr Leong's point about how before we make any decision or pronouncement, we should have the full set of information. Indeed, that is why, after the 6 August Sitting, when MCCY received the information from MAS, the agencies then got together, the Ministers then got together and discussed, and eventually, Cabinet made a decision to bring this Bill to Parliament. This is the decision that we are seeking approval from Parliament. So, I do not think there is any departure from what Mr Leong described as what he expects the Government to do. But on 6 August, there were Parliamentary Questions filed. Unless Mr Leong is suggesting that we do not answer Parliamentary Questions? If not, at that point in time, because the deal is still being considered, no approval was given yet, I think it was only correct that we gave replies based on information that we had at that point in time.”
“I do not think there is any evidence, unless Assoc Prof Lim can produce evidence; otherwise, I would like him to please withdraw that rather serious allegation. With regard to SIRA, I have already explained earlier that this has to do with national security and I also mentioned in my reply that we will also look at whether there are other Acts that cover some of these entities; and if there are, then there is no need to replicate this with SIRA. So, the two examples that Assoc Prof Lim kept raising, DBS and Singtel, I have already explained that there are sectoral regulators – in the case of DBS, it will be MAS; in the case of Singtel, it will be IMDA – that would play the role of the gatekeeper. And if you want to acquire shares in DBS or in Singtel that goes beyond a certain percentage, you do need the regulator's approval before you are allowed to do so. So, in a way that is already covered.”
“Mr Deputy Speaker, I would like to start by first requesting Assoc Prof Jamus Lim not to put words into my mouth. I did not refer to our public officers as pawns and I do not think he should too. We have deep respect for our public officers. We know that they work hard, they do their work well and it was not so clear earlier when Assoc Prof Lim was making all the criticisms of working in silos and having breakdowns of communications, that he was referring to the system. If his concern is about the system, I have also explained on Monday and earlier, what happened and why it was not in the ordinary course of operations for MAS, when they are assessing information from a financial institution, to share that with another Government agency. If Assoc Prof Lim considers that as a failure, a systems failure, then I presume, maybe he could let me know what his counterproposal is. Is he then suggesting – and I am not trying to put words in his mouth, I am only asking – that anytime MAS receives information, whether there is a reason or not, we should then share it with all other Government agencies? I hope that is not what Assoc Prof Lim is proposing. I think that will have an impact on investor confidence and it will affect our pro-business operating environment. So, I have explained what happened with this particular case and I have also reiterated the chronology of what happened. I hope Assoc Prof Lim can accept that account of what happened and not keep repeating unfounded allegations about the public service officers in our system facing constraints from the Government of the day when it comes to sharing of information.”
“However, we remain open to Income entering into a new deal, whether with Allianz or with another entity, if the outcome is that this can help to strengthen Income. Mr Deputy Speaker, this Bill is being tabled and read on a Certificate of Urgency because the proposed deal by Allianz is under active consideration by Income's shareholders. The Bill will allow the Minister-in-charge of MAS to consider the views of the Minister charged with the responsibility of the CSA in applications to obtain effective control or become a substantial shareholder of a licensed insurer that is a co-op, has acquired the business of a co-op or has a substantial shareholder or effective controller that is a co-operative. The Minister-in-charge of MAS can then withhold approval if he considers it in the public interest to do so. The Minister-in-charge of MAS will also take into account prudential considerations under the Insurance Act in making his decision. The Government has determined that this proposed transaction cannot proceed in its current form. However, we remain supportive of NE's and Income's efforts to look for a strong partner, including with Allianz or another entity, to strengthen Income's capital base and market position. The Government recognises and agrees that Income must do well before it is able to continue doing good on a sustained basis. Mr Deputy Speaker, I thank Members, once again, for their support for the Bill. I hope I have clarified the concerns raised by Assoc Prof Jamus Lim and Ms He Ting Ru, and I sincerely hope that the WP can support this Bill. [Applause.]”
“They acted in good faith. They wanted to do the right thing. They wanted to strengthen Income, so that Income is in a stronger position to serve its policy-holders and also to fulfil its social mission, because to do good, you must first do well. That was the intent. We may have differences in views, as Minister Edwin Tong mentioned earlier, with regard to this deal, whether this deal is something that the Government would allow to proceed and we have come to the conclusion that we would not allow this deal to proceed. So, yes, there is a difference in views between what NTUC, NE, Income have put up and what the Government feels is the right way forward, but we do not disagree with the objectives of why we are doing this or why Income is doing this. The purpose of doing this is the right one. It is to strengthen Income and to do well, so that it can do good. The Members of the Opposition often remind us that just because there are differences in views, it does not mean that we should automatically jump to the conclusion that you have a bad intention. I respect that view, Sir, so I would like to seek their agreement that, in this case, please also apply that consistently; that just because there is a difference in views, in terms of how the proposal is structured, it does not mean that you should conclude that NTUC and NE were doing this without a good intent. That would not be fair to our sisters and brothers from NTUC and NE. [Applause.] Sir, Minister Edwin Tong has explained why we need this Bill, to give the Government the powers so that our view will prevail. And we do not want the deal in its current form to go through.”
“I would like to first assure Members that MAS requires insurers to maintain, on an ongoing basis, adequate capital to address the risk of its insurance business and activities. As the capital required will increase as business risks increase, insurers may undertake capital optimisation measures, such as reinsurance to reduce the risk retained within the insurer, without shrinking its business or weakening it. This would, then, reduce the regulatory capital required to support the same business. These measures that free up capital to be returned to shareholders is not an uncommon commercial practice, as Mr Liang has pointed out. And to be clear, in the case of Allianz, they had provided a preliminary business plan to MAS in mid-July regarding the capital reduction. There was no application from Allianz for capital reduction. Mr Deputy Speaker, I would also like to address a comment that Mr Leong Mun Wai made earlier with regard to the capital reduction plan. First, I think I have clarified that there was no application from Allianz. They only provided a preliminary business plan to MAS in mid-July. I also clarified on Monday and also today and a few Members have mentioned it as well, that the deal is still subject to MAS regulatory approval. I hope those facts are clear. I do have an issue with how Mr Leong has described the capital reduction plan as an asset stripping exercise. And I do not think that is a fair description. I think Mr Leong deliberately chose that term and this is not the first time I have heard Mr Leong make unkind remarks towards NTUC. Sir, NTUC has explained, the Members heard from Senior Minister of State Desmond Tan earlier and also other colleagues from the Labour Movement, that they are entering into this deal with the right intent.”