Chew Heng Ching
Singapore
“Sir, in terms of sports facilities, we, as a nation, are certainly very well-endowed. We have many stadiums, swimming complexes, sports halls, multi-purpose fields, tennis courts, school fields and many, many more.”
“These jobs need not necessarily be limited to menial jobs like cleaners, sweepers and lift attendants, but could be extended to include the services of older professionals such as engineers, accountants, managers, and clerical officers.”
“For this reason, Sir, I am a bit disappointed with the Budget in that we could have done more for our SMEs, many of which have also made sacrifices in the past and are still struggling and not able to reap the benefits of economic recovery.”
“In so doing, we may have addressed the form of the issue at high cost to our charities, deterred some good people from coming forward to serve and to volunteer, but may miss out on the substance, which is the bigger picture, ie, what is the best means with reasonable level of disclosure and accountability to help meet the needs of the nee…”
“May I, therefore, suggest that the Government look into the plight of these wet market stall owners. Many wanted to give up their stalls but, with outstanding loans from the banks, they could not. Some wanted to sell their stalls but there were no buyers. And their children are not willing to take over the stalls.”
“May I therefore propose that the Ministry, in the light of this massive LUP project announced by the PM, review the adequacy and the use of town council sinking funds.”
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“Sir, in terms of sports facilities, we, as a nation, are certainly very well-endowed. We have many stadiums, swimming complexes, sports halls, multi-purpose fields, tennis courts, school fields and many, many more. Indeed, I must say we have more than adequate excellent sports infrastructure facilities within the island to cater to the needs of all age groups of Singaporeans. My questions to the Minister are whether or not Singaporeans are participating actively and regularly in sports. How well-utilised are these sports facilities? What are his Ministry's plans to further facilitate Singaporeans' participation in sports as part of our overall aim to promote healthy lifestyle and to encourage Singaporeans to exercise regularly?”
“These jobs need not necessarily be limited to menial jobs like cleaners, sweepers and lift attendants, but could be extended to include the services of older professionals such as engineers, accountants, managers, and clerical officers. Sir, by doing so, we can convince private sector employers to do the same and start re-employing older workers. May I urge the Minister to convey this suggestion to the Public Service Division of the Ministry of Finance for implementation? Central Provident Fund”
“Mr Chairman, Sir, I echo the views and concerns raised by various Members before me on the need to do more to help older workers get jobs. This is more so, as our population matures and Singaporeans live longer as a result of improving standards of healthcare and quality of life. Sir, I applaud the Minister for setting up the Tripartite Committee on Employability of Older Workers. The Committee has submitted an interim report, and I understand it is expected to complete its work by the end of the year. The Committee may be looking at legislation for the re-employment of older workers. I have read the report. Sir, whilst I acknowledge that the Committee's work is work-in-progress and it may be some time yet before legislation can take place, I suggest we start changing perceptions and mindsets among employers, and this includes the Government, to encourage them to employ older workers. Older workers have the advantage of wisdom, experience, stability and knowledge, which, like what my colleague, Mr Leong Horn Kee, has said, the younger workers do not have. Perhaps, we could initiate a nation-wide campaign to educate all employers on the virtues of employing older workers. In addition, I suggest that the Government take the lead and implement practices to employ older workers in the public sector, in much the same way as what the Government had done in the past in taking the lead in employing handicapped Singaporeans, ex-prisoners and ex-drug addicts in the public service. The engagement of these older workers could be on shorter durations, on contract basis, say, one-year, two-year or three-year contract, renewable every year subsequently, or it can be on a project or assignment basis.”
“Sir, as the Coordinating Chairman of all PAP Town Councils in Singapore, I speak on behalf of my fellow Town Council Chairmen. Since the liberalisation of the electricity market by the Government, Town Councils have been able to achieve some savings in electricity costs through directly purchasing electricity from retailers in the market. Sir, but this is limited to the larger utility accounts, ie, accounts with consumption of more than 10,000 kilowatt-hour per month. However, savings achieved to date by Town Councils are minimal as most of the utility accounts under the Town Councils do not exceed 10,000 kilowatt-hour per month consumption. Sir, with oil prices on the up trend and increases in electricity tariff, Town Councils have been facing increasing electricity cost in the upkeep of their estates. It will certainly help Town Councils cope with the increase in utility costs if the Government would expedite the liberalisation of the electricity market to include accounts with consumption below 10,000 kilowatt-hour per month. I, therefore, wish to ask the Minister if he would expedite the liberalisation of electricity market to include the smaller accounts and, hence, allow Town Councils to enjoy lower rates of electricity consumption through economies of scale. Consumer Protection”
“Sir, the Singapore Business Federation (SBF) was formed in the year 2002 through an Act of Parliament. It was meant to be the new apex organisation, representing Singapore business interest, both locally and abroad. Concurrent with this, we have a wide array of business chambers and associations, representing different sectors of the business community. Sir, I must declare my interest here as I am the Chairman of one of these Chambers, ie, the Singapore International Chamber of Commerce. When the SBF was first formed, there was great unhappiness by many companies to be compelled by law to become members of the SBF and to pay subscription fees, hence increasing their business cost. I must feed back that till today, many companies are still begrudging the need to pay compulsory subscriptions to the SBF. They still feel that they do not need the services of the SBF. Indeed, many prefer to use the free professional services rendered by IE Singapore. I wish to ask the Minister if he will give an update to this House on what the SBF has been doing and whether it has achieved its objectives as the apex body of businesses here. What has been the financial position of the SBF, ie, its revenue, expenditure and surpluses, including accumulated surpluses? Sir, the position of CEO has been vacant for some time. Why are there no takers for that position? May I suggest to the Ministry that perhaps it is timely to conduct a stock-take on the SBF, review its achievements and challenges, and as part of this review, consider lowering subscription rates for its members? Free Trade Agreements”
“For this reason, Sir, I am a bit disappointed with the Budget in that we could have done more for our SMEs, many of which have also made sacrifices in the past and are still struggling and not able to reap the benefits of economic recovery. We should equally be rewarding them for the sacrifices as we are doing for the lower-income group in our society. In summary, Sir, I welcome the gifts to our people and in particular the financial help rendered to the less well-off in our society. This is the Government's promise of sharing the success and the wealth with the people, many of whom have made sacrifices during the last few years of sluggish economic growth. I hope the Government in future budgets will have the gifts more targeted at those who really need help and also address the needs of our SMEs. This is in order to make Singapore continue to have the vibrancy of its economy whilst maintaining social cohesion as we power and move ahead as a nation. 6.31 pm”
“To achieve the objective of encouraging workers to stay employed and for businesses to pay manageable wages at the lower end of the spectrum, as well as to support and share the wealth of the nation with the less economically well off, I would suggest that future "gifts" from the Government be more targeted. Presumably, in so doing, we will be delivering less handouts to the well-off and the middle class, and that in itself will reduce the future expectation-driven burden on budgets whilst achieving the aim of progressing as one people. I have heard many discussions, even on the radio and in the newspapers, on what Singaporeans plan to do with the handouts. A number of them have talked abut donating them to their favourite charity, or mentioned other frivolous pursuits like investing in 4D or Toto. This suggests to me that there is indeed a segment of the population who are beneficiaries of these measures who do not absolutely need it. Yes, they do welcome it. But if our message is to have a more targeted scheme for those who really need it, I believe we can achieve this goal at less expense, and perhaps with less expectations for future gifts. In this way, we could continue to grow as a nation and use our budgetary surpluses to achieve the social objective of helping the less well-off in society, and hence maintaining social harmony and cohesion. With more effective targeting and less potential expenditure, we could cater more for the drivers of economic growth, including fiscal measures that would benefit SMEs and also help to continue to attract and retain talent.”
“Sir, we have to bear in mind that we are able to enjoy the fruits of economic success and prosperity because we continue to have an able, honest Government with prudent management of the public sector and fiscal coffers. Indeed, based on the track record of this Government, this constant sharing of success and surpluses seems to have now become a norm. It happens so frequently nowadays! Because of this, I am concerned that the sharing of budget surpluses in times of plenty like now, which is well intended, could give rise to an expectation that Singaporeans will receive handouts from time to time, especially with General Elections around the corner. Sir, there is nothing wrong with giving handouts. Singaporeans should be rewarded from time to time for the sacrifices they made to the nation. I have only concerns on two counts. Firstly, it breeds a potential unhealthy dependency and expectation, which may place undue pressure on future governments to deliver similar handouts. Secondly, it may create pressure even in times when budgetary constraints may be tighter, say, in an Asian financial crisis type situation, where there will be a need to dig deeper into our fiscal coffers to help meet the rising expectations of Singaporeans. Sir, it is already evident from some of the coffeeshop talk and even letters to the press from various groups who feel that they have not got enough or have missed out, each with its own voice and demands clamouring for attention. In this regard, Sir, I have a suggestion.”
“Sir, I rise to support the motion and applaud the Prime Minister for delivering a very good Budget. In many respects, this Budget has deserved all the positive comments from the public, in the media, and from Members of this House, in its consideration for the common man and the generosity of gifts to our citizens amounting to a sizable $2.6 billion. To me, Sir, it is a Budget that shares the fruits of economic recovery, progress and prudence on the part of the Government. Cynics call this an election Budget. I disagree. I believe it is a Budget to reward Singaporeans who have sacrificed for the nation ever since the Asian financial crisis in 1998, the dotcom bust in 2001, SARS in 2003 and, accompanying all these unforeseen developments, the economic slowdown in the last few years. Sir, I would like to put on record and to express my gratitude to the Government for all my constituents who are beneficiaries of the various initiatives and "goodies" proposed in the Budget. Sir, I am pleased that we are able to afford these measures and am particularly supportive of the following two underlying philosophies. Firstly, the Workfare initiative is indeed an elegant way to ensure that we do not fall into the welfare pitfalls that other countries have faced, and ensure that job creation and sustainability can continue without too onerous a burden on businesses. Secondly, the targeting of lower-income groups is particularly relevant in that as a Progress Package, and as we grow as a nation, we do not lose sight of the importance of social cohesion and consideration for the less well-off in our society.”
“Finally, the NS obligations of potential Singaporeans and PRs should also be made transparent to them so that they will be fully aware of the consequences of the choices they make. 4.12 pm”
“If guidelines are clearly communicated and justice can be seen to be evenly applied, then the perception of inequity amongst Singaporeans, which often is a key complaint here, can be avoided. I would suggest that the policies and guidelines be clearly spelt out to all potential Singaporeans and PRs so that informed choices can be made by them for their children at an early age. On this, I would like to elaborate on an example that is increasingly commonplace nowadays. Many children of Permanent Residents are sent overseas before NS age for studies. They subsequently become very well-qualified individuals with knowledge and skills, who can contribute greatly to Singapore. They, however, cannot return to Singapore or seek employment opportunities as MINDEF has rejected their appeals, even as, in some cases, they are happy to fulfil, as a condition of their return, their NS obligations, ie, to serve full-time NS albeit at a much older age. Sir, this has brought some distress to families who may not be fully aware of the consequences of the choices they made earlier on for their children when they were young. This could be avoided if MINDEF has been more transparent and upfront in the policies and criteria on NS for PRs and potential Singaporeans. In summary, Sir, I believe that we should make an effort to communicate our NS policies in as transparent a manner as possible and redress the perception gaps amongst our citizens who take NS very seriously. We should also consider clearly promulgating the criteria with regard to specific circumstances under which flexibility to our strict policy on NS may be allowed.”
“It is therefore understandable, Sir, that many Singaporeans have had strong views on the issue of what ought to be the penalties for not fulfilling one's obligation to our country but also what ought to be the right approach in the light of our stringent NS policy in enabling the continual introduction of talent, whether Singaporean-born or foreign-born to Singapore, the merits of which have been well articulated. The arguments for and against are plenty. Many proposals have been put forward in the media, on online forums and by community leaders on what could be the solution or approach to take to represent either interests or try to balance between them. To me, the debate is around the pursuit of rational national interest in the long-term in attracting talents versus the emotive force behind many of the proposals for harsher punishment. I will not repeat those arguments given the constraint of time. Sir, however, I believe the recent unhappiness over the Melvyn Tan's case is partly caused by the lack of clarity and transparency on the part of MINDEF on its policies and rules regarding NS, particularly as they apply to Singaporeans and PRs living abroad. If MINDEF had been more transparent over the interpretation of its various rules and criteria such as who is allowed back into Singapore, under what circumstances and grounds, with what residual obligations, and what are the exception processes if so desirable for appeal, if any, it would shed light on the matter and thereby, I believe, satisfy the majority of Singaporeans and potential Singaporeans alike who seek better understanding and clarity on our NS policies and fairness in its application.”
“Mr Speaker, Sir, thank you for allowing me to join in the debate. First, I commend the Minister for his succinct and comprehensive statement on National Service and his clarifications on Melvyn Tan's case. Sir, generations of Singaporeans have contributed to National Service, directly as participants in active service and subsequently, through regular commitment as reservists. Likewise, whole families have also contributed to NS, indirectly as parents, spouses and children through family support and sacrifice. I believe NS has been and continues to be the bedrock of our nation. As part of the psyche and the collective make-up of our society, NS has become an essential component of rights, obligations and commitments of being a Singapore citizen. In this regard, Sir, the disquiet amongst many Singaporeans over the issue of what is perceived as a "negligible" fine imposed on Melvyn Tan upon his return to Singapore, having not fulfilled his NS obligations in an earlier stage of his life, did not come as a surprise to many. I join my fellow MPs in arguing that NS is very important and the need for NS and its role in Singapore as a nation remain as important today as it has been since independence in 1965. The amount of full-time training and the functions that are fulfilled by our civilian army of reservists and family support may have evolved over time as our military embraced technology and innovations. The shortening of NS period to two years is commendable in itself and is certainly welcomed. However, that does not and should not dilute the importance of NS and those that have contributed and continue to do so.”
“In so doing, we may have addressed the form of the issue at high cost to our charities, deterred some good people from coming forward to serve and to volunteer, but may miss out on the substance, which is the bigger picture, ie, what is the best means with reasonable level of disclosure and accountability to help meet the needs of the needy in our society? The NKF has started a new chapter under the chairmanship of Mr Gerard Ee and his new members. They have a formidable task ahead. Let us give them all the support they need.”
“However, I would urge the Government to consider advancing the implementation of the new code of governance for VWOs by one year, perhaps as early as 2006, instead of waiting until 2007. Sir, let us be clear that the NKF was successful in raising funds to deliver the cause. It was successful in creating enough surpluses for the long-term sustainability of the organisation to benefit the public. Beyond the emotive issues that have been raised and reported in the media, I believe they have done a reasonably good job and have helped many people. However, in so doing, the NKF could have been more transparent. The board should have exercised greater oversight in managing issues of potential conflict between staff and itself and act in good faith. These failures can be addressed in substance by encouraging the right people to come forward to serve and to lead, who can both deliver the results that the charities need and conduct themselves with greater integrity and transparency, like instituting best practices in the running of NKF. I am sure Mr Gerard Ee, with his many years of experience as a public accountant, dealing with boards of listed companies, together with the new board members, all of whom are competent, able and men of high integrity, would know what to do next. In summary, Sir, I do not see the need for any "knee-jerk" reaction to fix the NKF problem by introducing more rules or regulations or tightening legislation, as has been suggested by many.”
“Whilst legislation will serve to allow for penalties to be enforced and perhaps a deterrence, the impact on the actual practices of boards of governance for public, commercial or charitable organisations will only be as far as individuals who sit on the boards. It is, indeed, substance over form. Fundamentally, we need good men and women of ability, integrity and credibility on boards of listed companies and VWOs, and who can conduct themselves in good faith and work to deliver the objectives of these organisations. This has to be balanced against a set of basic regulatory framework that encourages transparency and accountability, and not rigidity. On this, I would like to make reference to the code of corporate governance that governs listed companies. I note that the authorities responsible for drawing up the Code of Corporate Governance for publicly listed companies, of which I must declare I am a party, have carefully considered the need to balance compliance costs versus leaving it to the market to reward and punish good or poor corporate governance, being mindful of the potential burden of too many rules on companies and the deterrent effect it may have on able men and women coming forward to serve as directors and lead these companies. Sir, we should take note of this experience when we tighten up our rules on governance of VWOs. If we over tighten, the net effect could be that less able men and women would come forward to serve in executive positions and sit on the boards of VWOs, much to the detriment of society at large and the needy who require such support. I am therefore heartened when Minister Khaw opined that there is no need to further tighten rules and regulations regarding the management of VWOs.”
“Mr Speaker, Sir, with your indulgence, I would like to raise a few comments. It is indeed of grave concern to all Members of this House and the public at large about the recent media reports regarding transparency and accountability of the administration and the governance of NKF. I am particularly concerned about the potential impact that it has on the viability of NKF in the long term and the direct consequence on society and the needy who continue to need the services of NKF. In this regard, Sir, the steps taken by the Minister for Health to restore confidence and the immediate appointment of Mr Gerard Ee are timely and should be applauded. I would like to raise a wider issue and which is the chorus of recommendations arising from this episode to further tighten up the code of governance of VWOs. Whilst I am in full support of greater disclosure and transparency which create an environment where the informed public can choose, decide and channel financial contributions to the causes that are worthy of supporting, I fear that without taking a more measured and well-considered approach, legislating many of these best practices or introducing even more rules and regulations may serve more harm than good. Let me elaborate, Sir. As has been the case of other "corporate type" failures in the past and in recent times, CAO, Citiraya, among others, it is easy to suggest a further tightening of rules and regulations with the underlying assumption that rules and legislation alone will be the panacea to solve such problems and prevent further recurrence.”
“I would recommend that just as a significant proportion of revenue from Singapore Pools is set aside for community and charitable contributions, a portion of direct taxes of, say, up to 5% generated from activities directly related to the casinos (and this is over and above the $100 levy collection for entry into casinos) be set aside specifically to community and civic organisations to run programmes to educate the public on the pitfalls of unrestrained gambling as well as to provide some form of assistance to families that may be affected adversely by the addictive behaviour of their breadwinners. The costs of administering such schemes should be kept in check and channelled through community-based organisations, such as the CDCs, so that a holistic approach to such forms of assistance for affected families can be delivered at the grassroots level. In conclusion, Sir, I support the proposal to build two Integrated Resorts with casino facilities. I base my decision on economic merit ground and I see this as part of our longer term plan to remake Singapore. I believe if we adopt a pragmatic approach, demonstrate our maturity as a nation to be able to handle the benefits of such resorts, have enough safeguards and still have the moral strength to manage any social costs and fallout, we will have what it takes to be a world-class city of choice for visitors and citizens alike, with a sustainable low tax regime, a healthy economy and an environment for responsible Singaporeans to exercise their personal choices.”
“Indeed, we are already seeing long queues of people on weekends at the 7-Eleven shops in our neighbourhood buying 4-D, Toto and football bettings, and we often hear of Singaporeans making weekend trips to Batam to gamble. In fact, another form of gambling - with a more "dignified" term - called "speculation" is already in existence and well patronised by Singaporeans. Our stock market, with its form of contra trading permissible by brokers who facilitate large credit lines for speculators, has over the years created its fair share of bankrupts and destitutes from irresponsible behaviour. Just because some people lose their shirts in the stock market does not mean that we shut it down and lose the other benefits that it brings to the economy. It may be reason to justify some expenditure for investor education, which we do, and regulation to prevent or mitigate such incidences, but neither is it necessary nor sufficient cause to shut down the stock market or prevent its existence. Sir, as with every opportunity, the use or abuse of such opportunities presented boils down to responsible individual choices. Individuals getting caught in credit card debt or suffering financial setbacks in the stock market do not stop the authorities from allowing credit card facilities or services or an efficient capital market which benefits the majority and fosters economic activity and raises revenue. It is arguable that the casino may not benefit the majority on a monetary return basis, but it is equally demonstrated that the average punter in the stock market does not make money from speculation! Sir, I am heartened by the many safeguards the Government will put in place when the IR projects are ready.”
“If the slowdown continues for another two quarters, we might end up with a higher budget deficit than expected for another year. This is a worrying trend. As such, Sir, measures that can directly contribute to economic activity and raise revenue to help us get a fiscal uplift in new contributions are worthy consideration. The IR proposal, with casino facilities, that will attract tourists and generate economic growth is one such example and should be looked at seriously. Indeed, even receiving some form of revenue from what has been leaking out by Singaporeans, who make trips to Genting, Batam, Australia, Macau, Las Vegas, or even just hop on a cruise to nowhere for a gambling jaunt, ought to be beneficial to us. These will help plug some fiscal gaps and help us maintain our low tax regime for economic competitiveness and growth. Mr Speaker, Sir, I believe we are a nation that has come of age. In deliberating this Integrated Resort proposal, we ought to demonstrate our maturity as a nation to be able to handle the benefits and still have the moral strength and courage to manage any social costs and fallout that may arise. Sir, let me be clear in that I do recognise the downside of the IR proposal with casino facilities. I am aware of the potential social costs that may be incurred by individuals who do not act responsibly and succumb to temptation, leading to personal and family economic ruin should they develop a gambling addiction. However, my belief is that, ultimately, these individuals should bear personal responsibility. In addition, we cannot fully control what is already easily accessible, such as gambling on the Internet. We should not pretend that it does not happen just because our citizens cross borders to gamble.”
“Mr Speaker, Sir, unlike the previous speaker, I must say my speech will be less impressionable and colourful. Sir, I rise to support the IR proposal. My primary reason for this is, I believe, the IR proposal is an important step forward to help raise Government revenue, achieve a balanced budget and keep our taxes low. During the recent Budget debate, I had expressed concern that Singapore has been running on budget deficits for the last three years, and even in the projections for this year's budget, we would have registered another deficit if not for income generated from past reserves. Having a balanced budget is critical, as I have argued many times before, as the downsides of long-term fiscal deficits are well known. In so doing, we can continue to keep our taxes low, remain competitive and be a draw to individual and entrepreneurial talent and to international businesses and, in the process, continue to create employment and generate economic growth. Sir, besides a declining revenue trend, we are also faced with increasing pressure to raise public sector spending to support the many worthy causes in areas, such as health and education, given that Singaporeans now have higher expectations, and the costs of delivering such services rise over time. These pressures on public spending create fiscal gaps and the fact that we are in a recovering economic environment and still running an operating deficit is certainly a cause for concern. The pressure to raise revenue will be greater should economic growth not meet our expectations in this year's budget. As the first quarter's unexpected slowdown in the Singapore's economy has shown, the cyclical nature of the recovery cannot be fully counted upon now.”
“I am therefore proposing that the Minister consider seriously farming out the cleaning and maintenance of walkways and road pavements to the Town Councils, of course, at a price to be paid to the Town Councils. Sir, will the Minister consider this suggestion?”
“Sir, the state of cleanliness of road pavements and walkways within HDB estates is certainly far from satisfactory. I am referring to road pavements maintained and cleaned by NEA contractors. With your indulgence, Sir, allow me to show some photographs of the condition of road pavements in my constituency to the Minister. I have complained about the cleanliness to NEA on many occasions in the past during my regular visits. In this photograph [indicating], the bald patches and unturfed areas are left unrepaired for many months. Drains are clogged, so much so that we have no choice but to mobilise Town Council contractors to clean them [indicating]. Sir, the last time I brought this up in this House was some years ago. Since then, I have on many occasions in my constituency visits lodged complaints with NEA, and each time they assured me that they will be cleaned. But the condition is far from satisfactory and, certainly, it has not been the case. Sir, I believe the cleaning of road pavements and walkways in HDB estates is best undertaken by the Town Councils themselves. I would like to propose that the NEA consider giving Town Councils the option to clean and maintain such road pavements and walkways and paying the Town Councils for doing it. Sir, letting the Town Councils do the cleaning and upkeeping of common areas not under the purview of the Town Councils is not something new. HDB car parks, for example, for many years have been maintained very satisfactorily by Town Councils, and HDB has been paying Town Councils for doing that without complaints. I think this arrangement works well.”
“May I, therefore, suggest that the Government look into the plight of these wet market stall owners. Many wanted to give up their stalls but, with outstanding loans from the banks, they could not. Some wanted to sell their stalls but there were no buyers. And their children are not willing to take over the stalls. Some even suggested that the Government buy back and lease the stalls back to them. Some asked for the property tax to be waived, and some asked for the lease period to be extended another 5-10 years so that they could stretch the repayment period to reduce the monthly operating cost. Sir, I think we have a structural problem before us. I, therefore, would like to urge the Minister to consider helping this group of wet market stall owners. Dengue Fever”
“Mr Chairman, Sir, wet market stall owners - they are not just stall operators, they are operators who own the stalls - are facing hardship due to declining business and higher operating costs. Because of a change in shopping habits and lifestyle, many younger Singaporeans prefer to patronise air-conditioned supermarkets like NTUC FairPrice, Sheng Siong and, so on. Sir, I have a wet market in my constituency at Block 511, Bedok North. With your indulgence, I would like to show the Minister two photographs of this wet market. This is a typical scene on a weekday morning [indicating]. It shows the condition is very pathetic, hardly any customers. Sir, stall operators in this market, in response to Government's call in the mid-1990s to come forward to purchase the stalls, have actually bought the stalls, and they have been operating them for the last nine years. They have about 11 years of their lease left. The stalls were sold on a 20-year lease. The monthly interest payment, the monthly mortgage repayment plus property tax come close to $500 per month, and this is assuming that they stretch their repayment period to the full length of the lease. Sir, not too far away at Block 538, Bedok North, in my constituency, I have another wet market. Here the stall operators are luckier. They do not own the stalls. They rented the stalls, and the average rental they are paying to the Government is about $200 per stall. And even then, they are already complaining of poor business and having difficulties making ends meet. Sir, I am sympathetic to the stall owners at Block 511 wet market. I am sure there are other wet markets in Singapore where stall operators owning the stalls are in similar difficult positions and need help.”
“May I therefore propose that the Ministry, in the light of this massive LUP project announced by the PM, review the adequacy and the use of town council sinking funds. Sir, if sinking funds could be freed up for certain expenses, then this would help ease the pressure on town council operating funds and, over time, lessen the need to increase S&C charges.”
“Sir, the town councils are required under the Town Councils Act to lock away some 30% to 35% of their funds into a sinking fund to ensure that they have adequate funds in the long term to do major cyclical works, like repainting, re-roofing, replacement of lifts and water supply system, and so on. And the remaining 65% to 70% of the funds are for routine operating expenditure, ie, cleaning, repairs, utility charges, and so on, in the upkeep of the towns. Over the years, since the formation of town councils in 1990, many town councils have accumulated very healthy balances in their sinking funds, certainly more than enough to meet their long-term needs. Sir, PM, in the recent Presidential Address debate, has said that the Government would step up their LUP programme for all towns and perhaps have it completed within 10 years. This is a very ambitious target. Depending on the level of funding from the Government, town councils and residents, this exercise will have an impact on the town council sinking funds. On this, Sir, I urge that the amount payable by town councils for this ambitious LUP project be kept at status quo, and not higher. Sir, besides the impending use of sinking funds for the LUP, I am also asking that the Ministry consider, if necessary, amending the Town Councils Act to allow the town council sinking funds to be used for other strategic purposes. By this, I am referring to various improvement works within the town, which are of a cyclical nature, ie, replacement of lift parts, facilities like playground, fitness station, and so on. Currently, town councils could only use routine operating funds to fund these expenditures. Sir, I could go on and list other types of expenditures for which sinking funds could be allowed.”
“I urge the Minister for Finance to work towards balancing future operating budgets and to rely less and less on NII to fill operating gaps. Sir, I reiterate my support for the Budget.”
“Likewise, the GST can be raised to shift the balance of taxation more and more awayfrom income to consumption, if need be, to fill operating budget gaps. In addition, the policies of Public-Private Partnership and Best Sourcing should lead to more efficient allocation of resources and have revenue raising benefits. Outsourcing public sector services, where the private sector can do better or more competitively, will also serve as economic drivers and support private enterprise. There are also many business ideas and projects that can add incremental economic value to Singapore and, hence, the constant calls for the Government to invest, co-invest or fund such enterprise. I urge the Government to continue to help facilitate the growth of high-tech industries, financial services, technology and life sciences, and invest in infrastructure and technology that will make it easier to set up and do business in Singapore. By facilitating enterprise, economic activity is engendered and, with growth, we can raise revenue in a more sustainable fashion. In conclusion, Mr Speaker, Sir, I commend the Prime Minister and Finance Minister for a prudent Budget for FY05, but I dohope that Singaporeans will continue to recognise that our budget surplus and reserves in the past were hard to come by and are not to be trifled with. Persistent deficits will send us on the road to long term economic malaise, and impose an unnecessary burden on the future generations of Singaporeans. We should really, in this time of economic recovery, look to building up budgetary surpluses, spend on measures that would raise revenue by stimulating sustainable economic growth, and rethink our macro block budget allocation system, whilst consistently seeking to cap Government expenditures.”
“Sir, my concern is that, as GDP expands, it is not clear if it automatically follows that, as a percentage, the public expenditure required to support that growth needs to expand at the same rate. Let me illustrate. Assuming the fixed costs of provision of public services are fairly constant, even allowing for inflationary adjustments, the variable costs to support incremental nominal GDP growth ought to be less than 19%, which is the overall figure. If so, then this methodology may mask the potential for more efficiency gains to be generated in the provision of public services in the longer term, as the Ministries' budgets expand automatically with nominal GDP growth, and the potential for waste is increased. I would, therefore, propose that the 19% of GDP benchmark be reviewed regularly to ensure public expenditure does not balloon because of increase in nominal GDP. In other words, as our GDP pie expands, the benchmark should perhaps be lowered to 18%, 17%,16% or some other percentage much lower than 19% over time. Sir, capping expenditures to achieve a balanced Budget is only one side of the equation. To balance the operating budget, there have to be measures to raise Government revenue. Clearly, the best wayto raise revenue is to continue to stimulate economic activities and encourage enterprise and work. Besides taxing on income generation, we should seek ways to raise revenue through the use of indirect taxation, and in ensuring that non-core public services ought to be self funding. For example, the re-balancing of the taxation regime from ownership of vehicles towardsconsumption canbe further developed so that taxes are in keeping with economic activities.”
“I believe these incremental measures in total can lead to substantial reductions in Government expenditures over time. However, whilst all these initiatives and programmes are good and would go further towards capping expenditure in the long term, more importantly, and perhaps harder to implement, would be to institute cut waste concepts and best sourcing as a matter of public sector culture, by changing mindsets and the behaviour of civil servants. Without buy-in and mindset change, the penetration of such efficiency drives will be limited and not sustainable, as waste and inefficiency can crop up elsewhere within the public service. Sir, at a macro level, I have concerns that our attempts to cap expenditure at the micro level through these initiatives alone would be ineffective, if the block vote budgeting scheme used for allocating budgets to Ministries is not reviewed regularly.It is observed that the present block vote budgeting system,which caps Ministries' budgets as a percentage of GDP, and enables the Ministry of Finance to keep Government spending to not more than 19% of GDP, may not be a sufficient tool in managing down public administration cost. For example, after a 3% budget cut across the board for all Ministries, the absolute dollar Ministries will get in FY05 still goes up because block budgets are set as a percentage of nominal GDP, which has increased. I would therefore like to ask the Minister for Finance if the 19% of GDP benchmark for block budgets is indeed an efficient one, and if there is an objective measure of fiscal efficiency that is lower, which could be a standard for the public sector to aspire to.”
“At this point, Sir, I would like to add that the Parliamentary Estimates Committee, of which I am Chairman, has looked into this in the last few years, and I refer Members to the Committee's reports and findings. Allow me, Sir, to highlight some of the findings. The Committee has validated and steered numerous measures to reduce wastage of resources and funds. For example, by institutionalising Economy Drive initiatives alone, there were savings of some $687 millionin the Ministry of Education, Ministry of Defence andthe Ministry of the Environment and Water Resources, and these savings werefreed up on FY03. Best Sourcing and Public-Private Partnership (PPP) initiatives, which have commenced in late 2003, have resulted in increasing market test of non-core functions and greater outsourcing, resulting in millions of dollars of savings to the Government. Managing for Excellence programmes to achieve quality systems and processes have also yielded productivity gains. A culture of continuous learning and improvement in Government agencies is being encouraged for more efficient delivery of services. Sir, I am therefore very pleased that the Government, in this Budget before the House, is committed to further seeking efficiency gains, minimising waste, and finding more cost-effective ways to deliver Government services, and that the best sourcing concept and PPP initiatives will be followed through. I urge the Government to consider hastening the rolling out of some of these programmes, ie, to deepen the penetration of market testing of non-core functions from the current 5% to 10%, and ensure that the delivery of specific programmes and services in the public sector can be as self funding aspossible.”
“I note that total expenditure, which has exceeded operating revenue for the last three fiscal years, would likely continue for the medium term, as projected by the Ministry of Finance. Sir, to me, thisis unhealthy, as it is making us dependent on the nation's healthy reserves built up over the past years. An unexpectedeconomic slowdown can easily turn our projected surplus into deficit from lower revenue contributions from taxes, or an adverse investment climate could reduce NII. Each time we dig into our reserves in deficit, rather than add to them with surplus, the potential NII contribution will fall and our position of fiscal strength could be eroded over time. Sir, it is thereforeimperative that we give greater consideration towards ensuring operating a balanced budget rather than depending on NII to fund the deficit. We should, in times of plenty and healthy economic growth, seek to add to our reserves by generating more surpluses in good times. This will ensure that, in rainy periods, when we have to dig into our reserves, there will be ample amount to buffer such wet weather periods. Given the uncertainty in the global economic and political environment, it is possible that shocks like September 11, economic crises, occurrences like SARS or other adverse events may happen more frequently.I would urge the Government to consider running an operating balanced budget going forward, and not be too dependent on NII contributions to fund the deficit, and seeking to add to our surpluses in this economic recovery period. Clearly, therefore, there is a need to consider ways to further contain and control operating expenditure as well as ensuring revenue growth.”
“For example, raising taxes could make the economy not competitive globally, which is an issue facing Hong Kong today. Cutting expenditure drastically reduces the extent and quality of public services which is evident in India and Indonesia today. Raising domestic borrowing may force up interest rates and crowd out private enterprise as in the case of Malaysia. Dependence on external borrowings, like the Philippines, risks an economic crisis. Just printing money has its corresponding risks of inflation and currency devaluation as seen in the Asian financial crisis. Sir, all across Asia, we have seen budget deficits resulting in higher interest rates, reduction in economic attractiveness for investors, and sub-par economic performance. Even the mighty US dollar has come under tremendous pressure, falling by some20% against most major currencies in the last two years, partly because of fiscal ill-discipline. This erodes the nation's wealth as a weaker dollar reduces the purchasing power of its people and, over time, lower their quality of life. Hence, having a balanced budget is critical, as fiscal deficits are clearly not the route we want to go. I note that the FY05 Budget, although in surplus overall, without income generated from past reserves, the Budget would have registered a deficit of some $830 million. In other words, we are running an operating budget deficit and depending on projectedNet Investment Income (NII)from our reserves to balance it. The Ministry of Finance has explained in the Budget documentthat the use of NII serves as a fiscal buffer to allow the Government to enhance Singapore's competitiveness by lowering taxes. Whilst I agree, I hope this will be an exception rather than the norm.”
“Mr Speaker, Sir, I rise to support the Budget. To me, this is a prudent, cautious and targeted budget, setting out measures to create a caring society and a dynamic economy. Many have commented that the measures to distribute some of the Government's surplus to the man-in-the-street are "people friendly" and "generous". It is indeed a Budget for the heartlanders. I, therefore, would like, on behalf of my constituents, to thank the Prime Minister and Finance Minister for the generous handouts. Sir, having been in deficit for the last three years, it is timely to have a balanced budget. The temptation to spend and distribute by digging into our reserves is always high. However, Singaporeans need to recognise that having balanced budgets and surpluses are critical to the long-term economic health of the country and the continual success of our future generations. Should we eat into our reserves and run them down, we will lose our ability to be economically competitive and the fragile success and wealth that we have built up could be eroded rapidly. Take, for example, the case of the Philippines. As the South East Asian economic powerhouse of the 50s and 60s, just one to two generations ago, late last year, that country's credit rating was downgraded to below investment grade as a result of poor fiscal discipline over the years. Indeed, President Arroyo had warned recently that the Philippines was potentially one year away from an Argentina style of crisis, which resulted, as we all know, in debt default, currency devaluation, further indebtedness, loss of credibility, confidence and sustained periods of poor economic performance. In simple economics, Sir, a government running fiscal deficits has limited and risky options to raise money.”
“In short, I would like to ask the Minister if he would review the criteria for ranking of schools and whether it is necessary to make the ranking of individual schools public, in the light of his intention to make schooling more interesting and enriching, less stressful and more relevant in the context of a broader-based and all rounded education for our young ones.”
“Sir, in the latest release of the 'O' and 'A' level results, I notice that MOE did not publish the ranking of schools based on these academic achievements. I think this is a good move, for I am never in favour of publicly ranking schools in its current form. This usually puts undue pressure on principals and teachers, as well as on parents and students. Hence, the constant complaint about our education system being too stressful. Principals and teachers are often under tremendous pressure to perform for their career advancements are dependent, to a large extent, on how their schools fare in the 'O' and 'A' level results. Kiasu parents naturally want their children to get into good schools high up in the ranking order. They often compare notes, and this raises expectations and puts a lot of pressure on our students, resulting in, what Mr Chiam said, many of them suffering from an inferiority complex. Sir, ranking of schools does have its advantages, if the criteria are broadened to non-academic areas, like achievements in CCA, sports, social services and so on. Indeed, schools should be assessed based not solely on academic results, but on how they train our children to have an all-rounded education. Even then, I would recommend that ranking be based on a band, a cluster or group basis, rather than on an individual basis. If the Ministry sees the need to rank schools individually, I suggest that this be kept internally within the Ministry and not made public.”
“Madam, for many years, Singaporeans have identified with the Kallang National Stadium and its vicinity as a venue for various sporting activities. The Kallang area has historical heritage value for Singapore and it is used for a wide variety of sporting activities for the participation of both the young and the old. It is indeed an area where Singaporeans could use and develop their sports talent and, yet,be a good venue for healthy lifestyle pursuits and family recreation. Madam, the House was pleased when the Minister announced in March 2002 that the Government had agreed, in principle, to replace the National Stadium with a multi-purpose Sports Hub. Subsequently, in this House, last year, the Minister further added that a feasibility study had been completed and the exact mix of facilities at the Sports Hub would be decided after a master planning of the Kallang area is ready, and the construction for the Sports Hub is scheduled to start next year, and to be completed by 2009. We have not heard from the Minister since then. I would, therefore, like to ask the Minister about the progress in the development of the Sports Hub. Are we still proceeding? Is the masterplan for Kallang area ready? Are we still sticking to the original concept plan? Has tender been called and will construction commence soon? Perhaps, the Minister would like to give the House an update on the project.”
“Sir, after much debate in this House in the past and up to last year, the Sports School at Woodlands is now ready. I understand that the school has started operation this year. While it may be too early to talk about its performance and effectiveness, I would like to ask the Minister to give this House an update on the school and its plan, going forward, and whether the plan is being affected by a cut in budgetary allocation for the Ministry.”
“Sir, DPM has not touched on the morale of civil servants.”
“Sir, the general economy drive in the civil service, the 2% budget cut of Ministries, and the close check on Government expenses, if not properly managed, would create a morale problem amongst civil servants. This, if not addressed, would impact on the level of public services and hinder the drive towards effective Government. I would like to ask the Prime Minister if the Government is ready to face this challenge and whether its personnel policies are geared to address these concerns. What measures are in place to boost the morale of civil servants? Medical Benefits”
“To be successful, we have to stay focused and be more efficient in delivering our public services, whilst realigning the expectations of future generations. We should not overlook inefficiencies in our public sector and continue to lay the platform for greater flexibility whilst maintaining fiscal prudence in the face of keener economic competition globally. Only in this way can we continue to ensure effective government in a land of opportunity for all.”
“The result should enable a streamlining of Government activities, including subsidies, social assistance programmes and schemes. It should also enable greater efficiency all round, if there is duplication across the Ministries for shared services. If there are indeed expenditures for programmes no longer required, they should be terminated, thus incurring further cost savings. Sir, I believe the last time the MOF did a zero based budgeting exercise was many years ago. A zero based budget review exercise conducted this year and subsequently once every five years will serve to ensure that the public sector remains vigilant, efficient and relevant, and delivers targeted services in tune with the times. Who knows, the review might end up with a cut greater than the proposed 2% cut for the next fiscal year. On a related matter, I would also like to propose that the Government also review its annual grants to statutory boards with a fine tooth-comb. The grant should be tied to a set of performance criteria and the level of accumulated surpluses, particularly where there is no more strategic use for the surplus. Sir, I recognise that the trimming of the Ministries' budget and a close check on Government expenses, if not properly managed, may create a morale problem among civil servants. Indeed, I believe that it is already happening, based on initial feedback I have gathered from my constituents and grassroots leaders. I want to ask whether the Government is ready to face this challenge and whether its personnel policies are geared to address this concern. In conclusion, Sir, in crafting Singapore's long-term competitive position, our public sector's size and role is significant.”
“The cut does serve as a wake-up call to all Government Ministries. It is no longer business as usual. However, I would like to ask if it does go far enough. The current budgets in individual Ministries have evolved over the years, in many cases, in response to ad-hoc policies for social expenditure of specific needs in the Ministry, implemented as a right policy at that time but not necessarily the most relevant now, or necessarily well-targeted or coordinated with other Ministries and schemes. The Ministry of Finance, in allocating the budget, looks at the previous year's annual expenditure numbers and sets a target for growth or contraction of the Ministry's budget on an overall basis, leaving individual Ministries to allocate within, by and large. Hence, with a 2% cut to be implemented, we could end up micro-managing Ministries. Ministries could end up focusing on cutting stationery, staff amenities and benefits and other perceived easy to tackle "wastes". This is likely to lead ultimately to a reduction in civil servants' morale, whilst allowing for the potential perpetuation of out-dated schemes and programmes, or indeed processes which are inefficient or obsolete. Sir, one also hears of anecdotes where some Ministries, close to the end of the fiscal year, should they be under-budget, go to great lengths to "spend" the balance, so that they will not have their budgets cut the following year. This is a real waste in itself and needs to be avoided. For the next FY 2005/06 Budget, I am therefore proposing that the Government conduct a zero based budget review across-the-board for all Ministries. The review should include a revisit of the mission, objectives, programmes and resource needs of all Ministries.”
“I believe this is a right-thinking philosophy that will enable Singapore to steer clear of structural budget deficits in the long run. We must guard against increasing demands from all sectors of society for handouts and wean Singaporeans away from a dependency mindset. In line with this philosophy, I would like to urge the Government to continue with the implementation of means testing, not just in healthcare but also move away from across-the-board distribution of social handouts. Instead, we should have a more coordinated approach in delivering social assistance schemes, so that distribution will reach only those that really are in need of them. I note, for example, that the revenue impact of GST, raised in stages from 3% to 5% over the years, has been more than offset by handouts in the form of rebates and subsidies. However, Singaporeans, some genuinely burdened by difficult economic conditions and others who are happy to free ride along, are both beneficiaries of mass distribution. Indeed, some have even considered that it is a right entitled to them. Sir, this perception that rebates and subsidies are rights that can be given in perpetuity has to be corrected, or it will add an ever increasing strain on our fiscal drawers. Correspondingly, I support the various initiatives that have been taken by Government, directly and indirectly, to support education for consumers and citizens from personal financial responsibilities and discipline. As a longer-term measure, perhaps the Education Ministry should also consider how such concepts, including public fiscal prudence, can be inculcated among our young in schools. Sir, on the overall Budget, the 2% budgetary cut across-the-board for all Ministries except MINDEF, in my mind, is a step in the right direction.”
“However, it is clear that this long-term task is even more relevant in an era where Government revenues have been increasingly constrained by shorter business cycles and volatile growth since the financial crisis in 1997, in contrast to the robust high growth era between 1987 and 1996. Indeed, according to the Institute of Policy Studies, the cost of government, as measured by the ratio of operating expenditure to the GDP, has hovered around 10% since the 1990s, down from 15% in the 1980s, while tax revenue looks set to dip below 8% in this decade. Government social expenditure, which accounts for close to 44% of the budget, is likely to impose further burden on the economy. This is because of our ageing population trends, and especially in terms of healthcare and old-age related welfare costs. Our increasingly vocal electorate also has a tendency to demand rebates and subsidies as a right from time to time. Whilst we have consistently taken the rational practical approach, one has to recognise that in addressing some of these demands from time to time, a further stress on Government's coffers can be expected. Singaporeans have to recognise that there is no free lunch all the time. We cannot continue to expect more handouts and tax reliefs over time if we are seeing a falling revenue trend and if there are no corresponding cuts in Government expenditure. Ultimately, Sir, the cost of running an over-sized government has to be funded from higher taxes, public debts, further privatisation of Government assets or dipping into accumulated reserves. Sir, whilst the Government has been proactive by proposing another budgetary deficit of $0.7 billion in this year's Budget, I believe the principle of achieving a budget surplus over a business cycle must be maintained.”
“Sir, I rise to support the Budget. The measures as proposed will continue to position Singapore as a land of opportunity for businesses, as well as for enterprising individuals. The proposed 2% budget cuts for most Ministries will steer effective government, with expenses closely in check. I am confident that with the structural adjustment in place in our tax system for businesses, thereby enhancing our competitiveness, we will be able to take advantage of the positive change in the economic environment, raise our sails once again and capitalise on another rising tide in the global economy in the coming years. Notwithstanding this cautious optimism, however, one has to be realistic. The global economy and indeed the geo-political landscape have changed in complexity significantly in the last decade. Economic business cycles have become much shorter. Shocks have become more periodic, and even endemic, as in the case of terrorism. Global competition is especially keen with the emerging economies of India and China, a great opportunity for the nimble, but a threat for economies which rest on their laurels. Just as the private sector has had to adjust to the new economic realities, to be nimble, flexible and cost-efficient, it is imperative that our public sector also responds in kind so as not to crowd out private initiatives. I, therefore, applaud the DPM and Finance Minister for further cutting the size of the public sector. Sir, I noted, and more so as Chairman of the Estimates Committee in this House, that reducing the size of the public sector has been a deliberate policy of the Government over the past years, and rightly so.”
“What is important is for our Government to continue to provide a favourable environment to continuously attract new investments, create employment opportunities, and continue with our skills upgrading programmes. Sir, I support the CPF changes and urge the Government to consider my various suggestions on a flexible CPF rate and on measures to free up cash and improve cash flow for Singaporeans. Mr Zainul Abidin Rasheed (Aljunied): Mr Speaker, Sir, thank you for allowing me to join in the debate. I suppose I will never know whether the white wine will allow me to live up to 100. An hon. Member: Red wine!”
“Some are planning to start a business, some planning to use CPF funds for their children's tertiary education, some planning to invest their money in various investment instruments, some planning to go on a long holiday with their family, as the PM has said, some planning to go on a pilgrimage, and so on. The impact of this change on the CPF withdrawal plans on individuals may thus be more widespread than envisaged. I am however glad that the Government has decided to phase out the implementation of the higher Minimum Sum and tightening rules concerning CPF withdrawl at the age of 55. Indeed, I feel that the 10-year phase-in period is reasonable. But I feel that the proposed gradual adjustment of the CPF Minimum Sum of $4,000 per year appears high in the initial years, because this works out to an inflation rate of 5% per year, which is very high, given the record of our inflation in Singapore. I would prefer an automatic adjustment mechanism be built into the CPF system whereby the Minimum Sum is automatically adjusted based on future annual CPI changes. This will avoid lumpy adjustments from time to time as has happened in the past, and will certainly facilitate planning by Singaporeans on the use of their CPF funds upon retirement. Sir, in conclusion, I would like to point out that even with these CPF changes and assuming other business cost components, like land costs, utilities rates and fees are being lowered, we must continue to expect lower end company operations to continue to migrate to other low cost countries like India and China. We can never compete in those areas. If we do, we will forever remain a third world country, as the PM has said.”
“Sir, we are aware that many of the Government rates and fees were imposed to achieve various social objectives. While we may have been successful in achieving these objectives, they have inadvertently resulted in higher costs of business and in higher cost of living in Singapore. And as PM has mentioned in his speech earlier, we need to strike a fine balance between the objective of economic survival versus social needs. I therefore suggest that it is perhaps timely that the Government reviewed some of its social policies that may have resulted in higher cost of doing business in Singapore today. Next, I would like to touch on the changes relating to raising the threshold of the Minimum Sum and tightening the rules concerning CPF withdrawal at the age of 55. I appreciate the Government's effort to phase out the changes so that it minimises the impact it will have on Singaporeans. Sir, whilst I support the need for Minimum Sum, I always question the need for lumpy adjustments to raise the Minimum Sum from time to time. Indeed, the concept of the Minimum Sum may be a useful one in that it attempts to set a benchmark for what an individual needs upon retirement. However, that magic number is also difficult to pin down, as different individuals have different choices and needs. The revisions to adjust for, say, longer lives of Singaporeans from time to time may be disruptive. Like the PM, I know of many Singaporeans planning to use their CPF money upon reaching the age of 55.”