Chng Hee Kok
Singapore
“Sir, I would like to ask the DPM whether the new Securities and Futures Act will be made retroactive in the Links case. In other words, will the civil penalties be made retroactive in the Links case? BG Lee Hsien Loong: Mr Speaker, Sir, the answer is somewhere in the new Bill [indicating].”
“Sir, one cannot appreciate the enormity of the problem of a poison pen letter unless he is a victim. Imagine the power of a poison pen e-mail done in the midst of a general election. By the time the truth is established, if it can be established at all, the harm is already done.”
“And this is because the transmission is now almost direct, that when orders are placed, they are placed not only with those who supply the items, the same orders are sent to the supplier's supplier's suppliers.”
“Sir, the Minister is aware that in the case of SingTel it is quite different because it is part of our asset enhancement exercise and a fairly large number of Singaporeans own shares in SingTel. Since the announcement of the Optus deal, share prices have dropped by some 30%.”
“This is a follow up of my earlier question. If the market sentiments are favourable, will the IPOs take place this year? BG Lee Hsien Loong: Mr Speaker, Sir, PSA and Singapore Power would not have appointed investment bankers and proceeded with due diligence unless they have very serious intentions.”
“And in many cases, over a period of time, we would be happy to reduce our shareholdings down below where they are now and, maybe even divest completely. Because the original rationale for building up and maintaining these companies has to be reviewed and may or may not continue to exist.”
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“Sir, will the Minister explain what is the action contemplated by the HDB on those tenants who still remain towards the end of the target date?”
“Mr Deputy Speaker, Sir, rather than the Whip, I think I am responsible for the sitting today when I supported the motion of the Member for Potong Pasir. Actually, the point is that this morning when he stood up to move his motion and he was allowed to speak, I could detect that there was great pleasure in his opening remarks. He thanked the House for everybody kindly coming here this morning. In fact, he thanked me for my reluctant support of his motion. And having gone through this whole debate now, he says it is to our advantage to have this debate. He surely knew that when he moved the motion, had it gone through, everyone will be allowed to speak. Every Member in this House will be speaking against his motion. That being the case, it seems that when the debate has turned against him, he has come round to say that it is to our advantage and not to his advantage. Question, "That the words proposed to be left out, be left out", put, and agreed to. Question, "That the words proposed to be inserted, be there inserted", put, and agreed to. Question on the Original Motion, as amended, put and agreed to. Resolved, That this House supports the prompt action of the Government in arresting those involved in the Marxist conspiracy and supports the Government's intention to release them as soon as they are rehabilitated and are unlikely to resume their subversive activities. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr Wong Kan Seng]. Adjourned accordingly at Ten Minutes to Five o'clock pm to a date to be fixed.”
“Mr Speaker, Sir, this matter is one of great public importance. It is a grave national matter. As such, it must be debated openly. And I think this House owes a duty to the Member for Potong Pasir to present his views. In view of this, so that we do not deprive him of his say on this matter merely on procedural technicality, I am signifying support, and for this very reason only, to this motion.”
“Surely the situation is the same for the Singapore Lion or the Merlion, is it not? This is a national symbol. We do not want it to be used for undesirable purposes. But why must we license it? Why must we get permission for it? And how does one ensure that licence will be granted? And what is the appeal process for the person who has written to the Corporation for permission and has been refused and there is no ground given? What can he do about it? Can he appeal to the Minister? But the point really is, why should that be the case? I think it should be made completely free for everyone to use.”
“Mr Deputy Speaker, Sir, I just want to raise a point with the Minister that relates to section 48(G), subsection (2) on the use of the symbol belonging to the MRT. In most countries the underground or mass rapid system tends to be part of the tourist highlights. Such Mass Transit symbols tend to appear in most tourist items like T-shirts, souvenirs, and so on. And many small companies do take advantage of this symbol by making tourist items out of it. So I do not see why there should be a need in our case to protect the symbol exclusively for the use of the MRT. I think the symbol should be treated just like the Merlion or the Singapore Lion which many Singapore companies take advantage by making some business out of it to promote Singapore. More importantly, everyone should be able to use it and not to restrict it only to the use of the MRT.”
“Mr Deputy Speaker, Sir, I welcome the Minister's Statement. I also commend him for the work he has done in arriving at the conclusions. I have four questions here. The first refers to the 4% that is to be locked up in the Special Account. This Account is soaking up funds. How will this affect the economy in the years to come? The second question is that the rate targetted for the age group of 55-60 is going to be increased from 10% to 12.5%. Is this not contrary to our aim of encouraging employment of people above the age of 55? Should this not remain at 10%? The third question is, this increased CPF contribution will come mainly from future wage increases. How will this affect companies which are not in a position to give the recommended wage increases? For example, companies which are not doing well and are not, in fact, in a position to give any increase at all. The last question is this. Setting the target rate of 40% to take into account old age, housing and medical needs, does this mean that there will be no room for other uses of CPF, like education?”
“Will you review the sale and purchase agreement?”
“Sir, does this level of complaints implies that the standard sale and purchase agreement accords inadequate protection to buyers? Secondly, will the Ministry seek a review of the standard sale and purchase agreement?”
“In other words, they will continue to enjoy the same benefits under the HDB's terms and conditions of service. In addition, they have the opportunities for career advancement not only within HDB but also in the Community Relations Division of the Ministry. More importantly, the liaison staff must understand that they are performing an important role in community development and nation building. Their work can be very challenging and satisfying as they have ample opportunities to exercise their imagination, creativity and initiative while working closely with the RCs and their advisers on various programmes and activities to meet the needs of the community. I believe that it is this sense of job satisfaction and public service that motivates them to stay with the RCs. I also wish to thank the Member for Yio Chu Kang for the encouragement he has given to the RC members and other residents who volunteer their service in the RCs. Without the personal sacrifice and wholehearted support of these RC members and volunteers, it would not be possible for us to carry out the various tasks of community development and nation building. In fact, this encouragement should also be extended to all our grassroots leaders and volunteers in the CCCs, CCMCs and many other community organizations. Over the years, they have played a crucial role together with the RCs in the promotion of racial harmony, social cohesion and national unity in our multi-racial, multi-religious and multi-cultural society.”
“Last year, the Ministry of Community Development gave five RC Merit Awards, but the number was small. I do not know whether there are other awards which could be given to dedicated and meritorious community leaders. Owing to the arduous effort of the RC Secretariat staff, the work of RCs has been successfully carried out. In the course of their duty, RC Secretariat staff sacrifice their weekends and evenings to take part in various RC meetings and activities and to provide guidance to the RCs. They deserve full credit for the success of the RCs. We should pay them the highest commendation for their contributions. The Minister of State for Community Development (Mr Ch'ng Jit Koon)( In Mandarin): Sir, the liaison staff in the Residents' Committees are all Estates Officers seconded from the Housing and Development Board. They are expected to work in the RCs for a minimum period of three years. They can choose to remain in the RCs or opt for return to the service of HDB at the end of their three-year secondment term. I am glad that the Member for Yio Chu Kang appreciates the good work done by the liaison staff, especially during the weekends and evening hours. The interests and welfare of the liaison staff are well taken care of by both the Ministry and the HDB. As far as their career development is concerned, the liaison staff are given a wider choice compared with their colleagues in the HDB because of the option open to them at the end of their secondment term. However, to encourage them to continue their service in the RCs, they are assured that they would not lose out to their colleagues in the HDB should they choose to extend their secondment term with the RC Secretariat.”
“Through various activities, the residents have expanded their circle of contact and come to know more neighbours. If the RCs had not organized thousands of activities annually, then our housing estates would not have this prevailing spirit of vitality and activity. All the projects, such as neighbourhood watch groups, civil defence, crime prevention, etc. are mainly promoted or organized by RCs which help to promote public safety and social cohesion. But under the present circumstances, many people, because of busy work and other commitments, after coming back to their homes still have to supervise their children's homework, are tired and therefore could not take part in these activities. It was announced last year that there was a target for the membership of RCs to be doubled. I do not know what is the progress so far and whether there is any difficulty in various constituencies. Other than the number of members, the quality of the leadership will also affect the effectiveness of a RC. The character and behaviour of the RC leadership and the manner and attitude they perform their public service will set an example and have an influence over the community. If all RC communications were conducted in English then it is not ideal for the purpose of better communication with all walks of people. Under the RCs, various sub-groups or clubs, such as ladies' clubs, youth committees and vehicle watch schemes could expand their activities and extend the network by attracting more residents to take part in the activities. With the setting up of Town Council, there are the RC Chairmen and members who have been appointed Councillors and participate in its activities reflecting the views of residents in estate management.”
“Sir, I mentioned about the static displays of the historical postcards at the exhibition I attended. That could be improved, for example, by comparing a scenery today in Singapore with one from the same angle that was depicted in the postcard, or even put up with a scaled model or an audio-visual display of the same scene at the same period. There are many ways to make the exhibition more captivating. That is what I meant. But I fully support what the Minister has just said, and I will be very happy to beg leave to withdraw my amendment. Amendment, by leave, withdrawn. Mr Lau Ping Sum( In Mandarin): Sir, I beg to move, That the sum to be allocated for Head J be reduced by $10 in respect of Subhead JJ-02 of the Main Estimates. I would like to praise the Residents' Committees' staff and the volunteers for their hard work and contributions to the community and for sacrificing their weekends and evening hours to render various good work in the service of the people. They organized the Residents' Committees which have been promoting good neighbourliness, motivating the residents to help one another, encouraging them to understand one another better and cooperate to look after the neighbourhood, thus enhancing the spirit of self- help and mutual help in the community. So far, there are more than 4,000 residents who have come forward to serve the community, forming a cohesive and strong grassroots organization. But there are still some cynical people who disrespect the dedication and spirit of RC members and regard them as rubbish collectors and runners for MPs. This shows that it is difficult to do good deeds and there are in our society some people with ulterior motives.”
“I am sure the Minister will have the support of most Members of this House if he seeks an increased budget for the Archives and Oral History Department to enable them to do their job more effectively.”
“Sir, I beg to move, That the sum to be allocated for Head J be reduced by $10 in respect of Subhead JH-00 of the Main Estimates. Sir, last year I had the privilege of officiating at the Historical Postcards Exhibition organized by the Archives and Oral History Department. I found the exhibition to be mentally stimulating and fascinating. There were several scenes on postcards which arouse much nostalgia. This sense of nostalgia was heightened by the knowledge that progressively more of our old places will pass into history with nothing more than just pictures and photographs as reminders. Presently, the Archives and Oral History Department is doing an important job of collecting and cataloguing our past. They can perhaps do more in the area of exhibitions. The exhibition which I referred to and also the recent historical photographs exhibition were organized in a small and rather limited manner. These exhibitions could be improved with audio-visual aids which tend to be more effective than just static displays. I am certain that the Archives and Oral History Department does not lack ideas. What they lack is funds and money to be spent to improve the exhibitions. With more interesting and captivating displays at such exhibitions, I am sure they can draw a much larger public response. It will also be useful to extend these exhibitions and invite more school children and younger Singaporeans to be exposed to these exhibitions. In moving this amendment, Sir, I wish to compliment the work done by the Archives and Oral History Department. At the same time, I hope they will have more creative plans to expose more of our past to the people.”
“For the sake of expediency, Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The following amendment stood on the Order Paper Supplement -”
“In his reply last year, the Minister said, and I quote from Hansard, "data kept by his Ministry showed that the number of reported child abuse cases has not gone up or fluctuated greatly." As far as I can see, what is important is that we must find ways and means to make sure that child abuse cases do decline. It is not important that it remains the same. My question to the Minister really is, what do we consider to be important? Or how many battered children would he like to see before he will consider making revisions to the Children and Young Persons Act?”
“Sir, I beg to move, That the sum to be allocated for Head J be reduced by $10 in respect of Subhead JD-02 of the Main Estimates. Sir, last year in this House I raised the issue of abuse of children in this House and the limited protection of children under the Children and Young Persons Act. Despite the Minister's reply, I was hopeful that in the one year he might have changed his mind. But, alas, this is not the case and I feel compelled to bring this matter up again. Last year I drew the attention of the Minister and the House to the abuse and protection accorded to children under this Act. The relevant section is section 4 and this calls for a punishment or penalty of a fine up to $1,000 or imprisonment of not more than two years. Sir, going back to the records, the Children and Young Persons Act was an Act that was first passed by the First Legislative Council. At that time Singapore was still a British colony. This Act was passed in 1949. Section 4 has not changed substantially in any form whatsoever since then.In other words, the penalty of $1,000 and two years' imprisonment was relevant or considered a deterrent way back in 1949. So in today's terms, I think the Minister must agree that this is manifestly inadequate. Sir, it is not too difficult to look for instances of child abuse. Last year in the Debate in the Committee of Supply on his Ministry, it was very convenient for me because there was a case which happened just a couple of days before that - a little baby, 20 months old, was battered to death and the mother was given a three months' jail term. This year, just in the last two weeks, you will have read in the papers about children being abused. So it is really not too difficult to look for cases of child abuse or abuse of children in Singapore.”
“It may even be useful if you wish to achieve certain social objectives. Secondly, with this flexible component, we can respond more readily to meet any economic exigencies that may arise. The recession of 1985 is a good case in point. With this component not committed to housing, any reduction or suspension of this portion will generate less heat and debate. By keeping this flexible portion out of housing, as in the Special Account, I think this account should be re-activated. This account becomes the nest egg of last resort. It could be utilized for house mortgage repayments to tide over a period of prolonged unemployment of a member. Also, with the weaknesses in the world monetary system, one cannot rule out a major world recession, in which case this account will be most useful. Sir, earlier I suggested that the Minister take a radical look at the CPF issue. With more than 80% of our people living in HDB flats and the majority owning their flats, a major rethink is timely. As the greatest portion of a CPF contributor's savings is already committed to housing, is our CPF scheme much over-used in this exercise of continuous house upgrading? Should it not have safeguards against an over-commitment of a person's CPF savings in this area? This and other questions should be answered soon. A long delay would not be helpful in our drive and effort to attract foreign investments. It is also unwise to keep employers on edge for too long.”
“Sir, now that we moved the CPF rate down, the Minister must use this opportunity to take a completely fresh and even radical look at what is termed as a long term rate of CPF. Having moved away last year from the old rate of 50% and maimed all contributors psychologically, I think it is not useful to speak of the long term rate of CPF as if there is such a rate, which is in fact sacrosanct. Personally, the Minister would do well to dampen such an expectation. A long term rate is one which, in fact, is what the market can bear. If the market can bear, therefore, there is no such thing as a fixed and long term rate. The CPF rate must, in itself, not be too rigid. So far the rigidity is one way, that is, a reduction calls for much debate. It must be sufficiently flexible to allow for short term responses to the economic difficulties. At the same time, contributors must have some assurance that they will always have a sufficient level of contribution to meet their present needs on housing and their basic needs in the future. To have both these features, I suggest there should be a fixed or base rate. At the same time there should be a flexible rate of CPF contribution. Conveniently, the fixed rate should be the present rate of 35%. Any upward adjustments made to the CPF should be considered as a flexible portion. The rate paid into this flexible portion can be changed or altered at will. By designating this as a flexible com- ponent enables two benefits. Firstly, the rate may be varied for different salary levels. This is not new or radical as there exists a ceiling on both the upper and lower ends at this time. There could be compelling reasons for this possibility in the event that the need to emphasize or de-emphasize certain economic activity arises.”
“To emphasize this point, I suggest that in the event of premature death of a member, the balance of the minimum sum set aside under the topping up scheme should be subject to tax. It is tax free. The balance due to premature death should be subject to tax. I hope the Minister will review this argument with the Minister for Finance. The last point I wish to bring up is the long term CPF contribution rate. In the days when the CPF contribution rate was increasing as fast as NWC wage recommendations, there were complaints from contributors that the Government was taking away, with the right hand, what it was giving to the employees with the left hand. I think during this period, employees chose to believe that the CPF was not their money. It was locked up by the Government. After being told repeatedly that CPF savings are, in fact, their money, I think they have come to accept this. They have also found a way to empty this untouc- hable pizza. The thinking is that since this money cannot be made available at will, one might as well commit it fully to a flat or a house. "Never mind whether or not a 3-room flat is sufficient for the family. Let us upgrade." Everybody wants to upgrade. That is the password. The HDB responded with a zeal. They built more and better homes. However, upgrading as we know has its cost. It over-commits a person and his family to one major investment. To my mind, there is no doubt that this over-commitment to house/mortgage repayments was a key factor in the resistance against the cut in CPF last year. Nothing generates a more defensive mechanism than a flat to family and home. In fact, the main point of the debate on the cut in CPF last year centred on housing.”
“Mr Chairman, Sir, I wish to bring up a number of points on the CPF with the Minister. First, it relates to the home protection insurance scheme. This scheme has worked smoothly in providing CPF contributors and for owners of flats a convenient and painless way to insure their property. The main beneficiaries are, of course, the families of the insured. Although this scheme has worked well, I perceive that there is a weakness which may result in increased premiums to all home owners if the scheme is abused. Presently, all home owners come automatically under this scheme irrespective of their medical condition. Therefore, it will be quite possible for someone who is suffering from a terminal illness to purchase a flat and get protection under this scheme. Therefore, some simple measures to regulate this potential loophole should be looked into. Otherwise, extensive abuse will affect other home owners in the way of expensive premiums. The other matter I wish to bring up is the CPF minimum sum topping up scheme. The details on the tax deductions allowed for this scheme were announced by the Minister for Finance in his Budget statement. That the Government has agreed to share some of the burden of providing a nest egg for a person's aged parents is in a way a major concession and admission that the Government has a role to play in taking care of the aged. However, the scheme as it stands does not ensure that the monthly sum arising from the minimum sum scheme will, in fact, go to the beneficiaries. We can only hope that those who wish to take advantage of the tax deduction will do so in the interest of their parents. The Government can only promote filial piety but it cannot ensure that this will be so.”
“Mr Chairman, Sir, can I make a point in reply to what the Minister said earlier? I have no intention of supporting the Asian Wall Street Journal in improving their revenues. The point I made about full-page advertisement is well illustrated by the point just made by the Member for Chong Boon. That is precisely the problem. Readers of Wall Street Journal read only one side of the story. They do not know the Government's stand. The only way we can really take up our case is to buy advertising space. The same readers will then be able to judge for themselves if we take up advertising space to explain our position and to state our case. The point I made must be taken in the context of what I said earlier about spending $84,000. If we are going to spend $84,000 to subsidize a newspaper, why not find other ways of spending the money to improve it? I am suggesting that full-page advertisements will be more effective than trying to do it the other way round.”
“Firstly, in case Members consider the subsidy to be small, I have worked it out and found that it is something close to about $84,000 for one year based on 5,000 copies, 20 days a month and a conservative subsidy of 7 cents per copy. Therefore, for the whole year the Government is expected to spend $84,000 to support the Asian Wall Street Journal and its subscribers if this matter carries on only for one year. Secondly, the other issue is that if this matter is of sufficient importance, and I am sure we can all agree that it is important, should we not channel this money and play the same game in the way the paper has done? This morning during Question Time I asked the Minister if it will be appropriate to consider taking up the challenge and spend the money on full-page advertisements in international newspapers, particularly the Dow Street's Wall Street Journal in the US which is a parent company of the Asian Wall Street Journal. The Minister has already indicated in an earlier reply that quite naturally we have got very poor coverage in the international press. Naturally they are supportive of their own. The only way, instead of spending the $84,000 to subsidize the Asian Wall Street Journal, is to take up full-page advertisements and hit the Asian Wall Street Journal in the same manner, in the same way in which they have taken up full-page advertisements. The last point I want to raise is that in view of our very strict stand we take on Government subsidies, this particular subsidy can never be explained nor can we ever rationalize why the Government should subsidize a foreign business, a foreign newspaper at that. And, at the same time, we take such a strict view on subsidies for local businesses.”
“Mr Chairman, Sir, thank you for letting me join the debate. I cannot resist taking up the issue of the Asian Wall Street Journal. This morning the Minister for Communications and Information has already given a rather elaborate reply on this issue but I think an even more elaborate reply has been given by the Chairman of the Government Parliamentary Committee on Communications and Information. Let me begin by saying that I am in full support of the stand taken by the Government. In this instance, the issue is very simple. Is there fair play being practised so that we can have the right to reply? Anyone with a sense of fair play and most Singaporeans do have a sense of fair play, I believe, must support the Government's stand and our reaction to the Asian Wall Street Journal's publication of that particular article on Sesdaq. This is a stand which Singaporeans must come forward to express support. I have only one disagreement with what has happened in the whole debate. We started with a debate which we came out well. We scored good debating points. But in my opinion the debate degenerated into a kind of a brawl like a card game of poker where the stakes were raised progressively higher. I take strong objections mainly to the offer made by the Ministry on behalf of the Government to pay for half of the mechanical costs, ie, the additional cost of printing a Singapore edition of the Asian Wall Street Journal which will be distributed free of charge. According to the press report, this additional cost is less than S 15 per copy. This offer of subsidy raises many questions and issues.”
“Sir, has the Minister considered taking advertising space in the major US papers like the Wall Street Journal, for example, to explain our position?”
“Will the Minister inform the House as to the cost of the 100% testing of blood that has been practised by the Blood Bank? Does he have any idea what is the cost at the moment?”
“While some statutory boards are self-financing, many operate through a grant from the Government and yet the budgets of these statutory boards are not subject to the scrutiny of Parliament. I believe the budget proposals of these statutory boards are usually evaluated by Ministry officials in charge of those statutory boards. I am not sure, however, if these Ministry officials adopt the same level of detailed examination, the same level of scrutiny using perhaps a zero-base approach on statutory board budgets as the Ministry of Finance officials have done for Government Ministries' budget proposals. If they do not, may I recommend that they seriously look into it and implement it in the next financial year. Prudence in expenditure by Government Ministries must be extended to all statutory boards. In addition, now that the operating surplus of statutory boards will become a source of revenue for the Government, should not the operating budgets of statutory boards be also reflected in the Government financial budget document submitted to the House for debate at this time of the year? For this will provide Members of the House with a clearer picture of expenditure and revenue of various statutory boards and to seek clarifications and queries where necessary on their budgets. Sir, I urge the Minister for Finance to consider this proposal. 4.52 pm”
“It is a chicken and egg situation. Other forms of revenue, like tax on surpluses of statutory boards, the sale of State land, etc, cannot be termed as permanent sources of revenue for the Government. There is therefore a need to seriously address the question of how we should avoid the problem of a structural deficit emerging in future budgets. Sir, ultimately, the solution lies in a smaller public sector. Excluding debt servicing, the current level of Government expenditure at 39-40% of GDP appears very high. Being a small open market economy, becoming more developed in the 1990s, there is no need for a large public sector. We should perhaps consciously target to reduce the ratio of Government's expenditure to GDP by some percentage points every year, to a level of, say, 25% or even lower within a 5 to 8-year timeframe, taking into consideration strategic needs like defence and education. Sir, this is not an altogether unreasonable target since infrastructural development spending will taper off by the mid-l990s with the completion of the MRT, Changi Airport Phase II construction, and the construction of major expressways. I am pleased to note that the Government intends to conduct scrutinies of all Ministries' activities using what they call a zero-base approach. Where services are no longer required, they will either be privatized or closed down. In this respect, it is heartening to note that the Ministry of Finance has taken the lead to spend less in the next financial year. I hope more Ministries will follow suit in the next financial year. Finally, Sir, I would like to make some comments regarding the expenditure of statutory boards.”
“This compares with a small surplus of $1/2 billion in FY 86. Without wage restraint, CPF cut and prudence on the part of Government's spending in the last 12 months, a deficit of perhaps $3 billion would have emerged in FY 86. Sir, I am concerned with the recurring budget deficits projected each year. We are fortunate so far that we always ended the year with a surplus but this cannot happen all the time or else our budgetting system is wrong. Whilst we may argue that the deficit projected for the next financial year is necessary in order to ensure economic recovery, I hope this would not be taken as a norm for future budgets. We are aware of problems faced by countries which suffer from chronic budget deficits. People in those countries are living off the income of future generations, on borrowings which will become a financial burden on future generations. In Singapore, we are all aware that we should not allow this to happen for we have no natural resources to sell to the world markets. The problem is now compounded by a declining trend in population growth and a growing number of senior citizens by the turn of the century. The implications of a structural budget deficit is indeed very serious. Sir, we all know that the way to reduce a budget deficit is either to increase Government revenue through taxes and/or reduce operating cost of the Government. There is however a limit to which we could increase revenue through taxes. It is very dependent on the health of the economy. If we do well, we collect more revenue. If we do not, we collect less. And if we increase our taxes too high, we may lose our competitive position and hence affect the ability to attract investments and talents from abroad and ultimately affecting economic growth.”
“In the long term, it is the parents who will bear the cost of upbringing their children. It is well that we must appreciate our capabilities before deciding on whether or not to enlarge the family.' Finally, I wish to support the motion thanking the Hon. Minister for Finance for presenting the Budget for FY 1987 for a happier, healthier and a brighter future. Mr Chew Heng Ching (Kaki Bukit): Sir, I rise in support of the motion standing in the name of the Minister for Finance. While we may have overcome the recession, economic recovery is still patchy. Some sectors are performing better than the others. One of the priorities in this year's Budget, as the Minister has rightly put it, is to strengthen our efforts to restore the economy back to health. To do this we have no choice but to continue with wage reform, to restructure our economy and to continue to explore ways and means to improve our competitive position. Present efforts at consolidating and strengthening the Singapore economy will provide a firmer base for longer term economic growth. Sir, I have, however, a word of caution. There is no certainty that when we have fully recovered from the recession, world economic growth will remain as favourable. Protectionism is still a potential threat. The outlook for prices of primary commodities remain uncertain. We should not therefore assume that after this year, things will be all right. Given the openness of our economy, we remain vulnerable to external developments. Whilst we hope that things will turn up better next year and the year after, we must continue to prepare for the worse. We must remain nimble, flexible and adapt quickly to changes as and when the need arises. Sir, a budget deficit of $3.7 billion is projected for the next financial year.”
“Mr Speaker, Sir, one obvious matter that has been given great emphasis in the Budget by the Government is the new policy concerning procreation. Many incentives have been offered in order to encourage married couples who can afford it to have three children or more. I wish to refer to the article in the Berita Harian issue of 6 March 1987 captioned "Family Budget" and I quote: 'Certainly, the tax deduction incentive of $20,000 over a five year period and other incentives will make married couples who previously were reluctant to have three children have second thoughts on the matter. Although those who fall within this group will enjoy the incentive, yet a closer examination reveals that it is targetted at the higher income group. Statistics show that it is this particular group of people who, in the main, are unwilling to have children for reasons either that they are preoccupied with their career or that they prefer a way of life free from the encumbrances of children. The question of affordability which is the determinant factor governing the new policy of procreation must be recognized by all. Yet, the capability to raise three children or more is not measured by a high income although the couple can afford the services of a maid servant. Can the parents have the time to give their fullest attention and love to their children? The upbringing of children nowadays differs vastly from that of yesteryear. Social problems may arise if parental control is lacking. On the other hand, for parents of low income who wish to have many children, they must first consider thoroughly the cost aspect. Be that as it may, the decision to have more children rests solely with parents. The incentive offered is just the beginning.”
“I believe that in the long term, this will further upgrade the nation's economic status consonant with the new economic programmes for the country. We are fortunate because a good industrial relations climate prevails. It is hoped that employers will take the initiative to further foster the understanding with their employees in order that they will strive harder and be more loyal to their companies where they work. I am aware that there are companies, particularly House Unions which have already provided facilities for the welfare of their workers. Speaking on the subject of company welfarism, we find that there are still many employers who have not as yet fully grasped the concept of company welfarism. In Japan especially, the company welfarism system does not end by providing workers with recreational facilities and generous wages. In fact, it is extended to look after the welfare of the members of the family and the education of the children of the workers. I hope the Government will look into the suggestion to encourage many more companies to implement company welfarism. It is even better if government agencies themselves can pave the way towards this end and emulated by other companies. It is natural and easy to criticize or condemn a suggestion. But to do something for the benefit of the public at large and in the interest of the nation is not easy. Only those who shoulder responsibilities can feel the brunt of their tasks. I feel somewhat disappointed with the Member for Potong Pasir who advanced some strong arguments but the end result was that he had nothing to offer on how we could together revive our economy. Unfortunately he is not in the Chambers now, so I better get on with my speech.”
“All these have helped us towards the nation's economic recovery. The basic policy adopted was to apply cost-cutting measures, consolidating our competitiveness in the world market and taking steps to attract and convince investors to come and invest here which would at the same time create job opportunities for our people. One of the main reasons for our progress and success is the close cooperation and understanding that exists between unions, employers and government. Not all countries can boast of this achievement. The confidence demonstrated by workers, besides hard work and willingness to learn new skills, has also been an important factor in attracting inter- national companies to invest in our country. When the economy is on the upswing, our workers enjoy the benefits and in times of recession, they understand the situation prevailing and make the necessary sacrifices in order to help the economy recover. In this connection, employers should constantly provide the motivation to their employees to further enhance their knowledge and skills. The budgets for the last financial year and for the current year also provided many incentives to employers in order that they could succeed and it is hoped that employers can seriously motivate their workers. It is the responsibility of employers to make commensurate contributions to the workers for the sacrifices which they had made. On the other hand, workers should take advantage of the Skills Development Fund which was set up to train and upgrade their knowledge and skills. This could be achieved by attending classes and courses on skills organized by vocational institutes like the VITB. Workers should not remain passive. They must seriously show their keenness to upgrade their capabilities.”
“The zero-base budget method is the key towards keeping the recurring cost of Government down. With this approach, I hope that more activities will be contracted out. For the new fiscal year I am disappointed that very few such activities are identified in the budget. I hope to look forward to more contracting out of Government activities in future budgets. In view of the effectiveness of the various committees being set up by the Government, such as the Economic Committee and the Business Enterprises Committee, maybe the Minister will consider setting up a committee to review those Government activities which may be contracted out. 4.29 pm Encik Abbas Abu Amin (Pasir Panjang)( In Malay): Mr Speaker, Sir, I wish to join my fellow PAP MPs in congratulating the Hon. Minister for Finance for presenting a budget which has been well received by all parties except smokers, drinkers and those who frequent betting places. The primary objective of the Government is to revive and improve further the economy of the nation as well as raise the living standards of all segments of the society. We all know that the economic recession a year or two ago has affected both workers and employers, businessmen and entrepreneurs. The recession which has affected not only our nation but also countries with natural resources has awakened us with the realization that the affluence that we have uninterruptedly enjoyed for many years has suddenly ground to a halt. By adopting swift and pragmatic measures and implementing strategies and tactics that have the wholehearted support of the workers, employers and businessmen, we have managed to weather the adverse economic situation and braced ourselves for the sacrifices ahead in the form of CPF reduction and wage restraint.”
“With direct taxation, there is little or no room for personal choice. You pay a tax according to the rates imposed on you. With consumption tax, especially a selective one, there is a fairly high degree of personal choice. If you do not want to pay the tax, you do not buy the goods or you do not spend on the service. For those who are paying income taxes and realize that their tax liabilities have been declining, a shift towards consumption tax must be the more attractive alternative. We can only count ourselves fortunate that the Minister has decided to take a cautious approach and apply this tax on a selective basis. I must urge the Minister to exercise the utmost care to ensure that the implementation of the consumption tax will result in minimum discomfort to those in the lower income group. Contrary to the argument raised by the Member for Whampoa, we should support the proposed consumption tax and move away from direct taxation. Whenever possible, direct taxes should be cut when revenue is sufficient to produce a surplus. With the mechanism of the consumption tax in place, we shall be in a better position to react and reduce corporate taxes and therefore income taxes should the situation demand. Finally, on expenditure. Of course, it is pleasant to see that the level of recurrent expenditure has actually declined in fiscal year 1986. In terms of total Government expenditure, recurrent expenditure was about 58% in 1982. This has gone down and last year it was about 50%. Although this decline is attributed mainly to the cut in the CPF contributions and wage restraint, it is not often that we see such a phenomenon in government budgets anywhere in the world. The zero-base budgetting approach adopted by the Minister must have made some contribution to this decline.”
“To further improve the income tax position, last year I urged the Minister to widen the base of taxpayers. Presently, many self-employed in our population are not paying for their share of the services for which they are being provided. By bringing them into the tax net, it is equitable that they contribute their share towards the provision of services, such as health and education which they and their families are benefitting from. To bring more into the tax base, I urge the Minister to consider some form of amnesty to those who have not declared their incomes in the past. This amnesty is a practical approach and will prove to be more effective than the present cat- and-mouse game that is being played by the Income Tax Department. The other major revenue area is interest and dividends on Government investments. This has been a constant source of revenue for the Government. However, this figure has been increasing over the last few years. In 1982, interest and dividends form about 6% or $712 million of Government expenditure. In the present fiscal year 1986, this was about 15% or $1.89 billion. For the next fiscal year, it is expected to jump to about 22%. At $4.1 billion, this is no small sum and it has been increasing all the time. In view of this increasing importance to the Government budget, the Minister should provide more information on how the returns are being realized and what are the rates of return. I am sure Members would like to know from the Minister if this level of investment income and profits is sustainable in the longer term. With direct taxation on the decline, I share the Minister's concern and support his move to levy a consumption tax. No new tax is ever easily accepted by the population but Singaporeans must accept this as inevitable.”
“74 billion over fiscal year 1986. As our borrowings have remained relatively stable at less than $19 billion for the last few years, the Minister may like to elaborate on the reasons for this additional $0.74 billion. This is a substantial sum and represents about 80% increase over the previous year. Let me now comment on some of the key components of the revenue and expenditure position. The revenue position on direct taxation has been declining over the last few years. In 1982, direct taxes, mainly from income and property taxes, accounted for 36% of total Government expenditure. This has declined progressively over the last five years and was down to about 24% in fiscal year 1986. We have been told that a further decline in direct taxes is expected as the new corporate tax rate of 33% takes effect in the next fiscal year. Although this is a result of the Government's policy to move away from direct taxation, any shortfall of course must be made up through other means. Therefore, I applaud the Minister's move to raise money by taxing the surplus of statutory boards in 1988. By doing so, we may consider this as an indirect tax on the population as the revenue of the larger statutory boards, such as Telecoms and PUB, are derived mainly from consumers. However, steps must be taken to ensure that these statutory boards which face no competition whatsoever do not overcharge consumers just to raise more money to pay taxes. The charges to consumers will of course depend to a large extent on the board's development needs and the efficiency of the board's management. This question of development needs, what is required and of course whether the management is efficient must be continually checked.”
“Contrary to the point raised by the Member for Whampoa, I am in favour of such a conservative approach. Although the Government may have been conservative in its past projections, it is very unlikely that it will achieve a surplus in the next fiscal year. During a difficult period, an occasional deficit may be a workable solution to a recession. However, a chronic deficit is not something which we can take to very lightly. Many countries, and this of course includes the world's largest nation, the United States, have been in chronic deficit for several years. As we all know, a deficit means spending beyond one's means and it results in either local or overseas borrowings. Unless there is a capacity to pay from current revenue, such borrowings must lead to high inflation. We have seen the unpleasant consequences of budget deficits. A decline in the value of the country's currency can be expected and a consequential decline in the standards of living of the population. Therefore, we must count ourselves fortunate that our total debt is relatively small - just about $18 billion and that we have more than sufficient reserves to match this debt. Moreover, external loans are negligible and have been declining for the last few years. This is the fruit of the Government's prudent fiscal policies in the past. Related to this debt, I should like to raise a question on debt financing. Debt financing has been about $1.2 billion in the last three years. For the next fiscal year, this is projected to increase substantially to $3.7 billion or an increase of $2.19 billion in the coming year. The Minister has accounted for $1.45 billion as a "once-off" payment in backdated interest on CPF advance deposits. Leaving aside this figure, there is still an increase of $0.”
“Mr Speaker, Sir, I rise to give my full support to the Budget statement presented by the Minister for Finance. Let me begin by complimenting him for making further improvements to the presentation of the Budget. This year's document is most readable and, if I may add, comprehensible. The additional columns showing the actual expenditure of the preceding two years are also most useful. So are the other financial statements in which the format is much closer to standard accounting practices. I have only one negative comment and this relates to the information which appears under the "Overview" at the beginning of each Head. The quality varies considerably and this deserves more attention from the Minister or the Ministries concerned. For example, under the Ministry of Community Development, there is a sum of $140,000 to be spent by the Singapore Sports Council for their computerization efforts. That, in itself, is self-explanatory. It deserves one line of explanation. But under the Ministry of National Development, there is a capital grant to the HDB of $493 million and the only explanation given is as follows: "to cover gross loss on sale of flats and other capital-related expenditure." More elaboration on the $493 million grant is necessary. The least we can expect is an indication of the size of the grant and how this has come about. On balance, the budget is definitely painless and mild. It may be described as pro-growth, both in promoting economic growth as well as in promoting growth of our population. Whilst promoting economic growth, my main concern is the budget deficit which is projected at $3.75 billion. The budget for fiscal year 1986 also projected a deficit of $3.22 billion and it was welcoming that we ended with a surplus.”
“What I hope is that the Ministry of Health, with the cooperation of the Singapore Muslim Religious Council, would be able to draw up special plans to explain to all segments of Muslim society so that any doubt could be erased and thus enable the Muslim community in Singapore to make their contributions without any religious qualms. I feel that the Singapore Muslim Religious Council can help to effectively disseminate information to the Muslim community in various ways, for example, through Friday sermons, religious lectures organized by JHD or the Muslim Missionary Committee and also at mosques, forums, over radio and TV, and also not forgetting the press. Mr Speaker, I am happy that this Bill will be further examined by the Select Committee. I hope organizations as well as individuals will come forward to give their views so that this Bill can be further streamlined as the object of this Bill is to save the lives of patients who have hitherto suffered due to a dearth of donors. Touching on this Bill, on page 3, it is stated that this Bill exempts those who are under 21 years of age unless they have the consent of their parents or guardians. I seek elucidation from the Minister concerned as to what is the method or what explanation should be directed to this group of people, that is, those Muslims who are under 21 years of age, when this law is in force and after the six months that follow, when they will exceed the age of 21. I hope I will get an explanation on this matter so that no difficulties will arise. Thank you.”
“Encik Abbas Abu Amin (Pasir Panjang)( In Malay): Mr Speaker, Sir, when this Bill is eventually passed many patients with kidney ailments will be relieved because their hope of obtaining medical treatment can be better realized. Whatever good steps are taken to save lives should receive proper support. Naturally this transplant of organs will be carried out in the best way possible as expounded by the Minister of State earlier. I consider that further and on-going information should be given so that all segments of the society will understand the issues that are involved so that they will really understand the purpose and the method of implementation. I am relieved to hear the assurance of the Minister of State that all views with respect to culture, belief and religion have been considered even before this Bill was proposed, particularly the views of Muslims. I understand that he had discussions on the subject of organ transplant with the Singapore Muslim Religious Council (MUIS). The religious ruling committee or Jawatankuasa Fatwa has ruled that Muslims can donate their organs for emergency reasons and in accordance with terms that have been spelt out by the Member for Tanah Merah. I also understand that several Muslim countries in the Middle East have carried out organ transplants in order to save lives. But we must appreciate that the Muslim community in Singapore is not that confident about the Fatwa or religious rulings that I said earlier.”
“I believe that just a step before this Bill is put into implementation, the Government should step up its publicity through the mass media and other channels to educate the people so that everyone in Singapore will understand the contents of the Bill, including those who have, for religious or cultural reasons, objected to the Bill. On the other hand, there may be others who object to this Bill for political reasons. They oppose this Bill simply because they oppose the People's Action Party and so they want to take this opportunity to raise anti -government sentiments. I think that the most simple method to deal with them is to tell such people that this Bill has no particular benefit to the People's Action Party; it will only benefit the people of Singapore, particularly thousands of those who are suffering from chronic kidney diseases. At the same time, we should urge our people not to be misled by these politically motivated people. After the implementation of this Bill, I believe there may be a small fraction of the people who would indicate that they would not want to donate their organs. I hope the Ministry of Health will step up their efforts to propagate the Bill and educate the people and show them the benefits of this law, so that those who originally object to the donation of their organs may change their mind and join in the scheme. Finally, I would like to take this opportunity to ask the Minister of State for Health a question. The present Bill refers only to the transplant of kidneys. Is there any possibility of this Bill being extended to cover other human organs? With the improvement of medical science, I believe that transplant of other human organs may also be feasible and required to help those who are affected. Mr Speaker, Sir, I support this Bill.”
“30 pm. Sitting accordingly suspended at 1.00 pm until 2.30 pm. Sitting resumed at 2.30 pm [Mr Speaker in the Chair] Debate resumed. Dr Koh Lip Lin( In Mandarin): Mr Speaker, Sir, I support the Minister of State for Health in the introduction of this Human Organ Transplant Bill. The Hon. Minister of State has given us a detailed statement on the background leading to the introduction of this Bill and he has also told us the direct and indirect benefits to the members of families of people who will be receiving the organ. This is a Bill to save lives. I believe this Bill will be supported by the great majority of the people of Singapore. Of course, there will be a minority of people who do not have a clear understanding of the Bill or the true facts of the matter or who have been misled by others, resulting in their objection to this Bill. I would like to air my views with regard to those who object to this Bill. There may be many reasons for their objection. It may be because of their religion or their cultural background that they object to the donation of their organs after death. Some people think that they have a personal right over their own organs and they do not want to be ruled by the law. Actually, those who hold such views do not need to object to this Bill because the Bill expressly states that they could simply opt out of this scheme by registering their objection. Of course, registration may be inconvenient to these people but this small inconvenience will bring benefit to the others or the country. They should not object to this Bill just because of this small inconvenience as such objection is unreasonable.”
“Mr Speaker, Sir, like my colleagues before me, I rise in support of this Bill. At the same time, I welcome the intention of the Minister for Health to commit this Bill to a Select Committee. Although this Bill, as the Minister of State has pointed out, will cost the people nothing, it has generated much interest and, in some cases, doubts and, of course, resentment. Therefore, we must redouble our efforts to explain the Bill to the people because it will be an irony if, in the process of trying to save lives, the Government loses political support or political ground. In this respect, I have only one point to raise and this relates to clause 5(2)(e) which sets the upper limit at 60 years of age. As the Minister has already pointed out, we deteriorate with age and it is doubtful that 60-year old organs would be of much help or much good in organ transplant. But there is a more important reason. I suspect that this Bill faces more resistance from the older age group than the young. In our society, death is not something that is a subject for humour and rationality. Because of this, as mentioned by one other Member, there is suspicion and fear. Therefore, if we can change the age group and lower it to, say, 50 years old, which I believe will make very little difference to the Bill, we may perhaps get the Bill more readily accepted by the people. To keep the limit at 60 years of age means that a lot of older citizens, who at the present moment do not understand the Bill fully, will have apprehensions and this may be exploited by those who opposes this Bill. I think by lowering this upper limit to 50 years of age, it will go some way towards getting this Bill more easily accepted. Mr Speaker: It is exactly 1.00 pm. I suspend this sitting and will take the Chair again at 2.”
“Sir, are there any self-employed who are paying CPF at this point of time? If so, how many are there?”
“Sir, is the capital gain or loss in divestment a criterion in this respect?”
“Mr Speaker, Sir, besides Singapore, what other countries in the Association of Southeast Asian Nations have diplomatic relations with Israel?”
“If such action is deemed to be necessary, I think it must be a well considered and calculated one. These are the only points I have, Sir. [Mr Deputy Speaker in the Chair] 4.46 pm”
“There is also a provision for compensation to be paid for loss of life or permanent injury. These main provisions would help to allay apprehensions of volunteers and potential volunteers. Hopefully, this will encourage more people to participate in civil defence activities. However, there are no provisions in the Bill to define the powers and the authority of volunteers in civil defence during a civil defence emergency. Clause 103 confers such authority and powers only to the Commissioner, a member or a police officer. A member, as defined in the Act, is not a volunteer. I wonder what would happen if the volunteer on his own initiative directs any action under clause 103 (1) (a), (b), (c), (d) or (e). Clause 103, sub-clauses (1)(a) to (e) defines several measures which are necessary for the preservation of life or property during a civil defence emergency. Perhaps the Minister would like to comment on this particular clause. Also on clause 103, I would like to comment on sub-clause (1) (a) and sub-clause (4). Sub-clause (1)(a) states that any person who is directed by the Commissioner or a member or a police officer to render assistance to the Force to save life in immediate danger and any person who is directed to do so must do so without due regard for his own safety. Moreover, if he disobeys, subclause (4) spells out the penalty if such an order is not obeyed. In my view, subclause (1)(a) should perhaps be reworded. Alternatively, if there is such an order where we have to direct a person who may be endangering his life, this kind of order should perhaps be given only by the Commissioner and not just by any member of the Civil Defence Force. This is to ensure that lives are not further unnecessarily endangered during an emergency.”
“Mr Speaker, Sir, like my colleagues before me, I rise in support of this Bill. In just five years, our civil defence has become an important component of Singapore society. I think, if nothing else, the Hotel New World disaster has reinforced in a limited way the necessity and role of civil defence in Singapore. Therefore, as a result, civil defence has come to be accepted by all Singaporeans. I think the Bill is a very timely one. When passed, this Bill which is a very comprehensive one as mentioned by the Minister, will signify that civil defence have come of age in Singapore in its own right. The main provisions of the Bill are related to the enforcement of disciplinary action of errant members of the force. I think for it to be an effective and efficient uniformed organization, a code of conduct and a proper organization is therefore necessary. Naturally to go with it there must be the necessary rules and, of course, the necessary provisions to enforce this code of conduct. Today civil defence is a permanent feature to the civilian population. All over Singapore many volunteers are undergoing training in different aspects of civil defence at one time or another. Moreover, no weekend goes by without civil defence exercises being conducted in one constituency or another. Since civil defence is such a pervasive feature in our people's lives, especially those who are volunteers in civil defence, I would like to take up one or two provisions which relate to volunteers in civil defence. Like the hon. Member for Siglap, naturally I welcome the clauses which seek to protect volunteers from personal liability when they participate in civil defence activities and under orders of civil defence force.”