Foo Mee Har
Singapore
“What we need to ensure, therefore, is a better alignment of training and the graduates that we churn out. Loosening the criteria for entry, while simultaneously tightening the conditions for graduation will help keep our tertiary offerings nimble, since we need to worry less about how failing out already small intakes could pre-emptively…”
“Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity.”
“Thank you, Mr Speaker, I have two questions for the Prime Minister. The first question is, with the generous support measures, including the SG60 vouchers, I would like to ask the Prime Minister what impact these measures will have inflation on inflation?”
“So, the Singapore brand has become so exceptional that it is well worth faking, much like a Rolex watch or a Louis Vuitton handbag. And, like these global brands, you know you have made it when imitation becomes the greatest form of flattery.”
“Thank you, Speaker. I thank the Minister of State for the details. I am encouraged to hear the usage but I would like to ask the Minister of State two follow-up questions.”
“Thank you, Speaker. I thank the Minister for his response. I have two supplementary questions for the Minister. First, how does the Ministry plan to leverage the insights from the PIAAC findings, to refine the SkillsFuture programme, particularly in identifying critical skills gaps and developing targeted interventions that enhance the re…”
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Every one of 530 lines we hold for Foo Mee Har, in date order, each linked to its source. Free to read, in full, without an account. Page 10 of 11.
“So, for many business owners, it feels a little bit like trying to keep your plane in flight whilst changing the engine. Madam, thus far, productivity initiatives have focused on gaining efficiency through adopting new technology, automating processes and reducing manpower. But we should not ignore the impact that an engaged, empowered and motivated workforce could bring to a company's productivity. The Randstad Report showed that 23% of Singaporean workers felt unmotivated and that their skills were not being used effectively, while 64% planned to leave their jobs in the next 12 months. The top reasons for dissatisfaction were an unsuitable corporate culture, difficult bosses and being asked to do more with less. The survey showed salary expectations were important, but that Singaporeans were also motivated knowing their contributions mattered. The Gallup report had similar findings. They found that 91% of Singaporean workers are either "not engaged" or "actively disengaged". This means that the employees lack motivation and are less likely to invest effort in meeting organisation goals, and they are, therefore, less productive than they could be. Page: 49 I often hear bosses lament about how difficult it is to motivate Singaporean workers and that their staff's expectations are difficult to meet. On the other hand, I hear employees speak frequently about not being appreciated, about being over-worked and how their employers make unreasonable demands on them. Madam, I believe that the management culture in many companies needs to evolve to spur innovation and productivity improvement. All leaders will agree that people management skills are critical to the effectiveness of any organisation.”
“Assistance to SMEs has been a key feature of this year's Budget. Whilst it is not the job of the Government to pick winners, the intent to reward "more dynamic and efficient" SMEs who make substantial investments to pick up their productivity is the right one. For productivity-laggard industries, such as construction, the Government should not limit their strategy to just wielding "big sticks", but should offer "juicy carrots" to incentivise the adoption of productive technologies. For example, the Government should launch a framework that rewards developers with Page: 48 lower foreign workers' levies when they deploy productive construction designs and technologies. Also, more support is needed to provide the necessary infrastructure for scaling up precast and prefabricated facilities, so that the components can be accessed easily and cost-effectively. In short, the Government can play an active role in transforming the whole construction eco-system. The Government should intensify their efforts to develop a new generation of industrial facilities to improve land productivity and also moderate significant hikes in industrial rent. They can play a key role to facilitate industry restructuring through the provision of shared facilities equipped with a full suite of logistics services, such as the JTC Food Hub with integrated cold-room warehouse facilities. As for businesses, more and more companies accept the need to make productivity gains as a business imperative. But many are only now starting that journey, at a time when many SMEs are struggling just to survive with cost escalation. According to a report by the SBF SME Committee, the number of SMEs falling under DP's "High Risk" Credit Rating has risen to an alarming 43% in 2012, from 25% in 2008.”
“So, I hope that the Government can do more in the coming years to transform our subsidies and the 3M: Medisave, MediShield and MediFund framework, to better match the way healthcare should be delivered. We need to place greater emphasis on preventive healthcare, and stronger structures that promote ambulatory and home care. The use of Medisave should also be made more flexible to cover a wide range of outpatient treatments. Finally, the experience of many countries suggests that increased funding may lead to a surge in utilisation. I hope the healthcare delivery system will be systematically prepared for this possible surge so that waiting times and the quality of care will not be compromised in any way. Moving onto the subject of productivity: as the Finance Minister said, "Raising productivity is at the centre of our economic agenda. It is the only way we can raise our living standards in the years to come". We are now nearly five years into the economic restructuring programme, with the Government having rolled out one scheme after another. It is disheartening to see productivity at zero growth last year and negative 2% the year before last. The economic restructuring efforts need to be intensified urgently and everyone can play a role: the Government, businesses and workers. Madam, please allow me to highlight some points in each area. On the part of the Government, I am heartened to see the extension of the PIC scheme for another three years to 2018. Business transformation takes time. The new PIC+ scheme is welcome – it addresses SMEs' requests for more support in order to make investments that could transform the business. There is also support for business and technical capabilities, financing and internationalisation.”
“I hope the wider community, particularly the enterprises, companies, will dovetail efforts of the Government to serve our Pioneers, offer them special discounts, priority queues and privilege programmes as part of their Corporate Social Responsibility programme, as Member Liang Eng Hwa has also suggested. Madam, let me now highlight some areas where urgent work needs to be done to aid the implementation of the Pioneer Generation Package. First, we need to get the communication right: the Pioneer Generation Package seeks to be comprehensive and offers targeted support. We must not underestimate the effort needed to ensure that seniors understand the different components, the different tiers and the different effective dates of the healthcare package, so that they can benefit fully from it and have peace of mind. Most importantly, many seniors have pointed out that the Package's subsidies will only be meaningful if the escalating medical costs are moderated. Otherwise, it will be a case of "in one pocket, out the other". Also, not all seniors have CPF accounts, which are needed in order to receive planned Medisave top-ups, special efforts should be taken to ensure that those without Medisave accounts are still able to receive financial support. Furthermore, additional funds in Medisave and the expanded use of MediShield Life as a financing mechanism imply more work is needed to bring them closer to actual clinical practice. The two schemes started out historically as means to fund inpatient care and have only recently been expanded to Page: 47 outpatient and community care.”
“The Government's strategies to level up our society and mitigate inequalities have, in 2013, enabled Singapore's Gini coefficient to reach its lowest point in over a decade. Madam, at this point in the discourse, we might be quick to say, "Of course, the Government can always do more". But we should be careful not take the progress we have made on these fronts for granted. Indeed, we should recognise that these impressive trends can easily reverse! Such achievements are the result of carefully calibrated Government interventions, from Workfare to the Wage Credit System, designed to better the lot of lower-income earners. I applaud the Government for its strong efforts in Page: 46 building a fair and equitable society. With the Pioneer Generation Package, the seniors will be honoured with generous healthcare subsidies. I also commend the Ministry for delivering the package in such a beautiful package: It gives public recognition to a special generation who brought Singapore from Third World to First. It is a tribute to their significant contributions to society, and not a charitable handout to the frail and needy. The coining of the name "Pioneer Generation" confers nobility and dignity. When we address seniors by this phrase, I see big smiles and proud faces. To many, the honour of being named a Pioneer of Singapore means much more than even the tangible benefits of this package. To build on this further, I propose that the Government issue an official Pioneer Generation card to identify these special individuals.”
“Mdm Speaker, the Pioneer Generation Package is the highlight of Budget 2014. For the Government to set about Page: 45 assuring an entire generation of 450,000 people of meeting their healthcare needs for the rest of their lives, is unprecedented. Just as unusual is to have these subsidies funded entirely and through the long term, with a hefty $8 billion provision out of the present Budget, thus relieving future generations from carrying this costly gesture. It is also noteworthy that the funding of this package was achieved without the need for any obvious trade-offs or the need to raise taxes. Many Singaporeans may not yet appreciate how extraordinary a feat this is for any government to be able to pull off. How many governments in the world can deliver such a commitment to its people and still maintain fiscal balance? We should take great pride in the way Singapore's finances, managed with exceptional skills in a climate of fiscal prudence, have enabled us to provide for our people. This Budget also reveals important trends that we should call to the attention of our people. Not many have discussed these numbers. Let me just recount some of the key trends. Median wages have increased by about 9% in real terms in the five years to 2013, outperforming other Asian Newly Industrialised Economies (NIEs) and avoiding the wage stagnation or decline seen in many advanced economies. We are close to full employment, with the citizen unemployment rate at a low 2.9%. Social initiatives carried out in the last five years, plus further steps taken in this Budget, represent 2.5 times more support to lower and middle-income Singaporeans when compared to their situation 10 years ago.”
“I would also like to propose shortening the hours when alcohol can be sold at retail outlets as well as the availability of cheap liquor at shops, to address a growing problem of youths and foreign workers having easy access to alcohol. Our Government should conduct a thorough review of not only the supply and sale of liquor throughout the island, but also the pricing of alcohol, to vulnerable groups. Legislations curbing alcohol consumption in public places have already been in place in many jurisdictions across the developed world such as Australia, New Zealand, Norway, US and Canada. In many parts of the USA, regulations prohibit the carrying of open containers of alcohol in public areas such as parks and in vehicles. The New South Wales state of Australia has recently launched tough laws to curb drink-fuelled violence, following a series of unprovoked alcohol-related assaults, including the tragic deaths of teenagers. Mdm Speaker, the Little India riot is a wake-up call, and a valuable opportunity for us to reflect on many issues relating to security, restrictions on the consumption of alcohol and the role of the law, the Police and the public in maintaining calm in our country. We must take carefully considered but decisive steps to ensure Singapore maintains its reputation as a peaceful and secure city to live in. 6.06 pm”
“So, Madam, in this context, I urge the Government to expedite the review of policies on alcohol consumption, which they had started in October last year. Madam, I wish to emphasise that the problems relating to excessive alcohol consumption in public places are not restricted to migrant workers. Anyone who is inebriated and not in control of his/her faculties can create a public nuisance, including locals and foreigners, young or old, rich or poor. I also wish to point out that there is a difference between alcohol consumption in the privacy of one's own home or in a licensed outlet, and alcohol consumption in a public place. Public spaces are shared with other people. When drinkers can no longer control themselves and behave responsibly, it can be an inconvenience to others, and in the worst case, can Page: 100 pose a significant safety and security risk to the public. Many residents in my constituency have asked for the rules on alcohol consumption in public places to be reviewed, as part of the efforts to stop public disamenity. In a recent poll of over 120 residents in Teban Gardens and Pandan Gardens, 78% of them asked for a ban on alcohol in public places, with 85% supporting the ban at void decks and 83% for bans at neighbourhood parks and playground. Mdm Speaker, I propose that, in selected "hotspots" or vulnerable areas where drinking has been an issue, public areas be designated as "no-alcohol zones". At these "dry zones", people will not be allowed to carry or consume open containers of liquor. Exceptions can be made for functions or events, for which a permit must first be secured.”
“What recourse do aggrieved parties have, to seek justice if they feel they have been wronged? Aside from my concerns about proportionality and safeguards, let me be clear that I am supportive of taking preventive measures against outbreaks of public disorders, not just in Little India but in any vulnerable part of Singapore. In one part of my own constituency, which is close to the Tuas and Jurong Industrial Estates, we have large numbers of migrant workers living in dormitories near Teban Gardens HDB estate. Residents of Teban Gardens often complain about foreign workers drinking alcohol openly in common areas such as void decks, footpaths, car parks, staircases and neighbourhood parks, especially during weekends and public holidays. Excessive consumption of alcohol has been consistently linked to noise, littering, vomiting, urination and sometimes even fights, in the neighbourhood. There have been reports of foreign workers exposing themselves after one too many drinks. The situation has improved over the last 18 months after we had carried out some local initiatives, but it is difficult to solve the problem completely under the current laws. I urge the Government to look beyond Little India, and urgently address similar issues in other parts of the island, including Teban Gardens. Even as we await the findings of the COI on Little India, many of us accept that alcohol consumption played a contributory role. In fact, prior to the Little India event, the Government had already started public consultations in regard to restrictions on alcohol consumption to address problems related to intoxicated drinkers in public areas.”
“However, it is just as important that the powers given are proportionate to what is needed, with appropriate safeguards to ensure that they will be operationalised fairly and consistently on the ground. Whilst the Minister had elaborated on the need for POATM in the Second Reading, it is still unclear to me how the proposed POATM enhances the state of security in Little India beyond what is already provided for by the current set of legislations. The Minister took pains to assure the House that the Bill is scoped more tightly to provide Police with focused powers in Little India. Yet, I share the concerns of other Members on the significant powers vested in the Police officers and under some circumstances Auxiliary Police Officers, as described in clauses 9 to 15 of Bill. The Minister pointed out that similar laws are enforced during special events, such as National Day Parade, but this proposed Bill will enforce the laws continuously for a period of 12 months and not just during special occasions. Would the Minister please clarify how we can ensure that these extensive discretionary powers, vested in such a large group of law enforcement officers, including auxiliary police, in some instances, will be applied competently, fairly and consistently, and not open to abuse? In clause 19 (3), the Bill gives the authorities immunity from liability and prosecution, "because of the enactment of the Bill or for anything which is done or intended to be done in good faith and with reasonable care". Are there robust and independent mechanisms in place to deter unjust or unfair police action, which cannot be conscionably interpreted as having been carried out in "good Page: 99 faith" or "reasonable care"?”
“Mdm Speaker, Singapore has not experienced a public disorder on the scale of the Little India riot for decades. It was a strong reminder that we should not take our peaceful state of affairs for granted. Instead, we must take decisive and pre-emptive measures to preserve safety and security, which has been a strength long associated with Singapore. Thankfully, the Government was able to restore peace and stability to Little India quickly. But in the wake of the riot, many Singaporeans are left wondering: are we still vulnerable to a repeat of this incident in the future? What needs to be done to prevent similar threats to public order? Is this isolated to Little India or can it happen elsewhere? And how prepared are our law enforcement agencies to deal with such threats, or worse, if the situation becomes more dangerous, more widespread or more violent? Page: 98 Immediately after the riot, a specific part of Little India was proclaimed an area in a state of danger to public order under the Public Order (Preservation) Act, or POPA. This is effective on weekends, public holidays and the eves of public holidays. A series of measures were implemented that included a ban on public consumption of alcohol in restricted sales of alcohol as well as controlled timings of shuttle bus services bringing migrant workers to the area. In the meantime, a Committee of Inquiry (COI) has been set up to establish what led to the riot, and to recommend how to improve the management of such incidents and reduce risk of future occurrences. Madam, now we have before us, the Public Order (Additional Temporary Measures) Bill, or POATM, that empowers the Police to continue their work in Little India. Madam, I am all for putting appropriate laws and regulations in place, to maintain public order.”
“Thank you, Madam. I have two supplementary questions for the Senior Parliamentary Secretary. The first question is whether MOM sees a link between workers' health and workplace safety, and whether it will establish requirements for companies to check that workers are indeed fit before they start work, because unfit ones can pose a danger to themselves and others. The second question is whether the Government will consider using record of workplace safety as a factor for approving building projects and also tenders for Government projects.”
“I have two quick supplementary questions for Deputy Prime Minister Teo. I have noted Deputy Prime Minister Teo's comment earlier that he will consider no alcohol control laws. Given some of us who are handling areas where there are large congregations of foreign workers, I would like to ask Deputy Prime Minister Teo whether this study can be expedited so that we can quickly look at measures that are necessary to control alcohol intoxication and related problems in local areas. The second supplementary question: Deputy Prime Minister mentioned that additional security measures have been put in place for Little India, for instance the number of Police Officers in the area. I would like to ask Deputy Prime Minister Teo whether similar security measures can also be put in place for areas like in Penjuru Road where there is a big cluster of dormitories, for the similar reasons as Little India.”
“Mdm Speaker, I thank the Senior Minister of State for her very comprehensive answer, as well as some of the reviews that are in the pipeline. I would like to ask three supplementary questions. Hopefully, the Ministry could include these points as part of the review on the moneylenders' regime. Page: 52 First, I do feel there is a need to look at the number of moneylenders that operate in the heartlands. Overall, there may be one number for Singapore, but there should be a cap on the number allowed to operate in the heartlands. Also, the age limit to be eligible to be borrowing from moneylenders should be increased from the current 18 years old, to at least 21 years old so that it is in line with banks' lending requirements on credit cards and personal loans. Next, the Senior Minister of State talked about people over leveraging. That is precisely the key issue: whether Government as part of the review of the moneylending regime could look at what support can be given or that people can expect to get from the Government, to provide for a systematic process of deleveraging.”
“I would like to ask the Acting Minister in order to effect the positive change needed against long hours of work, and given the minimum protection on overtime that we currently have in our laws, both at the non-workmen level and definitely at the PME level, how would we motivate employers to re-engineer the work processes so that people do not have to work excessive hours? What would be the mechanism going forward for us to rethink about this critical issue of excessive hours that people put in if employers are not subject to either compensation and, therefore, cost? What would be the motivation for them to critically think about changing the ways of working?”
“I know of people working on a contract basis for years in companies where, apart from their employment status, their responsibilities are indistinguishable from permanent employees. Will MOM consider a provision that allows contract workers to enjoy the same benefits as permanent employees if they have worked on the same job for a specified length of time? Such a provision will discourage employers from manipulating the employment status to avoid EA obligations, at the expense of the worker. Madam, I support the Bill and I look forward to Phase 2 of the EA amendments to hopefully incorporate the points I raised today. Page: 98”
“Balancing contract and permanent employment is an opportunity for employers to ride the peaks and troughs of their business cycles, and offers companies the needed flexibility to stay competitive and respond to volatile business environment. Many companies have leveraged a contract workforce as an integral part of their operations. Contract work also happens to be a mode of employment that Singaporean workers favour due to its flexible nature. A recent survey by Hays showed that out of 200 Singapore workers surveyed, 80% said they favoured contract jobs. Yet contract workers face far less protection than other workers. Given the trend in employment practices, I urge MOM to consider requiring employers to offer contract workers some basic benefits after a period of employment, and definitely upon renewal of their contract. Currently, contract workers only qualify for certain benefits, such as annual sick leave, if they work continuously for three months. Unscrupulous employers intending to circumvent the EA obligations may coerce contract workers into accepting contracts of three months or less, and then extend these short-term contracts indefinitely, all the while leaving the worker exposed. This practice must be stopped. The renewal of a contractor's term usually indicates that he/she has been found to be suitable for the job and, therefore, the employer should be obliged to extend basic benefits to the contractor upon renewal of the contract. Furthermore, employers should not be allowed to disguise a "permanent" job as a "contract" position in an attempt to avoid the cost of legal entitlements due to "permanent" employees. Such "sham" contracting should not be condoned.”
“Most women juggle family and work commitments, and too many are forced to make the stark and painful choice between full-time work in a conventional setting or none at all, since there are few alternatives available to them. Many who stop work to care for an infant or an elderly parent, never return to the workforce. As one of the world's most wired countries, Singapore has all the technological advances to encourage flexi-work and work-from-home amongst our citizens. All that is needed is the will to make it happen, and I believe the Government should play an active role. I urge the Government to do more to help employers understand the critical role they play, and the advantage they gain, in offering flexi-work arrangements along the very same argument that employers have put forward: that is PMEs' performance should be judged on outcomes rather than face-time in the office. Therefore, in support of families with young children, I would like to suggest that MOM consider empowering employees, through provisions in future Employment Act (EA) amendments, both male and female employees, with children below the age of 12, with the right to request for flexi-work arrangements and to have those requests considered seriously by their employers. Mdm Speaker, MOM has also indicated that they will look into protection for employees in non-traditional work arrangements, such as contract workers Page: 97 and self-employed persons, in Phase 2 of their EA review. Contract hiring is on the rise in Singapore. In 2012, 192,000 or 11.5% of resident employees were on term contracts.”
“Separately, Madam, we should remember that PMEs enjoy no such protection to claim overtime pay. All that the current Bill seeks to amend is section 88 of the EA, so that PMEs who work on public holidays are provided a day off-in-lieu or an extra day's salary at the basic rate of pay. From the Page: 96 perspective of many PMEs, this provision appears rather ungenerous, as public holidays offer those few precious moments in a year when Singaporeans celebrate our cultures, traditions and religions with family and friends. It rather raises the question: should a premium not be attached to the compensation given for PMEs who are required to work on a public holiday? Mdm Speaker, employers have argued that provisions for overtime pay should not apply to PMEs as their performance evaluation should be based purely on work outcomes rather than on the time expended. The employers have also argued that the types of work that PMEs are doing are too diverse to apply strict standards to and, therefore, employers should be given more latitude in administering them. These arguments, I agree, are fair. But to accept them is also to accept that, since PMEs' performance are based on outcomes, employers should be far more supportive of work-life balance, instead of expecting PMEs to clock in face-time in the office in the traditional manner, when there are so many more ways to get work done. Madam, my relentless advocacy for flexi-work stems from observations of missed opportunities in the workforce and under-utilised human resources, especially amongst women and older workers.”
“We have all heard unfortunate stories of, and perhaps some of us have personally experienced, the unintended consequences of overwork: burnt-out executives no longer effective at their jobs, absent fathers and mothers regretting not spending more time with their families, ill health from stress, household tension and even the national fertility rate have, in the minds of many Singaporeans, been linked to unreasonable working hours. Madam, in this Bill, the obligation for employers to pay for overtime is only limited to workmen earning up to $2,500 a month, and even the amount payable is capped at the salary level of $2,250. This limitation leaves a significant segment of non-workmen workforce uncovered. Furthermore, as PMEs are not classified as non-workmen, they will not be covered at all, even when their salaries are less than $2,500! Madam, I believe that when employers are required to pay fair compensation for their employees' long hours of work, they will be motivated to think more critically about their operations and find more productive ways of working. I have, personally, and on many occasions, witnessed how managers, faced with the prospect of needing to account for overtime costs, suddenly come up with creative process improvements that obviate the need for their staff to stay late at work. This could do wonders for Singaporeans' work-life balance! I urge MOM to vigorously pursue the optimal balance to meet the needs of employers and also employees. Non-workmen's salary threshold for overtime payment should grow quickly to align with that of workmen, at $4,500 a month, so that there is no need to distinguish between workmen and non-workmen when paying for overtime.”
“Mdm Speaker, the review and enhancement of the Employment Act (EA), as it seeks to provide better protection for more workers and to raise employment standards, is timely. I am especially pleased that MOM has taken steps to ensure that the EA keeps pace with the changing nature of our workforce, in extending better protection to professional, managerial and executive employees (PMEs). PMEs already make up 32% of our workforce, and this is set to increase as Singaporean workers become better qualified. It is only appropriate that EA start to reflect this trend so that it can stay relevant. In particular, I welcome the move to extend general protection to PMEs earning up to $4,500, including the protection of sick leave benefits and against unfair dismissal, beyond the protection of salaries already accorded to them since 2009. However, I am disappointed that provisions relating to hours of work, rest days and annual leave did not go far enough to effect the necessary change in Page: 95 our work culture. Whilst I appreciate that these provisions must also serve the needs of employers, in order that they may manage their costs and stay competitive, I feel that we are still struggling to find the right balance. Labour studies consistently show that Singaporeans work amongst the longest hours in the developed world. Yet we also know that such long working hours do not necessarily correlate to improved levels of productivity.”
“I thank the Minister for his very comprehensive response and for the table, which helps to provide details of the various schemes and how they target different groups of Singaporeans. Mdm Speaker, I would like to ask a supplementary question. Page: 30 Even though it is very clearly laid out in the way the Minister explained just now, I think somehow the people who need the help have the impression that the schemes are available on a case-by-case basis. I would like to ask the Minister whether the Government will consider communicating the assistance schemes much more clearly to the target groups, so that residents can better understand who the schemes are targeted at, and raise awareness of the availability of the schemes to those in need. It will also give more confidence to residents to come forward if they need help because they are more aware of their eligibility.”
“I would like to thank the Senior Minister of State for your very comprehensive reply. I am still not quite sure about the part on the Court Order. The argument that it was a good safeguard, as the Minister for Finance Tharman Shanmugaratnam explained in Parliament in 2009, I believe still remains valid. I am unsure we are now removing it because we feel that IRAS has a lot more experience and, therefore, we do not need this additional step but actually it is within our control as long as Singapore is able to meet the deadline laid down by the EOI regime. What I am arguing is that, as long as we can meet the deadline, do we have a choice to keep the additional step to give clients and investors optically the confidence that they would have access to the judicial process?”
“Members of this House may recall that when the "Court Order" requirement was instituted in 2009, the Minister for Finance Mr Tharman Shanmugaratnam explained to Parliament why there was a need for safeguards to protect against unauthorised disclosure under the Banking Act and the Trust Companies Act.”
“A recent International Tax Review article reported that Europe's five leading economies had agreed to automatically exchange a wide range of tax Page: 63 information multilaterally, while the finance ministers of Belgium, the Netherlands, Poland and Romania backed the creation of a global system of automatic information exchange that could be based on the US FATCA. Singapore's network of EOI partner jurisdictions is expected to more than double, from 41 to 83. I am concerned about how this would add to the volume of requests and thereby the administrative costs of handling them. How can we justify the significant increase in effort and costs, including Singapore taxpayer dollars, to implement what is essentially a comprehensive information disclosure exercise for another jurisdiction. I hope the Minister can shed some light on how we may resist the trend that FATCA might set. Mdm Speaker, my second area of concern relates to the amendment that gives IRAS access to information currently protected under the Banking Act and the Trust Companies Act for EOI purposes, without having to first obtain a Court Order. Notwithstanding the existing EOI regulations which have been in place since 2009, foreign clients continue to regard Singapore as a major financial centre and wealth management hub. Why? Many of these clients value Singapore's political stability, robust regulatory environment, strong judiciary and internationally recognised rule of law. I am concerned that the proposed lifting of the current requirement – that IRAS first seek a Court Order before pursuing privileged client information – lifting this may undermine the confidence that clients and investors have in Singapore's banking privacy laws.”
“Even the US, the originator of this very intricate scheme, has had to push back its implementation deadlines because of FATCA's exhaustive scope and complexity. Millions of dollars have been spent and will continue to be spent by financial institutions to implement systems and change end-to-end processes in order to maintain verification and due diligence procedures, to identify accounts held by US taxpayers, obtain documentation of each identified account holder to determine US or non-US status, and report detailed information regarding such US accounts. Banks have had to redesign their entire client on-boarding and management systems to comply with FATCA even if some of them handle a negligible amount of business for US clients. Apart from US taxpayers, who are identified by a set of indicia; non US-taxpayers are also required to provide documentation, such as Form W-8, to prove their non-US status. This non-US status needs to be updated periodically. So, not only US persons have to prove, but non-US persons also have to prove their non-US status. So, many in the financial industry actually could scarcely believe the scope and the onerousness of these requirements when they first learnt of it. Burdensome complexity brings with it the risk of non-compliance and the accompanying cost of penalties. There is also opportunity costs associated with bankers spending their time collecting information on clients' tax residencies instead of their clients' financial needs. These are but some of the challenges facing financial institutions in Singapore and around the world, in dealing with FATCA. Thus far, I have spoken only about the requirements imposed by the US regulators. What if other countries decide to follow suit? This prospect is not far-fetched.”
“Mdm Speaker, the Income Tax (Amendment) Bill 2013 proposes 28 tax changes to the Tax Regulations. I would like to focus my speech on amendments relating to the Exchange of Information (EOI) regime. Singapore amended its laws in 2009 to implement the internationally agreed Standard for EOI for tax purposes or the International Standard. Recently, the Global Forum on Transparency and Exchange of Information for Tax Purposes affirmed Singapore's alignment with the International Standard. It is only natural for Singapore to continuously and systematically strengthen our EOI regime in order to uphold our reputation as a trusted and responsible financial centre, committed to combating illegal cross-border tax offences. However, I would like to highlight my concerns about the amendments in this Bill in the following three areas: First, Madam, the implementation of the EOI regime will add significant complexity and operational costs which will have to be borne by taxpayers, individuals and businesses, particularly financial institutions; whilst also increasing the administrative burden on individual Singaporeans. Page: 62 Mdm Speaker, please allow me to illustrate this point by referring to new sections 105I to 105P, which are intended to implement Singapore's obligations under the agreement reached for the purpose of the Foreign Accounts Tax Compliance Act of the United States of America (FATCA), as well as other corresponding or substantially similar agreements that Singapore may enter into with other countries. The truth is: financial institutions in Singapore and around the world are struggling to prepare themselves for FATCA, whether they are IGA or non-IGA. It does not matter if you are on IGA Scheme or non-IGA. Everybody struggles with FATCA.”
“Mdm Speaker, I thank the Deputy Prime Minister for his comprehensive response. I have three supplementary questions. One, given the implementation date of the aggregated debt limit for unsecured loans of 12 times income will only take place 1 June 2015, how can we prevent individuals from chalking up huge debts to well beyond the 12 times income rule? Secondly, if all the banks decide to call on lines on customers that exceeded the 12 months' aggregated debt limit come 1 June 2015, what is the risk of a credit crunch in the industry or forced bankruptcies on vulnerable borrowers? Would the Minister allow "grandfathering" of existing cases? Thirdly, how can we prevent individuals from turning to alternative sources of financing, such as moneylenders or pawnbrokers, which usually charge higher rates or tougher terms and are currently not regulated by MAS? There is no centralised cross-agency database that gives the full picture of an individual borrower's debt from the various sources. How can we ensure on an aggregated basis – both the banks as well as the alternative sources – individuals do not over-stretch themselves and how do we close the regulatory loophole?”
“I thank the Minister for making the process so seamless. The Singaporean families, especially those who already qualified for the CHAS card, would greatly benefit from the streamlined process. I have a supplementary question for the Minister. If a CHAS eligible household suffers a drop in the household income within the two-year validity period – say from $1,500 to $900 per capita household monthly income either because of loss of employment or due to changes in household members' employment – would the Minister consider upgrading the CHAS subsidy level from orange to blue?”
“Technology allows fund transfers by cell phone, transfer and storage of funds via online means, such as cashU, e-gold, bitcoins, while the Internet facilitates communication and radicalisation, logistical arrangements and funding support from potential donors anywhere in the world. Madam, Singapore is approaching the continued threat of terrorism from a position of strength. Our strict legal and regulatory framework has enabled Singapore to avoid a proliferation of informal financial systems, including unlicensed money remitters, such as "hawalas", cash and chit type of networks and cash carriers that are common in other parts of the globe. We have rules on stored value cards. We have an enviable network of treaty parties to collaborate with in this global fight against terrorism. We must continue to deny terrorists the money and means to engage in terrorism. I urge all parties to be cognisant of their critical role in keeping Singapore safe as they join hands with law enforcement and intelligence officers in this ongoing battle. Only by working together can we move the needle in this war against terrorism. Mdm Speaker, I support the Bill. 4.21 pm”
“I also have a question about the application of Singapore's AML and CFT regulations to transactions that take place within the Singapore Freeport, the free trade zone. While there may be no taxes imposed on both residents and non-residents on transactions that occur within the Freeport, it is crucial that AML and CFT regulations be applied and enforced even within the free trade zone to avoid possible abuse of Singapore territory for illicit purposes. Are there reporting requirements for cash-settled transactions within Freeport that exceed a certain threshold? I read from marketing material that there are "simplified customs procedures to preserve client confidentiality" within Freeport – I hope this convenience has been well balanced against our AML and CFT obligations. I turn yet to another possible avenue of abuse by terrorists − the non-profit sector. According to FATF, "the misuse of non-profit organisations for the financing of terrorism is coming to be recognised as a crucial weak point in the Page: 62 global struggle to stop such funding at its source." Charity groups are especially susceptible to abuse by terrorists and their supporters. They offer a veil of legitimacy for terrorist fundraising, attracting unwitting donors who are unaware that the money they donate for humanitarian purposes actually funds terror. The Government should develop strong oversight mechanisms for charities and NGOs, and guard against the possible infiltration of charities by terrorist operatives. Madam, with globalisation, the volume of international remittance has more than tripled to US$381 billion in 2011 since 2000, making it even more challenging to detect suspect terrorist financing.”
“As the noose tightens in the formal financial sector to launder funds, terrorists will be forced to find alternative means. The physical movement of cash is one way terrorists can move funds without encountering the AML and Page: 61 CFT safeguards established in FIs. There is evidence that some groups have converted cash into high-value and hard-to-trace commodities, such as gold and precious stones, to move assets outside of the financial system. It is common industry knowledge that quite a few foreigners visiting Singapore from overseas often pay for their high-end purchases, such as watches and jewellery, here with armfuls of cash. How such individuals are able to bring or obtain such large amounts of cash in Singapore is worrying. In this day and age, persons with legitimate objectives can easily use cheques or credit cards to purchase high-value items, hence, dispensing with the need for cash-settled transactions. We must guard against would-be terrorists attempting to utilise such means to "cleanse" their dirty deeds here. How aware are Singapore-based high-end art, wine, jewellers, precious stone and metal dealers and retailers of their AML and CFT obligations? How many STRs are filed in total, of which how many have been reported by non-financial institutions? How many end up being investigated and/or prosecuted? To address this, I suggest that the Minister consider requiring a risk-based assessment of such vulnerable industries to be conducted and imposing industry-specific cash transaction reporting requirements – such that cash purchases above a threshold of, say, $30,000, need to be reported. I also suggest we step up education for vulnerable industries so that they are aware and effectively trained to fulfil their legal obligations.”
“Many are concerned that they are spending huge amounts of money on compliance that may be focused simply on checking the right boxes, but not the overarching objective of combating the financing of terrorism and money laundering. The relevant authorities can assist the financial sector in its efforts to identify and prevent terrorist financing by sharing intelligence. FIs' understanding of trends, high-risk areas and persons of interest, will enable them to incorporate these into their procedures and risk models designed to identify terrorist financing. A multi-agency forum, similar to the British's "vetted group", comprising experts from law enforcement agencies and the regulated private sector, should be formed to consider sensitive intelligence on new money laundering risks, such that these can be shared as "industry alerts". Third, when FIs are able to study an aggregated view of a suspicious client's transactions across banks and multiple jurisdictions, it is much more powerful than monitoring simply the transactions through their own banks in a single location, as this helps the FIs to monitor and "join the dots" on that particular client's overall financial activity, to determine if these transactions are suspicious or not. However, there are currently no such database and the regulatory practices in many jurisdictions restrict the flow of clients' information, even within the same bank, across borders. Madam, to really win this war against terrorism financing, there need to be platforms to enable high-risk transactions to be monitored and information to be shared across banks and transnationally. After all, FIs already pool credit information through credit bureaus, so similar databases should be considered to monitor suspicious segments.”
“The MAS recently revealed that it has imposed financial penalties on 22 FIs and issued 47 warnings and reprimands for weak controls. Such incidents reflect that FIs remain vulnerable to money laundering. To help FIs become more effective in their efforts to guard against money laundering and terrorism financing, I would like to make the following recommendations for the Government's consideration: First, rather than depend on each bank to define its own policies and procedures for AML and STR, Singapore should consider prescribing a more consistent approach for a minimum set of standards in the industry. Currently, some banks have stronger policies and processes than others, but a country is only as strong as its weakest link. Whilst I acknowledge that we need to allow FIs to operate a control framework that is commensurate with the size and complexity of their business activities, we must ensure that FIs operate at a minimally acceptable standard. Regulators should also encourage collaborations across FIs to share best practices and insights. Meeting AML and CFT standards should not be a competitive issue and banks should join hands Page: 60 to safeguard the overall industry from illicit proceeds. Second, regulators should provide a feedback mechanism to help FIs approach terrorism-financing related issues, such as STR, in a more targeted way. Many practitioners in the industry complain that the Government does not provide enough guidance about what it is looking for so that FIs can better finetune and calibrate parameters to pick up suspicious transactions. Currently, STR filers are unsure whether they are picking up and reporting the right trends, whether their systems are adequately calibrated, and whether they are better at reporting or not.”
“For example, the proposed amendment to increase the maximum fine in TSOFA is made to bring the fine amounts for terrorism financing offences in line with those for money laundering offences under CDSA. Both TSOFA and CDSA contain similar clauses on "Duty to disclose" knowledge or suspicion of a suspicious Page: 59 transaction. But the penalty for contravention is a fine of $20,000 with no jail term under section 39 of the CDSA, whereas the penalty for a similar failure to disclose under section 8 of the TSOFA is a fine of $50,000 and/or a maximum five-year jail term. In many instances, it is not possible for the private sector, such as the Financial Institutions, who file Suspicious Transaction Reports (STRs) to know the underlying cause of the suspicious transactions spotted. Moreover, it is common that terrorists raise funds from a range of criminal activities, from low-level fraud to involvement in serious and organised crime, including drugs and arms trafficking and extortion. As terrorist and criminal activities are often intertwined, it is often difficult to determine whether the funds raised from these activities are destined for terrorist activities or simply the proceeds of general criminal activity. I would like to ask the Minister if there is an opportunity to simplify the legislative framework for AML and CFT to reduce the possible inconsistencies and to help all participants better understand and comply with the law. Mdm Speaker, financial institutions (FIs) are regulated and required to implement processes to detect sanctionable transactions and report suspicious transactions. Currently, each bank defines its own AML and STR policies and procedures. The procedures for detecting suspicious transactions are far from being an exact science.”
“Singapore has been tightening its laws to combat the financing of terrorism and money laundering. The Terrorism (Suppression of Financing) (Amendment) Bill, or TSOFA Bill, contains amendments that are timely and necessary to enhance the effectiveness of Singapore's counter-terrorism financial regime and strengthen Singapore's compliance with international standards set by the Financial Action Task Force (FATF). Mdm Speaker, I support the amendments proposed in the Bill, including increasing the maximum fine for terrorism financing offences, making tipping–off an offence, and protecting the identity of informers. It is also a good move to consolidate all terrorism financing provisions contained in the various regulations under TSOFA, and to refine the exemptions that the Minister for Home Affairs may make to achieve compliance with the UN Security Council Resolution. However, Madam, in other jurisdictions, such as Canada, Australia and Hong Kong, terrorist financing is criminalised as a money laundering offence under their overall anti-money laundering (AML) regimes, given the similarities of the methods used in money laundering and terrorist financing to mask financial resources and activities from the scrutiny of state authorities. However, in Singapore, we have two separate legal regimes: TSOFA under the Combating of Financing of Terrorism (CFT) regime; and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, or CDSA, for all other money laundering offences. This structure creates the risk that related laws may become inconsistent over time, as well as create ambiguity about which law to apply.”
“Mdm Speaker, thank you for allowing me to join the debate. According to counter-terrorism experts, it does not cost much to mount a terrorist attack. But money remains critical to meet the broader organisational costs of developing and maintaining a terrorist organisation and network. Terrorists need money to purchase deadly materials, fund strategic and operational planning, facilitate communications and travel, radicalise others and provide for their families. As such, finding means to raise, launder, transfer, store and gain access to funds remains a top priority for all terrorists groups. The Achilles heel of terrorism financiers may be found in the choke points critical to laundering and transferring funds. Disrupting fund flows constrict the capabilities of terrorists and frustrate their ability to execute attacks. We need to deny terrorists access to financial tools and restrict their flow of funds, forcing them towards more costly, less efficient and reliable means of financing to the point where they are vulnerable to being picked up by intelligence agencies. Page: 58 In fact, financial information has come to be one of the most powerful investigative and intelligence tools available to governments. As money moves through the financial systems, it leaves a verifiable trail enabling investigators to obtain critical information that may indicate illicit activity, identify those responsible, and uncover previously unknown links between terrorist operatives. Financial intelligence has helped to disrupt plots and prevent attacks. For example, the British authorities foiled the Summer 2006 liquid-explosive aviation plot, thanks in large part to critical financial intelligence.”
“Different banks have taken different actions based on their discretion, or at least that was what came across as such. Could MAS have taken a consistent set of actions to send a strong signal?”
“I thank the Minister for his comprehensive response. I have three supplementary questions. One, in light of the fact that financial benchmarks in the future will be using actual trades instead of current survey method, which makes Singapore one of the first countries in the world to implement changes in the way benchmarks are calculated, I would like to ask the Minister how local interest rates and foreign exchange are likely to be impacted, especially during periods of high market volatility and tight liquidity under the new system where we use actual trades as benchmarks. The second supplementary question which I think is in a lot of people's mind is that, given SIBOR is the most commonly used rate to peg local mortgage interest rates and has a large impact on the consumers, could the Minister share with the House the background and details on why SIBOR will exceptionally continue to be set using the survey method? The last question is: at the individual level of responsibility, yes, Minister, I think all banks have taken action. But we have observed different banks had taken different kinds of actions against the traders, for example, some are forfeiting their bonuses; some have demotion and they are really at the discretion of the banks. What appropriate disciplinary action could MAS have taken on individual traders in proportion to their role and degree of misconduct to send a consistent and strong signal to the industry that such behaviour will not be condoned?”
“Mdm Speaker, I would like to ask the Minister a supplementary question. Given the threat of H7N9 and novel coronavirus, how much more is Singapore prepared today, as compared to the SARS outbreak in 2003 to deal with the pandemic in Singapore?”
“I would like ask the Minister a supplementary question. Given the Minister's assurance to keep BTOs prices low, yet the cost of building will invariably be higher due to the higher foreign worker levies. How can we account for the additional cost that the Government will need to bear, going forward? Even though the Minister said that some of the tenders have not come in but, I guess, the cost escalation will invariably be pushing upwards. Could the Minister share how the Government is going to address this cost that the Government is looking to undertake?”
“Mdm Speaker, I would like to ask the Acting Minister two supplementary questions. First, with the car loan tightening policy requiring a much higher amount of payment in cash, I am concerned that those who are less cash-rich will resort to raise the necessary funds by taking Page: 13 up personal loans from banks or moneylenders. Personal loans now attract a much higher interest rate, averaging six to 12 times higher than car loan rates. This will add significant financial burden to consumers. I would like to ask the Acting Minister how we can prevent this situation from happening as we have seen in other countries when the loan-to-value (LTV) is very low. The second question is on how to help people who need a car as an essential form of transportation. For those who need the car for family care-giving obligations or as part of their job requirements, I wonder whether the Acting Minister would consider a different category of loan financing. For example, giving up to 80% LTV for cars but capping the loan value to 50%, therefore creating a new segment of financing for low-cost cars.”
“Sir, many Members, including the Minister of State herself, spoke about the benefits of better work-life balance. I would like to ask the Minister questions in two areas. First, given the low support level by employers, as the Minister of State shared just now, what can be done to change this mindset? To ensure more prevalence of pro-family employment practices, how can the Government agencies lead the way in this area? I would also like to ask the Minister about the new scheme called WorkPro. Have we set any targets to make sure that we will really make progress in this area? The second set of questions is about legislation. The Minister of State said that legislation is not appropriate at this stage. Does the Minister regard the integration of work and family as a national concern? Therefore, is it something that the Government should do something about, and that deserves strong Government intervention and championship, or something that would be rather better left to the best efforts of individual companies? If you do not think that we are ready for legislation, would you even consider putting pro-family employment practices as part of tripartite guidelines for fair employment? Would that be something the Minister would consider if it is not legislation? I would like to ask a last question. Under what circumstances would the Minister consider legislation?”
“The large majority of industrialised countries, such as the UK and Australia, have statutory regulations that make it easier for individual employees to request for flexi-work to balance their care-giver responsibilities. I urge the Minister to embed pro-family employment practices as an integral part of the Tripartite Guidelines on Fair Employment Practices. I recognise whilst not all jobs are suited for flexi-work arrangements, I would like to ask the Minister to consider legislation in the future to give employees, both men and women, the right to ask for flexi-work and have their requests seriously considered by their employers. Madam, I have spoken on this topic on numerous occasions, starting from my maiden speech in this House. I hope that I will have better luck this time with my appeal, as I firmly believe that Singapore can make much more progress in institutionalising pro-family employment practices, with the Government taking the lead.”
“Madam, pro-family employment practices are critical in creating a more conducive environment for marriage and parenthood. Forty-one percent of employers in both the private and public sectors claim to provide flexi-work options, with as many as 95% of public agencies offering flexi-work hours and 100% offering part-time employment. Yet, the take-up rates are abysmally low. For example, 1.4% of Division 1 and only 0.6% of non-Division 1 public officers work part-time. Whilst many Singaporeans yearn for better work-life balance, they fear that their requests for flexi-work hours would cast doubt on their commitment to work and possibly curtail their career advancement. Madam, much more needs to be done to change the mindsets of both the employers and employees, and the level of trust between them. I would like to ask the Minister whether there are plans in place to accelerate the know-how of companies, especially SMEs, to implement work-life balance strategies, bolstered by incentives to do so. How can the Minister help employers understand that sensible work-life policies make good business sense and help companies gain access to a wider pool of talent? The experience of other countries and our own suggests that many fundamental changes will not occur naturally. Instead, they may result only with determined and sustained Government interventions, regulations and Page: 100 provisions. I would like to ask the Minister to consider following the footsteps of many other countries in making the integration of work and family a national concern, and not leave it to the best efforts of individual companies or the occasional campaign or promotion by different Government agencies.”
“Mdm Chair, I would like to join the calls made by hon Members Dr Intan and Mr de Souza. As many as 12,000 abortions take place in Singapore every year. At the same time, we have seen a steady decline of adoptions to only 400 cases. Notwithstanding the complex and sensitive factors at play, the fact remains – that every child that we save from early termination is one more precious Singaporean citizen brought into the world. I urge the Minister to help expectant mothers who are contemplating abortions to consider putting them up for adoption instead. These ladies are often in distress about their personal circumstances and need help to understand that adoption can be a viable option for them. We should put in place comprehensive assistance schemes to provide expectant mothers with both emotional and financial support during their pregnancies. They should be assured that their children would be adopted by couples who have been rigorously assessed to ensure suitability, and could grow up in loving environments, to lead fulfilling lives. Many childless couples spend significant amounts of money adopting babies from overseas. It is heart breaking to read about unethical tactics that some adoption agencies used to find and sell babies. We should be very careful that this demand to adopt babies from overseas does not inadvertently fuel unscrupulous practices that create hardship for families elsewhere. Instead, I urge the Minister to strongly encourage the adoption of Singaporean babies by facilitating the matching of expectant mothers with the prospective adoptive parents locally. And I also hope the Minister can put in place regulations to ensure adoption agencies source children only through legitimate means. Premarital Counselling for Foreign Spouses”
“This vicious cycle then repeats with the next set of commuters. Madam, as you can see, not only does the reliability of the bus timings become an issue with trunk services, but bus capacities also become poorly utilised. I have made repeated appeals to LTA to provide a feeder service that allows for quicker bus turnaround and better predictability of arrival times at bus stops. Instead, LTA has added more capacity to the existing trunk services, which does little to improve the commuters' travel experience. Page: 155 I would like to ask the Minister if he would consider providing feeder services to MRT stations as a key priority under the BSEP to improve connectivity, so as to achieve better predictability and connectivity. Alternatively, would he consider directing some trunk service capacity to ply shorter routes, such as creating service "51A" or "143A"? On the subject of more reliable arrival times, I would like to ask the Minister how the bus operators could be held accountable for timeliness of bus arrivals. Like in London and Seoul, operators should have robust fleet management capabilities to adjust their bus arrival times, so as to even out the regularity along the entire route. Finally, I hope the Minister will direct the planning of transport infrastructure in tandem with the population growth in any one area. Over the last six months, we witnessed a 30% surge in commuters at Teban Gardens Road resulting from the relocation of households to the new SERS development at Teban Vista. Yet, our requests for bus services to be re-routed or expanded to meet increased demand were unsuccessful. Madam, I hope the Minister can look into these issues.”
“Madam, the 2030 vision of a high-quality public transport system shared by the Minister for Transport in support of the Population White Paper is something that many are looking forward to. But as the Minister acknowledged, we are in urgent need of nearer term solutions to improve Singaporeans' daily travel experience. Improving bus connectivity will make a big difference to the lives of many commuters, and should be achievable with better bus route planning and deployment. Let me illustrate using bus services in my constituency as an example. Pandan Gardens and Teban Gardens are only about 2.6 kilometres to 3.2 kilometres away from the nearest MRT station at Jurong East. Many residents take a bus to connect to the MRT station before they go to their final destinations. Despite the relatively short distance, residents would regularly take up to 45 minutes to get to the station and they still have their MRT journey to look forward to. The key issue is that, instead of feeder services, these residents only have trunk services to ride on, such as bus services 51 and 143 that begin their journey a long distance away. These buses may leave their depots at regular intervals, but after coping with irregular traffic and passenger activities along the way, they arrive at irregular intervals later in the bus route. In effect, they tend to "bunch" together, so that commuters find themselves waiting for a long time for the bus to arrive, before seeing two or three of them coming one after another. So, the first bus ends up being crowded with anxious commuters, the second bus would then be partly filled by the remainder of commuters waiting that could not squeeze into the first bus, whilst the third bus would then follow on relatively empty.”
“As the Government is taking a long-term view towards achieving our productivity goal − and the Deputy Prime Minister has explained that it is not equal per year − what are the key milestones set in this long journey? I would like to ask the Minister how we can be sure that our restructuring efforts are bearing fruits and we have set the optimal pace to facilitate transformation. What indicators are the Government tracking to ensure Singapore is not priced out of the market, and remain internationally competitive amidst the restructuring? In facilitating companies to restructure and to offshore lower productivity parts of their operation, how can we be sure about the fine balance of keeping selected functions in Singapore and reduce the risks of companies relocating the entire operations overseas? Opportunities for SMEs”
“Madam, a recent Reuters survey of 268 listed Singapore companies showed that 57% reported a year-on-year drop in operating profit margin for the first nine months of 2012. This widespread margin squeeze in at least a decade due to manpower shortage, escalating costs and slow growth is worrying. Nine foreign chambers of commerce had raised concerns against tighter curbs on foreign labour and we have heard increasing talks of companies relocating to other countries in search of better growth prospects. I am concerned about Singapore's ability to maintain its international competitiveness. Yet the Government has maintained its strong stand to balance manpower needs with economic restructuring and productivity imperative. In support of the restructuring journey, the Government has come up with a slew of measures over the last few years, including the $5.3 billion three-year transition package in this year's Budget, to help companies increase productivity, innovation and capability. It is also actively helping companies to seek growth opportunities overseas in view of local constraints. Madam, it is clear that Singapore's future hinges on our ability to make the transition to higher quality growth on the back of higher productivity. We have set ourselves the stretch target of increasing productivity by 2%-3% per year over the next decade. Yet, we have seen a 2.6% decline in productivity last year, Page: 52 and only 0.8% per year growth between 2000 and 2009. There is a myriad of Government schemes that purport to drive productivity. I would like to ask the Minister the effectiveness of each of these programmes and how performance is tracked and measured.”