Chua Kheng Wee Louis
Singapore
“It is my sincere hope that the passage of this Bill does not mark the end of Singapore's vision of a share-owning society, but rather the beginning of a new chapter – one in which we seriously revisit how Singaporeans and the Government can invest together, participating fairly and directly in the nation's wealth creation, and achieving w…”
“Thank you, Deputy Speaker. Just three quick supplementary questions for the Senior Minister of State. First, I think the Senior Minister of State talks about gaining access to the best tools available globally.”
“Thank you, Speaker. Just two quick supplementary questions. The first is on the guide that the Senior Parliamentary Secretary shared just now.”
“Thank you, Chairman. Just one clarification for Ministers on the EV chargers. I think the MOT has previously said that we are looking at three to 12 charging points per HDB carpark by 2025, but my question is not so much on the deadline, but more in terms of the number of chargers that can be supported, because in most of the multi-storey…”
“Thank you, Chairman. Just two clarifications for Minister Chee. The first is on the review of the EC policy – any timeline around that? Second is in terms of how the Minister talked about building a robust supply pipeline and given that we are now in March 2026.”
“Chairman, given the increasing unaffordability of ECs in the markets today, I urge the MND to seriously re-think the current EC model and to consider upstream policies to bring the price of ECs into a range that will suit their original intentions. With affordability and equitable access being key tenets to underpin the new EC model.”
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Every one of 716 lines we hold for Chua Kheng Wee Louis, in date order, each linked to its source. Free to read, in full, without an account. Page 9 of 15.
“I will be elaborating further on Flexible Work Arrangements (FWAs) and parental leave during the subsequent Committee of Supply debates, topics which I have been speaking on for the last two years. On FWAs in particular, I am increasingly anxious that whatever gains we have made as a country when it comes to workplace flexibility during COVID-19 are now rapidly being eroded and my worst fears of a return to pre-COVID-19 workplace norms are starting to come true. Residents, family members and friends are increasingly sharing that they are pretty much back to working from the office and working from home is now a distant memory. One friend quipped that his boss said, and I paraphrase, “If you are not in the office, how do I know that you are actually working?” Work from home is just one form of flexible work arrangement, but I fear that if we do not put in place legislation on this matter soon, the hard-earned gains from FWAs in the last few years will soon be permanently lost. On parental leave, I note that while unpaid infant care leave will be raised, there are no changes to maternity leave which was last changed 15 years ago in 2008. That said, the move to raise Government-Paid Paternity Leave from two weeks to four weeks is no doubt welcome, but I note that this is purely on a voluntary basis on the part of employers. As it is, even though Paternity Leave is a mere two weeks, only more than half of our fathers take paternity leave. Will would-be fathers be in a position to take their full entitlement of the expanded paternity leave and feel comfortable doing so? So, I do wonder if Deputy Prime Minister’s message that "we want paternal involvement to be the norm in our society” could in practice turn out as being construed as "paternal involvement is voluntary"?”
“Last year, I highlighted that the Government’s move to introduce a new Additional Registration Fee (ARF) tier for cars is not meaningful in the grand scheme of things. So, I do welcome the Government’s move to further adjust the ARF and cap the Preferential ARF (PARF) rebates at $60,000. With the move, not only would a Ferrari Roma cost about 23% more as a result of the higher ARF, the capped PARF rebates would mean about 22% of the selling price would be lost as well, resulting in a more meaningful contribution of high-end vehicle-related taxes to Government revenues. I hope the Government will continue to consider various options to tax wealth effectively and other forms of progressive taxes to raise revenues more equitably rather than via regressive taxes such as the GST. Finally, on recommendations to truly strengthen our social compact, Mr Speaker, you would know that since I was elected as a Member of Parliament for Sengkang in 2020, strengthening our social compact and in particular fostering greater support for families is a topic which is very close to my heart. Parenting is definitely a struggle, especially if one wants to be an involved parent. Hard choices and sacrifices must be made. But my wife and I have not and will not regret our decision to bring our two boys into this world, who are now about three-and-a-half and one-and-a-half years old today. As Parliamentarians and leaders of this country, how then can we continuously strive to make it easier for Singaporeans to start a family? How can we make the sacrifices and trade-offs less stark and make parents and would-be-parents feel that balancing family, work and life is not a zero-sum game?”
“But I do recognise that the Government is doing more on the property front, with the higher marginal Buyers’ Stamp Duty (BSD) rates for higher-value residential and non-residential properties. In itself, again I do not believe the impact of the higher BSD rates to be that significant. To illustrate, for residential properties priced between $1.5 million and $5 million, the impact of the BSD rate increase only amounts to 0% to 1.1% of the purchase price of the property. Again, in the context of the near 9% rise in private property prices in 2022, the higher BSD may simply be an afterthought. I wonder though if more can be done for our property-related wealth taxes to be more targeted and progressive? Despite hefty ABSD rates for foreigners, that did not stop an entire luxury condo project, EDEN, from being sold to a single family for $293 million, for a single buyer to purchase 20 units in Canninghill Piers for $87.6 million or for a single penthouse unit at Les Maison Nassim to be sold for $75 million last year. In Budget 2009, Senior Minister Tharman as then Finance Minister removed the tax on Net Annual Value with effect from YA2010, for those who own higher-value homes or secondary residences. I hope the Government can consider re-introducing this tax, in which the AV threshold can be set at a high bar, for it to be effective as a wealth tax targeting on those who can afford the likes of our Good Class Bungalows (GCBs) and especially for those private residential properties that are not let out, given the situation we have today where private residential vacancies are near historical lows. To give credit where it is due, I welcome the Government’s recognition that there is scope to make our vehicle taxes more progressive.”
“Is the MOF sufficiently prepared to implement this landmark tax reform from 2025 as what Deputy Prime Minister Lawrence Wong shared? As I have shared in this House last year, I hope that the Government will view the global minimum tax reforms as an opportunity rather than a threat, given Singapore's strong non-tax advantages and attractiveness to MNEs. If a global MNE is already operating in Singapore, what incentive would it have to incur additional relocation costs when the minimum corporate tax rates of 15% would be normalised globally? I hope it is not the case that over the past years, global MNEs’ decision to invest in Singapore boils down to mere tax incentives as the deal-breaker. The Organisation for Economic Co-operation and Development (OECD) has shared with the Pillar Two solution, all economies will benefit from extra tax revenues. All economies. I hope the additional tax revenues from BEPS 2.0 will not simply be in substance returned to MNEs through other forms. Next on wealth taxes, particularly, those relating to property which is the Government’s preferred way to tax wealth. As I have shared last year, while the increase in headline marginal property tax rates appears high, the actual impact on the households involved are unlikely to be material. I further shared about how, based on my analysis, high-end condos in Cairnhill and Nassim Road need only raise rents by 2% to 7% to offset the higher property taxes. As it turns out, private residential rents rose by 30% in 2022. So, while I agree with Deputy Prime Minister that $380 million more per year in property tax revenues is not an insignificant sum of money, I still believe that it may not be that significant to those who are impacted.”
“In my Budget debate speech last year, I spoke extensively about BEPS 2.0. Not only has corporate income taxes been consistently the largest contributor to the Government’s operating revenues, in FY2023, it is now the single largest contributor to the Budget, higher than that of the NIRC. This is not surprising at all if we look at some of the largest companies here in Singapore, with DBS full-year net profit up 20% to a record $8.2 billion, while Sembcorp Industries’ net profit was up three times, supported by higher power prices and margins in Singapore and the UK. BEPS 2.0 is one of the most significant reforms to international tax rules to ensure that Multinational Enterprises (MNEs) pay a fair share of tax wherever they operate. Their fair share of tax. I note that in the Ministry of Finance (MOF)’s Occasional Paper on medium-term fiscal projections, the impact to our single largest contributor to the Budget from BEPS 2.0 is not taken into account, which makes the published medium-term revenue and fiscal projections a lot less meaningful. I recognise that there are uncertainties and the Government needs more time to study these issues thoroughly and will announce changes in the corporate tax system when ready. However, while BEPS 2.0 may have been delayed, the OECD has on 2 February released technical guidance to assist governments in implementing the global minimum tax. If all goes according to plan, this could happen in less than a year’s time, in the beginning of 2024. While precise numbers may not be feasible, does the MOF have a range of blue sky and grey sky projections as to the impact of the implementation of a Domestic Top-up Tax?”
“Corporate income tax, personal income tax and GST are expected to reach new record highs for the third consecutive year. Meanwhile, $185 billion is set to be transferred from the MAS to Government of Singapore Investment Corporation (GIC) in phases to reach the optimal reserves amount. With the deployment of these funds into a higher return seeking portfolio compared to that of the MAS, this would naturally mean higher potential returns to the Government and hence, higher NIRC contributions over time. I thus hope that the Government will not hesitate to support the livelihoods of our fellow Singaporeans, should inflation pressures persist and not slow "more discernibly in the second half" as is expected by the Ministry of Trade and Industry (MTI) and if labour market conditions continue to deteriorate. I do wonder though, what is the cumulative budget deficit from the start of the Government's term to FY 2023, and would the need to maintain a balanced budget constrain the ability of the Government to activate the "drawer plans" that Deputy Prime Minister Lawrence Wong spoke about, should the need arise? Moving into the second segment of my speech on suggestions on how best to grow our recurrent revenue sources and raise contributions from those segments that are better able to contribute. I agree with what Deputy Prime Minister Lawrence Wong shared about keeping “our overall system of taxes and benefits fair and progressive” and that “those who are better off contribute more”. However, I believe there is significant scope for us to do more to better achieve these stated objectives, such that the drive to have everyone contribute something does not risk morphing into common suffering for the man on the street.”
“Over the past year, I shared in Parliament my observations on what appears to be the better-than-expected fiscal outturn in Financial Year 2021 (FY 2021) and FY 2022. It appears that against the spectre of COVID, operating revenues and the primary deficit in the last two years, have indeed, been much better than expected. In FY 2021, actual operating revenues were about $5.9 billion higher, while the primary deficit was $13.4 billion smaller than initially estimated in Budget 2021. This meant that instead of a S$11 billion overall deficit that was expected, the Government's fiscal position in FY2021 turned out to be a surplus of $1.9 billion instead! Similarly, in FY 2022, operating revenues are now expected to be $8.5 billion higher than what was initially estimated in Budget 2022. Despite higher expenditure and special transfers, the overall fiscal position is still expected to improve by $1 billion. Had it not been for higher special transfers, the Budget would have similarly turned in a surplus instead of an estimated $3 billion deficit instead. But, do not get me wrong, it is not that I am against the idea of these transfers in 2022, as I recognise that the top-up to the GST Voucher Fund following the enhancement of the Assurance Package announced in November 2022, was a key source of the increase in special transfers from $6.2 billion as initially estimated to $9.2 billion, thus contributing to the deficit for the year. After all, even without raising the GST rate to 8%, GST collections rose $1.8 billion in 2022. Looking into FY 2023, I note that the Government expects a modest deficit of $0.4 billion. Despite slowing growth, operating revenues are expected to see strong growth in the year, up S$6.4 billion compared to 2022.”
“Mr Speaker, after more than three years of battling COVID-19, it appears we have finally seen the light at the end of the tunnel. However, while the acute phase of the COVID-19 pandemic is now over and we can all wave goodbye to the wearing of face masks, there remain many other challenges facing Singaporeans in the horizon. The one thing that is top of mind for many of my residents during our house visits, is the mounting cost of living pressure they face. Inflation, unfortunately, is not a phenomenon that Singaporeans can wave goodbye to in 2023. The Monetary Authority of Singapore (MAS) expects inflation to stay high in 2023, with the Consumer Price Index for All Items (CPI-All Items) inflation projected to come in at between 5.5% and 6.5%, and even core inflation is expected to average 3.5% to 4.5%, both of which includes the effect of the 1% increase in GST rates this year and likely next year as well. While the Government still expects economic growth in 2023, amid recessionary concerns globally, I believe the risks to the economic outlook remain to the downside. The MOM too has observed a recent uptick in retrenchments in Singapore and unemployment rates could trend higher. Just over the last weekend, even Google is reported to have retrenched 6% of their Singapore workforce. Against this backdrop of continuing household vulnerabilities, my speech today will cover three broad areas. First, my observations on the Government's fiscal position; second, suggestions on growing our recurrent revenue sources from those better able to contribute; and third, recommendations on truly strengthening our social compact. Thankfully, it is not all doom and gloom when it comes to the Government's finances.”
“So, just to double-check, is this consistent in that it will still be 2,000 to 3,000 in the next two years to 2025, or is Minister saying that it will be 4,000 to 6,000 – 2,000 to 3,000 plus 2,000 to 3,000?”
“Thank you, Mr Speaker. Firstly, just to respond to Minister's reference to the working paper that we had and then subsequently a clarification for Minister. I think at that point in time, as Minister quoted, we did base our assumptions on an average household size of 3.3. And today, based on the latest data, it is 3.1. And I also note that Minister has said to Member of Parliament Mr Leong Mun Wai in a Parliamentary Question response that the Government does expect in the near future for housing demand to be robust due to strong household formation and societal trends towards smaller households. So, knowing now that effects and circumstances of housing demand has changed and demand will remain robust, I think the question then is do we decide that we need supply or not. And I think it is also important to point out that the context of this paragraph was really in the context of urban renewal and in the subsequent paragraph, Minister would also see that we clearly stated that the BTO projects should continue, just that it would be supplemented by supply from flats that are acquired under the USB. So, in the context of supply of public housing, that would be from the BTO projects as one source and also from the USB as another source. So, that is the clarification. And I think, separately, in terms of the new move to have 2,000 to 3,000 per year of Shorter Waiting Time flats by 2025. I just wanted to check – in the response to my Parliamentary Question in January, the Minister did say that over the last couple of years that there are already 2,000 to 3,000 Shorter Waiting Time flats within the BTO launches.”
“Thank you, Mr Speaker. Just a quick clarification for Senior Minister of State Sim Ann on VERS, as I took some time to relook at what has been shared so far in the public space. I think Senior Minister of State spoke about how the Government under VERS would be the buyer of last resort. And I think this is actually a key plank of what the Workers' Party (WP) has said in the Universal Sale and Lease Back Scheme which we put out, that the HDB is the buyer of last resort for all lessees, at the option of the lessee. But can I confirm that VERS is subject to voting on a precinct level and that it is far less generous than SERS? This is what we know so far. So, for a young family that buy, say, a Marine Parade flat today which has about 50 years left, the original owner would be able to monetise. But for this young family, should the precincts not actually vote for VERS, then, what recourse would he or she has, and does it mean that their home, or rather, their household net worth would be declining as a result of this.”
“Thank you, Mr Speaker. I have two quick supplementary questions. The first is in relation to the whitelist and eventually the list of approved and eligible credits. What are the steps that the Ministry will take to ensure the veracity of these credits that are available today and in future? Secondly, in terms of the Singapore-based companies themselves who are looking to use carbon credits to offset their carbon emissions, how do we ensure that the companies themselves buy only the verified and so-called legitimate credits?”
“Last September, I tabled an Adjournment Motion in Parliament to call on the Government to take decisive steps to increase the availability of public housing and solve the imbalance between supply and demand. Prime Minister Lee Hsien Loong said during the National Day Rally 2022 that “our problem is not finding the space to build enough flats, nor keeping homes affordable for Singaporeans”. Today, I sincerely hope the Government can seriously consider our request and the people's request by ensuring an adequate supply of public housing to help Singaporeans realise their home ownership dream.”
“" I, thus, sincerely hope the Government can take urgent and decisive steps to increase the availability of public housing and ensure that the housing needs of all Singaporeans are met. Allow me to conclude in Mandarin, Mr Speaker. (In Mandarin): [Please refer to Vernacular Speech.] The Government often stresses that home ownership has been, and will always be Singapore's key housing strategy. Since this is the Government's position, it is only natural for us to believe that the Government can effectively implement this strategy. I acknowledge that compared to 2021, housing supply is set to increase by about 35% over 2022 and 2023, with about 23,000 BTO flats to be launched per year. Moreover, HDB stated that it is prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed, subject to prevailing demand. These numbers, however, need to be put in context. Even if the HDB decides to launch the whole 100,000 flats in total from 2021 to 2025, this implies that BTO supply falls 20% to about 18,400 flats in 2024 and 2025. Moreover, while the average of 20,000 BTO flats between 2021 to 2025 is an increase compared to average of 17,000 flats between 2016 and 2020, this is still 13% below the average of 23,000 flats in 2011 to 2015, during the time when Mr Khaw Boon Wan was Minister for National Development and sought to address the backlog in HDB flats. We have already seen BTO application rates climbing steadily over the past decade to new highs. What is of greater concern is that despite the supposed ramp-up in supply in the past two years, overall application rates have remained stubbornly high at 5.1 times in 2022, suggesting that the level of demand-supply imbalance remains a critical concern.”
“In October last year, I asked if additional sites can be activated to increase the number of HDB BTO flat launches beyond the current plan to launch up to 100,000 flats in total, from 2021 to 2025, should demand exceed current projections and if not, what are the constraints for not being able to do so. Apart from reiterating existing plans to launch up to 100,000 flats between 2021 and 2025, I do not think I got a response to my question. However, if we look at the HDB BTO launches over the last 10 years, approximately half of the sites used for public housing developments over the past 10 years were greenfield. In comparison to brownfield sites, and certainly so for sites which are already located within existing housing estates, there need not be as much land preparation works that need to be done. Just last month, the hon Mr Gan Thiam Poh even asked whether the open land between TPE and Fernvale Street will be used to build HDB BTO flats to meet the increased demand for public housing and if so, when will HDB flats be built there. I note that based on the URA's gazetted Master Plan 2019, plot ratios for certain sites have even been determined at 2.1 and 3.5, with the road name Fernvale Crescent also decided. So, like Mr Gan, I too hope MND will launch HDB flats at Fernvale Crescent soon. I am comforted by Prime Minister Lee's comments during the National Day Rally late last year, where he shared that and I quote, "We have done our studies and planning. We will have enough space for future generations. Our problem is not finding the space to build enough flats, nor keeping homes affordable for Singaporeans. We know how to do that.”
“The shrinking of overall average household sizes also does not appear to be letting up, at 3.15 as of 2021, the lowest recorded figure since 1990 when it was over 4.2. MND, too, noted in a Parliamentary Question response in November 2022, that over the past 20 years, the average household size among resident households living in HDB flats shrank from 3.57 to 3.09. For the near future, MND expects housing demand to be robust due to strong household formation and societal trends towards smaller households. My question, then, is if it is already a known fact to the Government that the demand for housing is broad-based and it is unlikely that societal trends are going to go into reverse anytime soon, should we not take more proactive steps to address demand from Singaporeans, rather than try to curb demand? Moreover, I believe net immigration into Singapore could add further strain on local housing demand. In the latest labour market report for the third quarter of 2022, MOM noted that the labour market maintained its growth momentum in the quarter, as total employment continued to expand robustly, led by non-residents at 71,100, compared to residents at 4,800. We are seeing high occupancy rates at dormitories as the number of Work Permit holders in the Construction, Marine and Process (CMP) sectors is currently at more than 10% higher than pre-COVID-19 levels. Two weeks ago, The Straits Times reported that record-high HDB rents and difficulties in securing accommodation are driving Malaysians working in Singapore to live in Johor Bahru and commute to Singapore daily for work instead. Should the non-resident labour force continue to grow, this could continue to add further strain on our already strained housing market situation. Can more be done? I certainly think so.”
“If, and even if, there truly are excesses, whether in the short run or medium run, these can be repurposed into public rental flats which my hon friend Assoc Prof Jamus Lim has elaborated on. Fortunately, or unfortunately, the private sector has its way of adding to residential supply through en bloc and redevelopment schemes, which partially mitigates the supply situation. A cursory look at the new launches for 2023 would suggest that a significant number of them are derived not from GLS, but also from en bloc and redevelopments concluded over the last few years. What, then, has been the key drivers of residential demand? In response to my Parliamentary Question in October, MND shared that demand for housing has been broad-based. On this point, I fully agree with the Government's assessment of demand. More households are forming as the echo-boomer generation are getting married, especially with the easing of COVID-19 measures. We also see societal trends shifting to smaller households, as young couples, singles, as well as adult children, choose to buy their own homes instead of living with their parents. Indeed, I have observed that the growth in resident households has, over the past decade, consistently outpaced that of the resident population. To put into context once again, the number of BTO flats launched, the number of citizen marriages was cumulatively about 230,000 over the last 10 years up to 2021. However, the number of HDB BTO flats launched was only about 192,000 units or so in the same period. Yes, there could be a minority of citizens who can purchase private residential housing as their first home, but even ignoring demand from other groups of Singaporeans, the number of flats appears to be insufficient to meet even the demands of our newly-weds.”
“8 times in 2012 to 5.6 times in 2021 and 5.1 times in 2022. What is of greater concern is that despite the ramp-up in supply with 35% more units last year, overall application rates have remained stubbornly high at 5.1 times in 2022, compared to an average of just over three times in the past decade – suggesting that the level of demand-supply imbalance remains a critical concern. The issue of supply shortages is not unique to just the public residential sector but, similarly, applies to the private residential market as well, given the similar approach taken by the Government. Again, I note that in percentage terms, the Government has increased the supply of private housing, including Executive Condominiums (ECs) on the confirmed list of the Government Land Sales (GLS) programme by 75%, from about 3,600 units in 2021 to around 6,300 units in 2022. In the first half of the 2023 GLS programme, the number of units has also increased by about 17% half-on-half to about 4,100 units. We must, however, put these numbers into context. Last year saw the lowest annual primary sales volumes across private housing and EC units in the last 14 years. But there were about 8,600 units being sold. More than 36% of the number of units made available in new supply in 2022, if we consider the last 10-year average primary sales volumes of about 12,000 units, then essentially, last year's supply is just about half of the average annual sales volume. It is no wonder that the level of unsold inventory in the private residential market is hovering near historical low levels today. And as I have shared earlier, private residential vacancy rates are hovering near historical lows. So, it is not as if we are looking at "ghost towns" being built.”
“Private residential vacancy rates are hovering near historical lows, at 5.5% as of the fourth quarter of 2022. For the HDB market, in response to my Parliamentary Question in October last year, MND shared that over the past five years, the annual average number of unoccupied HDB units ranged from about 1,400 to 3,900. These units make up a mere 0.1% to 0.4% of completed flats. While multiple rounds of cooling measures in the past have typically focused on the demand side of the home purchasing equation, fundamentally, I believe the shortage in supply is a key contributing factor causing the imbalances we see in the market today. I acknowledge that compared to 2021, housing supply is set to increase by about 35% over 2022 and 2023, with about 23,000 BTO flats to be launched per year. Moreover, the HDB stated that it is prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed, subject to prevailing demand. These numbers, however, need to be put in context. Even if HDB decides to launch the whole 100,000 flats in total from 2021 to 2025, this implies that BTO supply falls 20% to about 18,400 flats in 2024 and 2025. Moreover, while the average of 20,000 BTO flats between 2021 and 2025 is an increase compared to an average of 17,000 flats between 2016 and 2020, this is still 13% below the average of 23,000 flats in 2011 to 2015, during the time when Mr Khaw Boon Wan was Minister for National Development and sought to address the backlog in HDB flats. We have already seen BTO application rates climb steadily over the past decade to new highs. For 3-room and larger flats, this increased from 2.8 times in 2012 to 6.1 times in 2021 and 5.5 times in 2022. Including 2-room flexi flats and on an overall basis, BTO application rates have climbed from about 2.”
“This was in spite of the cooling measures introduced in September 2022. For the full year 2022, HDB resale prices saw another year of double-digit price increases at 10.4% compared to a year ago. In the last three years, HDB resale prices rose by a whopping 31%. Private residential prices, similarly, rose in spite of rising interest rates, though the extent of increase is ironically nowhere near that of the public housing market, with 2022 price increases of 8.6%, while in the last three years, prices were up by 22.8%. To put it simply, resale HDB prices are rising far more rapidly compared to private residential prices. Importantly, there appears to be some signs of moderation in the private residential market, with prices up just 0.4% quarter-on-quarter versus 3.8% a quarter ago. The residential rental market is, for lack of a better word, in an even scarier situation. Private residential rents rose by 7.4% in the most recent quarter alone, with rents up 30% in one year and 42% over the last three years. While HDB does not publish a rental index, a comparison of median rentals across HDB towns paints a similar uncomfortable picture. And just a few days ago, Shin Min Daily News reported that a 74-year-old HDB unit at Seng Poh Road was rented out at $6,200 a month. For 4-room HDB flats, median rents have risen by 22% to 50% in the last one year alone, with median rents up 29% to 68% in the last three years. And these are just a comparison of median rents, and to paraphrase what one of my residents at an earlier Meet-the-People Session (MPS) shared with me when I quoted median rents in the market, he asked me to try and go on PropertyGuru to see whether you can find such low rents. It is not hard to imagine how the rental market got so out-of-hand.”
“Mr Speaker, I would like to first declare my interest as an equity research analyst in a financial institution covering the real estate industry. Mr Speaker, "Insanity is doing the same thing over and over but expecting different results." This saying is usually attributed to Albert Einstein, but one might argue it also appears to be the current approach to the multitude of housing-related issues we are seeing in Singapore today. HDB is prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed. HDB will continue to monitor housing demand and make adjustments, where necessary. These statements were first made known in December 2021, after a broad suite of property cooling measures were introduced. We had another round of cooling measures in September 2022, with a particular focus on the HDB market. Yet, following multiple Parliamentary Questions (PQs) and speeches by myself and other fellow Members of Parliament, iterations of statements quoting the "up to 100,000 flats" from 2021 to 2025 figure remain. I say that there is a clear need today for not just 100,000 flats in total from 2021 to 2025 but certainly more, and it is clearly necessary to make adjustments urgently. The objective of my speech today is thus a very simple one: for the Government to urgently execute on the policy to boost the supply of housing to address the shortfall in the market today. It is not difficult to see manifestations of the severe demand-supply imbalance in our housing market today. In the latest fourth quarter 2022 housing data release, HDB resale prices continue to remain firm, rising 2.3% from the last quarter, with the increase higher than the 2.1% quarter-on-quarter increase initially estimated for the quarter.”
“The first is whether or not the six executives involved, authorised the payment of the bribes? And second, are they aware of the payment of the bribes? And if they are, what did they do with the information?”
“Thank you, Mr Speaker. Just a few quick supplementary questions. The first is whether or not the six executives authorised the payment of the bribes. And second, are they aware of the payment of the bribes? And, if so, what did they do with the information?”
“Thank you, Mr Speaker. My supplementary question is on my Parliamentary Question (PQ) in which I asked the effect of this practice on its financial statements and subsequently, the undertaking of regulatory actions against current and former employees, as well as the Board. The reason I ask is because circulation revenues will be impacted; that is the most direct one. And I think this is also something which happened during the time when SPH was a listed company and would be subject to the various market rules under the SGX, and this is obviously information which is relied on by advertisers as well as various capital market participants alike.”
“And to take it one step further again, HDB could even offer low-rent commercial spaces allocated by ballot to stimulate microbusinesses, social enterprise and entrepreneurship in our heartlands. Coffee shops and convenience shops are community spaces that allow residents to meet their everyday needs and foster ties with their neighbours while also being an integral part of our heartland culture and should be more actively promoted. Notwithstanding my clarifications and suggestions, I support the Bill.”
“Finally, while the attention of this Bill is rightly centred on facilitating the upgrading of our existing heartland shops, let us not forget the precincts and neighbourhoods which do not have the benefit of the convenience and rich diversity of having heartland shops in close proximity to our homes. The town of Sengkang which I represent for example is a case in point. Many residents have often shared with me and my fellow Sengkang Members about the lack of coffee shops and everyday conveniences in their neighbourhood. Within my Rivervale division for example, while it is great that Rivervale Plaza and Rivervale Mall provide various retail offerings for those living in the immediate vicinity, there is only one coffee shop and one convenience store in the entire division. For the elderly or for those who are less mobile, having a meal or buying groceries can be quite a troublesome affair requiring the use of public or private transport. If my childhood was spent living in present-day Sengkang for example compared to Ang Mo Kio where I had lived, I would not have been able to say, buy lunch for myself! I would thus like to urge the HDB to also look at neighbourhoods or precincts such as Sengkang which are currently underserved. The Workers’ Party has called for a revival of convenience and coffee shops where HDB should allocate a portion of void deck space to provide for at least one coffee shop for every two precincts, or perhaps we could also consider repurposing certain parts of our multi-storey car parks (MSCPs) which are underutilised to allow commercial spaces even if not for coffee shops.”
“For example, while F&B is the most relevant to our daily needs, there should be a conscious effort to ensure that less popular trades such as a dental clinic or even a veterinary clinic can be found within each neighbourhood. Related to the point about the proactive curation of tenant mix is the push for digitalisation. With residents conditioned to the scanning of QR codes because of COVID-19, it is heartening to hear that today 93% of heartland merchants have gone digital in the form of accepting e-payments. To take it one step further, I wonder if additional support can be provided to our heartland shops to adopt digital point-of-sale (POS) systems? This could further enhance our heartland shops’ store productivity and enable them to better manage their finances. Should there be consent provided, sales information on an aggregated basis could also be studied by the HDB to provide for a data-driven approach to curating the appropriate trade mix for any particular precinct. On the customers front, I recently downloaded the ShopperLink app but frankly did not find it very useful. A search for "bubble tea", for example, Singaporeans' favourite drink did not really throw out any results even though we know that there are many of such shops in the heartlands. Moreover, the coverage only appears to be that of HDB malls rather than the large pool of heartland shops across our town centres and neighbourhood centres. To take it one step further again, perhaps the HDB can consider introducing a rewards programme to encourage continued patronage of our mom-and-pop shops in the neighbourhood, similar to those of retail mall owners in Singapore such as the CapitaStar or Frasers Experience programmes.”
“Any upgrading works will necessarily benefit our heartland shops directly and indirectly, as it is the clear intention of the ROS and related schemes. Even for heartland shop units which are directly owned, common areas are under the ownership of the HDB. It follows logically that any capital expenditure incurred on common areas should be the responsibility of the HDB as well. This is similar to retail malls owned by commercial landlords who may undertake upgrading works and Asset Enhancement Initiatives or AEIs to ensure that the mall is in a good condition and continues to be attractive to shoppers. I take Senior Minister of State’s point that the Government is studying the possibility of reducing the level of co-payment for upgrading costs by shop owners. However, I do hope the Government can review this issue and consider if there really needs to be a co-payment element at all. More broadly, I wish to share several points of consideration to better support our heartland shops. The first is the proactive curation of the tenant mix or trade mix. I note changes to the Price Quality Method tenders for HDB shops which will apply to new tenders starting in the first half of 2023, where the weightage for the business concept and affordability criteria will be raised from the current 25% to 30% to 35% to 45%. The lower emphasis on pricing is a welcome move, given the importance of the affordability of goods and services, and the types of trades offered. Beyond the specifics relating to each tenderers’ design and layout, affordability and productivity, I hope the higher-level curation of trade mix for each area can be conducted on a more proactive basis to ensure the optimal share of each trade category via increasing or reducing the number of similar shops.”
“For computer and telecommunications equipment, this is as high as 52% in March 2022 and even for supermarkets and hypermarkets which was the domain of brick-and-mortar retail, this is now similarly at 14% of total retail sales. I believe online sales will only continue to rise as a share of the overall retail market. For our heartland retail shops, significant upgrading and rejuvenation is much needed, and time is of the essence for many shop owners who are struggling with narrowing margins amid competition and input-cost inflation and slowing sales volumes as they continue to lose market share to glitzy shopping malls and e-commerce alike. While the future of retail is likely in omni-channel retailing where both digital and brick-and-mortar retail coexist, it is important for us to urgently revitalise our heartland shops so they do not lose relevance, as they play an important role in adding vibrancy and character to our neighbourhoods. I thus hope the Revitalisation of Shops Scheme and other commercial upgrading initiatives can be rolled out expeditiously across our heartland shops once the Bill is passed. Moving on to the specifics of the Bill, I welcome the move to reduce the threshold for shop owners to approve upgrading works from 100% to 75% of the total value in votes under clause 5. This would facilitate the upgrading process and not allow any single dissenting shop owner from halting the process indefinitely, while still ensuring that there is supermajority approval for any approved works. Clause 6 however prescribes that the Board may recover from every owner of such commercial property within the precinct as is mentioned in section 77(3A), the costs incurred by the Board in respect of the commercial property upgrading works.”
“Mdm Deputy Speaker, home is where the heart is. And at the heart of our public housing estates are our heartland retailers and hawker centres which play an integral role in our lives throughout one’s life stages. Growing up as a child in Ang Mo Kio and certainly before the age of e-commerce, I still fondly recall how the unassuming neighbourhood centre had almost everything that we needed, with the wet market, hawker centre, coffeeshops, bakeries, minimarts serving our F&B needs; the friendly neighbourhood general practitioner (GP) and dentists looking after our health needs and the retailers selling everything from clothes, hardware, spectacles, laser discs and even Tamiya cars and Pokémon cards that I had a particular interest in in the past. While shophouses and five-foot ways of yesteryears have given way to HDB town centres and neighbourhood malls, it would be a pity if our heartland shops are not able to overcome the challenges of modern retail and the current difficult business environment. Hence The Workers’ Party had in our manifesto called for a strengthening of our hawker centres and HDB shops, and I am supportive of the Bill’s intent to support our heartland shops through creating a new category of commercial property upgrading works, while providing for such upgrading works to be carried out. The convenience of e-commerce has changed most of our lives, largely for the better. During the periods of COVID-19 related lockdowns and mandatory quarantine, food delivery and e-commerce have helped us tide through some very difficult times. Based on SingStat data, online sales now represent about 12% to 15% of total retail sales in 2022, up from the mid-single digit percentages during the pre-pandemic periods from 2018 to 2019.”
“Thank you, Mr Speaker. I have just got two quick supplementary questions for the Minister. The first is in relation to my original Parliamentary Question. Am I right to understand that, at this moment, there are no plans to actually bring in potential foreign players to enter the market, just like what the Government did when it comes to the bus business? The second clarification is, I do hear the Minister's point on the large-scale system, that is, the MRT networks and all. So, given the requirements for economies of scale and efficiencies at the same time, if we are not bringing in the foreign players, would the Government also consider perhaps having just a single operator to manage the entire rail line to achieve those economies of scale?”
“A survey by YouGov in May 2022 on behalf of LinkedIn shared that 75% of LGBTQ+ professionals indicated that it is important that they work at a company where they feel comfortable bringing their full selves to work and 49% indicated that they will not work at a company that does not have LGBTQ+ friendly benefits. Similarly, a Deloitte survey of 600 members of the LGBTQ+ community across 12 countries showed that over 70% of the respondents are more inclined to remain with their current employer because of its approach to inclusiveness, while 37% of respondents indicate that they are actively considering changing employers to find one with a more inclusive culture. Every individual in Singapore should be able to contribute in their fullest capacity without fear of being discriminated against for who they are – be it over race, language, religion, sexual orientation or gender identity. Only then can Singapore be truly a global, cosmopolitan, harmonious home that we can all be proud of. I have a male friend who married his partner of seven years just before the pandemic in New York. The two men are in a loving relationship but there is just one snag – my friend is an only son. When he is old and bedridden, he wants to know that he can trust someone to make difficult medical and legal decisions for him. All they hoped for is that there is at least a jurisdiction out there that can give them societal and legal guarantees that straight couples enjoy. That is why he married his partner, even though he knows that their marriage is not recognised in Singapore. I support the repeal of section 377A and the Constitution (Amendment) Bill.”
“However, they reassured her that all they want is for her to find somebody who would take care of her, whether that person is a boy or a girl. While Theresa's story has a happy ending, another close friend of mine is still facing challenges in broaching this topic with his parents. As an only son, he has been extremely filial to his parents and shares a very special bond with them. A number of years ago, he felt that he no longer wanted to hide his sexuality from his parents and wanted to be completely honest with them as he has been with every other aspect of his life. This was not taken very well unfortunately, with his mother feeling distraught that there was something wrong with her son and even prays at the temple regularly with the hope that, one day, he will be "normal" again. I pray that, one day, his parents will accept him fully for who he is. Mr Speaker, let me draw on what I see in the finance sector where I work. Many financial institutions encourage their employees to bring their true selves to work, because they believe that only then can they truly be engaged in what they do and fully develop their passions. Many banks see being open about being who you are can make for a more productive workforce. They have clear DEI – or diversity, equity and inclusion – talent policies. Incorporating DEI into business operations has proven to benefit companies' performance because it encourages a wider range of views and opinions among staff. All these have clear, measurable impact and should equally apply to our country and economy, too, where we place a very strong emphasis on developing everyone's potential.”
“She shared her incredible journey as a child born with spina bifida, to becoming our first female swimmer at the 2004 Athens Paralympic Games, winning Gold at the 2006 IPC World Swimming Championships and Bronze at the 2016 Paralympic Games. More recently, she has also been elected as one of 10 members of the Singapore National Olympic Council Athletes' Commission. While we know her for her extraordinary achievements, what is less well known were the struggles she and her family had to go through as a disabled person and a queer woman here in Singapore. What was particularly heart-wrenching to me was hearing her speak so casually about the difficulties her parents had in searching for a kindergarten for her back in the 1990s, as they faced repeated rejections the moment the kindergartens found out that she had a disability. She shared that there was even one day when she was not feeling well and threw up after lunch, yet her teacher did not help to clean her up. But she felt that had she been any other normal child, her teachers would have cleaned her up before her parents came to pick her. It is upsetting to hear of such experiences, but I also take comfort in that such behaviour would be completely unacceptable and unthinkable in today's circumstances and we, as a society, have moved to become more accepting of the disabled since the 1990s. Today, however, LGBTQ+ inclusivity remains a frowned-upon topic. As late as 2017, when Theresa shared about how she decided to "come out" in an interview with The Straits Times, she was particularly afraid of how other people would see her and how they would react. At home, she was worried that her parents, in particular, would take this news badly.”
“For the geographies that I mentioned earlier that have repealed discriminatory same-sex laws, that discrimination still exists is a reminder to us that social acceptance is crucial to any landmark legal or constitutional changes, to maintain harmony and stability in society. As such, I do recognise the importance of the signal the new Article 156 sends, to provide greater protection for the definition of marriage and its related policies today. After the Prime Minister's announcement at the National Day Rally, MCI said that media policies on homosexuality will remain, which means, as a Toy Story Fan who has enjoyed the entire Toy Story series since 1995, I cannot bring my children to watch Lightyear, a Pixar animated children's film due to "overt homosexual depictions", as though homosexuality is unspeakable and cannot be seen. MOE said that the education curriculum will still be focused on what the majority of society supports, which is family, between a man and a woman. But at the same time, we need to be conscious of LGBTQ+ individuals being invisible in our curriculums. It will take time for society to come together and, as shared by Leader of the Opposition, Mr Pritam Singh, "create conditions for all Singaporeans to succeed and certainly not to feel marginalised", "where we are tolerant of Singaporeans who are different in as far as the law allows." But it is all the more important for us to understand one another's viewpoints, stay civil and respectful as we engage all members of society as Singapore becomes more inclusive and open. I had the privilege of hearing from one of our LGBTQ+ advocates recently and she is a household name who needs no introduction, Ms Theresa Goh.”
“In addition, retaining a law that is not actively enforced or cannot be enforced sends a confusing signal on how one should comprehend Singapore's legal system. It also means that there is always a chance that a future Government may attempt to prosecute a man for sex with another man that was done in private and consensual. That is why I applaud the Government's move to repeal section 377A. Some will know that my colleague and fellow Sengkang GRC Member of Parliament Assoc Prof Jamus Lim attended a Pink Dot rally this past June in his personal capacity. As shared in a media release for Pink Dot 14, "We are living in an increasingly divided world. The ability to reach across the spaces between us, for dialogue and co-created understanding, is what will keep us safe." Mr Speaker, the issue of repealing, at its core, is not a political one but one that grants dignity and freedom to a marginalised section of Singapore. I am glad to see that society is, indeed, ready to move on and repeal section 377A. But repealing section 377A does not mean discrimination towards the LGBTQ+ community disappears overnight. Discrimination against such individuals still exists in Hong Kong, China, Japan, India and many other jurisdictions where gay sex is not illegal per se. On the constitutional amendment that is being proposed, the message that Singapore sends is quite clear: the idea that marriage is only between a man and a woman and this is a decision that will be left for the legislature and society to decide, and not by the Courts.”
“Having section 377A in our laws means that it is hard to organise support groups to help not just members of the gay community, which is who the laws target, but also the wider LGBTQ+ community, who face discrimination, bullying or mental struggles, just for being who they are. Schools and companies may think twice about setting up official LGBTQ+ groups, or at least show overt support in counselling and supporting these individuals. Let us not forget the unfortunate incident from earlier this year, where a school counsellor himself presented content discriminating against the LGBTQ+ community, before being suspended from all duties pending investigations. The fact that there remains a legal route for prosecuting LGBTQ+ persons has a specific state-sanctioned chilling effect on the community. Retaining 377A also makes Singapore look anachronistic, especially in light of our Asian financial hub status. Hong Kong's Legislative Council passed legislation decriminalising homosexual acts in 1991. China repealed similar laws in 1997. Japan briefly made homosexuality illegal and then repealed the law during the Meiji era. Homosexual acts were never a legal issue in Taiwan. India, which also shares similar colonial roots as Singapore, struck the law down in 2018. Having section 377A made it challenging to convince prominent members of the LGBTQ+ community – Singaporean or otherwise – in the arts, financial sector, tech and many other areas to remain in Singapore and make meaningful contributions to our society and economy. The LGBTQ+ community's joy of seeing section 377A repealed would have been even greater if not for the fact that the move merely puts Singapore more in line with other cosmopolitan, open and inclusive societies.”
“" or "do you plan to have kids" can come up suddenly at family gatherings or happy hour drinks at work and make them squirm. Think about those awkward Chinese New Year conversations that you have with distant relatives at various stages of your life, be it when you are single, married but without children, or even married with one child, and replicate it throughout the rest of the year. These questions become even more damaging, especially when they are unsure of how others will react to their true sexual orientation or gender identity, and potentially affect their opportunities at work and in society. So, some choose to hide their true selves and avoid talking about who they are dating or their hopes and dreams to lead a stable life. They stay hidden from society. Some choose to be public about it but fear the risk of being punished for their choices by not being considered for promotion at work or being bullied at school. In some form or another, individuals who identify as LGBTQ+ have to cope with additional mental and emotional stress and, in some cases, physical abuse, just for being someone they were born as. Mr Speaker, it has been well-documented that LGBTQ+ individuals are at a higher risk of depression and mental and physical health dangers. Some suffer from internalised homophobia, where they loathe themselves over a sexual orientation or gender identity that they had no choice over. A recent NUS public health survey found that among 570 sexual minority young adults aged 18 to 25, 59% had contemplated suicide and 14% had attempted to kill themselves.”
“Mr Speaker, I welcome the move to repeal section 377A of the Penal Code. For too long, the law has remained in our statutes, explicitly stating that sex between adult men is a crime, even if it is consensual and done in private. Despite the Government having said multiple times in the past that it will not enforce the colonial era law, and with the Court of Appeal ruling earlier this year that section 377A was unenforceable in its entirety, its existence has very real repercussions that affect many of our fellow Singaporeans, their families and their loved ones. The topic of this debate is a complex and multi-faceted one, with individuals, including Members of Parliament, holding deep personal convictions. Yet, beyond the Bills and clauses themselves, we must also be cognisant that the issues we are debating have far-reaching effects into the personal lives of our fellow Singaporeans. It is on this note that I wish to touch on some aspects of the lived experience of our LGBTQ+ community in Singapore, which may be less apparent to those of us who are not from within the community. I am a young father, with a loving and happy family. Section 377A never really bothered me in any way that I live my life. But over the years, I have gotten to know several members of the LGBTQ+ community, some of whom have become my close friends. The daily struggles they face regarding their sexual orientation and gender identity are very real. We all live in a largely heteronormative world. For my LGBTQ+ friends, that means they constantly face subtle judgement, discrimination, apathy and hatred, even towards them at home, at school, in the military and at work. Seemingly nondescript questions of "bring your girlfriend to drink next time" or "where is your husband?”
“Sure. Specific to the original PQ that I asked on the recycling rates by category, I asked that because if you look at the plastics, for example, it is only about 6%; whereas for categories, such as ferrous metal, it is already at 99%. So, in terms of getting to the 2030 target recycling rate, what would be the breakdown for some of these targets? Specifically, for plastics, given that there have been studies which indicate that it is technically feasible to undertake chemical recycling here in Singapore, what are the plans around this in terms of implementation?”
“Thank you, Mr Deputy Speaker. Just one supplementary question for the Senior Minister of State. I am not sure I caught the answer to the question in the original Parliamentary Question (PQ), in terms of the target —”
“I like to thank the Member Mr Xie for his question. In terms of the carbon tax rates, I quoted a series of various numbers – by the World Bank, the OECD and various sources, and I think that is also consistent with what some of the feedback that was provided through the MSE consultations. There are views that based on the existing level of carbon taxes that we have proposed, it is actually on the low end of both the scientific recommendations as well as what is proposed by some of these other organisations in their studies. More importantly, I do recognise and agree with the Member's point in terms of supporting households in this transition and this is something which we have spoken about in the earlier debates as well. In particular, when it comes to supporting households, we have talked about, for example, reducing the impact of higher carbon taxes on households, such as via a green dividend and a green fund. These are mechanisms which can be potentially put in place on top of the various utilities rebates which the Government has also put forth.”
“While the reduction in 2030 target emissions of 60 million tonnes of CO2 equivalent from 65 million tonnes is definitely welcomed, does it mean that we will still reach 65 million tonnes of CO2 or higher ahead of previous forecasts, even as we set a lower 2030 emissions target? I recognise from the Minister's reply to the Parliamentary Question earlier today that we are expected to peak emission sometime between 2025 to 2028, but would that also mean that we are on the higher emissions path in the near term, and are in fact producing even more CO2 than what we previously projected? At COP27, nations around the world are being urged to cut emissions by 45% by 2030, compared to 2010 levels. We cannot, in good conscience, continue to release even more carbon dioxide into the atmosphere against this backdrop. Let us be that bright green spark and show the world that even in spite of our constraints, Singapore can, and must, strive to do more for the climate.”
“Over US$400 billion in spending over the next 10 years will be on climate and energy initiatives, but more importantly, the multiplier effect of this from both the public and private sector would mean significantly higher investments into a new growth area. This could have far-reaching effects across industries and supply chains, with companies likely needing to rethink and recalibrate their strategies to not miss out on the opportunities arising from the energy transition. We need to change the narrative from one of risk mitigation and protection for the industries of the past, to opportunity capture and setting the stage for future growth. Mr Speaker, the question surrounding net zero in Singapore now is no longer when, but how. Our pathway to net zero must be transparent, fair and inclusive. As highlighted in public consultations, Singaporeans want to participate in meaningful discourse over our collective future. This can only be achieved if data related to our emissions – and emitters – is made more accessible and available. The increased ambition in our Carbon Pricing Bill today is welcome, but as climate scientists have repeatedly warned, we are running out of time. Based on the IPCC's AR6, the global carbon budget to stay below the 1.5 degree celsius warming threshold could be used up in less than eight years from now. It is also concerning that while we have a net zero by 2050 target, which is contingent on technological advances, the economic viability of low-carbon technologies and effective international collaborations in areas such as carbon credits and renewable energy imports, it appears that our near-term emissions are still expected to continue accelerating.”
“However, clause 33B of the Bill currently provides an exception where the Minister may "permit eligible international carbon credits to be surrendered in excess of the prescribed limit in any particular case or class of cases". This effectively gives the Minister unlimited legal power to decide the use of ICCs. How will the Minister decide when to lift the prescribed limit? Is there a framework to constrain this decision-making process? Earlier this year, during the MSE COS debates, I asked about accountability measures to ensure transparency and fair implementation in the use of "high-quality international carbon credits". In the spirit of transparency and accountability, my Sengkang colleague Ms He Ting Ru has filed an amendment to clause 29 for public disclosure of Ministerial decisions to permit registered persons of taxable facilities to surrender eligible ICCs in excess of the prescribed limit. Before I conclude, Mr Speaker, I would like to touch on the recent US Inflation Reduction Act (IRA). I shared in my previous speech about how in 1961, Shell built an oil refinery on Pulau Bukom, and this became one of the largest refinery complexes globally and sparked the start of Singapore's pursuit of the petrochemicals industry. In the same way, clean energy and green finance can be our next growth sector. The US appears to be leading the way with its recent IRA, which directs significant funding for climate efforts through a mix of tax incentives, grants and loan guarantees, and is set to be funded by prescription drug pricing reform and a 15% corporate minimum tax among others.”
“Our proposed US$35 to US$57 by 2030 still sits below or at the very lowest end of these recommendations. Next, I will touch on the industry transition framework. The Workers' Party believes in the principle of allowances, and this will be important to ease the transition for both carbon emitters and for individual Singaporeans, such as in the context of a higher carbon tax on power prices. This transition framework could mitigate the impact of higher carbon taxes, such as by giving companies in EITE sectors more time to invest in cleaner technologies. Yet, we must ensure that we do not give out a free meal to polluters. The introduction of allowances goes against the spirit of the Government's previous commitment to apply the carbon tax uniformly to all sectors, including energy-intensive and trade-exposed sectors, without exemption. This is why we are proposing that the Government publicly disclose which facilities are receiving allowances, and for which emission years. I recognise that the Government is proud of the achievements of our energy and chemicals industry, with Singapore ranking as one of the top 10 global chemicals export hubs and one of the top five refinery export hubs. However, such a framework could be seen by some that the Government is overly protective of these industries in the face of the existential threat of climate change and with many of these very same companies keen to decarbonise themselves! Shell and BP, for example, have set net-zero commitments by 2050. Finally, I wish to speak about the use of ICCs. While ICCs hold significant promise, current markets are still highly unstandardised. The Government seems to acknowledge this by allowing companies to offset up to 5% of taxable emissions via ICCs in this Bill.”
“Moving on to the specifics of the Bill, the key point I wish to make today is the need for transparency, as well as the need for continued, or even stronger climate ambition. My first point is on the carbon tax. The Bill proposes an increase in carbon pricing from the current $5 a tonne to $45 a tonne from 2026 to 2027. Deputy Prime Minister Lawrence Wong also announced in Budget 2022 that it will be raised to between S$50 and S$80 by 2030. That is roughly US$35 to US$57. Mr Speaker, I support the more ambitious pricing but believe that there is room to do more. My colleague, Assoc Prof Jamus Lim, shared in his speech in February 2021 about the importance of a well-functioning carbon tax system for delivering effective reductions in our nation's carbon footprint. And as highlighted by some participants who took part in MSE's public consultation, whom, I quote, "were in favour of a more aggressive carbon tax trajectory, citing the higher carbon prices in some other developed countries, the latest scientific recommendations… and the need to sufficiently deter greenhouse gas emissions from growing." As Deputy Prime Minister Lawrence Wong said at the Singapore International Energy Week recently, the carbon tax is an "important lever to shape responsible behaviour", so that consumers and businesses internalise the costs of carbon emissions in their consumption and investment decisions. I fully agree with the Deputy Prime Minister on his comments. But if we look at international benchmarks, the World Bank-supported High-Level Commission on Carbon Prices proposes US$50 to US$100 is needed by 2030, the OECD provides a central estimate of €120, while the London School of Economics and Political Science (LSE)'s Grantham Institute suggests a price of US$145.”
“Mr Speaker, the Carbon Pricing (Amendment) Bill is a step in the right direction towards decarbonising our economy. These changes are all the more significant in light of COP27, which is happening right now as we speak, in which I hope and trust that nations around the world will take urgent and decisive action to tackle the existential threat that is climate change. Before I move on to specifics of the Bill, I would like to recognise the Government for setting a net zero by 2050 target, as opposed to the "by or around mid-century" target that was released in Budget 2022 earlier this year. As I shared in my speech on the Environmental Protection and Management (Amendment) Bill last year and reiterated during the Budget debates this year, we need to set bold, ambitious and specific emissions reduction targets that align with the global goal of reaching net zero by 2050. The IPCC's sixth Assessment Report, or AR6, makes clear that the world faces a frightening future, even if – and that is a big if – the global economy is decarbonised rapidly. Across all scenarios considered by the IPCC, global temperatures will continue to increase until at least the mid-century. In fact, we are now expected to reach this 1.5 degree celsius tipping point 10 years earlier than expected. To limit warming to 1.5 degree celsius with no or limited overshoot, net global CO2 emissions need to fall by about 45% from 2010 levels by 2030 and reach net zero by 2050. Unless immediate, rapid and large-scale action is taken to reduce emissions, the average global temperature is likely to reach or cross the 1.5 degree celsius warming threshold within 20 years.”
“Thank you, Mr Speaker. I have just two supplementary questions for the Second Minister. I read recently that Indonesia will extend its gas supply contract to Singapore by about five years. I think it was announced over the past week. But, reportedly, based on a Reuters article, distribution volume is reportedly 30% to 40% lower but at higher prices. So, in light of these guardrails which, I recognise, strengthen our gas supply agreements, what is the expected change in the mix between piped natural gas and liquified natural gas (LNG) over the next five years and beyond when this new contract expires? Secondly – and this is related to my original Parliamentary Question – in terms of the expected increase in the cost of electricity eventually, what is the increase in this gas supply pricing agreement versus what was agreed on in the prior contract?”
“Thank you, Mr Speaker. If I can have three very short supplementary questions, please. The first is with regard to this year's fiscal outturn. I think the Deputy Prime Minister shared that we do not have any surplus this year but, at the same time, it is too early to determine. But also, at the same time, whatever surplus we have is imaginary. I recognise that I have limited information. But as I shared in my speech, just based on the first six months of the operating revenues that have been disclosed so far, we have a $5.8 billion increase in revenue, compared to the year before. So, even if we less off the $1.5 billion package in October and $1.4 billion announced today, would it be wrong to say that there is still some slack, at least based on what is disclosed so far? Second, in terms of the NIRC contribution, is it wrong to say that increasing the NIRC contribution rate will not result in a decline in revenue? I think an example would be, as I shared in my Budget speech this year, where even if we put into context the drawdown of $43 billion in our reserves for the COVID-19 packages, our reserves today are still higher than they were five years ago. Lastly, on GST exemption and all that, at this point in time, based on my understanding, there are already provisions of zero-rated GST for exports of goods and international services. At the same time, there are certain classes of goods and services that are exempted from GST, such as the sale of residential properties and the provision of financial services as well.”