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…”
The complete record
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 5 of 11.
“How will this influence our tax policy in the coming years, as we work to restore public finances in an equitable manner? Will we need to dig deeper, to implement more progressive income taxes and greater wealth taxes? Will tax systems need to evolve in tandem with the rising digital economy and capture revenue earned from online transactions? With the economic outlook remaining highly uncertain and with risks predominantly skewed to the downside, we should be very cautious when we do further draws on our reserves. I support the call to set aside a sum of $13 billion in Contingencies Funds, but, I must urge the Government to do so with utmost prudence. Mr Deputy Speaker, the COVID-19 pandemic has impacted businesses and workers unevenly. I urge Deputy Prime Minister Heng Swee Keat to adopt in the next phase, if he has to do something, a more targeted approach in future support schemes. For example, the Jobs Support Scheme (JSS), payouts should only go to firms adversely impacted by the crisis. We should learn from Australia. In Australia, for their scheme, eligibility for wage support only kicks in if business turnover drops by 30% due to the pandemic; for larger companies with turnovers of over A$1 billion, their drop in turnover must be at least 50% before they can be eligible. It should not be right for firms to profit from the Government's support scheme during this crisis. For some companies, whose bottom lines have been boosted because of JSS, they should be offered the opportunity to "pay it forward", in support of others who are less fortunate, perhaps through a "Solidarity Levy" of some sort. Sir, this crisis will increase income inequality.”
“Mr Deputy Speaker, Sir, the Fortitude Budget sets aside $33 billion more to help firms and households, and to save jobs. The COVID-19 pandemic has brought with it a health and economic crisis that has Singapore facing the worst recession since Independence. Our Government’s response has had no precedent – unstinting and rapid support to the tune of $93 billion thus far, resulting in the largest overall Budget deficit in our nation’s history. Including this Budget, the Government will need to draw up to $52 billion dollars from its reserves. It is indeed a blessing that Singapore should possess such a reservoir of financial resources to see us through this crisis. Many countries around the world will be burdened, burdened in the years to come with record levels of debt from the huge fiscal stimulus programmes they have had to put in place to deal with the impact from COVID-19. So, we are more fortunate. But, Sir, there is no question that Singapore was absolutely right to tap the reserves decisively in order to help businesses, tide Singaporeans through this crisis and mitigate permanent damage to our economy. However, we should also be concerned about fiscal sustainability, especially when the outlook remains uncertain and downside risks remain significant. There is a lot of talk about what would the shape of the recovery be, but many believe that recovery will be slow and long-drawn; it may take years before we return to pre-COVID-19 conditions. Against this backdrop, I wonder how this massive draw on our reserves will be treated. What are the obligations to pay back? To do so, would be a huge task as the amount is more than 10 times our previous draw, when we used it to deal with the Global Financial Crisis.”
“Thank you, Speaker. I thank the Minister for the very encouraging set of numbers that he has revealed, about six times' increase. Nevertheless, Minister, amongst the SME circle, the expectations seem to be varying. Many people are focusing that the Government has committed to risk-share at 90% and made cost of fund available at 0.1% for these SME loans. So, the feedback so far has been that actually the rates offered by banks have been quite different and they feel that the rate has yet to reflect the Government's support. So, I would like to ask the Minister for his view – three questions. The loan application volume – yes, we have seen significant increase but it is unusual times, so the loan volume and the interest rate, whether these are in line with the Government's policy intention; is it seeing the volume it expects? Second, with 2%-3%, yet Government offering 90% risk-share and 0.1% interest rate, whether SMEs' expectation for lower market interest rates are reasonable? And third, some SMEs have said the banks' requirements for SMEs to provide personal guarantees are too demanding and not commensurate with the banks' risk exposure; so, whether the Minister thinks these requirements are reasonable.”
“Thank you, Speaker. I believe I have made my point. Actually, I would like to speak by apologising to the Senior Minister of State. I had mentioned "Senior Parliamentary Secretary"; it is actually "Senior Minister of State". I have made my point, so I will not repeat myself. Thank you.”
“A number of cities in the US, including San Francisco and Seattle, have already passed Emergency Orders temporarily capping delivery app commissions at 15%. And there are many other cities in the process of doing so.”
“Thank you, Speaker. I would like to thank the Senior Parliamentary Secretary for the very comprehensive answer on what help the Government is providing through ESG. Nevertheless, I would like to bring back the point on the 30% to 35% commission charged by GrabFood, Deliveroo and foodpanda in the market. They have a dominant share and continue to have a dominant share during this COVID-19 period and there has been a lot of feedback from F&B outlets whether help can be given to them. What I would like to ask Senior Parliamentary Secretary is whether the Government has monitored the size and growth rate of the delivery platform business, especially since the COVID-19 outbreak. Whether the Government feels legislation should be necessary to govern the practice of such businesses – I would say they are very large now – to avoid predatory behaviour as well as provide transparency, some kind of format that they have to provide transparency to the consumers to show how much the delivery companies charge restaurants and pay the delivery riders. I think that form of transparency is important. The same practice has been imposed on banks. When banks charge commission, we compel the banks to share with the customers; it would be similar thinking along that line. I would also like to ask Senior Parliamentary Secretary whether the Government will consider temporary measures to limit commissions charged by delivery platforms – maybe just temporary – during this COVID-19 pandemic, where restaurants dine-in operations are not allowed. If we do not do a permanent arrangement, can we do a temporary one, so as to provide these restaurants a fighting chance to survive?”
“I thank Deputy Prime Minister for including non-Singaporeans in Singaporean families in the cash payment. I would like to ask the Deputy Prime Minister in his expectations. I appreciate it is technical and there is a lot of things going on at the same time, but I did raise a question for the Deputy Prime Minister in my speech. The Temporary Bridging Loan interest rate capped is as high as 5%. But I am very grateful to hear the Deputy Prime Minister announcing risk share to 90%, and that banks and finance company will also get support from MAS with the new Singapore dollar facility. So, even though I asked the Deputy Prime Minister for a prescribed interest rate, given that there is so much help by the Government, I would just like to ask Deputy Prime Minister if you cannot give me a number, do you have the expectation given all this help that the bank should now be able to provide a much lower interest rate to help SMEs to tide over and not let them have unnecessary debt burden when they recover.”
“In solidarity, could the Deputy Prime Minister consider giving them some help, even if not the full $600, means tested on a case by case basis, and applicants can be asked to show that they are part of Singaporean families. Also there are many Long-Term Visit Pass holders who are spouses of Singaporeans. Many of these families are not well-off. They would certainly appreciate this, even if it is just a fraction of $600. Mr Speaker, Sir, it is clear that the effects of the COVID-19 pandemic will be felt for quite a while. The Unity, Resilience and Solidarity Budgets provide comprehensive measures for individuals and companies to build capabilities for the eventual recovery at all levels. Despite our best efforts, some companies and jobs will disappear, but new ones will emerge. Those who stay resilient in the face of hardship and adversity will be rewarded, when a new dawn breaks. As we face the mighty storm together, for days, months or even years, our shared sense of identity and solidarity will be our greatest strength. Every generation of Singaporeans has been defined by its own crisis; each has come through stronger and more united than before – this challenge is ours to face down, as one united people. Together, I am confident Singapore will prevail. Sir, I support the Budget.”
“Sir, I commend the coordinated efforts of MAS and the financial industry to roll out probably the biggest restructuring of household and corporate debt in Singapore’s history, providing individuals and businesses relief in cash flows. The relief package offered by banks and insurers, to defer repayment of loans as well as insurance premiums until the end of the year, will be a lifeline for many impacted. It will also help financial institutions reduce risks of delinquencies and bankruptcies, by sharing the burden of debt with individuals and SMEs. However, I was surprised to hear from Senior Minister of State Chee Hong Tat during a Parliamentary Question yesterday, that the SME Working Capital Loan Programme has so far helped only 662 enterprises and the Temporary Bridging Loan interest rate is as much as 5% despite the Government’s risk-sharing at 80%. This contrasts poorly with Switzerland’s crisis loan scheme to SMEs, where over 76,000 small businesses availed themselves of more than SFr 15 billion in the first week of launch, at zero interest. I thank the Deputy Prime Minister for announcing risk share to 90% and that banks and finance companies may also apply for low-cost funding through a new MAS Singapore Dollar facility. With these strong Government interventions, I would like to ask if MAS can prescribed a much lower interest rate chargeable such that there is more take up, and boost SMEs chances of surviving this storm and ease their recovery with less debt burden. Finally, Sir, the impact of coronavirus hits everyone. Many of our PRs are part of Singaporean families and have contributed socially and economically. They are hurting too.”
“Owners of food outlets have told me that the high commissions are barely tolerable during "peacetime". However, with the onset of COVID-19, deliveries have now become the dominant portion of their business – indeed, the only mode of business from today, for at least a month. Under these circumstances, payment of such commissions renders the sustainability of food establishments untenable. Some relief is provided by the recently launched Enterprise Singapore’s package to support F&B players by funding 5% of the commission cost. I urge, and I really urge, GrabFood, Food Panda and Deliveroo to do their part – review their commission model and foster more equitable sharing of costs and benefits with food outlets owners, riders and consumers. I believe it is in the delivery companies’ interests to adjust their commission rates, so that food outlets may have a fighting chance to survive. As for delivery riders who "brave" the deliveries to ferry our favourites to us at home, we as consumers can also play our part by giving them a little extra. Should those of us who can afford it not consider tipping our delivery riders 5%-10% of food receipts as a discretionary "service fee"? We can all do our part to keep Singapore’s treasured, unique and colourful food culture alive. In the coming days, more relationships between parties will need to evolve and creative new models that benefit all stakeholders must emerge. I hope such solutions will be developed by businesses themselves, without depending on the heavy hand of the Government or the law. It is regrettable that we have to enact new laws to compel landlords to pass on property tax rebates to tenants.”
“Even as we work relentlessly to mitigate the scale of retrenchment and rise in unemployment, I would like to ask Deputy Prime Minister whether he has in mind a limit to which the reserves should be tapped? There is no historical precedent of the type of economic dislocations that we are experiencing. More are drawing parallels with the trauma wrought by World War II or the Great Depression. I would like to ask Deputy Prime Minister for his view on the nature of this crisis – how different it is from past crises and the challenges that he believes Singaporeans and the enterprises will need to face. Mr Speaker, Sir, many of the support schemes in the Resilience and Solidarity Budgets are broad-based to provide for cash flow during this time of crisis. I note that some countries, such as Australia, eligibility for wage support only kicks in if business turnover drops by 30% due to the pandemic – so there is an eligibility criteria. And for larger companies with turnover of more than A$1 billion, their drop in turnover must be at least 50% before they are eligible. Whilst I agree with the broad-based approach Singapore is taking, it is incumbent on companies who enjoy disproportionately greater benefits to “do the right thing”, and share these benefits with their business partners, employees and the wider eco-system, in the spirit of solidarity. Sir, let me share one example. Food delivery platforms such as Grab and Deliveroo typically charge 30%-35% in commission fees. This means food outlets need to pay an exorbitant one-third of customer receipts, in fees to delivery platforms, as commissions for delivery. Judging by the compensation that delivery platforms pay their riders and charges they impose on consumers for delivery, I think this seems excessive.”
“The longer the duration of lock-down, the more complicated the resumption of economic activity will be. I would like to ask Deputy Prime Minister what he plans to do if our efforts to contain COVID-19 is not successful and circuit breaker measures need to be extended or even tightened? Would he extend a similar set of support measures? It is at times like this when we feel grateful of the privileged financial position Singapore is in, endowed as it is with the wherewithal to weather this storm. Our reserves have enabled Deputy Prime Minister to act decisively when the nation faces such extraordinary circumstances. The lion share of Resilience and Solidarity Budgets will go towards the Job Support Scheme in order to save jobs and protect people's livelihoods. I am pleased that the Government chose to bear the full costs of savings jobs with wage support, instead of cutting CPF. After the previous CPF rate cut in 2003, it took eight years for the employer contribution rate to be restored to 16%. I hope we can continue to safeguard CPF for our workers in this crisis. Despite the strong efforts on Job Support Scheme, less than half of the Singaporeans polled by The Straits Times believe that the measures would be enough to rescue jobs. In the US, the COVID-19 "freeze" is expected to cost 47 million jobs and send the unemployment rate past 32%, according to St Louis Fed projections. With such grave outcomes being predicted in other parts of the world, I would like to ask Deputy Prime Minister about his outlook on Singapore's unemployment – both the base case as well as worst case scenarios?”
“Mr Speaker, Sir, I would like to start by thanking Deputy Prime Minister Heng Swee Keat and his team at MOF for working relentlessly and tirelessly on successive packages in response to the rapidly escalating COVID-19 pandemic. From the Unity, to Resilience, to Solidarity Budgets, it is clear that the Government is listening hard and responding with great competence, boldness and heart. The resources needed to fight this escalating crisis seem unending. More than 3.9 billion people or half the world's population have been asked to remain in their homes to combat COVID-19. After battling the virus for over two months, with successive restrictions, Singapore too, joined those confined to their homes, in an effort to slow the worrying growth rate of unlinked local cases. Whilst I fully support these enhanced new measures, designed to be circuit breaker to arrest the escalating infections, such restrictions will incur significant economic costs in addition to imposing a severely constrained way of living on everyone. The Solidarity Budget proposes that another $5.1 billion be spent to save jobs, support businesses and families during these extraordinary four weeks, with $4 billion of that coming from our Reserves. No one is sure how widely the COVID-19 pandemic will spread and when it will peak. Containment may take longer than currently projected and no country has seen a clear path to recovery. Even China, which has seen its reported infections dwindle, has urged their citizens to avoid non-essential outings and has continued to discourage foreigners from entering, in order to prevent a resurgence of infections. Without widespread availability of a viable vaccine, the removal of restrictions on economic activity is likely to be painfully slow.”
“Thank you, Sir. I have two questions for the Senior Minister of State on SkillsFuture. First, thank you for very much for the range of exciting initiatives on SkillsFuture. The first clarification I have is that I ask the Senior Minister of State how the next phase of SkillsFuture movement will bring about a closer link between the CET courses and employability. I spoke about the challenge amongst the thousands of courses and people needed help to navigate. What do I need to do? What skills do I have to achieve based on the CET courses offered that would link me to a very good employment outcome, especially those 40 to 60 years old, the same group we are trying to help. The second clarification I have for the Senior Minister of State is on the SkillsFuture Queen Bee initiative. It is a very exciting initiative and there were so very impressive numbers being mentioned, that SMEs are being brought on board. I asked in my speech if the Senior Minister of State can give more details about how this new model works, maybe specifically give some details on the governance, the funding, whether there is any certification involved, so that some of the skills can be portable. So, just really going a bit deeper about if these Queen Bees are going to be schools of the industries, how are they going to be governed, how are they going to be funded, and the quality control about the programmes.”
“There should be strong incentives for CET providers to establish links between their training courses and on-the-job performance and employment outcomes. Sir, training is most effective when it is closely linked to specific job requirements. The initiative to identify up to 40 large anchor enterprises to support training for their sectors and value chain partners, is indeed very timely. This initiative can potentially transform the entire supply chain, helping to raise the skills of workers in SMEs who form an integral part of the supply chain. Sir, I am really keen to hear the Minister in providing more details about this Anchor Enterprise programme. I have been a strong proponent of Work-Study programmes, as they can be very effective in preparing our students to be job-ready in the world of work. I am also heartened, like Dr Intan, to hear the ambitious goal to make this a mainstream pathway, with the declared ambition of 12% of each cohort. Work-study pathways can only be successful with strong industry partnership, commitment on the part of employers and their management teams to make workplace learning meaningful and impactful. What plans are in the pipeline to build that necessary infrastructure and eco-system for impactful work-study programmes? What support will companies receive to enable their effective participation in work-study programmes? Post-Secondary Education Account”
“Mr Chairman, I would like to declare my interest as the CEO of Wealth Management Institute, a training provider. The SkillsFuture movement received a boost of support in this year’s Budget with generous SkillsFuture Credit. Sir, together with the heavily-subsidied course fees that SkillsFuture courses provide as well as support from Adapt and Grow programmes, Singaporeans are well supported to confront the profound structural changes taking place in the labour market and economy. The SkillsFuture measures should motivate them to beef up their skills, re-tool themselves and chart their own future career. This round of top-ups must be utilised before 2025 – a condition that should signal urgency and spur many into action, especially those aged 40 to 60. So far, the inertia in take-up can be attributed partly to perceived relevance of SkillsFuture courses and the challenges faced by mid-career workers in navigating the thousands of courses available. For the next phase of SkillsFuture movement, more focus should be placed on building strong connections between employability and CET courses. There should be clear linkages between job opportunities, the skills required and the CET courses. We should roll out an online SkillsFuture Career Guidance tool to help individuals assess their own competencies and credentials against skills required in job vacancies in growth clusters, and direct them to relevant CET courses to develop proficiency in the required competencies. In the process, they can also be directed to career coaches for support and guidance on their learning journey to better understand career prospects in the identified sectors.”
“Mr Chairman, shifts in the global economic centre of gravity towards Asia present immense opportunities for our people. Singapore is well-placed to leverage opportunities from fast-growing Asia, in particular, Southeast Asia. Many Singapore companies see Asia as its marketplace, given the limited growth opportunities in our small domestic market. So, to prepare our future generation to be Asia-ready, I am really happy that we are reviewing our school curriculum to enable students to develop a deeper understanding of ASEAN, China and India. Deputy Prime Minister Heng announced the "70-70" target for a new Asia-Ready Exposure Programme. I would like to ask the Minister to provide more details about this programme. How can this new programme provide our students with the opportunity to develop deep insights into the Asian economies and their ways of working and living? I certainly hope this Programme will not just stop at being an overseas trip to the region. Indeed, the programme should instead encompass student involvement in community service engagement with the respective Asian communities, working in close collaboration with foreign embassies and student exchange programmes. Most importantly, to support our students, it is to expand their language skills to include those of the region. I would like to ask the Minister whether the Government would support the setting up of MOE-funded ASEAN language schools and whether the mastery of these languages can form part of the mainstream curriculum and be credit-bearing?”
“I cannot help but chip into the discussion on FWA even though I did not speak, if I may. I think this is something that we have, in the PAP Women's Wing, been championing. We have always talked from the legislation and how everybody wants it. Actually, a lot of research has already been established to say this is good for business. Businesses who do it have lower turnover, higher performance, morale is good, higher job satisfaction – all the good things. Perhaps one approach if MOM can take a lead is to evangelise the benefits of FWA with employers, so that it is something that they will embrace by being a great place to work, so they can attract the best talent. I think perhaps that is something that we all have agreement, but where do we start? And I think it is proven that it is good for business. So, if we can look at that, that would be great.”
“I have called for the restoration of the full rate for all older workers, but I can also understand the Government's position that there is a need to balance the demand-side of the labour market, that is, the employability of older workers who are usually more expensive for employers, and the supply-side, that is, the incentives and sense of worth for older workers to remain in the labour market. I understand this balance is worked out in intense tripartite discussions between employers, unions and the Government. Beyond tripartite discussions, my question is whether there is scope and flexibility for the Government to spearhead changes when it can be shown that the increased rates are not attractive enough to retain productive older workers to remain in the workforce and that demand for workers remain high in labour-constrained Singapore. Also, is the Government still committed to the first increase in CPF contribution rates in 2021? I believe Senior Minister of State Heng Chee How said the Government is. Minster Josephine Teo also said last year that the Government was committed despite the economic uncertainties faced by businesses in the context of the US-China trade war. Now that the COVID-19 emergency is certain to hit the global economy and our open economy hard, I hope the Government is still committed to an increase. CPF Usage for Education and Re-skilling”
“With 22 billion currently invested in CPFIS and another estimating 142 billion investible CPF in ordinary account (OA), CPF members are potentially missing out on significant opportunity to augment their retirement savings. With CPF LRIS, members can potentially see their average cost of investment go from 2% to 3% per year as retail clients, to below 0.5% with the economies of scale accorded by a Government-sponsored scheme. The improvement in net investment returns from the reduced investment costs, as well as the benefits from a professionally managed life cycle fund, will significantly improve retirement adequacy especially if compounded over a long term period. For example, I calculated. Over a 30-year period, a savings of 2% in investment management cost will translate to almost doubling the original sum, even before accounting to the growth of the underlining amount. I would like to ask the Minister for an update on the progress of CPF LRIS? What are the difficulties and concerns in launching such a scheme? CPF Contributions Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Chairman, Sir, last year in August, the Government announced that the CPF contribution rates for older workers would be increased gradually starting from 2021 and carried out over the next 10 years. The full rate of 37% would be restored for workers aged 56 to 60, while workers aged 61 to 65 would see an increase to 26% and those aged 66 to 70 would see an increase to 16.5%.”
“Sir, with people living longer, the ability to meet essential living expenses and maintain standards of living they expect in retirement years is a key concern amongst Singaporeans. Whilst CPF LIFE plays a key role in providing the basic level of retirement income for every Singaporean, it is inadequate as the sole source of post-retirement income to support a "reasonable" standard of living in retirement, unless the retirees are willing to make substantial compromises in their desired lifestyles, through to the end of life. According to G30's "Fixing The Pension Crisis" report published in 2019, the estimated gap between the expected lifetime financial security benefits and that which existing systems are likely to provide is expected to be huge, that is US$15.8 trillion by 2050, for the 21 countries analysed, including Singapore. A key policy recommendation of the report is to increase private savings with reforms to minimise investment management costs and enable individuals to benefit from collective investment management, at low cost, yet protecting the retirement savings from unprecedented low and negative interest rates and volatility of market cycles. So, in Singapore, it has been more than three years since the CPF Advisory Panel highlighted the significant investment costs and risks faced by retail investors in the current CPF Investment Scheme (CPFIS). The Panel had recommended that the Government introduce a new scheme, CPF Lifetime Retirement Investment Scheme (CPF LRIS) as a prudent, professionally managed, low fee option for CPF members to invest and grow their "surplus" CPF retirement savings.”
“MAS’s success in developing the Fintech sector and in instituting the concept of "regulatory sandbox" to spur innovation of new technology is also something that other sectors can emulate, to support experimentation and trials of promising innovations, with all the necessary safeguards. Sir, strong local capabilities and eco-systems for innovation is key to securing Singapore’s economic success and resilience. SMEs need a lot of handholding to engage in R&D. I would like to ask the Minister how SMEs can be supported in shortening their learning curve, embracing technnology and participating fully in R&D. What impact has the 10 Centres of Innovation (COIs) had on industry development? What outcomes have there been so far, of COIs in assisting SMEs? And how can university research and other research agencies support industry development in more substantive ways? Deputy Prime Minister Heng Swee Keat spoke about the vibrant startup eco-system in his Budget Speech. There are now 3,800 technology startups in Singapore. As Singapore now also a globally recognised leader of intellectual-property protection and scientific research centre, we should fully deploy our strengths to focus on supporting startups in deep-tech with research-based IP at its core. Deep-tech start-ups in emerging technology areas such as agri-food tech can grow to become globally competitive. However, these same startups also require larger investments, longer gestation periods, and not every investor has the stomach for the higher risks that come with this. So, I would like to ask the Government how are we going to support these startups.”
“Mr Chairman, Singapore’s investment in economic transformation seems to be moving in the right direction. Overall productivity rose to 2.6% per year over the last three years, up from 2.2% in the preceding three-year period. The Industry Transformation Maps (ITMs) aimed at fostering innovation, boosting productivity and deepening skills of workers in the respective industries is central to our economic restructuring effort. Yet when I speak to business leaders, they continue to lament that potential synergies and capability development, which ITMs could provide, remain under-leveraged. Performance in industry transformation has been uneven across sectors. [Deputy Speaker (Mr Charles Chong) in the Chair] So, I would like to ask the Minister what lessons have been gleaned from the implementation of ITMs thus far? How can companies be better incentivised to band together and form alliances to develop industry-wide capabilities, build scale, go international and test sector-wide solutions? What progress has been made in the Government’s efforts to anchor key players in shared facilities and infrastructure to better support transformation and adoption of technology? And lastly, how can Government support the development of emerging sectors with good growth potential? Sir, from the substantial Government investments made in the economic transformation journey that started four years ago, there must have be – there must be useful learnings from sectors that have gained good traction. For example, what can we learn from manufacturers in the semiconductor and pharmaceutical industries who have widely been recognised as the forerunners in the adoption of Industry 4.0 initiatives?”
“I actually would like to continue the clarification started by Member Liang Eng Hwa and the Minister's eloquent reply. It is regarding the return from NIRC. I noted the same strong growth projected for 2020. It is 9.3%. And I do understand we project long-term expected returns. To me, that is a very big achievement and we are very grateful, because we can then use it to fund our Budget. But then, what would the trend be in terms of percentage increases? 9.3%, right? This year versus last year. I think in wealth management, if you can achieve 9.3% for long-term expected growth, that would be an amazing achievement. I would like to ask the Minister whether there was some special adjustment from 2020 versus 2019, because I would imagine for the long term, probably, it would look more like 4%. That would be a good achievement.”
“Chairman Sir, the Public Accounts Committee observed, in its latest report to Parliament, that it is concerned about recurring lapses in procurement and contract management. Government agencies were directed to urgently address these recurring lapses and basic mistakes. They need to prevent weaknesses from compounding over time, and thus weakening governance and accountability for usage of public funds and resources. I would like to ask the Minister how can Government procurement policies and processes be made more streamlined and effective, so that the value of spend is maximised? What training do Government procurement officials undergo, in order to ensure that they are fully conversant with the relevant policies and processes? What consequences do the officers-in-charge and management face, for lapses in enforcing controls? How can the identified lapses be addressed at a whole-of-Government level?”
“I would like to ask the Minister what incentives there are for Government officers to under-spend their budgets and continuously achieve savings in projects and initiatives for which they are responsible? What mechanisms are in place to ensure budgets are efficiently and effectively allocated, and to what extent can the whole-of-Government approach be used to explore cost synergies and cross-agency collaboration, in order to avoid duplication of effort and cost? Sovereign Wealth Funds”
“Mr Chairman, with the anticipated rise in expenditure, it is important that the Government ensure fiscal sustainability and accountability. Singapore's strong financials have been instrumental in enabling the country to carry out audacious development projects, as Deputy Prime Minister Heng said just now. So, what is the scope, within our budgetary mechanisms, to ensure this trajectory and to ensure inter-generational equity, balancing the needs of current and future generations, especially for big-ticket items like infrastructure and climate change? Most fundamentally, a healthy and growing economy will be crucial to ensuring a healthy revenue stream. The Government has invested substantial funds to support firms to transform and grow under the Industry Transformation Programme. The Government has also allocated a significant share of the Budget to R&D and RIE investments. I would like to ask the Minister what measures are used to determine if these investments are indeed bearing fruit: what KPIs are used to track progress and success? What has the impact of investment in R&D been, in elevating and positioning Singapore for the future and in supporting industry transformation? Sir, Government Ministries can also contribute to the sustainability of Government finances. They should be expected to practice prudence in their spending and seek the best value for the money they put into their projects. I would like to ask the Minister what budget mechanisms and controls are deployed to manage expenditure growth in Government, ensuring efficient and effective spending of public monies and the sharing of best practices. How does MOF ensure value-for-money is the responsibility of every Ministry and every public officer?”
“It has provided Singaporeans with peace of mind, ample opportunities and a sustainable future. The concerns over COVID-19 will eventually fade over time, but the efforts to transform Singapore as a Global-Asia Node of Technology, Innovation and Enterprise will ensure Singapore remains exceptional. I cannot agree more with Deputy Prime Minister Heng Swee Keat when he says that the Singapore Spirit is strong and growing. Together, we will advance as One Singapore. I support the Budget.”
“In the meantime, it is heartening to see large corporations and landlords rise to the occasion in support of the smaller ones, including rental rebates by Changi Airport Group to retailers, and the Hope fund, put together by the Young Business Leaders of the Singapore Business Federation (SBF), to support SMEs with immediate working capital. This is the time for the big boys to chip in and help their smaller brothers. Sir, long-term transformation and growth remain the key focus of this Budget. The issue of manpower constraint continues to be a major struggle for businesses across the board, even as we are resolved to reducing our dependency on foreign workers. We need to urgently develop new ways to find, train and retain the talent necessary to sustain growth. Learning from the Swiss, industry associations can play a pivotal role in galvanising players in the sector to join forces in curating and delivering impactful training for the industry. I believe that Singaporeans will become more accepting of supplementary foreign labour if we actualise the systematic plan to train and develop them for attractive careers. Mr Deputy Speaker, Sir, finally, Budget 2020 showcases Singapore's capacity to build a bright and sustainable future. The Deputy Prime Minister had set an ambitious goal to tackle climate change and has put aside a $5 billion Coastal and Flood Protection Fund. The spark in Singapore's climate change journey has been lit in this Budget. Singaporeans can look forward to a sustainable future and participate in exciting new developments as we manage Singapore's transition to a low carbon, low emissions, clean economy. In conclusion, Budget 2020 inspires confidence in uncertain times.”
“The general feedback is that many businesses are experiencing up to a 50% drop from their usual volume, and the Budget measures are too small and too short term to address these challenges. Besides the dramatic impact on tourism, aviation and retail sectors, COVID-19 has significantly disrupted supply chains in manufacturing to even vegetables for the restaurants. Locked-down Chinese cities are unable to supply the parts that have become integral components of the supply chains here. Many workers are stuck in China, unable to return. Activation of Business Continuity Plans, extra cleaning, medical leave, leave of absence and so on have put additional pressure on costs and manpower. It will be especially crucial, I agree with Member Ong Teng Koon, to provide relief for cash flows to tide them over this difficult period. With $7.7 billion of Budget surplus left for this term of Government to tap on, Deputy Prime Minister Heng has ample ammunition to do more, I hope. I would like to ask if he would consider a second package if circumstances warrant it. Would the Deputy Prime Minister consider extending the Jobs Support Scheme to six months and increase offset of wages to 12%, as what was done during the Global Financial Crisis? Would he consider extending the support package to more sectors? Would he also consider coordinating efforts with banks to restructure loans, so that SMEs and affected individuals can get a moratorium on repayments for, say, up to six months, just to ease their cash flow?”
“This is especially so when the environment in Hong Kong, Asia's other leading wealth management centre, has been marred by months of street protests and instability, and long-term uncertainties regarding its tax and legal systems. Mr Deputy Speaker, Sir, I thank Deputy Prime Minister Heng Swee Keat for a very generous Budget with measures to help with cost of living, training, jobs and retirement adequacy. Whilst there is a really "feel good" sentiment on the ground, more needs to be done to help Singaporeans understand exactly how these measures will benefit them. And I am picking this up when I am on the ground trying to explain. There are many different schemes to keep track of, from the new schemes, such as Care and Support Package, Matched Retirement Savings Scheme, GST Assurance Package, to enhancements to existing programmes, such as the Silver Support Scheme and SkillsFuture top-ups. On top of existing support programmes, they all have very different qualifying criteria, some based on housing type, individual income, household income, age criteria and, often, combinations of criteria. And I do agree these multifaceted targeted schemes are more cost-effective than broad based ones. But together, they can become too complex for the average person on the street to digest. I would like to suggest that the Government provide a Personalised Budget Statement or make available a Budget Calculator on how Singaporeans and their family, based on their unique circumstances, can stand to benefit from Budget 2020. Sir, regarding support for businesses, I urge Deputy Prime Minister Heng to really stand ready to do more. The coronavirus outbreak has hit the businesses hard.”
“Some may be concerned that a reintroduction of estate duties, previously abolished in 2008, may harm Singapore's status as a leading wealth management centre and incentivise wealth and business owners to engage in complex structures for tax avoidance. As other forms of wealth taxation are now being considered by a number of other countries, the notion of wealth taxes generally do give rise to concerns about how taxpayers might react. But income and wealth inequality are global issues and there are wide recognition amongst governments and wealth and business owners of the need to address them. As the world moves towards considering broader and fairer tax systems, Singapore should maintain its principles of keeping tax structures simple and tax rates low whilst meeting the interests of all stakeholders, particularly of those who are most in need. So, now we live in a new era of automatic information exchange under the Common Reporting Standard and other global requirements to disclose beneficial ownership across the world. Transparency in ownership and value of assets is rapidly becoming a new norm. When tax is well structured at competitive and fair rates, together with tax treaties similar to those to which other jurisdictions are parties, an effective estate duty and perhaps accompanying wealth tax regime, may actually be an allure for assets to be maintained in Singapore. In a world of turbulence and uncertainty, Singapore's world-class infrastructure, rule of law, financial and political stability are priceless for peace of mind of the wealthy.”
“Besides being the single largest source of revenue, NIRC is also projected to grow at 9.3%, compared to only 1.7% total increase in all the taxes in financial year (FY) 2020. I am worried about calls from some quarters for the Government to take more from our Reserves, rather than to safeguard our strategic "asset". Is it not unwise to kill the "goose that lays the golden egg”? I am even more worried about the growing dependency on NIRC. As NIRC is subject to volatility from tough investment environments, I would like to ask the Deputy Prime Minister whether it might be prudent to consider setting a threshold on NIRC dependency, beyond which recurrent spending should only be funded through recurrent revenue. I thank the Deputy Prime Minister for responding to my call to delay the increase in GST. Whilst he has assured us that GST will not increase for at least another two years and has also provided support in the form of the GST Assurance Package, some Singaporeans are still wondering why would we need to raise GST at all, given the apparent Budget surpluses and additional capacity of $6 billion of GST offsets? Increases in cost of living is foremost in the minds of many people, particularly retirees. Sir, I would like to repeat my call to the Deputy Prime Minister to continue looking for other sources of revenue. Even though the wealthy are already contributing substantially to our taxes through a progressive Personal Income Tax, GST, property tax, Additional Buyer's Stamp Duty (ABSD) and so on, I really believe there is still room to consider wealth tax and estate duties, all aimed at building an even fairer and more equal society.”
“Mr Deputy Speaker, Sir, this year’s Budget is set in one of the most uncertain times of Singapore’s history. Our economy grew by a modest 0.7% in 2019, its weakest growth since the 2008 Global Financial Crisis. With the current COVID-19 outbreak fast spreading across the world, the outlook for 2020 is even bleaker and more uncertain. Deputy Prime Minister Heng Swee Keat has provided much-needed assurance, by announcing a rock-solid Budget that inspires confidence to press ahead. People say money cannot buy happiness. But I can think of many things money, in the right hands, can provide: peace of mind, opportunities to better one’s circumstances and hope for the future. Budget 2020 offers us that. Let me elaborate. Singapore’s economic foundations have been and continue to be strong. The fiscal strength has enabled the Deputy Prime Minister to announce one of the most expansionary Budgets in 20 years – $106 billion to support families, seniors, workers and businesses. Budget 2020 will provide "Stabilisation and Support" for the current COVID-19 outbreak, enable Singapore to seize opportunities to transform and grow, as well as to build and secure our future. The money will come from diversified sources of tax, NIRC from our Reserves as well as accumulated surplus from previous years’ fiscal prudence and discipline. It is at times like this when we really appreciate having this reservoir of financial resources to keep Singapore on an even keel, come what may. It is at times like this when we should also reflect on the significant contributions made by NIRC. Its contribution to fund total expenditure has grown from 13% in 2015, it is now 22% in 2020 – projected to be 22% in 2020. So, in five short years, it has gone from 13% to 22%.”
“Mr Speaker, I thank the Minister for quite a number of measures that seem to be in place. The most fundamental worry that we all have with SEPs is their savings for retirement and, to a large extent, also towards housing. So, would the Minister consider launching a matched retirement savings scheme, a scheme where perhaps the Government can contribute when they put some money in to save towards housing needs and also their retirement?”
“I thank the Minister for his response to my supplementary question. I understand that this is part of nature. But for the community that is impacted by that, it is really bad. So, I would like to propose for the Minister's consideration and collaboration with maybe HDB and other agencies, given that this phenomenon cannot be eradicated. In fact, PUB says that this may happen more regularly given the climate change. We should really seriously consider helping residents with protection against the nuisance created by midges, whether helping, especially vulnerable families, with screens or HDB nets or definitely in public areas like bus stops, so that it is bearable for people to be in those places to take public transport. So, I urge the Minister to seriously consider this.”
“I would like to ask the Minister how the residents can be supported with insect screens for their flats as the installation of such features is costly, as well as other methods that PUB would consider to protect Housing and Development Board (HDB) flats and bus stops from the nuisance of midges. Third, the most effective way to deal with midges is to eliminate them at source. I know PUB uses biological larvicide, bacillus thuringiensis israelensis (BTI), and using tonnes of it this time, at the reservoir, by injecting the larvicide into the reservoir's sediment. But despite all that, the problem appears to persist. I get constant questions that I would like to ask the Minister: how does PUB determine the effectiveness of BTI in controlling the larva population at the reservoir? How can the injected BTI be expected to zero in on the midge larva, given the vast area of the reservoir sediment? Fourth, besides installing nets at the reservoir to serve as barriers to midges flying towards the housing estate, I would like to ask if more trees and shrubs can be added to also serve as barriers and places for the midges to congregate, so that they do not go into people's homes.”
“I thank the Minister for his response. Before I raise my supplementary questions to the Minister, I would like to thank the PUB and Town Council teams for the very, very hard work in tackling the mass midge outbreak. Speaker, since July this year, residents living near Pandan Reservoir have suffered greatly from the mass emergence of midges. Their homes have been invaded by the midges. Corridors, lifts and bus stops have been swamped. Cars, buses, bicycles and motorbikes have been affected. The midges stick to our clothes, really stick to your clothes, your hair, fly around your eyes, get into your nose, get into your food and they are everywhere. This year's outbreak is the most severe we have witnessed yet and also persisted for the longest time, impacting the daily lives of our residents. Some have likened it to being in a horror movie. Seriously, if you have visited, it is really scary. I thank residents who took time to join the dialogue sessions we organised with PUB on the midge issues. There were some really great ideas that were shared and I would like to raise some for the Minister's consideration in my supplementary questions. Speaker, I have four supplementary questions. First, whilst I appreciate that fogging has been proven to be an effective way to kill adult midges, there are concerns among our residents about the health risk from exposure to chemicals from sustained fogging, particularly as the outbreak has lasted for an extended period. I would like to ask the Minister if PUB can find a more effective fogging method to target midges at the reservoir as they emerge and keep them away from residential areas. Second, as the Minister shared, the midges issue cannot be solved or eradicated permanently.”
“Mr Speaker, I have one supplementary question for the Senior Minister of State. Mr Speaker, on improving infrastructure to cope with the needs of PMD users, cyclists and pedestrians, I believe the Senior Minister of State mentioned just now about a pilot site in AMK where cycling tracks are signficantly being explored to be expanded. He actually mentioned that, if need be, a dedicated lane on the road would be set aside, if I heard him correctly. What I would like to ask the Senior Minister of State is whether the Government will consider, given the rising popularity of the use of PMDs and cycling, going back to the early years of Singapore where there was a dedicated cycling track on the road along with the vehicles but, obviously, doing it safely as part of the future LTA Transport Master Plan.”
“Similarly, in my constituency, we have a lot of pigeon issues. So, I listened with great interest in the pilot that the Senior Parliamentary Secretary spoke about. All the things that the Senior Parliamentary Secretary spoke about, we have attempted. And I would say, over the last eight or nine years, I do not see much result. We have done everything that she has suggested. The pilot that she just mentioned, I listened with great interest, and I would like to ask the Senior Parliamentary Secretary when this can be rolled out to the other parts of Singapore.”
“Mr Speaker, I have three supplementary questions for the Minister. I appreciate the discretion that the respective AUs have to review their procedures in the light of Monica Baey's ordeal. I would like to ask the Minister: would the Minister think that there is room for some form of minimum standards that MOE could prescribe to the respective boards that are reviewing the different measures to ensure they have some kind of minimum standards to which disciplinary actions that will be meted out? This is to send that strong signal that the Minister referred to. Secondly, on the safety measures, what would be some minimum standards where people who live in the Halls would have to observe? Last but not least, what would be some of the minimum standards on training and imparting of skills for the counsellors dealing with this sensitive matter of people being subjected to sexual harassment?”
“Thank you, Sir. I have two clarification questions for the Minister. The first is that I asked during my cut for the lower-income seniors where they have little family support, they qualify for Silver Support, they do not own a property to unlock, and I know the previous answers were that if their CPF is very low, they get Silver Support. So, I would like to ask – and I asked it in my cut – if you combine those who qualify for Silver Support and their CPF, how far are they from the $700 of Basic Retirement Sum per month? I asked that question because I take $700 as what is deemed sufficient. That is the aim at least. If we add up the CPF monthly payout plus the Silver Support, how much would they get? The second clarification question is: the good thing about this group of seniors is that 76% of them have property. Therefore, it is very important when CPF talks with them about planning, they can speak about unlocking value in the property. I know probably it is not immediately in the remit of CPF. So, I would like to ask how would that be addressed in helping them to understand the value in their property if they want a much more comfortable retirement and they wanted to unlock that value.”
“She now lives a very different lifestyle, with a healthy cash balance of over $80,000 in her bank account, whilst receiving a monthly payout of over $2,600 from CPF. She is now often seen out and about in the community, happily enjoying the company of friends and hobbies like painting, visiting her doctor confidently and never having to worry about overdue bills. But I am still concerned about Mdm Tan. She recently told me that her niece has suddenly become very friendly and has asked her that she be made a joint account holder of Mdm Tan’s now very healthy bank account. Mdm Tan came to me and said she is "embarrassed" if she refused her niece’s request. Luckily, Mdm Tan listened to her Member of Parliament (MP) on the risks of doing so and she has held on tightly to her bank account, so far! Sir, there are many more Mdm Tans out there. I would like to ask the Minister to step up the Government's efforts to reach out to seniors, perhaps through the Silver Generation Office, to equip them with better financial literacy to safeguard their savings and to understand the many ways they can draw value from their property, from renting out a spare room, to downgrading to a smaller flat so that they can fund a comfortable retirement. "Triple Weak" Companies”
“Mr Chairman, Sir, on a brighter note, we can take comfort in the fact that for the same group of seniors 65 and above, 76% of them are property owners and the slew of Housing and Development Board (HDB) policies introduced in the recent years present many options open to these seniors who wish to unlock value in their homes, for a very comfortable retirement if they know how to do it. However, these housing monetisation options are not widely known and understood by seniors. Many seniors aged 65 and above received very little education and tend to leave financial matters in the hands of other family members. They are ill-equipped to understand the options – too many and too complex – and, even if they do, I am always worried whether they can manage those money released judiciously. Let me illustrate this with the story of my resident Mdm Tan, not her real name. She is aged 83. She approached me for financial assistance after her husband passed away. Mdm Tan has an adult son who lives with her in her fully paid-up 4-room flat and the son earns $4,000 per month but he refuses to support her with any allowances nor to help pay for living expenses. Although we were able to secure some short-term assistance from the Government for Mdm Tan, she did not qualify for long-term financial assistance because of her son’s income as well as the option to monetise her flat. She found it a challenge every month to pay for her food, medical and utility bills, until we helped her realise the significant value of the asset she owns, that is, her 4-room flat. It took us nine months, working together with HDB, to help her understand the option of monetising her flat. She chose the Lease Buyback Scheme.”
“Mr Chairman, Sir, I wish to speak about the financial security of Singaporeans aged 65 and above. This generation worked hard to lay the foundation of the Singapore we enjoy today. During their time, wages were low and many worked in the informal sector. A recent Parliamentary Question revealed that 75% of these seniors receive CPF monthly payouts of less than $500 per month. And for those seniors 70 and older, the average monthly payouts dropped to below $300. These payouts are clearly insufficient to provide for today's cost of living. Many of these seniors rely heavily on family support for financial security. The majority cited "allowances from children' as their main source of income. However, I am concerned about this generation's over-reliance on their children, what with the shrinking size of families and the consequent burden that it will have on the shoulders of the younger generation. I greatly appreciate the launch of the Silver Support Scheme to supplement seniors' retirement incomes. But I always wonder if the amount they receive is sufficient to provide for a basic, dignified living. I would like to ask the Minister how many of these seniors would attain a retirement income of at least $8,400 a year or $700 a month, after combining their payouts from CPF and the Silver Support Scheme. I would like to suggest to the Minister to review the retirement adequacy of seniors, those with little or no family support, and consider whether they may receive top-ups to their CPF, perhaps in the form of "Retirement Income Supplement", in order to attain a Basic Retirement Sum payout currently at $700 per month.”
“Second, appoint a Lead Training Provider (LTP) to partner SIC in developing the skills and certification framework and practice-based training programmes, highly customised to meet the skills and competencies required in the sector. The LTP’s appointment will be based on their depth of knowledge of the industry and their capability to develop and deliver very specific industry programmes, to be evaluated by SIC. LTPs can either be a Singapore IHL or private training provider and be selected through a competitive tender process. To help the LTP develop strong capabilities and scale to serve its sector over the long term, they will have access to programme development grants to support the curation of customised programmes for the sector, according to a set of quality and price criteria. Third, support the LTP to develop scale, perhaps through preferential programme funding, to support their investment in deep training expertise and capabilities to deliver best-in-class training programmes. The LTPs should serve as the respective industries' centre of excellence for training and education, so that training may be concentrated amongst a few high-quality LTPs, whose capabilities and delivery are subject to close scrutiny by SIC and SSG. Perhaps, their mandate as LTP is subject to review, say, every five years, to keep the sector dynamic. Sir, I believe the above LTP framework will help nurture a core of highly specialised and quality CET providers, which is absolutely necessary to support impactful lifelong learning. 6.00 pm”
“It is also unclear how training is linked to the attainment of distinct quantifiable skills, career advancement and wage growth. I often hear the frustration of residents, particularly those who have been retrenched, that their efforts to attend training courses are not commensurate with the recognition accorded by prospective employers. Many would say to me, "I already go for many training courses but still cannot find a job". Employers themselves have shared their own frustrations. Many are at a loss as to how to structure their training programmes so that the courses will have a meaningful impact on their business. Many smaller employers lack inhouse Learning and Development support and do not know where to begin to identify those training programmes best suited for their employees from amongst the very long, long list of SSG courses. Sir, I would like to offer some suggestions for a CET framework for the Education Minister to consider. First, perhaps the Minister can consider developing a structured partnership model to determine key training roadmaps by industry sector, perhaps clustered along the 23 Industry Transformation Maps. This partnership should consist of key stakeholders within that industry, including the lead Government agency, union, trade associations and chambers (TACs), and representative companies and workers. They could form an SSG Industry Committee (SIC) and be the authority to chart the skills and competencies required for current and future needs of the sector, including a certification framework that lays out systematic skills ladder for that sector. Certification level against the skills ladder can serve to guide career progression in the sector.”
“Chairman, Sir, I would like to declare my interest as the Chief Executive Officer (CEO) of the Wealth Management Institute, Nanyang Technological University (NTU), a CET provider. An amount of $3.6 billion has been set aside over the next three years to help workers adapt to changes and acquire new skills. This is not a small sum. If deployed well, it can offer meaningful support to workers to build deep capabilities that are relevant to their fast-evolving jobs and meet their career aspirations, including transition to a more attractive job or a different industry. Since launching SSG five years ago, there is now significant awareness on the need for lifelong learning amongst our citizens. Based on my own experience and observations of other countries’ efforts in CET, there are best practices that can be adopted to accelerate the impact of SSG even further, in order to turn it into a real competitive advantage for Singapore. Sir, there are over 30,000 courses funded by SSG offering generous subsidies of up to 70% of course fees. Based on the latest figures from SSG, 465,000 Singaporeans from 12,000 enterprises have benefited from training subsidies. A recent survey of 3,500 trainees indicated that 80% of them found the training helpful. Even as we are cheered by this finding, the measurement of training outcomes remains difficult, as acknowledged by the CEO of SSG. Hundreds of relatively small training providers, with uneven quality, have been accredited under SSG. This makes it difficult to select the right training partner. It is not clear how trainers are qualified, nor how training content is curated to meet industry and job market developments.”
“What can we learn from established centres, such as Silicon Valley, whilst carving out a unique proposition that distinguishes us, Singapore, from other emerging centres, such as the Greater Bay Area? Which areas should Singapore focus our investments? How much risk are we willing to tolerate in this journey towards rapid and breakthrough innovations? What new social compact do we need to foster with our citizens as we venture boldly into unchartered waters fraught with risks and failures, but rich with untold rewards and returns? Physical and Non-physical Connectivity”
“Singapore's economic transformation over the last few decades owes much to its position as a regional and global economic hub. Indeed, Singapore's economic history is rooted in its beginnings as a thriving, open port. As we stand at the dawn of the Fourth Industrial Revolution, how can we continue to build on our status as a world-class "hub", leveraging such technologies as self-learning machines, robots, autonomous vehicles and the Internet of Things? These new technologies will generate huge waves of change, transforming the way we work, live, consume, trade and invest. The emerging technologies will exert disruptive impact on jobs, firms and overall economies at an unprecedented speed. As a small open economy, our response must be to embrace the technological advancements to come and to use them as new opportunities for ourselves. The Finance Minister spoke about positioning Singapore as a Global-Asia node of technology, innovation and enterprise. I believe Singapore is well-poised to deploy our strengths towards fulfilling this vision. However, as Mr Liang Eng Hwa said, other countries and regions are not standing still. According to innovation strategist Charlie Ang, countries and their companies can attain sustained economic supremacy if they possess leading edge, proprietary artificial intelligence (AI) capabilities. The infusion of superior AI technologies into national industries, exported products and digital platforms is likely to be the next source of national competitive advantage. McKinsey predicts that “Leading AI” countries could capture an additional 20% to 25% in net economic benefits. I would like to ask the Minister how we can strengthen our capabilities on the data, financial, regulatory and technology fronts.”