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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“Their reward is usually just a few hundred dollars. For them to take the risk means that it is lucrative business if they are not caught and that is why there are still people who want to take the chance of being caught. Perhaps, the Government has still not done enough publicity in countries from where these illegal immigrants come from to let them know that our laws are very tough and the efforts of our law enforcement officers are relentless and thorough. All airlines announce to their passengers before they alight that Singapore has the death penalty for drug traffickers. Can we also not let them know that our immigration laws are equally unrelenting for illegal immigrants? I therefore suggest that the Government consider taking up more publicity or in certain cases, if possible, advertisements in these foreign countries periodically to drive home this message. I understand, Sir, that publicity of our efforts has in fact reduced the number of illegal immigrants coming from Batam. Illegal immigrants should not be locked up for long periods of time because that would be a drain of taxpayers' money. We should publicise how we deal with illegal immigrants who are caught. 1.30 pm With the region's economic problems far from being over, we must be prepared for further influx of illegal immigrants. Our rising crime rate has also been partially blamed on illegal immigrants. Will the Minister assure Singaporeans that we have the problem under control?”
“Sir, last year, it was reported that some 23,000 illegal immigrants were apprehended. This is a very high number and works out to no less than 60 illegal immigrants apprehended every day. One must wonder at the numbers roaming in our midst. The worsening economic situation in our neighbouring countries could well be a contributing factor and the driving force behind the waves of illegal entries. Will the Minister highlight to the House the number of illegal immigrants from Indonesia, Malaysia and Thailand and other countries? If they are attracted to Singapore by the hope of a better living here, have they come here knowing full well that we are very strict in enforcing the law against them? Perhaps it is worthwhile being arrested and imprisoned here because then, the illegal immigrants would be assured of good food, shelter and medical care in our prisons. Sir, around this time last year, there was frequent publicity of reports of police raids and arrests of big numbers of illegal immigrants. Since then such media publicity appears to have been muted. If the publicity drops, does it signal a decrease in the number of raids or does it mean that the problem is under control? The danger of doing less and less publicity is that it may send a wrong signal that the Government is now less vigilant or strict in its enforcement. Alternatively, did the publicity force the illegal immigrants to go into hiding at less well-known places such that the police have become less successful in their raids? Sir, despite the occasional arrests and the attendant media publicity, there are still people willing to risk being caught by hiding illegal immigrants in the car boots or lorries carrying goods coming into Singapore through the Causeway.”
“I propose that separate and specific sections be created in the Road Traffic Act with enhanced penalties to punish road bullying in various forms. In the more aggravated instance of road bullying where injury of life or property is caused to other road users, the vehicle should be confiscated. We must strike where it hurts most. If confiscation of lorries for illegal dumping of waste is permitted under the law, there are stronger reasons to confiscate vehicles involved in frightening, jeopardising or injuring road users. Just like sections in the Road Traffic Act on drunken driving and use of handphones, a clearly defined section on road bullying will give the Police a more effective law to deal with this problem. A proper schedule of offences and the corresponding penalties will be more effective. Stiffer penalties for illegal parking at zig-zag lines, speeding in excess of defined limits, use of handphones while driving and drunken driving have yielded much desired results in arresting the rise of these menaces. It is a worthwhile and timely effort to consider amending the Road Traffic Act to incorporate these stiffer penalties to make our roads safer for our users. I urge the Minister to consider a review of the law to stamp out road bully offences.”
“Sir, despite heavy penalties that have been meted out by the courts on road bullies, recent reports of the recurrence of road bullying tactics indicate that the problem is still a very real and difficult one. Road bullying seems to come in different forms, that of finger gestures interpreted to be demeaning and degrading and an insult to outright violence. A finger gesture may result in lost honour and pride and the insulted motorist must avenge himself and a road chase begins. We have read of a taxi driver dying from a weak heart whilst pursuing the motorist who had shown him a finger gesture. I have also been told of one unreported incident, which I wish to relate to the House. A driver of a Mercedes Benz car was driving leisurely on the road. Along came a driver in an old Toyota who beamed his headlights and then overtook him. The Mercedes Benz driver then picked up speed to chase the latter and caused the driver of the Toyota and his family to fear for their lives when the Mercedes Benz overtook the Toyota and the driver made deliberate stops intermittently. He stopped his car when signalled by the Toyota driver to do so. He sat quietly and refused to respond to the other driver's angry questions. He let the Toyota driver take off and then drove dangerously close to him, used his right side mirror to tear off the left outer mirror of the Toyota and then sped off. This incident was not reported to the Police because the driver of the Toyota feared retaliation. One wonders how many such incidents go unreported. The existing legislation is insufficient to deal with these varying forms of road bullying. The penalties prescribed for causing hurt or grievous hurt are not deterrent enough.”
“Will the Minister highlight to this House the efficacy of his Ministry's efforts in working with other Ministries on crime prevention work amongst students and the youths that have dropped out of schools? Currently, youth offenders under 16 cannot be named to protect their identity. With widespread public education and access to media anti-crime messages, I am not sure if this should be changed. Are these youths or the masterminds behind them making use of this legal loophole to persuade our young to commit crimes because even if they should be caught or apprehended, they can hide behind the mask given to them by the law. It is indeed a contradiction in terms to want to protect them after they have committed hideous crimes that children of their age should not have done. Moreover, parents of these offenders may not realise or feel the seriousness of their children's criminal acts because they have not been publicly shamed by the disclosure of their children's names or photographs. As such, it will be a better deterrent if this law of not naming offenders under 16 years old be repealed and parents be made responsible as well for their children's crimes. I seek the Minister's views on whether he will consider a repeal of this law.”
“Perhaps the Minister will like to highlight to the House how the Home Team is planning to cope with the worsening situation. Sir, besides the reasons advanced for the declining crime situation, a rise in crime rate may indicate that insufficient focus was placed on policing activities due to declining manpower or manpower cuts. As part of our restructuring in making our police officers more effective and justifying reducing our manpower needs, one must wonder if the setting up of the NPCs has resulted in the lower presence of our neighbourhood policemen. It could be due to the change in policing that has given criminals a wrong signal and encouraged them to try their luck now that less policemen are patrolling by foot or on bicycles. It is an undeniable fact that the presence of the police does deter crime just as the presence of a traffic police officer would deter speeding. I raised this concern two years ago on the structural changes in our policing methods and a drop in police presence. Could the Minister please enlighten us on whether the crime rates in areas that previously have neighbourhood police posts have increased after the NPPs were closed, and is there any drop in the number of crime reports in areas after the NPCs were set up? Sir, I am also worried by the apparent increase in crimes being committed by teenagers and youths, especially those that resulted in injury during robbery attempts. We have just been confronted by the most recent case of murder allegedly committed by three young children. Our young criminals appear to be much younger, more fearless and increasingly more violent. What could possibly have happened that have caused them to be beyond parental control?”
“Sir, I beg to move, That the total sum to be allocated for Head Q of the Main Estimates be reduced by $100. Sir, the recent report of the rise in crime by 5.2% to 48,260 cases in 1998 is cause for concern. Another worrying trend is that juvenile crime is also on the rise. Although the Commissioner for Police has taken pains to explain that the rise in crime is no cause for alarm, rising crime is always a cause for concern. Rising crime statistics, especially when Singapore is perceived to be relatively crime free, always unsettle people. Our crime free and disciplined society is very often touted as a very strong plus point for foreign investors and visitors. It is not likely that we shall lose this overnight, but over an extended period, if the trend continues, we may just lose this competitive edge. We just cannot afford to lose this plus factor, especially one that I feel is within our control. Several reasons were advanced for the increase in crime rates ranging from the economic slowdown to the presence of foreign workers and illegal immigrants. The increase in crime coincided with the advent of the economic crisis. It appears to be a given that during tough economic conditions, more resort to crime. I wonder if this is true of disciplined societies like South Korea. Will an ordinarily law abiding citizen resort to crime when that person loses a job? If these offenders resort to crime because they cannot make ends meet and not because they are greedy or bad per se, this is indeed a sign of desperate times. Perhaps we must do more to help these people cope with their hardships, which is a perfectly good crime preventive measure. With retrenchments on the rise this year, it must mean that our crime rate will worsen. Something has to be done to arrest the situation.”
“But the fact that we allow these firms to operate in our strict environment gives these firms a sense of respectability. As a result, gullible innocent Singaporeans get trapped into it and they are still thriving. Therefore, I urge the Minister to explain why it is not in our own interest to bring all these firms under the Commodity Futures Act. Alternatively, if we cannot bring them under the Commodity Futures Act, maybe we should prohibit such activities in Singapore.”
“Sir, I share the sentiments of Dr Toh See Kiat when he talked about the control of bucket shops. Like him, I filed this amendment under the Ministry of Finance. I begin to understand that now commodities trading is actually governed by the Trade Development Board, which is why my amendment is now being referred to this Ministry. Sir, commodities trading, whether it is of precious metals like gold or silver or soft commodities like pork belly or soya beans, are all part and parcel of the futures trading activity. In Singapore, the trading of rubber and coffee is regulated by the Commodity Futures Act, but not other commodities like pork belly and soya beans. As a result, gazetting is not required and no licence is required to run a soft commodities trading firm. To me, this is extremely strange. As a financial centre, we would expect that these activities should be regulated under the Commodity Futures Act in total or part of the Commodity Futures Act. It is not comprehensible why these firms are allowed to operate outside the ambit of all the laws that we have in place. Sir, one of the key features of bucket shops, besides what Dr Toh has mentioned, is that sometimes they do false trades. In other words, whatever trade is done on behalf of a client, the commodities firm actually first buys and sells it back to the client to make the money. This is how they generate a lot of trade and that is why the client always ends up to be the losing party. As a financial centre, it is indeed strange that we today read of bucket operations still taking place in Singapore. People are still trading in soya beans and pork bellies and such things. These are losses incurred by innocent bystanders. In most cases, we may call them gullible or naive.”
“I am reassured by the Minister and beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $121,452,240 for Head S ordered to stand part of the Main Estimates. The sum of $461,068,300 for Head S ordered to stand part of the Development Estimates. Head E -”
“Calls to our people to change our way of doing business should always be accompanied by corresponding changes in the relevant statutes and carried out fast enough so that they will facilitate rather than impede initiatives or entrepreneurship. If the laws are inadequate or cannot move fast enough with the times, then it is difficult to focus on the bigger picture of our long term economic strategy. This is especially so when Singapore's economy is plugged into the global economy and a slower start up may mean loss of time and money and also opportunities for growth. It will also blunt the competitive edge of our entrepreneurs and, moreover, lower their morale and make them feel that the Government is not supportive or responsive to their needs and efforts to bring wealth to the nation.”
“In this respect, I wish to know if the Land Titles Act, the Conveyancing and Law of Property Act, the Planning Act or the Housing and Development Act will be amended soon so that they are in tandem with the Government's call to quicken the pace of e-commerce activities. Related to the fast-changing world of e-commerce, an area of concern is the protection of intellectual property rights. My question to the Minister is: is technology changing faster than what the current law has anticipated and is able to control? In the case of the Land Titles Act, the requirement for leases of over 7 years must be in the prescribed form and registered should also be looked into. I understand that this does not help entrepreneurs in setting up businesses as it prohibits the longer-term leases. Under the Land Titles Act, unless the commercial property is already subdivided, the owner who may be an entrepreneur cannot give the tenants longer leases of more than 7 years. On the other side of the coin, an entrepreneur may not be able to sub-lease a factory space unless it is already sub-divided for more than 7 years. Sometimes, capital investments need time to have a pay-back and 7 years is an unnecessary impediment to entrepreneurship which I think should be done away with. Another area which requires attention and soon is the prohibition of registering homes for business. For those involved in e-commerce and working from their HDB homes, they should not be prohibited from using their home addresses as their business addresses where they can be contacted. The Internet is blind as to the people and the physical structure behind the business. As far as the Internet is concerned, the person behind the business is not known and sometimes an office is not particularly important.”
“Sir, I beg to move, That the total sum to be allocated for Head S of the Main Estimates be reduced by $100. Technology and the Internet have opened up a new world of opportunities for business. There is a growing recognition that we need to promote home-grown industries and, of late, there are exhortations to groom more entrepreneurs. Whilst we improve the economic environment and make entrepreneurship a welcome development in Singapore, I wonder if the legal and administrative framework is moving fast enough. For example, the Bankruptcy Act has been amended to raise the cap of the amount owed to $250,000/- for a discharge from bankruptcy. But since the last amendments, are we implementing the law fast enough? Anecdotal evidence suggests that bankrupts have difficulties getting discharge from bankruptcies. I understand that they must show good faith in making repayment before they can be discharged. The question to raise is: are we discharging many more bankrupts than before and has the pool of entrepreneurs been correspondingly enlarged? Have there been cases of relapse after discharge? Or was the law ineffective? One may assume that the regional economic crisis may have worsened the situation and the number of bankrupts may have risen and, further, precious business manpower resources are lost. The latest buzzword is technopreneurship. With the setting up of a national broadband network, we are ideally poised to promote electronic commerce, or e-commerce. Hence the Government's pre-occupation with encouraging the growth of a knowledge economy and e-commerce is timely. With e-commerce, one can work from home, or even from a car. If more is encouraged to work from the home in e-commerce, the legal framework must make this possible.”
“They are alive to the changing business environment. I am therefore confident that the liberalisation will result in a more competitive banking industry, stronger local institutions, and better service to customers.”
“Market analysts and rating agencies consider Singapore banks the soundest and best in Asia. Our banks operate efficiently, and offer high quality retail banking services. However, the banking environment is being transformed, in the region and globally. Existing franchises and market shares are being challenged. Players who do not adjust quickly and develop new capabilities quickly risk losing their positions altogether. Competition, not protection, is the only way to develop strong local banks which measure up against the best international players. Our banks must make this leap to make the grade. Unless they gear up now to hold their own against greater competition in an open domestic market, they will not be ready to compete for opportunities in Asia as the region recovers over the next few years. We hope that more than one Singapore bank will develop a significant presence in Asian and international markets. To do this, Singapore banks must provide innovative and efficient personal financial services comparable to the best retail banks, and strengthen their capabilities in corporate banking and non-traditional, fee-based businesses. No bank can be strong in all areas of banking. Some local banks will choose to specialise. But to compete, they all have to use capital more efficiently, and cut costs by farming out back-room operations that can be more efficiently performed outside, just like the leading international banks do. Most important, they need to attract the best banking talent available, whether locally and abroad, put in place systems to reward and motivate top performance, and build outstanding management teams. I am happy that several local banks have already announced and started implementing plans to prepare for the new era.”
“It will probably keep the five-year time frame, but take bolder steps in the earlier years. We will announce the programme of liberalisation soon. The MAS is reviewing all restrictions in the domestic retail sector, including limits on opening additional branches, setting-up off-premise ATMs, participating in shared-ATM networks and offering Electronic Funds Transfer at Point-of-Sale (EFTPOS) services. MAS is also reviewing rules governing foreign banks granted offshore licences, to see how reputable offshore banks can have greater access to the domestic market. Overall, foreign banks already have wide access to Singapore's banking sector. They compete freely with local banks in wholesale domestic banking, offshore banking, and treasury and capital market activities, but face restrictions in the domestic retail market. Foreign banks account for more than a third of total resident deposits, and 45% of loans to resident borrowers, nearly half. They also account for the vast bulk of the business with non-residents; in fact, 86% of deposits of non-residents and 95% of loans to non-residents. Foreign banks enjoy a larger market share in Singapore than elsewhere in Asia, or in any major financial centre. Nevertheless, MAS intends to liberalise the banking system further, as this is the best way to upgrade the industry, develop robust local banks, and enhance our role as an international financial centre. We will not open up indiscriminately, and risk the high prudential standards that our reputation depends upon. Instead MAS will provide greater access to foreign banks with strong global track records, sound credit ratings, and a demonstrated commitment to Singapore's financial system.”
“Sir, will the Deputy Prime Minister consider prescribing heavier penalties for rumour-mongers in such cases? BG Lee Hsien Loong: If you can catch them, we can punish them! LIBERALISATION OF BANKING SECTOR TO FOREIGN COMPETITION 8. Mr Zulkifli bin Baharudin asked the Deputy Prime Minister whether there are other plans to speed up and further liberalise the banking sector to foreign competition following the recommendation of the Monetary Authority of Singapore (MAS) International Advisory Panel. BG Lee Hsien Loong: Mr Speaker, Sir, the MAS is liberalising the domestic banking sector, to allow greater access to foreign institutions and a freer play of competitive forces. This will achieve three objectives: First, it will encourage banks to provide efficient and innovative services, comparable to the best available in other major financial centres; Second, it will nurture a group of robust local banks who measure up against leading international players operating in Singapore and abroad; and Third, it will encourage strong and well-managed foreign institutions to expand their activities in Singapore, and take a stake in the growth and stability of our financial system. I announced in July last year that MAS would progressively open up the domestic banking sector over five years. When MAS briefed its International Advisory Panel (IAP) on its plans, the IAP agreed with MAS' policy of liberalisation. The IAP also agreed on the importance of having strong local players after we liberalise. However, the IAP felt that five years was not ambitious enough, and recommended the MAS consider speeding up the process. The MAS is now working out the specific liberalisation measures and will take the IAP's views into account.”
“Sir, the Minister is aware of Marketing 101. Price is only one of several practices in the market. If price is the only determinant, then all of us will be driving a Suzuki and not a Mercedes-Benz. Quite clearly, the amount of marketing effort or advertising expenditure has a tremendous impact on the market share. The question I want to ask the Minister is, hypothetically, will TAS control a carrier if it wants to give a phone free of charge, for example? Will TAS control the marketing expenditure of the different carriers to make sure that one will not over-spend to create a larger market share?”
“Sir, following up from my previous question, does it mean that in that case TAS will make sure that prices will be held at a certain level until such time there are three or more carriers who will then compete in a free market with less regulation? This means that ultimately it can still lead to market failure because one can have a strong competitor which then becomes a monopoly again. What would TAS do in that case?”
“Mr Speaker, Sir, has TAS any plan to carve up the market, ie, set a maximum cap on the market share for the different carriers? The second question is: should one of the carriers fail because the marketing of their products is not as well as the other carriers, will the Government bail out that particular carrier so that there will always be this so-called choice for consumers?”
“Mr Speaker, Sir, before I ask Question No. 1, let me declare my pecuniary interest as I am a director of Singapore Power Ltd. Singapore Power is one of the partners of StarHub. Question No. 1, Sir.”
“Sir, the Minister of State is aware that despatch riders perform an essential service. They are part of the business structure. Is his Ministry working with some other authorities to alleviate their problem to ensure that some form of short term parking or temporary parking is available so that these activities of theirs can continue? Assoc. Prof. Ho Peng Kee: Sir, the URA informs us that there are sufficient parking spaces in the CBD for motorcyclists. It is important to keep in view the object of the exercise, ie, to clean up illegal parking. This is because they can be a danger to other road users as well as an obstruction to other road users. In any case, while people who have been affected must make the necessary adjustments, on our part we have looked at whether or not more parking spaces can be created. Wherever possible, URA working with Traffic Police and LTA, will create more parking spaces. In the meantime, we have been informed that in the CBD area, there are already sufficient parking spaces.”
“Will the Minister be able to quantify what is the direct impact?”
“Sir, will the Minister remind the House that when trading on the stock market in 1985 was suspended by the Stock Exchange, Singapore was subjected to a great deal of criticism for doing so? So I think there is a very high price to be paid for the suspension of trading on the stock market.”
“Yet, for the same reason, property interests are so much more important to those who have purchased them, especially on the open market. There is a need therefore for the Minister to reassure this House, and indeed, the people, that encroachment into the proprietary interests of minority owners should be allowed only in the most convincing of circumstances. Sir, I give my qualified support to this Bill and hope that these issues would be taken up in the Select Committee.”
“Would it not be a waste of economic resources to tear down a development that is only 10 years old or less? Especially, if some subsidiary owners would like to continue to live in it. Would this sort of rule adversely affect the maintenance level of estates? Is there a commitment, for example, to upgrade the lifts if it were known that a developer has been eyeing the estate with a view to redevelopment? Again, it would seem that more specific regulations are needed to control such a situation and a review of the 10-year rule should take place. Finally, I refer to a technical problem, the issue of notice and objections. This relates to the safeguards that the Minister of State has just mentioned. Under the proposed section 84A(1), majority subsidiary proprietors who have secured a conditional agreement of sale may apply to the Board for an order of sale to be made out. Under section 84A(4), a subsidiary proprietor who does not agree to the sale has to file an objection within 21 days of the date of notice served in the normal case. The failure to file an objection has serious consequences under subsection (6) - the Board is under a duty if it does not receive any objection to order a sale! Nowhere in the section is it provided as to who is to inform those subsidiary proprietors who have not entered into agreements of sale about the application to the Board. Subsection (10) provides for notice by registered post but does not make clear who has the obligation to inform the minority. Would it be the Board or the applicants for the order of sale? Such matters have yet to be clarified in the legislation. Sir, I am aware that in land scarce Singapore, optimal land use is always a priority.”
“Such orders are binding on minority owners who object to the sale. These are orders that significantly affect property rights. I wonder whether it is not altogether appropriate to have an application made to the High Court instead of the Tribunal. Sir, the Land Titles Act, sections 77 and 78, actually provides for application to the court in relation to a variation of strata subdivision scheme consequent upon damage to or destruction of a subdivided building, and to termination of a strata subdivision scheme. Surely, the powers of the court can be extended to cover the matter of en-bloc sales. This may at least provide some comfort to minority owners who may be dispossessed by such an order. The judiciary is used to matters involving private parties; the judges are used to quantification of damages, including large amounts of damages. They are used to taking into account non-economic considerations, such as pain and suffering. The Strata Titles Board, talented though it may be in property matters, is not used to this type of work. In any event, it is in my view imperative that if such a Board were to decide on this matter, Parliament should ensure that there be specified grounds on which an order of sale can be made, similar to that provided in the Hong Kong legislation. There are two other matters that I should like to draw attention to. The first, as has been mentioned by the GPC Chairman, relates to the 10-year rule. That is to say, if a development is more than 10 years old, only 80% of the subsidiary proprietors need to agree (or if it is less than 10 years, 90%). Sir, in the context of estate development in Singapore, where estates are generally well maintained, this seems too early a period to speak of en-bloc sales.”
“People acquire property for different reasons - I am not concerned for those who are acquiring property as an investment, since that essentially is a matter of economic compensation, which fits well with the idea of en-bloc sales. For someone else - let us say a retiree - who purchases a property to stay in, and who chooses a particular flat in a particular location to be, for example, near her children or a medical facility, the idea of compensation in pure monetary terms may be a poor substitute. The costs of relocation, the giving up of a home that one has spent many happy years - these are neither easy to quantify nor easily compensated in monetary terms. The cynical among us may say that there is a price for everything - and so there may be, but in reality, I do not know how these issues are likely to be dealt with in the Act, despite the Minister of State's assurance. Or whether such issues can be dealt with satisfactorily, no matter what the Act says. As it stands, the Act gives no guidance on how such non-material considerations are to be taken into account, if at all. It is interesting to note in this context that the Hong Kong legislation referred to earlier mentions, for example, the age or state of repair of the existing development. The Hong Kong Ordinance also requires subsidiary legislation specifying the grounds on which an order for sale may be made. In my view, it is necessary to enact similar regulations, especially if the decision is left to the Strata Titles Board. This is the next issue to which I shall now turn. It is stated that these matters may be brought before the Strata Titles Board, and that the Board will have powers to mediate, to call for valuation reports and finally, to make orders.”
“Sir, property rights in law are traditionally distinguished from other legal rights because they are of such importance and value to those who hold them. The right to enjoy one's property and to choose a time to dispose of it is regarded very much as a basic right of ownership. People pay higher premiums to acquire interests in land that allow them to enjoy such rights and eventually to pass them down to their successors in title in perpetuity. These rights should be overridden only in the most compelling circumstances, where the public interest requires it, and must be seen to be manifestly beneficial to the public in general, for example, building infrastructural facilities such as roads, MRT lines, stations and airports. In Hong Kong, where they have a similar law - the Land (Compulsory Sale for Redevelopment) Ordinance No. 30 of 1998 - the objective was to redevelop many of the old estates in Hong Kong through private means. In Singapore, the need to do so may not be so obvious, as many estates are fairly new and, in any case, are well maintained, as regulated by law. The public interest in the proposed law therefore is not so evident. It is altogether different when what is at stake is a purely economic or pecuniary decision. That is, when the decision to take away the right of ownership, albeit with compensation, on pure economic grounds alone - such as the redevelopment of an estate that may just be 10 years old - to make way for a more lucrative development. It is essentially a private deal, between majority owners and developers. In such an instance, there is a need to ensure that all minority owners' interests are well protected.”
“There must be a mechanism in place to ensure that our city-state does not contain pockets of slums and that sufficiently old buildings are safe and well maintained. Having said that, however, I am of the view that a 10-year old building is still a new building and using 10 years as a yardstick may be too short a benchmark. The stringent requirements of the Building Control Department have resulted in much money being invested to ensure that our buildings will withstand the test of time and more. It will indeed be a waste of money and resources if a building that is less than 10 years old be allowed to be torn down and redeveloped. It may also create uneasiness amongst potential buyers who cannot be sure if an intended purchase will be the target of an en-bloc sale. Sir, therefore, I urge the Government to reconsider a change in some of the details in the Bill. Hence, as this Bill when passed will have a substantial impact on a majority of private property owners, I welcome the Government's move to commit this Bill to a Select Committee. En-bloc sale and redevelopment is an excellent way to rejuvenate some old estates which are devoid or lacking in amenities and facilities. This complements what is being done in the public sector. With the Government spending billions of dollars in main and interim upgrading programmes in public housing estates, private housing estates, especially the older ones, should be encouraged to do likewise through en-bloc sales. Assoc. Prof. Chin Tet Yung: Mr Speaker, Sir, I rise to speak in support of the Bill in principle, and appreciate the opportunity to express a number of concerns that I have regarding its provisions for en-bloc sales, that is, the new sections 84A to F.”
“Mr Speaker, Sir, I rise in support of the Bill. At the peak of the property boom, this Bill or its underlying principles would have been welcomed by most. Minority subsidiary proprietors who choose not to sell their property in en-bloc sales would have been dismayed. This Bill is controversial. Some say that it is to aid majority subsidiary proprietors who stand to make substantial gains when their apartments are sold en-bloc than they would otherwise not have. It can also be said to oppress the minority who refuses to sell for whatever reasons, whether it is to demand exorbitant prices for their property or for sentimental reasons. Sir, doing nothing will not be the responsible approach in land scarce Singapore. Whether it is the tyranny of the minority or the oppression of the minority is a secondary concern. The most crucial consideration is in achieving a balance between the two conflicting needs and that there are statutory instruments in place to ensure that ultimately a proposal for redevelopment fits into and blends well with the long term development plans of Singapore. Without legislation, the redevelopment of old and inefficient land use developments is a costly process. There is presently a case in our courts, and the Minister of State has mentioned the Kim Lin Mansions case, on this very issue and the legal wrangling is causing owners on both sides of the divide a great deal of money. This is not taking into account the human costs of uneasy neighbourhoods and of course sleepless nights for some of the owners. This Bill when passed will go a long way to address this issue. For whatever reason one wants to remain in a home, there is a need to ensure that the overriding interests of society at large must be met.”
“Sir, the Minister has not answered my question. Let me rephrase the question. As from tomorrow, will Singaporeans boarding at Tanjong Pagar infringe any Singapore law?”
“Mr Speaker, Sir, it seems that the continued positioning of Malaysian Immigration officials at Tanjong Pagar is going to be a legal and sovereign issue. Is there any plan for Singapore to stop them from operating at Tanjong Pagar as from tomorrow, Sir? The second question is, going by press reports of the last few days, Malaysian politicians have been saying that this is an excuse to force Malaysia out of Tanjong Pagar and that Singapore will take over ownership of the land at Tanjong Pagar. In other words, if the Malaysians should vacate Tanjong Pagar, Singapore will use that as an excuse to take over the land at Tanjong Pagar. The last question is, operationally, as from tomorrow, when passengers board at Tanjong Pagar and reach our Woodlands Checkpoint, what action would the Minister take in view of the fact that their passports would now not be regularised?”
“What is sorely lacking in Singapore's economy is the confidence factor. I want to know from the Minister: Is he comfortable that what he has announced today addresses that issue?”
“Finally, the Minister said that we have no control on interest rates and yet just a few days ago, the Prime Minister of Malaysia, at the UMNO general assembly, indicated that the economy in Malaysia would have a speedier recovery if interest rates in Singapore were reduced. It was reported in the press that he said, "If interest rates rise, there would be an outflow of money from this country [meaning Malaysia]." Sir, if the Prime Minister of Malaysia says that, should we not be a good neighbour and find ways to reduce interest rates?”
“Mr Speaker, Sir, I applaud the Minister for Finance for some of the measures he announced today. I have a number of questions for him. On the projection of our economic growth of 0.5-1.5%, has the $2 billion package, which has just been announced, been taken into account in the projection? The $2 billion package would have some stimulative effect on the economy. Sir, on the budget deficit of $800 million, I would like the Minister to explain whether this will have a negative impact on the Singapore dollar. Some of my colleagues have already mentioned measures to stimulate consumption. I hope the Minister would not take too severe a stand on the Annual Variable Component (AVC), ie, a further substantial cut in the AVC which he intends to do if the economy worsens, because this will only make the situation worse. So I hope the Annual Variable Component will not be cut substantially. If we send a wrong message that the AVC will be cut, we will end up like the situation in Japan whereby a one-off tax rebate had no effect on their economy at all. I have another question on interest rates. The Minister has mentioned that the Government has no control on banks' credit. But, unfortunately, there are many small and medium-sized companies today which are actually facing a credit crunch from banks, all because bankers are afraid to lend. Irrespective of whether the companies are good or bad, banks take a very blunt approach and I think the Minister should address this issue to see how this credit crunch can be eased for many of the small and medium-sized companies.”
“Taking into account the period when historical data is known and the measures which the Minister has taken into account in his basket of measures which he will implement when the economy slows down significantly, there will be a certain period of time for measures to take effect.”
“Sir, will the Minister explain what is the time frame by which measures will be effective the moment they are implemented? In other words, how long will all these measures that he has in mind, if implemented, take effect?”
“These maids may be too intimidated to do anything but suffer in silence as they may have been put in fear of their life and limb and even repatriation, if they dare breathe a word of their ill-treatment. I also wish to address the concern of some Singaporeans who feel that the enhanced penalties seem to favour domestic maids more than abused wives. This is not so and I do not think that this is even our intention. Wives should not be compared with domestic maids as they are a special category of persons who enjoy the protection of the law and they have a special role in our society as our policies have always been family-oriented. Abused wives can seek redress in the Family Court by way of a personal or expedited protection order for herself, or a domestic exclusion order. They can also turn to their own parents, siblings, relatives or friends readily for assistance to deal with violent or abusive husbands. They can also bring an end to such abuse, of course, ultimately by divorcing their husbands. Maids do not have this ready access or privilege. Neither can they enjoy any other protection because they do not know how to access it and do not have the financial means to do so. Sir, perhaps in seeking to enhance the penalties for offences against domestic maids, we should also take this opportunity to look into the penalties for offences of family violence as well to see if they should also be brought up to date.”
“Sir, notwithstanding this, it is still necessary for us to arrest the rising trend of domestic maid abuse. We must understand that domestic maids are human beings who are forced to offer themselves as maids because of financial hardship. They leave behind their families to come alone to a strange land so that they may sustain their families at home. Domestic maids are not like those in regular jobs. They have no co-workers to turn to for help or emotional support. They are very much on their own to fend for themselves. They do not work regular hours as those in regular employment do and there are cases of maids having to work literally 24 hours a day. They have also no homes to return to, to unwind like most of us, and are in constant contact with their employers. Lastly, they have no families to turn to for emotional support. All these make a domestic maid different from not only us, but also other foreign workers. Domestic maids are cooped up in their employers' homes day-in-day-out. They are totally cut off from the rest of the world, as it were. If they are abused, there is no one on hand to help them. It is for these reasons that the law must protect them and punish the guilty to deter others. There is a perception, Sir, that offences against domestic maids are committed by male employers. This is not so as there are several cases of abuse committed by women employers, their parents or children. Domestic maids are not only sexually abused, they can be physically and emotionally violated. Most of these incidences of abuse seem to be reported by third parties, and not by the maids themselves.”
“Mr Speaker, Sir, I rise in support of the Penal Code (Amendment) Bill to enhance the penalties for offences against domestic maids. Sir, with growing affluence and the increase in dual income families, employing women foreigners to take care of our domestic chores and to tend to our children or elderly parents has become the trend in most families who can afford to do so. Even for families where the wife is not working outside the home, having a maid to do housework and to take care of children or the elderly sick is fairly common as well. However, and sadly though, affluence does not bring about a refinement in character or behaviour of some Singaporeans. In recent years, abuse of domestic maids, going by press reports, has become fairly common and there seems to be a worrying trend. The type of abuses, as reported in the media, has also become more bizarre and cruel. Abusers seem to be getting younger too! Of course, there are also reported cases of false accusations being made against employers but such cases are in the minority. Those maids invariably did so to get out of their contract of service so that they may return to their homes early. Sir, by and large, the majority of domestic maids are well behaved and discharge their duties admirably. They take a huge load off their employers, especially the career women and working mothers. There are also instances of domestic maids who had performed tasks beyond their call of duty and helped save the lives and property of their employers. Good employers are also happily in the majority and many grateful and understanding employers have also regarded trusted maids as members of their own family and take good care of their maids.”
“This is a good time for them to enter into the market because the price will be right. The move by the Government to cut back its supply will not be fair to them. The Government should release the land for Executive Condominiums as previously planned and, subsequently, based on a realistic price and demand, project and determine the future supply. By gauging the response for a right price but at the wrong time and arriving at the conclusion that there is a lack of public demand might not be a wise move. Sir, I beg the Minister to review this situation and continue to release the land for the original 3,000 units of Executive Condominiums and not to cut back to only half.”
“All units were taken up. Thanks to the Government which subsidises the Executive Condominium when it was then sold at about $410 per sq ft. The price was very much lower and attractive compared to an equivalent private condominium which was then sold at about $700 per sq ft. As time goes by, things change. The price of a private condominium has gone all the way down, from $700 per sq ft to $500-plus per sq ft, and in a recent case, a project in Woodlands was selling for only $410 per sq ft. On the contrary, the Executive Condominium price has moved up slowly to $450 per sq ft. It is no wonder only half the number of units in the recent launch of the Executive Condominiums were taken up. 5.45 pm Sir, we must understand that Executive Condominium housing is sandwiched in between the private condominiums and HDB Executive flats. There are strings attached to the buyer and it receives a Government subsidy. The project will fail if the price is too close or exceeds that of private condominiums. The present dilemma faced by the property developers who tender for Executive Condominium lands is the result of misjudgment of the price trend. We must continue to release land for Executive Condominiums in such a way that provides an opportunity for Executive Condominium price to realign itself in relation to the private condominium price and to find a comfortable level at which the targeted sandwich group of buyers would accept. To hold up or reduce land sale will deprive the market from finding its own price level. Any outcome resulting from the current Government measure in the Executive Condominium land price will be man-made and artificial. Sir, it is a dream of many Singaporeans to own condominiums through the path of the Executive Condominium Scheme.”
“At that time, the reply from the Minister was quite favourable, in particular, on the issue of land price and, I quote, "The Government will not interfere in the private housing market in as far as target prices are concerned." Following the slowdown in the residential market, the Government in November 1997 announced that the land sale target for the rest of 1997 would be deferred to the first half of 1998. And the 1998 figure would be pushed back to the second half of 1998. In the recent Budget Statement, it was stated that land sales for 7,000 units, ie, the combined 1997 deferred quantity and the targeted 1998 quantity would be reduced to only 2,500 units. From 7,000 units to 2,500 units is a substantial reduction. I would like to ask the Minister what is the Government's long-term policy in land supply. Our private property price affects the Government's land sales. If so, will the Government cut back or stop the land sale from what was announced if the downward trend in property price continues, until there is an upturn again? The Government also announced a cut back in land allocated for Executive Condominiums from the planned 3,000 units to half, 1,500 units. The reason given in the Budget Statement is that demand has been reduced and that is why the number has been reduced by half. Sir, Executive Condominiums, though related to the private residential property, have its own targeted buyers. It is a sandwich housing programme for those who cannot afford private condominiums but aspire to be in the list of public housing for Executive flats and which the HDB has ceased taking in new applicants. The Government's commitment to Executive Condominium housing is to provide partial subsidy in land cost. The first few launches were exceptionally successful.”
“The market talk is that this land will be valued at about $1 billion. 10% of $1 billion or up to $1.2 billion is a deposit of some $100 million. So over a three-month period, the developer will be committing something like about $100 million of his funds. Adding professional cost and interest cost may mean a tender bid costing something like $3 million. Sir, these funds will be locked up for unproductive purposes. I would urge the Minister to perhaps reconsider some form of bidding whereby reserve prices are known so that there will not be a situation whereby low prices affect the property market. At the same time, developers will not waste time because they know that they do not have the financial capacity to do a project of a certain size. Assoc. Prof. Low Seow Chay (Chua Chu Kang): Sir, my speech in the Budget debate last year I spoke on the same issue. At that time I pointed out three points: (1) The Government has committed to the long-term objective of achieving a 25% to 30% of private residential property to be private. (2) The Government is the largest land owner in Singapore. It must take a long term view in land supply and gradually release sufficient land to realise this objective. The Government's supply of land should not be affected by short term fluctuations of property price. (3) I pointed out that the private residential property price then was too high and beyond the affordable level of the targeted top 30% income earners. In the long term, the 30% target of private residential property could only be achieved if the price was settled at a level which was affordable to them.”
“Sir, in the Government's sale of land sites, substantial time and resources are committed by tenderers in their bids to secure Government land. In an uncertain market, such as what we have today, wide-ranging bids may be expected, for example, for the Marina South site. And this is a landmark site that involves a multi-million dollar investment. But the poor market sentiments, in this instance, may invite bidders looking for bargain prices and those tenderers who do not wish to lose out may put up unexpectedly low bids. Such low bids may, in the already weak market, be a destabilising force. This will undermine the stability of the property market and, of course, the economy as a whole. Sir, although these low bid prices may eventually be ascertained by the Chief Valuer as below the Government's reserve price, the detrimental effects on the market will have already been done. Therefore, I am in favour of some form of a public declaration of reserve prices in general land sales, so as not to affect the market adversely or wasting the valuable time of developers. We should perhaps apply this approach for a landmark parcel, like the Marina South. In this instance, it may be better to have a situation where there are no bidders because there is not enough financial capacity of developers to bid, rather than entertaining a small number of bidders with very low prices. Low prices can shake the confidence of the property market. Sir, for tenderers who believe that the price should be lower than the reserve price, they will not have to waste time and resources in the exercise. Just as an example, the tender for the Marina South site requires each tenderer to put in a tender deposit of at least 10% of the tender sale price.”
“Presently, an affluent person who wishes to own a small car has no choice but to place a bid in the small car category. If it is a wrong timing, the aberration happens and there may be a bigger demand for small cars and the COE becomes more expensive than the large cars. Sir, as an intermediate measure, I like the Minister to consider removing the categories in the COEs and make it only one class. But for sociological and other reasons like discouraging large car ownership, maybe we can have a premium set for different type of cars. At the end of the day, since all cars are equal, I think we should only have one class of cars in the COE.”
“Sir, the Certificate of Entitlement (COE) is a key component of our road management system and acts as a control mechanism on the car population. Hence, with the recent announcement on the changes in road tax structure and the implementation of the ERP, I think an announcement on the COE should have been made at the same time. No announcement was made on what the COE policy would be like. Sir, since this has not been done, I wish the Minister to also consider making some basic changes to the COE. We have now rationalised that a motorcycle is equivalent to half a car on the road. This being the case Sir, then all cars must be treated as the same, whether it is a large car or small capacity car. The amount of road space taken up or used is the same. Moreover, it can also be argued that we do not have different sizes of car park lots. All car park lots are drawn in the same manner and they are of the same size. In fact, the motorcyclists may even argue that although their motorcycle is equivalent to half a car, actually in terms of parking space, one car park lot may be equivalent to three or four motorcycle parking lots. Sir, since cars are all the same, perhaps we should relook at how the COE categories may be removed. There may have been sociological or political reasons for having different categories of cars in the quota system. But as a result of supply and demand, there have been occasions when in fact a COE for a small car is higher than that of a large capacity car. This rationalisation of putting all the COEs as one class, when put in place, may mean lower COE cost. One cannot assume that even those who can afford a large car may not wish to own a small car from the viewpoint of economy.”
“25; 8 am to 8.15 am, $1.50; 8.15 am to 9 am, a peak charge of $2 or some combination of these charges. If we can do that, the traffic flow would be much smoother. Since the system has not been implemented yet, I urge the Minister to consider this point. Sir, the second point I have to make on the ERP is that the process of planning for ERP has been going on for nearly two years and what we see as a result in the implementation of the ERP is that there are several gantry points sprouting all over Singapore island. Although a lot of tests have been done on this system, we have looked at the functional aspects and I think we miss out on form. The archways look very unsightly, and to make it worse, at the CBD gantry points, we have more than one gantry steel structure. Is it not possible to combine the CBD and ERP gantry points? They look so unsightly. This is especially so in the case of the CBD as this is the main approach to our city centre. Visitors coming to Singapore will not understand why a nice and beautiful city has these very unsightly steel structures.”
“Sir, I must commend the Minister for Communications for the implementation of the ERP system. I think the ground has been well prepared and also the justification for ERP has been made fairly well known. I have no complaints about the charges and there have been no criticisms of the ERP charges that will be implemented. The charge proposed for cars from 7.30 am to 8.00 am is $1. From 8.00 am to 9.00 am, it is a $2 charge, a doubling of the charge. From 9.00 am to 9.30 am, it is $1. Sir, this very large jump from 8.00 am onwards will lead to an uneven and non-smooth flow of traffic. We all know of the current CBD and ECP charges. When there is a charge, drivers slow down in order to avoid paying the charge. And some drivers actually park their cars by the side of the road in order to make sure that they get in at the correct time. So if we have this jump from $1 to $2 at 8 o'clock, then the drivers will slow down their cars and traffic becomes uneven. And marginally, the few minutes before eight o'clock, what will happen is that there will be very light traffic because cars will not be sure that they will meet the eight o'clock deadline. There will be very few cars going in just before eight o'clock. So those few minutes before eight o'clock will be quite crucial when drivers will slow down. 2.00 pm Since the system is electronic, I suggest to the Minister that he should look into the smoothening of the charges. For example, let me give an illustration. If there are intermediate charges before 8 am and there are more intervals for charges, traffic will smoothen out. There could be a compromise of the peak charge. Instead of 8 am, maybe it could be delayed to, say, 8.15 am. So we may have a charge system like 7.30 am to 7.45 am, $1 charge; 7.45 am to 8 am, say, at $1.”