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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“Thank you, Speaker, first, I would like to thank Deputy Prime Minister Lawrence Loh for for his response and I think we appreciate the Government —”
“Residents may opt to install fire-rated doors even where this is not required under the Fire Code, but this would be at their own expense, as there is a cost difference between fire-rated and non-fire-rated doors. If the Fire Code does not require fire-rated doors, this additional cost will not be covered under the HIP. We regularly review the Fire Code and we work with Government agencies, industry players as well as academia to see how the fire safety aspects remain relevant, which facilitates how we can live together in our home in Singapore.”
“Thank you, Speaker. In view of the recent spate of home fires in HDB estates, my residents have shared that they would like HDB to review the policy around fire-rated doors to mitigate the spread, in the event of a fire. The Minister of State briefly spoke about that. Based on the prevailing Fire Code, a significant number of households having existing fire-rated doors are being offered non-fire-rated doors as replacement under the Home Improvement Programme (HIP). So, my residents are not quite convinced with the basis for the more relaxed SCDF rules. I have two supplementary questions for both Minister of State for Home Affairs as well as Senior Minister of State for National Development. First, whether HDB and SCDF can work together to further review the requirements on fire-rated doors. Two, whether residents who prefer to keep the fire-rated doors during HIP will be offered new fire-rated doors, even though the prevailing SCDF Fire Code does not require a fire-rated door. Assoc Prof Dr Muhammad Faishal Ibrahim: Sir, I thank the Member for the supplementary questions. I will address these. As explained in my answer earlier, the Fire Code does not require entrance doors of residential units facing external corridors to be fire rated, as such corridors facilitate heat and smoke dissipation. The HIP offers fire-rated doors in accordance with the prevailing Fire Code. If a unit does not require fire-rated doors under the Fire Code, HDB would offer non-fire-rated doors under the HIP. We all know that. And if a unit requires a fire-rated door, HDB will offer as such. So, the resident will have the option to change his or her existing fire-rated door to a new one, at a subsidised cost.”
“Thank you, Deputy Speaker. It is assuring to hear that inflation is expected to moderate towards the end of the year. But nevertheless, I would like to ask the Deputy Prime Minister and Minister for Finance, what were inflation related assumptions used to develop the $6.6 billion Assurance Package that was announced and whether the Government is still committed to deliver the promise to our people that the 10-year cost increase cushion for lower-income households and the five-year cost increase cushion for middle-income households on a higher cost base that we are seeing now? When it was announced, there were some buffer, but can you still assure that the $6.6 billion is still sufficient? The second question is, we have seen countries around the world announce minimum wage adjustments. Recent announcement on this includes Los Angeles, Australia and Turkey, in an effort to provide support to households on soaring inflation. I would like to ask if the Government will consider working with the tripartite partners to accelerate the wage increases planned under the Progressive Wage model for low-wage workers?”
“Thank you, Chairman. I have one clarification for Minister Gan Kim Yong. My question relates to the new Enterprise Financing Scheme (EFS-Green) to support local firms with a range of financing needs. As I said, despite the generous Government risk-sharing at 70%, the industry's feedback, mainly coming from the SMEs, is that the interest rate and loan terms offered by the participating financial institutions are actually not much different from commercial loans. So, I would like to ask the Minister if ESG would look into the feedback from the industry for FIs to look into more favourable terms for the EFS-Green to spur adoption. This is especially if the Government is risk sharing at 70%.”
“In the years to come, a significant amount of carbon tax will be deployed as Singapore progressively raises the carbon tax rate to $50 to $80 per tonne of emissions. So, what governance and accountability framework will be put in place to determine and monitor the spending of green R&D as well as to assess outcomes? I would like to request the Minister to provide an update on how Singapore is developing capabilities in renewable energy, urban solutions, green infrastructure and clean transportation.”
“Chairman, the lack of understanding of sustainability-related concepts has been a barrier to galvanising strong action. Our students, workers and businesses can seize opportunities in the green economy if equipped with the proper understanding of climate change and sustainable development. We should prepare them to grasp the science of global warming and the current and impending impact of climate change in their respective fields of work. We should enable them to position themselves to be the change needed in the world. First, the challenges of sustainability can only be overcomed through the involvement of future generations. Our schools can play a fundamental role in enhancing our children's eco-literacy and nurture them to be stewards of our environment. I would like to ask the Minister to provide an update on how our primary and secondary schools are involved in preparing a new generation of students, who will drive the future of sustainable practices. Our universities are well-positioned to be the key enablers for the development of the green economy in Singapore. New courses at NUS include a Major in Sustainable Urban Development, which "aims to train the next generation of urban problem-solvers". Other Autonomous Universities are also launching new courses on sustainability. So, the question I have for the Minister is how the respective IHLs will develop their unique programmes as well as combine their strengths to develop world-beating sustainable technologies and solutions. Sir, the Finance Minister has committed that the carbon tax will not accrue to the revenue but collected to support the decarbonisation and transition as well as investment in green technologies and solutions.”
“Second, we need to support SMEs with pre-identified sector-based green solutions to fast track their adoption. Third, we can leverage the ecosystem to build scalable green capabilities and collaboration. Sir, the introduction of the new Enterprise Financing Scheme Green (EFS-Green) to support local farms with a range of financing needs, from developmental capital to a venture debt, is a great initiative. With the Government providing 70% of reshare to catalyse lending by participating financial institutions, there have been calls by the industry for more favourable terms, such as preferential interest rate and loan terms, in order to spur adoption. [(proc text) Question proposed. (proc text)] Carbon Capture”
“Okay. Chairman, the Singapore Green Plan 2030 is well-timed to galvanise a national movement, not only to achieve sustainable development but also to build exportable capabilities, such as sustainable urban solutions. Our green agenda holds much promise for our future. The issuance of Green Bonds will provide a substantial capital base for sustainable developments not only in Singapore, but also throughout the region. Singapore is well-positioned to serve as a living lab and test bed for emerging green technologies as well as a hub to foster collaboration and co-creation. It is critical that in our drive for sustainability, we fully leverage this opportunity to groom a new generation of green local firms, support them to build their green capabilities and position them to capture emerging opportunities. 11.15 am So, I would like to ask the Minister what can be done to ensure that the development of green local firms is an integral part of the $25 billion investment under RIE2025. We should consider a special programme, with R&D funding to be carved out, especially to support and promote development of green technologies and solutions by our very own local firms and startups. Sir, with SME making up 99% of Singapore enterprises, the need to embrace climate change and sustainability is also a matter of business survival. With successive carbon tax increases in the pipeline, as well as increasing demands from partners, investors and customers for sustainable practices, SMEs need support to pivot and adapt, in order to thrive. I would like to repeat my call to support SMEs in the transition on three fronts. First, we can promote sector-based sustainability roadmaps with industry-aligned principles, frameworks and uniform standards.”
“Mr Chairman, should I take two cuts together?”
“Thank you, Speaker. I have two clarifications. One for Education Minister and the other for Minister of State Gan Siow Huang. The first question: Minister shared that we spend about quarter of a million per child in the formative school years and affirm that more will be invested in CET. And I spoke about CET currently, in this financial year, it is estimated to be less than 10% of MOE's budget. So, I would like to ask the Minister to elaborate exactly how funding for CET will be enhanced to allow workers to attain a more substantial qualification that is relevant to their work. So, more investment: how exactly do we see that being evolved over time? The second question is for Minister of State Gan Siow Huang. Minister of State spoke a lot about career conversions programmes: place-and-train, train-and-place. And I do agree that these have been very useful for those whose career is in a transition. But I would like to ask about the framework that MOE is thinking for those who are still employed. So, they are not in transition, they are still employed, that is the majority of the people. These are the people who would like to pursue CET, to develop mastery as well as updating their skills and knowledge about constant upgrade. So, how can we ensure the CET programmes are duly certified and recognised by the employers, as well as ensure that CET credentials are recognised within the industry to allow mobility across employers in the same sector?”
“Sir, CET must be relevant with credentials recognised by employers and the industry. The credentials from CET must translate to job opportunities and career growth. For this to happen, there must be close partnerships among CET providers, employers and the industry to agree on industry accreditation standards and the recognition of a common set of CET qualifications.”
“Chairman, I would like to declare my interest as CEO of WMI, a continuing education and training (CET) provider. Much has been said about the rapid pace of industry development and how jobs are fast evolving. This means the acquisition of new skills and knowledge must keep pace and even intensify over our lifetime. It is timely that we think about how CET can be even more impactful and emerge as a strategic pillar in our human capital development. Sir, for CET to be more impactful to support lifelong learning with clear career outcomes, CET's funding, operating and accreditation framework need to be further enhanced. Based on MOE’s estimated expenditure for Financial Year 2022, about $1.3 billion will be spent on SkillsFuture-related programmes. This represents about less than 10% of the total MOE Expenditure. Yet this amount is supposed to support 2.4 million resident working adults, averaging $542 per worker. This contrasts starkly with the amount of about $16,000 per child up to Secondary level and about $22,000 per full-time University student. What would be a more reasonable amount of CET spend per adult to achieve the outcomes we intend? What about the contribution we should expect from employers? Sir, besides budget, we need to think about how we can enable workers to engage in deep learning while they work. One of the struggles we often hear from working adults is that it is already hard enough to cope with the day’s work, let alone set aside time to learn new skills. 1.45 pm CET can take place in different ways, both online and offline, on campus as well as at the workplace. How can we support workers, integrate Continuing Education and Training to their work, including the provision of study leave as part of employment terms?”
“Thank you, Chairman. I have one clarification for Minister Gan. During the COVID-19 pandemic, we promoted domestic tourism and spending to achieve some resilience with locals and also to reduce our dependency on overseas visitors given the COVID-19 border closure. So, lots of thanks to the Government for the vouchers. I would like to ask the Minister then what lessons have been learned about domestic tourism and consumption and whether this can be sustained after the opening of Singapore. What can be done to further promote and strengthen to achieve less reliance on overseas visitors, and also, to have another pillar, that is, domestic spend?”
“So, I would like to ask the Minister to replicate this to include other key functions, such as Chief People Officer as a service, Chief Sustainability Officer as a Service, to provide the expertise central to SMEs' transformation and pivot to new growth areas. Companies can also tap on remote or offshore working models more systematically. This has proven to be a genuinely viable option for some areas of work, such as technology services, offered out of Vietnam and Indonesia. This will open firms to a new channel of manpower by tapping on offshore talent pool to work alongside onshore Singapore teams. This often comes with substantial cost savings. So, companies will benefit from support to navigate the offshore marketplace and for a framework to source and onboard remote talents. Competitiveness”
“Mr Chairman, an MOM report shows that job vacancies have hit a record high of over 98,000, about double the running average. The labour crunch is further exacerbated by a mismatch in skills. A survey conducted by NTUC found that 63% of business leaders cited skills mismatch as the most prevalent form of mismatch but only 15% of these business leaders placed priority for retraining their workers to address the problem. Therefore, investing in the training and development of our workers has never been more urgent. In Budget 2022, a sum of $100 million has been set aside to support NTUC in its efforts to upscale workers' training and businesses' transformation through the Company Training Committees (CTCs). There is great potential in leveraging a tripartite partnership to address workers' training. The close collaboration between Enterprise Singapore and the industry and trade associations will be crucial to ensure that a sector-based training solution is developed for scalability. The framework must accommodate SMEs which cannot achieve the scale needed to form CTCs. Over 800 CTCs have actually been formed since the initiative was launched in 2019. I would like to ask what specific outcomes have been achieved so far and the key lessons learnt so that this round of funding support may be more effective in helping companies fast-track their implementation. Sir, there have also been innovative ideas being deployed to overcome our shortage of manpower. The Cheif Technology Officer (CTO), as a service scheme, was launched to offer SMEs access to a CTO to help them develop plans and technology solutions and even training programmes without the need for them actually hiring one themselves. So, it is a shared resource.”
“Mr Chairman, Singapore’s infrastructure development and public administration have been pivotal to Singapore’s economic transformation from a Third-World to a First-World country in the last half a century. Yet, as the Prime Minister said, “We will never be done building Singapore.” Members will remember that we passed a Bill in Parliament last year that allows the Government to undertake up to $90 billion of infrastructure developments through borrowing. This is to fund new rail lines, water and sewerage infrastructure as well as coastal protection measures against rising sea levels. Experts have highlighted that some of the most significant risks in infrastructure projects lie in scoping, design and cost management as well as project management. A report by the Project Management Institute estimates that poor project management costs an average of 12.7% of total budgets. If applied to the $90 billion of infrastructure projects in the pipeline, we could potentially waste $11.4 billion. Just last year, the Auditor-General's Office reported lapses in the People’s Association’s development projects. Their checks revealed lapses in adjustments for price fluctuations, a lack of assurance in quantities used for projects, and weaknesses in management of contract variations. So, I would like to ask the Minister what governance framework is in place to manage the risks associated with the upcoming infrastructure projects, including supply chain disruptions, in the post-COVID-19 era? How does the Government ensure that spending on infrastructure projects consistently offers Singapore value-for-money and is optimised on a lifecycle basis? Accountability and Governance – Infrastructure”
“In addition, a special audit by the Auditor-General may be warranted to assess procurement processes, including cost reasonableness, taking into consideration the unique market conditions at that time as well as the regularity of transactions. Lastly, the Government drew lower amounts of past reserves for both FY2020 and FY2021 than originally planned. What lessons can be drawn on the effectiveness and impact of our response to this crisis that can be applied to our management of future ones? Clarification on Expenditures”
“Mr Chairman, to cope with the health and economic consequences of the COVID-19 pandemic, governments around the world had mobilised massive fiscal policy responses totalling US$14 trillion at end-2020. Singapore is no exception. The pandemic’s impact on our people made disbursement of funds a top priority, so that citizens and businesses could receive urgent help when it was needed. But we cannot ignore the importance of accountability and governance of public expenditures, in order to ensure that resources are effectively allocated and properly accounted for. Research carried out by the International Budget Partnership involving 120 countries, found that more than two-thirds of governments had limited or minimal levels of accountability in the introduction and implementation of their early fiscal policy responses. Most recently, the UK government had come under scrutiny for fraud and error in the country’s COVID-19 support programmes, which are expected to cost the British taxpayers over £15 billion. Similarly, in the US, fraud or improper payments are likely to account for more than US$90 billion of the government’s emergency pandemic aid for the unemployed and small businesses. Here, in Singapore, we have had also to deal with 57 reports of fraud involving some $1.7 million of COVID-19 grants. I would like to ask the Minister what controls and governance procedures were put in place by Government agencies, even as they responded quickly to evolving COVID-19 circumstances. Given the significant COVID-19-related spending, I would like to call on the Government to subject key COVID-19 expenditures to ex-post analytics and audit checks.”
“Mr Chairman, more than 60% of those surveyed in the Institute of Policy Studies online polls revealed their concerns over an increased suspicion among people of different social backgrounds as a result of COVID-19. Even though bigoted behaviour seen in public and hateful online comments may be limited to only a small section of our society, such acts of denigration are, unfortunately, magnified on social media. Our foreign friends feel the brunt of xenophobia keenly. Some have left due to border restrictions, whilst others are considering their options, for fear of growing nativism in Singapore society. Xenophobic acts threaten our multicultural way of life that we fought hard to foster. Close to a third of the workforce in Singapore is made up of foreigners from different corners of the world, to sustain our economic and caregiving activities, complementing our local force. We, ourselves, began as an immigrant society and our forefathers came from different backgrounds, settling down in Singapore and calling it home. I would like to ask the Minister what are our plans to integrate foreigners and to quash xenophobic sentiments that might hurt Singapore's reputation as an open, diverse and inclusive society.”
“Sir, I would like to ask the Finance Minister, given the new emerging risks to our recovery and growth, especially given the Russia-Ukraine crisis, how will the Government respond, if we will not be able to achieve a balanced Budget for this term of Government? With that, Sir, I support the Budget.”
“The higher work pass thresholds have triggered international firms to review the sustainability of their operations in Singapore. Many businesses worry about how they may weather the storm in the coming years. Increase in taxes, higher carbon and energy prices, as well as higher local and foreign manpower costs are the main challenges. Companies need urgent help to fast track digitalisation, reskilling of local workers as well as job matching to aid their transformation. They are also screaming for the Government to calibrate the timing, the timing of new policies to provide some breathing space for the transitions. Mr Speaker, the outlook for rising costs is worrisome. After reaching a near-decade high of 2.4% in January, Singapore's core inflation is anticipated to possibly exceed 3% and above in the second quarter. More economists are predicting that given the externally driven inflation catalysts, they expect inflation will be sustained at high levels for up to two years. With the Russia-Ukraine crisis, crude oil prices have been soaring and hitting over US$100 today. Sir, I would like to ask the Finance Minister whether the Government will do more to help households and businesses if inflation turns out to be more persistent and higher than expected? Finally, Budget 2022 is estimated to be the third straight budget-deficit year for this term of Government. Whilst I do agree with the expansionary policy to ensure that recovery will be sustained, so I support the Budget, it is equally important that we do not lose sight of the fiscal prudence that has defined Singapore's approach to budgeting. The Government commonly accumulates surpluses in the early years of its term to ensure that the constitutional requirement to achieve a balanced Budget is achieved.”
“We will need to take an ecosystem approach for the transition, laying clear frameworks, standards, roadmaps and sector-based solutions to build green capabilities and collaborations. We will need to champion green financing and be the preferred issuer of green bonds to enable sustainable investments across sectors. We will need incentives – incentives to green our buildings and step up investments in sustainable development and renewable energy. Sir, the higher carbon tax will translate to elevated energy prices impacting businesses and households, and the increase will be significant. This is especially so for the manufacturing sector with utilities making up to around 9% to 10% of their operating costs. So, I urge the Government to ensure transition measures will be in place to cushion the increase in electricity costs. Sir, in many of my interactions with businesses large and small, the most frequently cited concerns relate to manpower constraints, an issue that has been further exacerbated by COVID-19 restrictions. The planned increases in qualifying salaries for employment pass and S Pass holders, which will take effect from September, will hurt. With the tight labour market, employers shared that the $500 dollar increase in work pass qualifying salaries will likely translate to just "forced" salary increases for their foreign workforce, as there are few alternatives in the foreseeable future. Sir, the use of salary thresholds is a blunt instrument that does not take into account specific skills requirements and gaps in the market. A points system which considers a range of non-salary factors will make the work pass system more transparent and economical.”
“Wealthy families and philanthropists are keen to explore new models such as social impact bonds, impact investing, venture philanthropy and so on. Have our current policies kept up with the times? In its early days, Singapore benefited in similar ways from generous giving by visionary philanthropists and organisations, such as Tan Kah Kee, Govindasamy Pillai and Ngee Ann Kongsi, to build our communities, our schools and our hospitals. Today, we have a window of opportunity to work alongside a new generation of philanthropists, using modern, innovative and creative ideas, so that their contributions can be a fulfilling experience for both the donor and the beneficiary. Mr Speaker, Budget 2022 sends the strongest signals yet to businesses about the need to get serious about transformation and going green. The Finance Minister announced Singapore's commitment to sustainability by bringing forward the timeline for the country to attain net-zero carbon emissions by and around mid-century. To achieve this, the carbon tax will be raised progressively to $50 to $80 per tonne of emissions by 2030, higher, much higher than many had expected. The higher carbon taxes will accelerate our drive towards a greener economy. Sir, I support the Finance Minister's ambition to sharpen our competitive edge and capture growth opportunities in the green transition. We should aspire to be the leading location in Asia for expertise in carbon services and be the trusted regional marketplace for carbon credits. However, we need to carefully navigate this journey to go green, to avoid dislocating our industries or losing our attractiveness as an investment destination.”
“The principle of helping those with less inherent in our system of taxes and transfers has gone some way to moderate the vagaries of globalisation and inequality. Mr Speaker, rather than depend so heavily on taxes to redistribute wealth, can we also not tap on strong spirit of giving amongst wealthy families? Globally, increasing numbers of wealthy individuals are engaging in philanthropy. A "Global Philanthropy Report" by Harvard identifies some 260,000 foundations with total assets of more than US$1.5 trillion. In Singapore, we have also seen more privileged individuals "giving back", including the setting up of private charity funds with $200,000 and more. More and more family offices are setting up in Singapore, with strong mandates to do good and to give back to society. We should therefore enhance our philanthropic policy framework to accommodate new forms of giving and encourage the establishment of more foundations, of greater sophistication. Currently, our policies are geared towards straightforward forms of giving. But wealthy families aspire to make significant contributions beyond plain chequebook giving. They hope to tap their financial resources, unique capabilities and networks, in creative ways to make an impact. They want their gifts to be transformational and so do we. Enhancing our policies around philanthropy can help establish Singapore as a philanthropic hub – a pillar of excellence to build alongside our hub status for finance and sustainability. This intent to promote Singapore as a philanthropic hub is not new. Several changes to taxation and regulatory framework were indeed made by then-Second Minister for Finance, Tharman Shanmugaratnam, in Budget 2007. However, the concept of philanthropy has evolved rapidly over the years.”
“Whilst I know the Government may not consider this as a stable form of revenue base for the Government, I think investors should not hold out much hope for the ABSD to be lifted, as it is now a significant part of Government revenue. In fact, we should expect more to come on the property front, including the low hanging fruit of injecting further progressivity to the basic buyer's stamp duty from the current 4% for properties valued at $1 million and above, for higher tiers to apply to more luxury homes. Sir, our tax structures continue to be more progressive over the years. It was only recently in 2017, when the top tier personal income tax bracket was increased to 22%. Yet, this Budget proposes to increase it again, further to 24% from 2024. In Singapore, top 10% income earners who pay Personal Income Tax already foot approximately 80% of total personal income tax collected. Sir, our unique system of taxes and transfers have been effective in addressing income inequality. We have seen a steady decline in our Gini coefficient from 0.45 in 2010 to 0.38 in 2020, after transfers and taxes. In this Budget, the Assurance Package – designed to cushion GST impact for middle- and low-income households, was boosted to $6.6 billion. Another $9.5 billion over five years is being set aside to support the Progressive Wage Model and Workfare Income Supplement scheme, benefiting 94% of full-time low-income workers. Sir, this is commendable and well-timed. Our system is designed such that for every dollar of tax paid, the bottom 20% of our residents receive about $4 of benefits back, the middle-income residents get about $2 and the top 20% receive about 30 cents of benefits. I think we have all understood how it works, my colleague mentioned this earlier too.”
“Mr Speaker, Budget 2022 will be remembered for the significant tax changes announced. One of the main Budget announcements was that the GST rate hike will be delayed and spread out over two steps – one-percentage point per step on 1 January 2023 and another one on 1 January 2024. This move by the Finance Minister brought some relief to concerns amidst rising prices. We all know that it would have been more expedient for the Government to effect the total increase in one go and the earlier the better for the Government. But we appreciate the sensitivity shown to delay it and do it in two separate steps. So, this is appreciated. Sir, Budget 2022 takes decisive steps towards strengthening our social compact. It unveiled a slew of taxes that impacts the wealthy – ranging from personal income tax, property tax as well as luxury car tax. These taxes are expected to raise $600 million of additional tax revenue per year when implemented. Taken by itself, this amount may not appear large. However, property-related taxes such as Additional Buyer Stamp Duty (ABSD) have in fact contributed significantly to our revenue base over the years. Let me share. In 2021, Stamp Duty collection increased to $6.45 billion, that means a $2.55 billion increase in one year as compared to 2020, and that is 66% increase in one year. ABSD was further increased just a few months ago in December across all categories except for first-time local home buyers. The ABSD rate for foreign buyers now sits at 30%. As ABSD targets mainly property investors, this has effectively become a form of wealth tax, apart from acting as a policy measure to cool the property market.”
“Thank you, Mr Speaker. I thank the Ministers for their comprehensive replies. I agree with the Minister that we need to adopt an ecosystem approach to tackle banking scams. I have two supplementary questions for the Minister for Finance. First, given the unprecedented wave of online banking frauds hitting consumers – actually, not just in Singapore, we have read about such accounts in the UK and around the world – may I ask how does MAS fare in terms of anti-scam controls, compared to some of the best practices in other jurisdictions to protect the interests of our consumers? Sir, the second question relates back to the new framework being debated to establish how losses behind scams are to be shared between consumers and financial institutions. I want to ask, specifically, whether MAS will be imposing a set of minimum standards for the banks' fraud surveillance system to better protect consumers.”
“Thank you, Speaker. I would like to thank the Minister of State for his reply. I have two supplementary questions. The first is: of the 54,000 jobs that were created in the last three years from the investments brought in by EDB, that Minister of State has mentioned, could he share, specifically, what is the percentage of these jobs that went to Singaporeans? Also, related to that question is, for jobs where Singaporeans are currently without the skills or for areas where there are few qualified Singaporeans, how is EDB structuring the new investments such that firms are incentivised to tie the training of local staff and localisation of key positions to their business plans?”
“One good example is Sweden, which oversaw three decades of phased implementations before reaching its current pricings, without hemorrhaging economic developments. So, Sir, a clear long-term trajectory of the expected changes to carbon tax will be key to Singapore, to help companies make the business case to adopt new green technologies and make the necessary investment. With that, I support the Motion.”
“Whilst Singapore can learn valuable lessons from other jurisdictions, we need to develop our own unique playbook for carbon pricing and ensure any change is set and paced carefully to avoid dislocating our industries or losing our attractiveness as an investment location. Sir, we must recognise that any increase in carbon tax will result in an increase in operating cost, directly impacting the largest upstream emitters as well as indirectly impacting downstream users such as increases in electricity production costs, that will likely be passed on. For instance, the Singapore Business Federation expects that carbon tax increases will impact the manufacturing sector hard, as utilities can comprise up to 9% to 10% of operating cost. Given the rising cost of labour, freight and raw materials, any further increase in operating cost in the near term will adversely impact many companies already struggling in the current economic conditions. Currently, Singapore’s carbon tax does not apply to imports. This puts local SMEs in a disadvantaged position as Singapore embraces more advanced integration of sustainable practices at increased costs, affecting these companies' cost competitiveness relative to peers in the region. To cushion the impact, the Government should consider channelling part of the carbon tax revenue to subsidise the increase in cost for a specific transition period, as well as provide subsidies to adopt green technologies to spur companies towards green practices and reduce use of energy. Finally, I call on the Government to ensure that the businesses are provided ample lead time on the implementation of any new carbon tax rates, giving them time to adjust, whilst sending a strong but positive signal for companies to adapt and pivot.”
“These high emission firms such as power generation and petrochemicals directly employ over 27,000 workers and constitute 3% of Singapore’s GDP while providing business activities for a host of other sectors. While these firms need to pay their fair share, there are some who are already pivoting their business activities towards low-carbon solutions in Singapore. For example, in 2020, Shell Singapore announced a 10-year plan to cut down local emissions by a third by the next decade. Similarly, ExxonMobil collaborated with local Universities in launching the Singapore Energy Centre, forming centres of excellence in research and innovation to solve technological gaps amongst industry players. There is opportunity to work closely with such firms to co-create a sustainable future, helping transition high emitters of yesterday into green industry leaders of tomorrow, here in Singapore. Whilst Singapore’s headline amount of S$5 per tonne of emissions is low – it is low – but it covers 80% of local emissions with no offset provision. In Southeast Asia, Indonesia is the only country other than Singapore which has announced concrete plans to introduce a carbon tax, at a minimum rate of US$2 per tonne of emissions only from 2022. Trade-exposed sectors in the EU, China and South Korea receive free allowances under their emissions trading systems. Speaker, Sir, whilst reviewing Singapore's model, we should note that there are more than 60 different carbon pricing initiatives worldwide. Each regime adapts to different strategies based on its own goals and constraints.”
“Given SMEs’ critical role in supply chains, we can boost their transition on three fronts: first, we can promote sector-based sustainability road maps with industry-aligned principles, frameworks and uniform standards; second, we need to support SMEs with pre-identified sector-based green solutions to fast-track adoption; third, we can leverage the ecosystem to build scalable green capabilities and collaborations. Sir, to catalyse transition, SMEs should be supported by Government grants designed specifically for a range of industries, taking into consideration the limited scale and resources firms have in making the transition viable. Speaker, a carbon tax assigns costs to planet-warming emissions and forces companies to consider the cost of pollution and environmental harm. Finance Minister Lawrence Wong has indicated that Singapore’s carbon price is too low and will be up for review. I wholeheartedly agree. Our current carbon pricing at the rate of S$5 per tonne of emissions pales in comparison to other jurisdictions, falling far short of the recent IMF’s guidance of US$75 or S$100 per tonne of emissions for advanced economies. This is about 20 times our current rate. Whilst the plan to increase carbon tax is imminent, we need to carefully calibrate the increase and consider the trade-offs. Too low, we fall short of our commitments in making a viable impact to nudge firms in the right direction. Too high, we risk firms passing on cost increases to consumers and end users, or worse still, moving business activities to countries with lower sustainability requirements and carbon pricing. Speaker, Sir, the carbon tax in Singapore applies to approximately 30 to 40 companies.”
“Mr Speaker, before I start, I would like to declare my interest as council member of the Singapore Business Federation. Sir, businesses have both a responsibility and an opportunity to proactively commit to decarbonise. The impact of climate change and the opportunities presented for a green and sustainable economy have never been more urgent. Whilst sustainability efforts amongst companies in Singapore have gathered pace, the lack of understanding of sustainability and related concepts has been a barrier to galvanising strong action. During the recent Ecosperity Week held in September last year, it was revealed that some 250 chief executives of firms who have made net-zero commitments are unsure of how to reach their goals. From inconclusive measurement, reporting and verification (MRV) standards to a lack of agreement in defining sustainability performance, business leaders urgently need a framework to navigate their firms through these challenges. There remain many companies, especially our SMEs, who have yet to come on the green economy bandwagon. Many consider "sustainable" practices as "regulatory" requirements. They lack the understanding of its impact on their business and how to make the green transition; yet this is one of the most significant business opportunities that they can tap for business growth. Certain industries may need additional support to spur decarbonisation ahead of others, in anticipation of carbon border taxes such as the European Union’s Carbon Border Adjustment Mechanism which puts carbon prices on imports into EU.”
“Market watchers expect SPACs to boost SGX’s position as a key financial hub in Asia, with SGX gaining from an overall higher valuation with the listing of tech-related and new economy companies. However, SPACs have also received mixed market reactions from institutional and retail investors alike, including the potential downsides and risks of SPACs to retail investors. What is the impact to SGX from an overall valuation of the Singapore market with the entry of SPACs? More specifically, would this have any bearings on SEL’s stake in SGX in the future? Notwithstanding the points above, I support the Bill.”
“Efficient corporate governance can be achieved with the use of non-voting shares, provided that robust governance delineating voting and non-voting shares is in place to motivate actors to align with intended goals. As at present, SGX shares held by SEL are still ambiguously classed despite the non-voting clause. For instance, these shares are still classed as ordinary shares that possess the possibility to be used for controlling interest purposes when sold to other investors upon approval by the Minister-in-charge. I would like to ask whether the introduction of a dual-class share option has been considered to provide greater clarity. The introduction of scrip dividend further increases SEL's ability to amass a higher proportion of these ambiguously classed SGX shares. SEL's current stake in SGX is about 23%. What are the considerations to vary or maintain the shareholding of SGX shares under SEL with SDS? Furthermore, SEL's decision to elect scrip or cash dividend may invite unnecessary speculation, due to the perceived information asymmetry between dominant and minority shareholders. How will this issue be managed going forward? Speaker, Sir, it is also rather counter-intuitive for a significant and strategic investor, such as SEL, to hold non-voting shares. How will the future of SGX be safeguarded if voting rights to direct the company do not rest with the largest and strategic investor? How will we safeguard the situation to prevent a group of SGX shareholders from forming a large enough segment of voting power and choose to exercise it in situations where they will move SGX in the wrong direction. More broadly, this Bill also comes at a time when SGX has recently announced the introduction of Special Purpose Acquisition Companies (SPACs) into the bourse.”
“In the same year, FSDF also enhanced the Financial Sector Technology and Innovation Scheme to boost our talent pipelines for Singaporeans into fintech. Sir, I would like to add my interest as a professional working in the financial sector and benefiting from FSDF. The point is FSDF’s income obtained from SGX shares came up to about $78 million in FY2020. On the other hand, it is worth noting that the expenditure for FSDF has increased to $247 million in the same financial year. I applaud the meritorious development projects that FSDF has been supporting over the years and urge MAS to continue investing strongly in the development of the Singapore financial sector. However, given that we are not quite yet out of the woods as far as the pandemic is concerned, I would like to ask the Minister about the impact to SGX's cash dividend funding for FSDF initiatives with SDS. Apart from SGX dividends, what other sources of income does FSDF receive? How dependent is FSDF on SGX dividends, in order to maintain its portfolio of projects, both in the medium and long term? My second inquiry focuses on the Bill's impact on SEL's influence on SGX. With the SDS, dominant shareholders, such as SEL, are in a position to potentially increase their stake over time should they elect to receive SGX shares whilst other investors may choose otherwise. It is worth noting that for MAS to play a dual role as SGX's regulator and FSDF's administrator without conflict of interest, safeguards were in place at the time of EDMA's introduction. For example, SGX shares held by SEL are non-voting. Despite such safeguards, the action of a dominant shareholder with non-voting interest can still indirectly influence shares performance by virtue of options in its dividend policy.”
“Mr Speaker, I would like to express my support for the Exchanges (Demutualisation and Merger) Amendment Bill, henceforth, referred to as EDMA. This Bill is a timely response to the recent announcement by Singapore Exchange Ltd (SGX) to offer a scrip dividend scheme (SDS) to shareholders. The current EDMA does not allow SEL, a special purpose company, to hold SGX shares for the benefit of Financial Sector Development Fund (FSDF), to elect to receive new SGX shares. This move to amend the EDMA will provide SEL with the flexibility to participate in SGX's corporate actions in a cost-effective manner and accord it the means to exercise rights similar to other shareholders of SGX. This legislative move is crucial to ensure that the core principles of EDMA and SEL are maintained, whilst allowing SEL, SGX's strategic investor, to support the exchange in strengthening its working capital position, with the option to retain cash with SDS. It is in this spirit that I would like to seek the Minister of State's response on three areas of inquiry which, I believe, will better clarify the Bill’s impact. Firstly, I would like to ask if SEL's option to elect for SGX scrip has any impact on the available cash flow for existing and future FSDF initiatives. Since its inception, FSDF allows MAS to support financial sector transformation and has provided strategic funding to support the development of Singapore as a global financial hub. It is critical that FSDF’s wide-ranging development initiatives, from skills upgrading, R&D to infrastructure development, must not be constrained in any way. For instance, FSDF launched a $125 million support package in April 2020 to augment the growth of Singapore’s fintech sectors and accelerate digitalisation.”
“Thank you, Mr Speaker. I have one supplementary question for the Second Minister for Finance. Sir, I acknowledge that there are wide-ranging Government assistance schemes, such as the CDC vouchers and transport vouchers that were mentioned, to help with the cost of living. But I would like to ask if the Government can put in place structural measures to provide long-term support to help with cost of living, instead of giving these one-off benefits every year.”
“Mr Speaker, I have two questions for the Minister for Health. One is regarding a question that I raised in my Parliamentary Question (PQ), which is yet to be answered. With quite a significant proportion of Omicron coming from imported cases, I had asked the Minister for a breakdown by country of origin of imported COVID-19 Omicron cases. So, if the Minister for Health could shed some light on that. My second question relates to his answer that boosters have shown to increase protection against infection and severe illness, including Omicron, substantially; whether MOH will contemplate imposition of booster jab as a requirement for VTL travellers, beyond the current requirement of two jabs only and that would be deemed as vaccinated. So, whether we will bump up the requirement to a booster jab.”
“Thank you, Mr Speaker. Let me start by wishing Speaker "Happy Birthday!"”
“Thank you, Speaker. Minister has noted that the regulatory requirements for our Open Electricity Market (OEM) are probably inadequate to withstand a severe stress situation such as the current one. He identified four key things that are culminating to a perfect storm. I would like to ask Minister two supplementary questions. First, how will the Government address the vulnerability of the current regulatory framework for the long-term sustainability of the OEM? I guess this was designed and I guess we did not expect this perfect storm. So, specifically, what is the time frame you will be rolling out a new enhanced framework; anything on the hedging strategy, anything about the financial strength of the OEM? The second question is whether the Government will consider, in the meantime, special support to the remaining electricity retailers for their continued operations and also most importantly, their commitments to the consumers. So, how are those who are still surviving, including SP, going to manage the influx of the new customers, which it will now have to serve?”
“Thank you, Speaker. The significant observations arising from AGO's audit of the two development projects under the People's Association (PA) are disturbing. So, I would like to ask the Minister for Culture, Community and Youth to clarify the following. One, whether the lapses uncovered in contract management are systemic across the development projects. It is surprising to hear that PA actually manages 788 projects at any one time. Second, whether the root causes of irregularities have been identified and isolated, and if new projects that are now ongoing need to be suspended, pending the consultants' study of the issues that have been uncovered.”
“To understand how we can support the acceleration process, we need to review if existing policies are conducive to current trends and to build support measures that lower barriers to entry, broaden the scope of economic activities and implement oversight frameworks for the industry to flourish. For instance, in the home-based food business, which runs the gamut of home bakeries to private kitchens, the regulations under HDB, URA and SFA should be reviewed to support artisanal home-based activities and a relevant set of regulations to meet with the appropriate levels of commercial standards for safety and hygiene. But they should not be so onerous as to stifle these budding enterprises. Sir, Singapore is no stranger to overcoming adversity and building resilience, with and for our people. Let us transform our recovery to build back better, broader and stronger. We did it before and we will do it again. With that, I support the Supplementary Supply Bill.”
“Mr Deputy Speaker, we have seen COVID-19 unleash a wave of innovation. The speed at which COVID-19 vaccines were developed served to remind us that, with the right conditions, major scientific breakthroughs, such as success of the “messenger RNA” technique behind the Pfizer-BioNTech and Moderna vaccines, are possible. We are also reminded that moving fast and removing barriers are the best things the Government can do. Despite the increasingly tight fiscal position, I support the Government’s continued commitment to the Research, Innovation and Enterprise (RIE) 2025 Plan, setting aside $25 billion to support innovation and new discoveries. Good that this was not reprioritised. So, it is good that we kept this. However, this effort must be accompanied by the Government's intervention to ensure innovations are translated into real world solutions beyond the labs and scientific publications and are diffused through the economy. Businesses must be able to harness such technologies to raise productivity and, ultimately, contribute to higher living standards. Research funding should be prioritised accordingly and be scrutinised to deliver economic value to the wider society. Nurturing ground-up innovation can be equally important. The number of registered Home Offices saw an increase of 25% in 2020, with the pandemic revealing new entrepreneurial opportunities. These enterprises are the very examples of micro resilience that we need to cultivate as they are the seedlings of future enterprises, if properly nurtured.”
“Sir, the Government should be lauded for its well-executed labour policy during the pandemic. Singapore has managed to cushion itself from the unemployment hardship suffered by other countries because of COVID-19. The Government spared no expense in supporting businesses to hire locals, with significant levels of Government funding directed towards the Jobs Support Scheme (JSS) and the Job Growth Incentive (JGI) scheme, including this round. Under JGI scheme, 270,000 Singaporeans and Permanent Residents were hired by 42,000 businesses as of February 2021 as reported, with generous wage support of up to 50% of the first $6,000 of their gross monthly income for up to 18 months and that is generous. One-third of those hired had been out of work for more than six months and about 60% previously employed in a different sector. While I applaud the success of the scheme, it is still unclear how businesses can make the transition without continued Government support. As the JGI scheme has primarily supported SMEs in their manpower needs and the scheme has helped previously unemployed as well as mid-career switches with job opportunities, I urge the Government to extend the scheme and to carefully calibrate how it is phased out, so that the benefits remain deeply rooted. Sir, there is room for the Government to act with equal resolve to uplift the plight of low-wage workers, provide more safety nets for those who have lost their jobs and re-double our efforts to build a strong Singaporean Core along with global talent. The pandemic has evoked heightened awareness of such vulnerabilities and gaps. Rather than keeping status quo, we should seize the moment to build consensus on how we may address these issues collectively.”
“There should also be a basic package of state-sponsored COVID-19 support that individuals and businesses can expect to kick in every time restrictions are announced, rather than uncertain drip-feed of measures that many believe are subject to negotiation and lobbying. Sir, as vaccination is the key to achieving COVID-19 resilience, I agree our focus should be to achieve an 80% vaccination rate in the near term, especially amongst vulnerable seniors. The Minister for Trade and Industry yesterday urged businesses to get medically eligible staff to get vaccinated and to deploy unvaccinated employees to lower risk settings. I would like to ask if Singapore would consider the French government's approach to impose vaccination as a requirement for certain professions at higher risks. Sir, as the Finance Minister has pointed out, a critical part of our recovery process is the reopening of our borders. This is not just about GDP growth. It is in fact an existential issue for Singapore as an international business hub. We survive and thrive on our ability to connect our businesses and people to the region and the world. As other countries move more aggressively to reopen their borders, I am glad to hear that the prospect of travelling with few restrictions is in sight, if it comes through in early September. I have heard senior regional executives beginning to question the value of being based in Singapore, as they are no longer able to travel freely in and out of the country for business. Some are considering leaving for good, as it is no longer tenable for them to be separated from family and loved ones for such extended periods of time. This is bolstered by increasing adoption of "Work Anywhere" policies as well as new growth opportunities in their home countries.”
“Compared to mid-May, when only 24% of our population was fully vaccinated and Phase Two (Heightened Alert) had to be first imposed, our vaccination rate has since more than doubled to about half of our population this round. We should expect "Living with COVID-19" to include intermittent outbreaks and even the emergence of new variants, every now and then. Having worked so hard to build our defences, should we not be adopting a more confident posture? As part of "Living with COVID-19", we should establish a suite of leading indicators that better predict the imposition of restrictions, so that businesses and the public are not constantly caught by surprise. These indicators could be based on a combination of key health metrics, including infection rates, vaccination rates, hospitalisation rates, ICU admissions and fatalities – a so-called COVID-19 Index which businesses and individuals can monitor, for a shared sense of vigilance and ownership. I guess, something similar to what Member Gerald Giam mentioned earlier. We could guide Singaporeans to read and interpret this COVID-19 Index away from the focus on infection rates alone, which may shape their behaviour. Affected businesses may also rely on a set of new norms to sustain their operations, from qualification for rental relief and contract variations to wage support and credit support, so that the burden is shared more fairly, every time restrictions are imposed. They should not have to rely on the goodwill of landlords nor individual negotiation with financial institutions to keep the line of credit flowing each time restrictions are enforced.”
“Mr Deputy Speaker, Sir, thank you for allowing me to join the debate. Sir, recovering nations the world over are now beginning to embrace "Living with COVID-19" as a strategic reality. Each nation has formulated its own strategy to lift restrictions and find ways to return to a more normal way of living, with UK leading the charge by declaring "Freedom Day". Developing COVID-19 resilience is crucial to securing and adapting Singapore's economic competitiveness. Yesterday, in Parliament, the MTF shared Singapore's roadmap towards treating the virus as endemic. However, some quarters remain sceptical how well this will be executed and carried through. Just as we thought we had seen light at the end of the tunnel, the sudden roll-back to Phase Two (Heightened Alert) arising from the Jurong Fishery Port and KTV clusters dealt a fresh blow to businesses and the community at large. Whilst most understand the need to tighten restrictions until we achieve a higher vaccination rate, many Singaporeans wonder if the approach could have been better calibrated, such as allowing two fully-vaccinated diners to a table, instead of banning dining-in outright. This consideration seems reasonable in light of the Government's earlier signal that Singapore should learn to live with an "endemic" COVID-19 in our midst; so that, with robust public health defences in place, we shift our focus from "Zero COVID-19" to "Living with COVID-19". We have developed enhanced testing and tracing capabilities, good control over infection rates, kept hospitalisation rates low and appeared to be able to ringfence the spread of infection.”
“Thank you, Deputy Speaker. I thank the Minister for his sharing of the range of savings under the CPF. In fact, I am a big fan of the CPF scheme. Actually, my question is very specifically targeted at CPF LIFE. My supplementary question for the Minister is: as more Singaporeans are realising the attractiveness of this specific scheme, CPF LIFE, which gives you a lifetime income, especially in the current challenging investment environment, and we are seeing more seniors falling victim to investment scams in their pursuit of higher returns on their hard-earned savings in order to sustain their post-pandemic lifestyle. I would like to ask the Minister to clarify the rationale behind capping the voluntary savings under CPF LIFE because, even under the Enhanced Retirement Sum scheme, Singaporeans can only expect a basic level of income – I would say basic, even if it is enhanced – of about over $2,000 at 65 years old for the cohort turning 55 now. And I think the House would agree that, at the current cost of living, $2,000 is quite basic and this is at an enhanced level. Why not offer Singaporeans the option to save more under CPF LIFE in order to receive up to, say, the current CPF monthly contributions, capped at, say, $6,000 a month or, minimally, at around the prevailing median income of around $4,500 now?”