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.”
The complete record
Every one of 834 lines we hold for Chng Hee Kok, in date order, each linked to its source. Free to read, in full, without an account. Page 4 of 17.
“Sir, with the reassuring note of the Minister on the efficacy and efficiency of the Home Team, I am quite sure that we all can rest much easier now. On this note, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $1,131,351,310 for Head Q ordered to stand part of the Main Estimates. The sum of $898,425,200 for Head Q ordered to stand part of the Development Estimates. Head P”
“Sir, before I withdraw my amendment, I shallwould like to bring the Minister back to the question of privatisation of services. Since the Ministry of Communications is not taking over the Traffic Police, will ould the Minister still consider that perhaps the issuance of notices for illegal parking may be privatised or transferred, let us say, to the HDB or URA which have car park wardens who can be trained to do such a job?”
“45 pm The Traffic Police, on the other hand, are responsible for the general conduct of drivers on the roads. I wonder whether it is not time to consider merging these officers, not physically but as a group, into a single body of men and women charged with the duties of enforcing all laws relating to vehicular traffic and rules of the road. Such officers could be trained specifically for the control of traffic and vehicles and for the investigation of road accidents, which is really quite different from investigating other crimes. Unless someone deliberately runs another down with an ulterior motive, road accidents are usually the result of carelessness more than anything else. This brings to mind the training of the officers themselves. It seems unnecessary to train traffic officers for the general investigation of crime. If the officers are recruited specifically for traffic control, their training can, in fact, be faster and they can be put on the roads quicker to assume duties. The training can also be more focused. Criteria for recruitment may also change. What all this leads to, if I may venture to suggest, is that it seems to be appropriate for the Traffic Police to come perhaps under the Land Transport Authority, although I wish to assure the Minister that far from it for me to suggest that he relinquishes part of his authority. It is a suggestion that it may be better for the Traffic Police to come under the Land Transport Authority, which already handles many duties relating to the road system in Singapore. On the whole, I am sure that Members in the House will want to know whether there are steps taken to rationalise the regulatory agencies with regard to land transport in Singapore.”
“Sir, last year, I raised in the Committee of Supply debate the issue of privatisation of non-essential law enforcement services. Sir, the Police Force, or Home Team, despite the new salary structure will continue to face manpower shortage. A police officer is a highly skilled and trained person. He needs to understand the law, how to apply the law, trained as a diplomat as he is in contact with the public and, at the same time, he must be physically trained to apprehend wrong-doers or perpetrators. Hence, the non-essential jobs outside the scope of the work of a police officer should be done by another agency or perhaps be privatised, for example, the role of the Traffic Police officer in issuing car park violations. This is not a Police function. Will the Minister highlight to the House the progress made in this area of privatisation of services? Assoc. Prof. Chin Tet Yuing: Sir, our Traffic Police is a familiar and frequent sight on our roads and expressways. The officers maintain road discipline but other Members of the House have indicated or will indicate there is some concern over the rising number of accidents and other moving offences. The installation of red light cameras and speed cameras no doubt help in general traffic control. But we do seem to need more officers on highways to ensure a greater degree of compliance to traffic laws. Indeed, the existence of two types of traffic officers may give rise to some confusion. For example, those officers under the LTA are concerned principally with offences relating to overloading of trucks, emission violations or unlawful modifications to vehicles and motorcycles. They do not seem terribly interested in speeding cars or trucks. 2.”
“I would like to ask the Minister to elaborate on what steps have been taken to strengthen the existing measures and whether the police could do more to contain this problem.”
“Sir, Singapore has been rated as one of the safest cities in the world. Singaporeans can take pride in our police force for making this possible. Recent reports on the crime statistics show that crime has been declining despite a number of cases of serious crimes in the first two months of this year. However, as the economic conditions appear to be less favourable this means it is bad news for crime. The reported rise in illegal immigrants also spells bad news. Illegal immigrants without gainful employment are good targets for crime. Since the beginning of this year, the spate of break-ins seems to be on the increase, as the press reports go. Most of them involve burglary in landed properties and in most of these, the burglars were armed. This is most worrisome, as it shows that these armed burglars come prepared and their victims were subdued. In other words, criminals are getting more desperate. On 4th March 1998, three condominium units in Seletar Hills were burgled. Even condominiums which have some measure of security are not safe when it comes to crime. There is every possibility of the crime situation getting worse this year. Besides increasing law enforcement measures, public education must also be stepped up. The recent spate of burglaries may be avoided if the owners had been more vigilant and if security systems had been installed. Educating Singaporeans and reminding them to improve on security measures should be an on-going effort, but they do have their limitations as it is human behaviour to think that bad things only happen to others. Apprehending criminals in housing estates is much more difficult because of the size and location of these houses in the estates. Greater police presence may not be the most effective way of preventing break-ins.”
“Therefore, it goes without saying that the quality of leadership is crucial in such operations. I shall be pleased to hear the Minister elaborate on some of his Ministry's plans to improve the quality of our law enforcement officers.”
“Sir, the salary structure of the Police Force was adjusted last year. This is good news for the police officers already in the force and is certain to attract more capable men and women into the force. I am pleased to read in the press recently that the prison's recruitment exercise attracted an unprecedented number of applicants. I hope that from this wider and better pool of applicants to choose from, the prison authorities and the Police Force as a whole will be able to recruit higher calibre officers. Sir, earlier, I spoke about the problem of illegal immigrants, which has been answered by the Minister, and the need to have the necessary equipment to stop this problem at our coastline. Investing in high-technology equipment will complement and supplement the limitations of human resources, as they can give early warning and pinpoint the locations with accuracy. With the economic crisis in the region, the waves of illegal immigrants, as the Minister and other Members have said, will foreseeably be more frequent and intense. We all know that technology is also making great progress and white-collar crimes have become increasingly more complex and complicated. There was a report recently that some FBI agents in the US are equipped with laptop or notebook computers to help them fight crimes, and they have achieved some measure of success. Sir, the investment in equipment and the changing climate of crime entails that the quality of our law enforcement officers must continue to rise to match the changing circumstances. There is also a compelling need to operate across departments and Ministries, as issues become more complex. Joint operations require well thought out plans and coordination to ensure a greater degree of success.”
“On the legal side, employers must be educated that this is a serious problem and that one should not encourage illegal immigrants by employing them. Despite hefty penalties, there are employers who are prepared to flout the law. On enforcement, the Police should be well equipped with manpower and equipment, especially in the seas, to prevent illegal entry. Once they land on shore in Singapore, and in our midst, the chance of detection and apprehension diminishes. I am sure all Members support me when I say that the Home Affairs Ministry should get a higher vote, if necessary, to implement programmes to counter this problem. The Minister may like to assure the House and Singaporeans on the steps being taken to contain this problem.”
“Sir, I beg to move, That the total sum to be allocated for Head Q of the Main Estimates be reduced by $100. Sir, my subject is on illegal immigrants. Of late, illegal immigrants and overstayers have been making the headlines in the local media. Just this morning, on the front page of The Straits Times, there is a report of some 200 illegal immigrants of various nationalities who were apprehended. The problem is not confined to Singapore. There are continuing reports on this similar issue in Malaysia almost on a daily basis. This morning, The Straits Times showed most graphically the situation in Malaysia headlined, "Foreigners caught in garbage truck". They even come in garbage trucks. The following article also reported that Malaysia is urging Indonesia to act on this issue, as presumably a large number of illegal immigrants in Malaysia are from Indonesia. With the tightening up in Malaysia, combined with the slowdown in the economies of neighbouring countries and the increasing number of unemployed, the problem in Singapore looks set to get worse. This is worrying. As the economy in Indonesia is set to decline, going by press reports, the problem must be contained. Whilst the success of the police raids is commendable and comforting, the substantial number of illegal immigrants apprehended in the last few police raids, in fact, means that this is just the tip of the iceberg. There must be a large pool of illegal immigrants and overstayers in our midst. Although Singapore is not a large island, the coastline is long and one can imagine the difficulties the Police must be facing in trying to stop the tide of those seeking to enter Singapore illegally. I have no doubt that the Police is doing its utmost to contain or arrest the problem.”
“Sir, let me first declare my pecuniary interest as a director of Singapore Power. Sir, the recent power failure in Auckland, New Zealand, was a very serious one. We are talking of a power failure on the scale of not hours but weeks, and now it is running to a month. A power failure of this scale, not only causes a lot of personal inconveniences, but will be very disastrous for commerce and industry. With the now privatised electricity and gas of the former Public Utilities Board (now part of Singapore Power), we are encouraging competition to make sure that we provide a good service at reasonable cost to consumers. Tuas Power Station will be coming on stream sometime next year as reported. Whilst competition is good and necessary for efficiency and lowering cost, as quite well demonstrated in the case of the cellular phone system, competition may also mean a ruthless look at cost cutting that may, over a period of time, mean a negative impact on performance. A major power failure in Singapore on the scale of New Zealand will be a disaster. Right now, Singapore's power supply is one of the best, if not the best, in the world. Sir, I would like to urge the Minister, whilst encouraging competition, to keep a close watch on the regulation of power supplies, to watch not just the cost but to ensure that performance will be tip-top, and that we must never allow a major power failure to happen.”
“Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $204,696,350 for Head T ordered to stand part of the Main Estimates. The sum of $418,568,400 for Head T ordered to stand part of the Development Estimates. Head E -”
“Sir, the Bankruptcy Act was amended last year to raise the limit by which bankrupts may be discharged. In view of the fact that the economy, because of the regional currency crisis, is due to slow down, there is likelihood that there will be more bankruptcies. As my colleague has just mentioned, bankruptcies have gone up by 30% last year. I want to ask the Minister, in view of the changes in the Bankruptcy Act and that the economy may go through a more difficult period, whether the Official Assignee and Public Trustee (OAPT) has sufficient manpower to cope with the workload to make sure that those who are in need of help to be discharged will be discharged. Perhaps more can be done in this area and how bad is the situation?”
“Firstly, in the area of substantive law, there need to be more coordinated efforts, for example, in the laws relating to the media, especially electronic media, integrating intellectual property laws, and laws relating to electronic commerce. In procedural law, the time has really come to review the antiquated codes of procedure evidence, such as the Criminal Procedure Code and the Evidence Act. In legal institutions, we need studies done, for example, on the operation of the various new ways of dispute settlement, such as mediation and conciliation, on the relationship between mediation and adjudication. Sir, in today's modern societies and fast paced economies, we may need to have an efficient and effective law reform agency that can not only keep pace with developments but enable us to plan ahead. That is part and parcel of being Singapore. And I hope that in the not too distant future, we can have this agency to help make the legal system even much more admired and respected.”
“Chin Tet Yung (Sembawang): Sir, our legal system is much respected and admired. It is due in no small part to the various institutions that make up the system - our Judiciary, Legal Service and the professions. Our laws too have been much admired. We have had many visits from legal professionals in the region who are interested in our laws and our legal system. We are looked upon as a country where every law is thought through carefully, where once it is enacted is enforced. These visitors will probably be surprised to hear that currently our law reform is not centralised. We have the Singapore Academy of Law Committee on Law Reform that has done an excellent job in specific cases. We have the Attorney-General's Chambers' Legislation Division, and we have the various Ministries each proposing laws. It may be time to take a more holistic view to law reform. We may also need to speed up reforms of the law in relation to a number of areas. We need to keep up with the fast pace of change, for example, in areas of cyber laws. We need studies also to be made in relation to a number of legal institutions such as sentencing policies. I am sure that they are done currently by a number of agencies, but that is precisely the point why we need to have a Law Reform agency capable of and able to respond quickly and a singleness of mind to the business of coming up with modern and well thought-out laws. The time surely has come to think of a full-time agency dedicated to law reform. Such an agency can be used to recommend and draft new laws and to study the impact of existing laws to see whether they are working well and, if not, how they can be improved. I can think of at least three areas where such an agency may help.”
“Sir, I beg to move, That the total sum to be allocated for Head T of the Main Estimates be reduced by $100. Sir, recently, at the last Parliament meeting, we amended the Films Act, as a result of changes in technology. Now, the Inland Revenue Authority of Singapore has also implemented the e-filing system or electronic filing system for those who file their income tax returns through the Internet. Sir, such electronic filing with modern technology raises several questions. For example, the integrity of the electronic system, what is the liability for wrong filing, and what happens if there is a fraudulent filing by somebody on behalf of another taxpayer. Where is the applicable law when filing through electronic means, through the Internet, which can be done from a point outside Singapore? The source of the filing may not be in Singapore. There are many questions related to this issue, as technology is in fact moving at a much faster pace than what we all can imagine. The question really is this: do we need to update our laws more regularly, and which other areas the law need to be updated? May I ask the Minister that perhaps he should look into the setting up of a Review Committee, and to include technical consultants or experts in this Review Committee, to review laws that need to be amended so as to ensure that we are up to date. Having a Committee will also enable some form of uniformity of the law because we do not want to have the same set of laws on different issues with different penalties, if they are for the same offence, for example. Sir, will the Minister consider setting up a Law Review Committee to make sure that our laws will be reviewed in line with technological changes? Assoc. Prof.”
“Chairman then similarly said that they all should resign. However, Chairman said that he would be glad to meet them to know who they are, to explain and hear their views.' Mr Speaker, Sir, this is not meant to be a blow-by-blow court room reconstruction or forensic examination. A strong divergence of views has led to a personal clash. Mr Philip Yeo did wrong in telling MPs to resign. I think Mr Chng did not take the correct attitude either in the argument which he made that it is perfectly all right to break bonds as it is just a legal obligation. There is nothing we can do about the past. The matter has come up, so I have produced the facts which I have.”
“Mr Speaker, Sir, quite obviously, no, and I was caught by surprise that the sequence of events in the minutes sounds most reasonable. Sir, as I said, I cannot find anywhere in the minutes which mentioned about a number of my parliamentary colleagues who share similar views and yet at the same time, there was a follow-up letter to me on 2nd February on that very same topic. BG Lee Hsien Loong: Mr Speaker, Sir, let me put the position quite clearly. This is not minutes of meeting. This is a file note. There was an informal discussion and the EDB officers jotted down points. There was, to put it mildly, a strong divergence of views. The meeting broke up. When Mr Chng raised the matter with me, I asked EDB whether they had the record. They prepared this and gave me this from the points which they jotted down. As you can see, Ho Meng Kit, Shirley Chen, Timothy Sebastian, three EDB officers, prepared, vetted and approved the file note, not Philip Yeo. Philip Yeo was away. Philip Yeo came back and I asked whether the file note was a complete account. EDB wanted to add more to the file note. I said, "No, you leave it. This is what is written. Give me a supplementary note." Because Mr Chng had told me that he had asked the other MPs to resign, I would read the relevant paragraph from the supplementary note: `Going back to the issue of his daughter, Chairman asked Mr Chng whether he would encourage her to break bond prematurely. Mr Chng replied loud and clear, "Yes." Chairman was really shocked. Chairman told him that he showed a bad moral example for an elected MP. Mr Chng argued that the bond was a mere contract and it had no moral value. Chairman then suggested that he should resign as an MP. Mr Chng defiantly said that there were many other MPs who share his value system.”
“It was not started in the way it was put in paragraph 1, ie, it was explained to me the overall picture and why we are not supposed to do what I did, and when the press should ask me, please support. Nothing was mentioned about the press. In fact, I told DPM before I came to this Chamber that had that been the approach, I would have supported the Government. I want to make it very clear to the DPM, the Prime Minister and to this Chamber that, as a Government MP, I have never never acted against Government's policy. Since the Government is now stating that breaking a bond is wrong, it is not in line with Government's policy, I wish to state for the record that I shall not have my children act against this policy. If they have a scholarship, they will fulfill it. If not, they will not go ahead. However, Sir, this does not mean that PAP MPs should not speak on issues against naming of scholars. There is long-term repercussion. It can be a very traumatic experience. Unless the Government thinks through very carefully, this policy of naming scholars may not be the right approach. That is all I am saying. Dr Tan Cheng Bock (Ayer Rajah): Mr Speaker, Sir, my name was mentioned. I would like to ask a question but I do not know whether to direct it to the Minister or Chng Hee Kok. Maybe I should address it to Chng Hee Kok. If it was a breakfast meeting, I would expect all the participants at this meeting to be given minutes of this meeting. So I want to ask Chng Hee Kok whether he received the minutes of this meeting. Because the persons who were present at the meeting must verify the minutes and make corrections, if necessary. So I just want to ask Chng Hee Kok whether he received the minutes of this meeting.”
“And later on, in the middle, when I confirmed that a number of my colleagues shared similar views about naming scholars, because I had a lunch discussion in Parliament and a number of people do express that there is no need to name scholars, EDB Chairman said that they should do likewise. This was not in the file note. A number of points I made two days ago in reply to Dr Tan - I stick by what I said - were not in the file note. But these are not important points. The most important point is that he did ask me to resign. The question is: Which stage did he ask me to resign? Will I, as a guest of very important civil servants go out of my way to the meeting and start to provoke them? Would I do that? These are very powerful civil servants. I went to the meeting with a very open mind. There was some provocation, which is why the EDB Chairman said that he reacted accordingly. That provocation was about my daughter. At that stage, the discussion went awry. It was no good anymore. He posed a hypothetical question and he got a hypothetical answer. Perhaps this is Mr David Lim's half-told story, I think. Sir, I do not intend to prolong this whole episode. I think the point to be made is that the meeting went awry. In the first place, I still do not understand what was the objective of that meeting. EDB Chairman made a public speech. A PAP MP has spoken out that there was no need to do what he was going to do. I was invited to breakfast. Three very senior officials in the civil service spent a lot of time and effort and, up to today, I still do not know the objective of the meeting.”
“Mr Speaker, Sir, may I just have your indulgence to speak on the Ministerial Statement. Instead of couching all the points I made in the form of questions, I just want to say a few words about what transpired. Sir, when I was invited to this breakfast meeting, I thought it was a social breakfast. No sooner did we get the food from the buffet table, EDB Chairman gave me a draft announcement of three scholars who were terminating their bonds. He showed me a copy of The Straits Times' report of 13th October on the table. Yes, I admitted I said I agreed that I had spoken against him. My views remained what was reported. Without much preamble, he accused me of sharing the values of those three scholars who were breaking their bonds. And because I shared their values, I should resign. I was completely caught off guard by this response of EDB Chairman and two very senior civil servants. I was definitely very surprised. Of course, my immediate reaction was to question his standing in asking me to resign. Elected representative - resign! So I told EDB Chairman that he should not take the matter personally. His is a Government's position. I have spoken up against Government policies several times before. One can imagine the atmosphere after this came about. I sat down for breakfast, and I was asked to resign. And certainly the discussion got a bit awry. The sequence is very important. The file note says in paragraph 6 that he then asked me to resign. But the starting point was he asked me to resign.”
“Such a scheme, which comes with a small `penalty' like a longer bond period, will give the scholarship holder the flexibility of making up his or her mind after a few years of studies, bearing in mind that the scholar has taken up a scholarship at a very young age. If the scholar chooses to continue further studies, then the loan must be paid up. If the scholar chooses to return and serve a Government agency, the bond is of a longer duration than the norm. Thirdly, the terms of the bond should be liberalised further. The recent announcement of a shortening of the period is a step in the right direction. Lastly, perhaps there should be a class of scholarships with bonds which may not be terminated. In other words, the bond must be fulfilled. The period may be shortened further. This latter scholarship will go some way towards addressing the concerns of those Government agencies which have earmarked the scholars for certain positions in the establishment. There are many ways to vary the terms of employment to achieve our objective. In conclusion, Sir, in the wider context of increasing our talent pool, nurturing talent and attracting talent from abroad, the public shaming of scholars who terminate their bonds must not be part of the grand design. Putting such scholars on the same class as road bullies, Corrective Work Order offenders or those who choose to use our lifts as public toilets is not in the best interest of Singapore. The natural progression, I ask myself, is that if this does not work, what will EDB and NCB do? Perhaps the next logical step is to paste the faces of scholars on lift landings. Sir, I think we need more creative solutions, and I think we are better than the loan-sharks.”
“I was shown a draft statement of their intention to name three scholars who terminated their bonds. Amongst many things said to me at this breakfast meeting, the most senior gentleman in the group accused me of sharing the values of these scholars and he said that if I shared the values of these scholars I should resign from public office. In other words, a civil servant telling an MP to resign. Despite this, Sir, I tried to keep a cool head. I tried to debate the issue but to no avail. We must always be on the lookout for such intolerant attitudes, especially of some in the apex of Government. We cannot value human resource if we are not able to win over those who do not see our point of view. I bring up this episode not with personal affront, but with sadness because today the PERC Report says Singapore has one of the best civil service in this part of the world. Termination of scholarship bonds should not be encouraged. Significant resources other than money have been invested in those scholars. In some cases, the award of the scholarship enables the scholars to gain admission into the most prestigious institutions overseas. As the large majority of scholars do serve their bonds on completion of their studies, the situation is probably not getting out of hand. Even though the regional economies are in turmoil, I believe that the demand for talent will continue. Hence, there should be a review of this issue. There must be more creative solutions to this problem. Firstly, since we are on the lookout for talent, the Government should allocate more financial resources for scholarships. As an example, a million dollars will see to at least five scholars a year. Secondly, perhaps we should consider providing scholarship loans which may be converted into service bonds.”
“The exercise of moral responsibility is never meant to be one sided. Hence, I agree with Tan Sai Siong of the Straits Times when she said that two wrongs do not make a right. In the Straits Times of 1st March 1998, it was reported that in the case of the PSC, only 4% of the scholars terminated their bonds in the last five years. The URA has reported in the same article that none of its overseas scholars terminated their bonds - a very enviable record. Obviously, Sir, the PSC and the URA must be doing something right. Why is the situation so different in the EDB and the NCB? Sir, going by press reports, perhaps these two organisations should examine their attitudes and inflexibility of approach. Personally, Sir, I have an experience which lends weight to this point. On 12th October last year, I made a public speech against naming of scholars who terminated their bonds. This was reported in the Straits Times and Zaobao on 13th October 1997. In that address, Sir, I suggested that whilst the Government was trying hard to bring in foreign talent to increase our talent pool, shaming scholars ran counter to this objective. We should instead increase the number of scholarships by anticipating the small number who may terminate their bonds. Moreover, Singapore has the financial resources to do so. The other reason I gave then was that as long as the scholar continued to contribute his services to Singapore, as my friend, Mr Leong Horn Kee, has mentioned, the country has lost little. Whether in the private sector or public sector, a scholar can contribute to Singapore's growth. Sir, this did not go down well with EDB. I was invited to a breakfast meeting in January this year with the most senior officers of EDB and NCB.”
“It is not uncommon to hear of employers who shun from employing Singaporeans who have incurred the displeasure of Government or Government agencies. Although this perception is not true, employers do not wish to take chances on doing the wrong thing. Hence, public naming of scholars has very deep repercussions. We can understand Mrs Yee when she said that she is afraid that her son may not come home - home to an uncertain future. Some form of disapproval can be expressed, Sir, in the case of those who terminated their bonds, but have we gone too far? In the joint statement, EDB and NCB stated, and I quote, "Accepting a scholarship implies a moral responsibility to work with the sponsor upon graduation". Certainly, scholars do have an obligation other than legal to serve their bonds. We cannot encourage scholars to terminate their bonds. Moreover, a scholarship in Singapore brings much honour and prestige to the scholar and the family. Hence, terminating a bond must bring with it some dishonour. At the same time, with this very heavy handed approach, is there not a moral responsibility on the part of these Government agencies to protect Singaporeans like Hector Yee, Teo Hoon Ping and Huang Yian Teik, whose crime is to incur the wrath of some Government officials? They do so by returning monies advanced to them - and this action is contemplated in their contracts, and then have themselves shamed. This is not in the contract. Some form of displeasure must be attached to those who terminate their bonds. However, when a Government agency uses the moral argument, it must remember that it owes a higher moral duty through its sheer size, influence and clout not to overuse its power on individuals it comes into contract with.”
“Contrast this approach with that of the 100 best corporations in America. The manner in which this issue was handled, one cannot help but feel sorry for Mrs Janet Yee, the mother of Hector Yee, one of the scholars named. As a mother who sees her son's future being potentially ruined, she has every right to use the word "wicked" on these two organisations. Her very interview reported in the Straits Times on the same day made the agencies looked vindictive and small. How have we come to this? In the joint statement, the EDB and NCB claimed that naming those who terminated their bonds is not to shame these scholars. This sounds disingenuous. If splashing the names of scholars in such statements is not meant to shame or scare other scholars from thinking or doing likewise, then what is the very purpose of doing so? It may be argued that the use of terms such as bond-breaker and breaking bond are emotional terms similar to law-breaker and breaking the law. Anything you break cannot be right. Perhaps it is calculated to be so. Singaporeans take a serious view of names being flashed by those in authority. In the context of bond termination, surely the purpose must be to strike fear. In the Straits Times of 1st March 1998, page 3, the heading of the box article was headlined "THE NAME SHAME". Here, it is the press calling a spade a spade. Let me quote two of the interviewees. One said "Singaporeans are afraid of embarrassment, so publishing names is like the Corrective Work Order". Another comment "EDB's and NCB's actions would turn people off. They are using it as a threat. But if the future employer trusts you, this measure is ineffective". Sir, the operative phrase is "if the future employer trusts you". Singapore is a small country when it comes to the work place.”
“Mr Speaker, Sir, I rise in support of the financial policy of the Government. Sir, Fortune magazine in its 12th January 1998 issue featured "The 100 Best Companies to work for in America". In this feature, there are a number of characteristics which make the 100 companies good employers. First and foremost, these companies work hard to retain their best workers. Employees talk of their companies as fun places to work. These companies exercise flexibility and balance the employee's work and family. Money, though important, is not the criterion why employees remain in those organisations. In short, these corporations accentuate the positive and place a premium on their employees. Talent is a very valuable resource in the 100 best companies to work for in America. Contrast this with what we do in Singapore. In Singapore, we say very much the same thing. In the Finance Minister's Budget, he speaks of "human talent has always been our most precious resource, and will become increasingly critical as we develop into a knowledge-based economy". He went so far as to offer double tax deduction for approved relocation and recruitment expenses for hiring talent from abroad. In other words, there is a Government subsidy for bringing in foreign talent. This, I support. Yet, Sir, on the very same day, on the front pages of our major newspapers, two Government agencies, the EDB and NCB, announced the names of three scholars who terminated their bonds. Their crime seems to be that they have decided to return the monies they have spent in their academic pursuit. They terminated their contracts and returned the monies with interest and penalties. No Government subsidies here, but a rather heavy penalty for being talented. Have we been too harsh?”
“RECOMMENDATIONS OF SUB-COMMITTEE ON BANKING AND FINANCE (Assessment) 10. Mr Zulkifli bin Baharudin asked the Deputy Prime Minister what is his initial assessment on the recommendations made by the Sub-Committee on Banking and Finance and whether there are plans by the Government to open up the domestic banking sector to competition as part of the overall strategy to strengthen Singapore's financial sector. BG Lee Hsien Loong: Mr Speaker, Sir, the Government responded yesterday to the report by the Sub-Committee on Finance and Banking. It has accepted nearly all the recommendations, except for those involving tax issues, which it will study further. We are studying our policy towards the domestic banking sector as part of our overall review of the financial sector. We have not yet reached any firm conclusions. But whatever our policy, the inevitable trend is towards a more open and competitive business environment. The forces of information technology and globalisation will increasingly breach geographical and regulatory barriers. Worldwide, institutions are merging and restructuring. Traditional barriers between markets and products are breaking down. Competition is intense. Domestic banks are important contributors to the stability of our financial system. We want them to remain strong players as the domestic market becomes more competitive. The Government will support them through this challenging transition, but it is up to the banks to upgrade themselves in order to thrive in this new environment. REGIONAL ECONOMIC CRISIS (Impact on cost of living index) 11. Mrs Yu-Foo Yee Shoon asked the Minister for Trade and Industry what impact the regional economic crisis will have on our cost of living index.”
“Dr Augustine Tan published a lucid article in the Straits Times on 12th February 1998, in which he set out quite clearly what is required for a currency to play this role. First, the size of the economy matters. Second, there has to be a substantial amount of the currency in international circulation. On both counts, the Singapore dollar does not qualify. It is not without reason that the US dollar is the most widely used currency in international trade. The primary reason the Singapore dollar has not become internationalised is that there is no market demand for it. Our policy against the extension of credit in Singapore dollars to non-residents could not by itself have prevented the internationalisation of the Singapore dollar in the face of market demand. The basic rationale for not encouraging the internationalisation of the Singapore dollar remains valid. If the Singapore dollar is widely held and used internationally, our influence over the exchange rate would diminish, making the currency more vulnerable in a speculative attack, even though our sound fundamentals make it unlikely that such attacks will eventually succeed. As a small and open economy, we cannot afford this. However, within this framework, we are reviewing some of the specific restrictions on the use of the Singapore dollar, with a view to making adjustments that can help to further develop the financial sector, particularly in the area of capital markets. In each case, we need to weigh the incremental risks to monetary and exchange rate management against the potential benefits of further liberalisation. MAS is currently studying this issue as part of its review of policies affecting the development of Singapore as a financial centre.”
“In the extreme, what the Deputy Prime Minister has described is actually being practised by some other countries in Asia and would he say, in cases like this, this may lead to undermining of the system and loss of confidence by foreign investors if Government intervenes too much? BG Lee Hsien Loong: Yes, if we intervene and prop up companies which should not be propped up, straightaway it affects our reputation and our standing, and everybody will know this is a different kind of system. It is not just half a percentage point, plus or minus, of the GDP. But is this a system where the rules stand and you go for the free market and you take the upside, and you lump the downsides? Or is this a system where you go for the markets, you take the upside and in a downside you run to me and my friends get help? That is a very important distinction and a key reason why in this period Singapore has not been as badly affected as the other countries. SINGAPORE DOLLAR AS COMMON TRADING CURRENCY IN ASEAN COUNTRIES 9. Mr Shriniwas Rai asked the Deputy Prime Minister whether (i) it is in the long term interest of Singapore to allow the Singapore dollar to serve as a common trading currency in ASEAN countries; (ii) he would consult expert as well as the Chambers of Commerce before a decision is taken by the Government; and (iii) the Government is still of the view that the Singapore dollar should not be internationalised. BG Lee Hsien Loong: Mr Speaker, Sir, we have not received any specific proposal to use the Singapore dollar as a common trading currency among the ASEAN countries. If and when we learn the details of such a proposal, we will evaluate its benefits and costs. However, the first question is whether the Singapore dollar has the pre-requisites for being used in this way.”
“If we include provisions for regional loans that they had set aside in earlier years, they will have set aside $2 billion. Most of this, which is $1.8 billion, consists of provisions on loans to non-bank customers in the region, or about 8% of such loans. The provisions vary from country to country, depending on the risks assessed by the banks in each case. As a result of these exceptional provisions for regional risk, the six local banking groups will report significantly lower earnings in 1997 compared to 1996. In aggregate, their earnings will decline by about 30%, although some banks will decline by more than others, depending on their regional exposure. However, all six banks are financially sound. They have strong capital positions, exceeding 12% of their risk-weighted assets, higher than most banks in other countries. They also sit on substantial reserves. These comprise the general provisions they have accumulated in previous years as well as substantial assets valued at cost, which remain well below current market values. The MAS is satisfied with the provisions that the local banks are setting aside in 1997 as part of prudent banking practice. By recognising the potential problems early, the banks will be well prepared to cope with any further eventualities in the region. The Member has also asked about foreign financial institutions. Foreign banks book their loans to the region in various branches, not only in Singapore. Their global exposure to the regional countries, as disclosed by their head offices, is more relevant than the exposure of their Singapore operations alone. Some foreign banks disclose their regional exposures in their annual reports.”
“The total classified loans of the six local banking groups to these five countries amounted to 5.7% which is $2 billion of their loans to these countries. This figure is based on an assessment by the banks' auditors in mid-January, taking account of developments up to that date. It is higher than the preliminary estimate of 3.2% which was $1.2 billion for November 1997, which I provided in my previous parliamentary answer, and it follows the comprehensive and updated review of the banks' portfolios by the auditors. The total classified loans for the local banks, including both local and overseas loans, were 2.6% of their total loan portfolios. My previous figure was 2%. As a percentage of their total global assets, this was 2.3%. Perviously, it was 1.7%. These figures remain well within comfortable limits. The local banks, in consultation with the MAS, have decided to set aside substantial provisions to cater to the potential risks arising from their exposure to the regional economies. They have each made full specific provisions for their classified loans, with the actual provisions depending on whether the loans are classified as sub-standard, doubtful or bad. They provide 10% for unsecured sub-standard loans, 50% for doubtful loans and 100% for bad loans. In addition, the banks have also made general provisions on the performing loans in their regional portfolios, over and above their normal general provisions. These exceptional general provisions are of a precautionary nature, and may not eventually be used. They will provide a buffer against a possible further deterioration in the quality of their regional loans. In total, the six banking groups will set aside $1.6 billion from their 1997 earnings in regional, specific and general provisions.”
“The fund will come from Singapore's earlier US$5 billion contribution towards the IMF second-line financing package for Indonesia, which so far has not been drawn upon. Guarantees under the proposed facility will be given by MAS. MAS has the authority to extend such guarantees under section 23(1)(k) of the MAS Act. The contingent liability posed by the guarantees will not draw on the reserves that MAS has accumulated prior to the current term of office of Government which began on 25th January 1997. This is because MAS has, during the term of office of government, accumulated reserves well in excess of the US$2 billion for the guarantee facility. Since there will not be a draw on past reserves, the Attorney-General has advised that there is no need to seek the President's approval for the guarantee facility under Articles 22B(6) and 22B(7) of the Constitution. LOANS EXTENDED BY LOCAL AND FOREIGN FINANCIAL INSTITUTIONS TO REGIONAL ECONOMIES (Update) 7. Mr Chuang Shaw Peng asked the Deputy Prime Minister if he will give the latest update on loans extended by local and foreign financial institutions to regional economies, especially Indonesia where a de facto moratorium on debt payment has been announced. BG Lee Hsien Loong: Mr Speaker, Sir, as at 31st December 1997, the six local banking groups had loans and investments amounting to $37.2 billion, which is 16% of their total assets, in Malaysia, Indonesia, Thailand, Korea and the Philippines. This is $3.8 billion or 9.2% lower than it was a month earlier. Two-thirds of this exposure was in Malaysia, where Singapore banks have long established operations. Their exposure to Indonesia was $5.4 billion or 2.3% of their total assets.”
“Mr Speaker, Sir, without naming the countries, maybe the Deputy Prime Minister will like to indicate how many countries are likely to participate in this counter guarantee scheme? BG Lee Hsien Loong: Mr Speaker, Sir, I think you will need half a dozen or a dozen in order to make it worth while. But as I have stated, none have committed because all are waiting to see what will happen. Mr Jeyaretnam: I am sorry to have to come back to this question about parliamentary approval. The Deputy Prime Minister now says that under the present law, it is not necessary. But does he not think that it runs completely counter to the opinion of the Attorney-General which was read out to this House by the Minister for Law on the question of the loan? We were told then that it was only for a guarantee that approval was needed. BG Lee Hsien Loong: Mr Speaker, Sir, I am not a lawyer, but Article 144 pertains to the giving of guarantee by the Government. In this case, the guarantee will be given by the Monetary Authority of Singapore and Article 144 does not apply. A different Article applies and it does not require the President's approval. GUARANTEE FOR INDONESIAN IMPORTS (Approval by President) 6. Mr Simon S C Tay asked the Prime Minister, as regards the proposal discussed with President Suharto of Indonesia for guarantees to facilitate Indonesian imports, whether the Government intends to seek the approval of the President of the Republic of Singapore for any guarantee that Singapore may give. BG Lee Hsien Loong: Mr Speaker, Sir, as I explained just now, the trade guarantee facility will proceed only if enough countries agree to participate. Provided they do so, MAS will pledge US$2 billion towards the Indonesian trade finance guarantee facility.”
“Mr Speaker, Sir, the sovereign guarantee of Indonesian exports is a last resort guarantee. How is this limited only to sovereign risks? Maybe the Deputy Prime Minister will like to explain a little more on how this is limited to sovereign risks. BG Lee Hsien Loong: The scheme is like this. If an Indonesian company wants to import something, raw materials, food, it goes to an Indonesian bank and gets a letter of credit. Normally, that would be sufficient for it to do business. But under present circumstances, many foreign banks are uncertain about the credit status of Indonesian banks and will not accept this letter of credit. So they take this letter to Bank Indonesia, the Indonesian Central Bank, and get the Central Bank to reconfirm it. That means the Central Bank will answer for the letter of credit. Under normal circumstances, that would be sufficient. Because it is Bank Indonesia guaranteeing it and if Bank Indonesia says, "No. I can't pay", then it is sovereign risk if the country is in default, which is a very grave matter. But under present circumstances, even with Bank Indonesia's endorsement, foreign banks are still reluctant to accept the letter of credit and therefore the trade cannot flow. The proposal is for this trade financing scheme to counter-guarantee the Indonesian Central Bank's guarantee so that if the Indonesian Central Bank is unable to cover, then only will it fall back on the other central banks. In other words, it is a back-up line. But it has not proceeded. As the Prime Minister has said, it is still a concept because the countries who might participate are waiting to see if Indonesia proceeds with the currency board and whether there will still be a central bank to counter-guarantee the credits.”
“Sir, this may appear to be operationally efficient. But would it not be better to integrate these blocks of flats with the existing blocks, rather than keeping separate blocks for the elderly?”
“Sir, as a result of the currency turmoil and regional countries facing financial difficulties, it is very likely that the number of foreigners who will invest in properties in Singapore will be reduced. Was this foreseen when the last announcement was made?”
“The Singapore Blood Transfusion Service also provides a special service for the long-term storage of autologous blood in the frozen state for persons who may have unusual requirements for transfusion. These steps taken by the Ministry in respect of autologous blood transfusion should suffice to meet both current and projected needs. My Ministry will review the situation should there be greater demand for autologous blood in the future.”
“Sir, I think we live in a very extraordinary period. My question to the Deputy Prime Minister is that since rising interest rates have an adverse impact on the property market, especially mortgages, will the Government review further its land sales programme, Sir? BG Lee Hsien Loong: Mr Speaker, Sir, we announced in November last year that we had deferred land for 2,000 units of private property from last year's fourth quarter sales into the first half of this year and that we would review the position after the first quarter. We have not begun to act, but that plan stands. AUTOLOGOUS BLOOD BANK 4. Dr Lily Neo asked the Minister for Health if he will consider setting up an autologous blood bank for the general public. The Senior Minister of State for Health (Dr Aline K. Wong) (for the Minister for Health): Mr Speaker, Sir, the Ministry of Health has been promoting the use of autologous blood transfusion as part of a national strategy to make use of all available blood resources to support our health care services. Demand for blood by our hospitals has been increasing and will continue to do so. Autologous blood collection can complement voluntary donations. However, voluntary donations must remain the main source of blood for our transfusion service. The Singapore Blood Transfusion Service and many public and private hospitals offer autologous blood collection services. These autologous blood transfusion services include deposits of one's own blood for self use before surgery, collecting the blood in the operating room and the use of blood salvage procedures. The autologous blood collection and banking services are meeting current needs and can be expanded if necessary.”
“Mr Speaker, Sir, the Deputy Prime Minister has given a snapshot of the banking industry. But surely some banks are more vulnerable or more exposed than others. The question I want to ask the Deputy Prime Minister is: is there one of the weaker banks that may have a more serious problem than the rest? BG Lee Hsien Loong: The banks vary in their exposures but all of them are sound. As you are aware, we have a Committee working on disclosure standards for the individual banks. It is not for me to announce individually their results. In fact, I am not allowed by the MAS Act to do so. But it is for the banks themselves to do so and we have strongly encouraged them, even before this problem arose, to put out more information on their annual statements, balance sheets and profit and loss accounts, so that investors can make sound decisions and assessment as to what their state is. The problem is we have not put out as much as we could have done and as a result, even though the banks are sound, people fear the worst, which is not really justified.”
“Before one looks at the motion itself, it is very important that we look at the existing system and see whether there is something wrong with the system that we need to reform the system, as suggested by the NCMP. First and foremost, the existing system envisages the PM as the leader of the Cabinet who makes decisions who to recruit and how much to compensate them. Sir, he is in a position to look both at the Cabinet Minister's or the political appointee's past records, his present performance and his future potential in deciding how much a person should be rewarded in his job. This job is something that involves a lot of decision-making. The Prime Minister in his position, Sir, is privy to a lot of decisions which may not come into the public sphere. It involves policy decisions, it involves in some cases even mistakes that could have been made by Ministers. These are things which will never surface in public and should never surface in public because they will affect the moral, dignity and standing of Members of Parliament.”
“He again highlighted and compared the salary of a worker who earns $2,000 to a Minister. Here again, the basis of comparison is totally incorrect. First and foremost, an apple should be compared with an apple, not with an orange. We are talking of people who are highly capable who are going to be at the apex of their career when they are called upon to serve in the Cabinet. If at all, they should be compared with the people who hold a similar position outside Government. So if we are talking about a Cabinet Minister, we should look at the person with the same capability, with the same ability, with the same talent, who is doing the same job in the private sector and see what he is earning. That is a fair basis of comparison. In that respect, I was sad to note that the hon. Non-Constituency Member was unable to cite any statistics or figures on compensation. Lastly, Sir, I was even more startled when the hon. Member, Mr J. B. Jeyaretnam, was quibbling about the fact that the responsibilities of Ministers are unknown to him. This is even more startling to me because he being a lawyer in private practice must be very familiar with the Westminster model of government. He must be very familiar with the responsibilities of Ministers in the Westminster model and if at all, he needs assistance, then I would strongly recommend that he look at the Budget Statement very carefully because the Budget Statement for one, in the designation and responsibility of the Ministry, clearly outlines what are the responsibilities of the various Ministries and the Ministers. Similarly, the other book, like Singapore 1997, also goes on to enlighten the responsibilities of the various Ministries. Sir, let me now move on to the motion that is before the House today.”
“Here, I would like to highlight that from what I look at the Government over the past years, I think our Government is one that makes judicious use of public monies. I would like to cite two examples. The first example that I have noticed is that some Ministers carry two portfolios. The easiest option for the Prime Minister or the Government in power would be to allot each ministerial post to each individual so that everybody does not carry too much of a load, but by burdening a Minister with two portfolios, the Government is not wasting money but, in fact, is making judicious use of money. The other thing that struck me while I read the previous Hansard reports was the Prime Minister's statement made in Parliament in 1994 when he disclosed that although he was in a position to pay up to two months' bonus to Cabinet Ministers, all he had paid was 0.9 month's bonus on the average. These two cases clearly highlight that the Government is very conscious of making judicious use of public money. There were a few other arguments which I think were based on fallacy. Sir, first and foremost, Mr J.B. Jeyaretnam nearly got away by stating that the CEO in an MNC has got far more responsibilities than a Cabinet Minister. Sir, I beg to differ. The CEO of a company is only interested in money and profit. He is not interested in ensuring the lives of individuals. Our Cabinet Ministers, besides looking after the financial aspect of Singapore, are also responsible for the lives of Singaporeans. They decide our security, they decide our defence, and they make life-threatening decisions. So they are holding far more responsible position than a CEO would. In any event, Sir, I beg to differ that a CEO of an MNC holds much more responsibility than a Cabinet Minister.”
“The lesson here obviously is leadership - political leadership. Ask any citizen of those countries who is affected by the currency turmoil, and I am quite certain that he will rather have a system in which political leaders are reasonably well paid for the job and persons responsible for policy decisions should stay out of business. In this way, hopefully, with competent persons in charge, policies will be implemented for the good of the country and its people, and not for personal or vested interests. There is a strong nexus between political leadership, economic management and people's welfare. Time and time again, in several countries, poor and dishonest leadership has led to mismanagement of the economy. When this happens, you have read in the papers, some people pay with their lives, not just their jobs. Let us not leave this to chance. But at what price for such a political leadership? I have no more to add than to say that this issue has been settled in the debate and by the adoption of the White Paper in 1994. Therefore, I do not see any pressing need for a review at this time and I urge Members to reject this motion. Mr R. Ravindran (Bukit Timah): Mr Speaker, Sir, I rise to speak against the motion. Sir, as I was listening to the NCMP delivering his message when speaking on the motion, the first thing that struck me was his statement that he has no intention to indulge in any politics of envy. But as I saw him unravel his speech, it became clear to me that what he was indulging in was not anything but the politics of envy. He also highlighted that he wanted to ensure that there was judicious use of our public monies.”
“Despite our growing surpluses, even the investment on our MRT was done after about 10 years of study and only after the Government was convinced of its economic viability. Infrastructure expenditures are very big ticket items, and if we are to spend our money on large scale projects, unless under sound financial considerations, and no other consideration, then the Singapore dollar may not have been spared. Singaporeans are seeing first-hand how poor and unsound policies can have a serious impact on the lives of those who are affected. In Thailand, it was reported that as a result of recent events, two million Thais may be unemployed soon. Just in the Business Times of 4th October, there was a story of how a high-flying former Managing Director of a securities company is now selling sandwiches in a make-shift stall just to eke out a living. There is another story of a former finance executive who is now driving a taxi. So much for Mr Jeyaretnam's sense of proportion. When a country is mismanaged, property values go down, the economy comes to a standstill, jobs are lost and everyone loses. But let us not forget that this finance executive who is now selling sandwiches has a much better chance of getting a job overseas if he is qualified for the job than a person who has lost his job in a factory. I believe the Thai economy will recover in a few years while the current problems are being sorted out. But in the meantime, there is gloom and uncertainty. In a recent business visit I made to Bangkok, I could actually make it to a few appointments in one day, which is quite unheard of, considering the Bangkok traffic. These are abject lessons and illustrate most vividly what unsound and poor policies, especially economic policies, can do to a country.”
“Countries with large rural populations and large land masses are the countries, if there are economic and political problems, which enable the people to go back to the land. They can still farm. The worker who loses his job in Bangkok can go back to his father's farm or go back to his farm in his village and continue life. But in Singapore, with no natural resources and an island with three million people, could Mr Jeyaretnam answer the question? Is it more easily manageable than a large country with a rural population? In fact, recent events have reinforced the view that we must be on the right track. Whilst neighbouring countries suffer from the currency turmoil, we remain relatively unscathed. In the last three months, the Thai baht has lost nearly 30% of its value against the US dollar. The Malaysian ringgit depreciated by one-quarter. The Philippine peso fell by about a similar margin and the Indonesian ruppiah about 35%. We lost about 10% of our value against the US dollar because our economies are linked with those of our neighbours. But as the Minister for Finance has pointed out this morning, measured against the basket of currencies of our major trading partners, I think the Singapore currency stood up very well. The stock markets also in those countries fell in tandem. Some consider us Singaporeans very lucky, Sir. In the rush to shop in Johor Baru, Singaporeans may not realise that the strong Singapore dollar is the result of years of healthy budget surpluses and prudent fiscal policies and large current account surpluses. The fact that we are spared the upheavals of our neighbours is not just good fortune. Money spent on infrastructure and development has always been done on the basis of sound policies.”
“But the underlying message to any educated person is very clear. What are they paying for? Sir, ours is a very unique system and given time more Singaporeans must come to the conclusion that it is a system which works, just like the way the HDB has been created to provide housing for a great majority in a very fair and systematic basis; the way the CPF was created, and even in time, Sir, the COE, and everything which goes towards securing Singapore's future and our children's future. I do not intend to go into the arguments which were well covered in the debates of 1993 and 1994. Mr Jeyaretnam has not advanced any new arguments today. But there are two issues which I thought I should address. He says that the CEOs of multi-national companies have greater responsibilities than that of our Ministers. I have been in the private sector. I have managed companies. I have seen how companies have performed under poor or even dishonest managements. When a private company goes under, there could be a possible rescue attempt. If there is no rescue attempt, Sir, at the end of the day, shareholders lose some of their savings and part of the money they invested in the company. Life goes on. They still have their jobs. They save up more money, and they invest in other companies. But applied to Singapore, where does this leave us? I shall cover this in the later part of my speech. The second point was the scope of the job. He says that we do not have a large rural population where people are scattered widely. We are a very urbanised people. He said we are a small country. The message is very clear. He seems to imply that we are more easily manageable. Sir, this contradicts his whole argument.”
“Benchmarking is an open system. It fixes relativities and it moves with the market. In 1996, ministerial pay was adjusted downwards, although marginally. Sir, I do not intend to go into the details, except to say that we have in place a system of pay for Ministers which I am sure many countries would like to adopt. Pay for Ministers is always a very politically sensitive issue which those on the opposing bench is wont to exploit. It is an issue very few governments are able to discuss publicly, let alone implement. Mr Jeyaretnam has made comparisons of our Ministers' salaries with those in the United States and the UK, whereas it would be more appropriate for him to make comparisons as well with developing countries. I am sure our pay for Ministers is way above those of developing countries. In the UK example he has quoted, I believe Tony Blair wants to move, but he is not able to do so. When Margaret Thatcher resigned as Prime Minister and was removed from the Party's leadership, she had very lucrative book contracts and speaking engagements. In the US, there is a price for public service. Secretaries of State or other Secretaries, ie, the Cabinet Ministers, do lobbying jobs after their stint in government. In fact, all Presidents have lucrative book contracts as well as speaking engagements. So there is a price to be paid for all this. But in Singapore, we are too small. There is no room for such activities. We do not lobby. Parliament is not a lobbying area for anybody. So this is what the system is all about in the UK and the US. If you look at the system of government in developing countries, the contrast is even more stark. Our Ministers get a pay which is perhaps a lifetime pay for a Minister in a developing country.”
“If there is a positive correlation between the haze and Ministers' pay, I hope that the Minister for the Environment will make sure that the haze will not be a perennial affair. After the 1994 debate, as can be expected, this issue was given another public airing, this time most widely and extensively at the hustings during the general elections held in January this year. At rally after rally held by the opposition parties and in their election materials and publications, the electorate was given no respite from this issue. The public was told in no uncertain terms that Ministers were overpaid. The message to the electorate was very clear and very simple: vote opposition for cheaper government. Sir, with the adoption of the White Paper, ministerial pay is now pegged at two-thirds the average principal income of the top four earners in six professions: bankers, accountants, lawyers, engineers, local manufacturing and multi-national CEOs. Put into practice in 1995, we have in place an open and transparent method of setting the pay of Ministers without having to debate this issue each time Ministers' pay has to be adjusted. However, this does not mean that salary adjustments are carried out secretively. Once the pay is benchmarked, it is reviewed by the Salaries Benchmarks Committee whose members are from the private sector. Ministers' salary is gazetted. Moreover, this does not mean that this matter may not be raised in this Chamber, as Mr Jeyaretnam has done today. What we have in place is an open and transparent system in which there is an established principle and salary adjustments are made to continually ensure that the political leadership and the civil service is competitive. This does not mean a continuous uptrend in salaries as some had thought.”
“Jeyaretnam. Sir, this was a landmark event, in that salaries for Ministers and senior civil servants were to be benchmarked against salaries of six key professions in the private sector and were to be adjusted regularly. This was a politically vulnerable move and issue for the Government. Yet, we all knew that it was the right and necessary thing to do. I believe the Government did not flinch. Sir, in that debate, some 29 Members expressed their views including that of Mr Jeyaretnam's colleague, Mr Low Thia Khiang and four Members from the SDP. That debate saw the participation of five Opposition Members. After the general election, today we have only two opposition Members and an NCMP. That debate on the White Paper was spread over three days. The White Paper was adopted by the House and the principle of benchmarking salaries of Ministers against the private sector pay was established. In both debates, Mr Jeyaretnam was not present in this Chamber. This is, in my view, the only compelling reason why Mr Jeyaretnam is raising this issue. He has spent half his time talking about political freedom and the other half about salaries, and that is because he has not been given a chance to have his say in those two debates. Since re-joining this House, Mr Jeyaretnam has a very standard line in all issues and problems, ie, he is always calling for the setting up of Committees or Commissions. He has offered no positive suggestions on any other issue. I hope it has nothing to do with the haze. The debate in 1994 took place under very similar circumstances. The haze situation was bad but not as devastating as the current situation.”