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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“Sir, I am also hearing questions on the ground on whether big-ticket projects can be less glitzy, whether we can space these projects out a little more so that we can pace our spending a little better, and whether we can better prioritise Government initiatives and programmes. So, I would like to ask the Finance Minister about the process by which large projects and programmes are prioritised, and whether Singaporeans can play a bigger role in influencing this process, so that they can feel included in the building of Singapore. GIC Data”
“Chairman, Sir, Singapore has been incurring more spending than its revenue base since 2015. We have come to rely heavily on contributions from NIRC as the top contributor to spending needs, providing 21% of total expenditure in 2018. This high dependency represents a significant vulnerability, given the volatility of any investment portfolio. Experts are divided on how much risk corporate taxes – this is traditionally Singapore's largest source of revenue – pose to Singapore's fiscal sustainability. Most agree that it will be increasingly difficult to raise corporate taxes, especially as major economies, such as the United States (US) lower them. Personal income taxes are also expected to contribute less to revenue in the coming years, due to our greying population. Our ageing population will further demand higher spending in healthcare and to build elderly-friendly infrastructure. So, to pay for our increasing needs, I urge the Government to study all possible streams of revenue, with the Goods and Services Tax (GST) rate as a last resort, given its broad impact on society. Could the Government look instead at introducing e-commerce tax, a lift in gambling, tobacco and alcohol taxes, perhaps new sources of tax revenue from carbon and sugar, and more progressive personal income tax by introducing new and higher tax brackets, including those for the super high-income earners and ultra-rich? Tax increases are never easy to swallow. So, to address the fiscal sustainability, perhaps we can also balance this with more focus on the "costs" line. It is always easy to call on the Government to do more and give more, usually with less consideration on how these expenditures are going to be paid for.”
“With the significant funds already set aside in the last two years for future healthcare and infrastructure needs, I believe we are now in a much stronger fiscal position than planned. This scenario, coupled with the Government’s differentiated fiscal strategy of using borrowings to fund major long-term infrastructure projects, should offer relief from the need for major tax increases in the near to medium term. I urge the Minister for Finance to maintain our current tax regime for a much longer period, postponing the unpopular GST rate hike for as long as possible. Mr Speaker, Budget 2019 addresses many issues, none more urgent than the need to restructure our economy for the next lap. This is truly our "burning platform", and we must press on. Mr Speaker, I support the Budget.”
“This enhancement will provide $1 billion a year to supplement the income of 440,000 Singaporeans. I would like to ask the Government to consider qualifying more low-income Singaporeans to this uniquely Singapore scheme. With the rise of the gig economy, more Singaporeans, young and old, are engaged in work without the security of regular contributions to Central Provident Fund (CPF) and healthcare support. So, keeping in mind the overriding social objective of helping Singaporeans with earnings in the bottom 20%, it really would make sense to offer a form of WIS to lower-income gig economy workers to also help them save for retirement and healthcare, encourage work and raise their income. Mr Speaker, Sir, with regard to the outlook for our fiscal position, Budget 2019 is expansionary, with an overall deficit of $3.5 billion. The healthy fiscal surplus accumulated by this Government in its current term has provided significant room for the Minister for Finance to plan ahead. He set aside a large sum of $15.3 billion under Special Transfers, including $6.1 billion for the MG Fund and $5.08 billion for the Long-Term Care Support Fund, to meet Singaporeans’ long-term needs. This is on top of the FY2018 Special Transfers of $9 billion for future rail infrastructure and GST Voucher needs. This enviable financial position is made possible by our strong fiscal discipline, robust contributions from NIRC and a strong economy in 2017 and 2018. With the accumulated surplus of about $18 billion from previous years, there is also an ample buffer for counter-cyclical measures should the global economy pose greater downside risks than anticipated.”
“So, we must critically evaluate how Singapore can build a sustainable pipeline of local talent as well as attract the best of foreign manpower, in order to build the critical mass necessary for a thriving innovation hub. We cannot do this alone. We must also look around. We must benchmark our attractiveness to compete for these globally mobile talents with other established centres, such as Silicon Valley, as well as new clusters like the Guangdong-Hong Kong-Macau Greater Bay Area. With ITMs covering 80% of our economy, their progress is central to our economic restructuring effort to foster innovation, boost productivity and develop skills of workers in their respective industries. Even with 23 ITMs launched, their contributions so far are unclear. The feedback from the ground is that the pivotal roles that industry stakeholders and Trade Associations and Chambers (TACs) are expected to play have proven to be uneven across industries. Far too few TACs are able to lead the development of industry-wide capabilities and help their members access local and international networks. There is really an urgent need for the Government to evaluate the partnership model and support structure of how the different Government agencies, TACs, industry players, unions and training providers can come together to accelerate deep capability development. Sir, amongst the economic measures, I am comforted to see that the Minister for Finance has dedicated $3.6 billion to support workers across many schemes. Many lower-wage workers who previously earned just over $2,000 are rejoicing to see the WIS qualifying income cap being adjusted from $2,000 to $2,300 per month. WIS is a key pillar of our social security system.”
“We should also strengthen our funding strategies for our universities and research institutes to encourage multidisciplinary collaborations, including partnerships with corporates, to solve impactful real-world issues. The reward system for our researchers and academics should provide the motivations for them to supercharge commercialisation of research and development (R&D) and industry applications. I am excited about the plans to encourage young Singaporeans to gain overseas working experience with GRTP. Such internships afford an eye-opening and mind-broadening experience that no amount of book learning can offer. Our youths, equipped with unrivalled education and multilingualism, will better understand our place in the world and how to make the most of it. During my own corporate days, overseas assignments were a key component of development programmes typically reserved for the selected top graduates only. So, I am very pleased that this is now readily available to many Singaporeans through the Government's support. My advice to our lucky young people is, "Go seize the opportunity!" Going digital and automation continue to be big themes in Budget 2019. The call for businesses, big and small, to go digital is loud and clear. Many companies have highlighted skills and talent shortages as significant barriers for them going digital and adopting new technologies. Sir, besides the basic digital skills for everyday activities, our push to go digital must include an expansive talent strategy, especially for expertise in high demand areas, such as quantum computing, data analytics, artificial intelligence (AI) and cybersecurity. The expertise and skillsets we need for this digitalisation drive are in short supply the world over.”
“This year's Bicentennial Bonus follows last year's $700 million SG Bonus. This gesture of sharing surpluses with Singaporeans, whenever our finances allow, should be the regular feature of all future Budgets. There is no better way to build social cohesion than to share these upsides with the people. Sir, Budget 2019 attempts to tackle many core issues facing Singapore, and I would like to focus my speech on the measures proposed to transform our economy and strengthen Singapore’s economic competitiveness. The Finance Minister's vision of building Singapore as the Global-Asia node of technology, innovation and enterprise is very exciting. We can be very proud of the progress we have made in nurturing a flourishing startup ecosystem. We saw a significant rise in venture capital deals and the setting up of 150 global venture capital funds, incubators and accelerators based right here to support startups in Singapore and in the region. We invest substantially in scientific research, with $19 billion set aside for the Research, Innovation and Enterprise (RIE) 2020 Plan. We now have a huge pulling power to bring the global innovation community to Singapore, as witnessed by the success of the Singapore FinTech Festival. As a globally recognised leader of intellectual property (IP) protection and scientific research, we are, indeed, very well poised to fully deploy our strengths and make this vision a reality. Sir, to support this vision, we should focus our support on startups in deep-tech with research-based IP at its core rather than just general startups, especially on startups with the potential to scale globally.”
“Mr Speaker, Sir, I agree completely with the Finance Minister’s statement that Singapore's ability to plan for the long term is our strategic advantage. The social and economic measures unveiled in Budget 2019 build on the Government's efforts and investments in prior years to address ageing, social mobility and economic transformation. I welcome the targeted measures that build on that momentum to transform our economy and care for our people. This Budget offers a systematic set of programmes, each reinforcing and building on existing ones. I am also heartened to see how, over the years, social safety nets continue to be strengthened for Singaporeans, and how our drive to raise productivity and transform the economy begins to bear fruit, even as much remains to be done. As we celebrate our bicentennial year, we should count our blessings of a strong economy, a united people and the enormous advantages this presents in enabling us to chart our future confidently over the long term amidst a complex and volatile world. Our unique position contrasts starkly with many other countries. These include two of the world’s largest economies. I witnessed the anxiety and suffering of many American families resulting from their government shutdown, and the nightmare scenarios that the British people and businesses are contemplating in anticipation of the Brexit outcomes. Sir, the generous measures in this Budget to help alleviate cost of living pressures are, indeed, timely. The MGP of $6.1 billion will provide half a million Singaporeans born in the 1950s better peace of mind in regard to their healthcare costs. The Bicentennial Bonus of $1.1 billion will provide additional help for broad groups of Singaporeans with their living expenses.”
“I just wanted to clarify my earlier supplementary question. First, I think, the Minister mentioned CPF LIFE only applies to CPF members with minimum $60,000 balance. Why is that so? Why can we not let everybody enjoy CPF LIFE?”
“I thank the Minister for her very comprehensive response. I would like to refer to a recent exchange on the Forum Pages of Lianhe Zaobao on the CPF Retirement Sum Scheme. A CPF member had complained that CPF Board would stretch his payouts over 28 years until he is 93, when he thought it should be 20 years, on the assumption if the tenure was shorter, he would get more over these 20 years. So, I would like to ask the Minister for Manpower the basis by which payouts for CPF RSS are calculated. So, how do you calculate? Why do you decide it is 28 and not 20? Can CPF members have the flexibility to choose the tenure of the payout period within the prescribed limits? And why do we still have the CPF Board maintain this CPF RSS and only apply to people with lower CPF balances, and not include everyone on the CPF LIFE Scheme, which I believe is a superior scheme? Mr Speaker, may I have a second supplementary question which relates to this discussion about the important decision of starting at 65? The question the Minister could answer is whether a CPF member who has chosen payouts to begin at 65 – later found out it is a better deal to delay and want to stop the payout and ask to defer to 70, can this be done? If this request is made, how do you then calculate the payouts for the remaining period? Let us say this person has enjoyed it for a year and then ask at 66, "I want to defer to 70", what happens? And that would inform the decision some of the Members are asking for automatic trigger at age 65. What happens?”
“Mr Speaker, I thank the Senior Minister of State for his response. Learning from the Gatwick Airport incident, I think there were two issues, and I would like to pose two supplementary questions. Firstly, how can perpetrators be easily identified? Secondly, what anti-drone technology can the authorities deploy to track the drone signals? And how can they disrupt the operation of rogue drones?”
“Mr Deputy Speaker, real estate-related money laundering cases often involve sophisticated methods being deployed, making detection a challenge. I would like to ask the Minister how we can mitigate the risk brought on by the use of front companies, shell companies, and trust and company structures established domestically and offshore to purchase property. Such structures help distance the criminal from ownership, with control vested in the hands of third parties to avoid obvious links to true ownership. According to an article by the Financial Times on "How laundered money shapes London's property market", about 100,000 properties in England and Wales are owned by overseas companies, with many of the properties having been bought by anonymous shell companies based in offshore tax havens. We are also subject to the risk of property values being manipulated by criminals buying or selling real estate at prices above or below market value and colluding with others in the ecosystem to "clean" the money. One example is when properties are deliberately undervalued and illicit funds are used to pay the difference between the contract price and the properties' true value. Processes should be in place to question such unusual property price transactions. My final point is to ask, once again, that genuine buyers of Singapore homes be protected from any increased cost of compliance by developers, which the introduction of this Bill may inadvertently cause. We can do that by adopting a calibrated risk-based approach. Mr Deputy Speaker, I support the Bill.”
“And whether the checks required of other parties in the ecosystem, such as lawyers and real estate agents, can be coordinated so as to reduce duplication and ensure all efforts complement one another. Whilst the intent of the Bill to stop financial crime in the real estate sector is laudable, we need to ensure that implementation of regulatory measures is not so onerous as to cause the increased cost of compliance to be passed to consumers. To check for suspicious persons and entities, developers need to screen their prospective purchasers against multiple lists provided by relevant authorities, including the United Nation's Sanctions lists. To assist developers, can the Ministry coordinate and compile a single comprehensive list online to ensure thorough screening against the most updated information? Under the new regulation, developers are required to appoint a compliance officer, as guided by the MAS notice. The industry is concerned about the availability of talent to fulfil such a role, as well as its related costs. Whilst I agree there is room to heighten awareness as well as institute measures to check for suspicious property transactions, this burden should not rest only on the shoulders of a compliance officer but those also of the senior management and, indeed, throughout the organisation. Developers should institute a corporate culture that has zero tolerance for money laundering and terrorist financing, and have that communicated rigorously to all staff. Lessons learnt from experiences of financial institutions should be shared widely so that developers can shorten their learning curve in implementing AML/CFT measures.”
“It is, therefore, critical that we put safeguards in place in the real estate sector to stop it from being a channel for such activities. My comments on this Bill will focus on effective implementation. The proposed Bill puts in place requirements for developers to carry out customer due diligence, keep proper records and report suspicious transactions. Whilst I strongly subscribe to taking an "ecosystem" approach to AML/CFT efforts as we are only as strong as our weakest link, I share the industry’s concerns on the practical limitations on some of the requirements. Developers are unsure how they can conclusively check and verify a purchaser’s profile, as well as establish purpose of purchase and source of funds, in the course of a sale and purchase transaction. As current rules on Option to Purchase and Sale and Purchase Agreement only allow cheque, cashier's order or telegraphic transfer, funds flowing into the property sector would have already gone through AML/CFT checks by financial institutions before developers receive them. The option to purchase is not transferable nor assignable, and cash payment is not allowed without the explicit approval of the Controller of Housing. I would like to ask the Minister whether developers, as "secondary" recipients of such funds, can rely on the customer due diligence already carried out by financial institutions. Also, whether a risk-based approach can be adopted where the levels of checks expected of developers vary according to whether the purchasers are local residents or foreigners, with enhanced checks prescribed for those from high-risk countries.”
“Mr Deputy Speaker, as an international financial centre and trading hub, the fight to combat financial crime is a continuing priority. I am encouraged to see the whole-of-Government (WOG) effort on anti-money laundering and countering the financing of terrorism (AML/CFT). Financial institutions have poured substantial resources and investments, including the better use of technology, into improving the effectiveness of AML/CFT measures. Last year’s setting up of the AML/CFT Industry Partnership (ACIP) by the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD), a platform that combines law enforcement and regulatory insight with industry's ground knowledge of business and clients, has helped expand our understanding of emerging risks and typologies. Many sectors have put in place the necessary laws to comply with AML/CFT requirements, including lawyers, pawnbrokers and moneylenders. Parliament had passed the Serious Crimes and Counter-Terrorism (Miscellaneous Amendments) Bill yesterday to provide for tougher penalties on corporations and professional service providers, as well as money mules for overseas organised syndicates. Therefore, the introduction of the Developers Anti-Money Laundering and Terrorism Financing Bill is timely. The use of real estate to launder illicit funds is an established method of money laundering the world over. Large sums of illicit funds can be concealed and integrated into the legitimate economy through real estate. We have seen reports where millions of dollars' worth of property have been subject to criminal investigation, when they are suspected to be the proceeds of illicit funds, yet these reported cases are likely to represent only the tip of the iceberg.”
“One particular area that the industry has concerns about is the availability of qualified professionals, including fund directors. I would like to ask the Second Minister to elaborate on the talent development plans being developed in conjunction with the VCC framework. In conclusion, the proposed VCC framework, coupled with Singapore’s strong reputation for political and economic stability, transparency, sound and predictable rules and regulations, will position Singapore well as a compelling hub for both fund management and domiciliation activities. It could be a game changer for asset management in the Asia Pacific. I support the Bill.”
“The notion of variable capital provisions is, therefore, critical to the operations of an investment fund. Yet, the closure of a VCC's sub-fund seems to mirror the process under the Companies Act, requiring a liquidator to be appointed and involve more formal company liquidation procedure. Would the Second Minister consider lightening the unwinding process for sub-funds, such as allowing a strike-off if the sub-fund satisfies all the criteria for striking off? This will improve operational flexibility to promote the usage of a VCC structure. I applaud MAS for structuring VCC with a robust governance and oversight framework. Unlike other fund domiciliation centres, VCCs in Singapore require the appointment of a fund manager regulated by MAS to be based in Singapore and subject to anti-money laundering (AML) obligations, in line with international standards. This will help prevent VCCs from being abused for unlawful purposes and prevent Singapore from becoming an offshore centre without actual investment management activities conducted in Singapore. Mr Deputy Speaker, Sir, Singapore's success in positioning itself as a fund domiciliation hub is expected to create a thousand new jobs in the first two years of introduction for ancillary service providers. These will include lawyers, fund administrators, fund custodians, tax professionals and accountants, all attractive jobs for Singaporeans. We must invest strongly to nurture a vibrant local ecosystem of fund service providers to enhance the sophistication of our overall system for the long term. We must ensure that the expertise required to operate the VCC framework does not constrain our growth.”
“This would be an excellent window to establish ourselves as a vibrant financing hub to support the next generation of Asian growth companies. With two-thirds of Singapore’s AUM invested in the Asia Pacific and 40% in the Association of Southeast Asian Nations (ASEAN), the VCC framework should be operationalised to enable us to compete strongly as a choice location for setting up fund management operations focused on investments in Asia and ASEAN. This will require a nuanced understanding of the web of varied local regulations and international tax developments. For example, one of the issues raised by the industry is the legal identity of sub-funds under the VCC umbrella entity. Even with safeguards put in place to ensure segregation of assets and liabilities, market players view that giving sub-funds a legal identity would be a more straightforward and effective way to ringfence sub-funds' assets and liabilities in order to facilitate flexible sub-fund set up and closure, or exit. Importantly, there is a need to cater to structural issues which feed into taxation matters, for example, investments into India via a sub-fund where a Certificate of Residence (COR) is required for claiming tax benefits. The lack of a legal entity status of sub-funds could potentially hinder fund managers to flexibly structure an umbrella entity with multiple sub-funds with distinct investment objectives. Sir, the very purpose of the VCC structure is tailored for investment funds and dispenses with aspects of existing company law that are not conducive to investment funds. Thus, one of the VCC’s selling points is its flexibility to pay dividends and redeem shares versus companies with fixed capital.”
“So, Deputy Speaker, Sir, to overcome the initial inertia to adopt the VCC structure, including the cost hurdles for adoption, the Government should consider some "sweeteners", perhaps in the form of cost subsidies, when setting up a VCC structure in Singapore. Conversions to VCC should be allowed to take place with no Singapore tax consequences and should be granted automatically to encourage transition to VCC. Re-domiciliation incentives could also be provided to encourage fund managers with funds domiciled in offshore jurisdictions to co-locate fund domiciliation with their fund management activities in Singapore. The Government should work closely with local champions, such as Dymon Asia, Lion Global Investors, to lead the way for the adoption of VCC for new funds. We should drive adoption starting from home base and support early adopters with "early bird" incentives. The proposed framework allows funds domiciled overseas to be re-domiciled in Singapore as VCCs by registration with the Accounting and Corporate Regulatory Authority (ACRA). However, the industry has given feedback that more needs to be done to refine policies to better support the conversion of local funds to VCC. Many industry players find the process for converting existing domestic collective investment structures into VCC cumbersome. Rightly or wrongly, some actually feel that the restructuring of local funds as VCC appears more difficult than re-domiciliation. Being a relatively late comer, we should design our VCC framework with a distinct advantage to serve the rapidly growing alternative sector AUM, comprising hedge funds, venture capital, private equity, real estate and infrastructure.”
“Mr Deputy Speaker, Sir, Singapore has established itself as a vibrant and leading international fund management centre. We have seen impressive asset under management (AUM) growth over the years. AUM has more than doubled in five years, from S$1.6 trillion in 2012 to $3.3 trillion in 2017. As the Second Minister of Finance recapped just now, we are now home to 700 asset managers. The introduction of the VCC Bill is timely. It further strengthens Singapore’s position as a full-service international fund management centre. Close to 80% of AUM managed in Singapore are still domiciled overseas. So, this new corporate structure, tailored for investment funds, should spur co-location of fund managers and fund ancillary services in Singapore by enabling cost economies, ease of administration and compliance for fund managers. However, attracting funds to be domiciled in Singapore will not be an easy task. Other established fund centres, such as Cayman Islands, Republic of Ireland, Luxembourg and recently Hong Kong, come with their own distinct history and value propositions, offering a whole suite of incentives, ranging from tax-free regimes, flexible legislation, accounting flexibility and a real commitment to serving the international fund industry. Whilst the proposed Singapore VCC structure compares reasonably well against its international peers, catering to investment funds for traditional and alternative strategies, both on an open-ended and closed-ended basis, there will always be inertia to try out a new structure. We must, therefore, ensure Singapore's VCC framework offers a unique value proposition. We must actively promote the structure to drive adoption and consider incentives that may be necessary to spur action amongst fund managers.”
“Thank you, Mr Speaker. As the Minister has said, substantial resources were deployed for the HSR project. So, I actually had asked the Minister in Question No 55 whether with that suspension, the LTA resources can be redeployed for the Jurong Region Line so that we can expedite the project of Jurong Region Line.”
“I would like to ask a supplementary question. I think the Senior Minister of State has alluded to a lot about encouraging people to use active mobility devices on the back of assumed success of the education programme because we do not have a law now, or we are just having a law in place. I want to ask how effective has this education programme been. First, how many have taken the safe riding programme? How many have turned up? How many people actually read those pamphlets? This is so that we know that the educational efforts are making an impact and that we can count on them to make sure that the use of active mobility devices is safe.”
“I support the manpower-lean approach as the way forward and agree that we should maintain the overall ratio of local to foreign talent in our workforce. However, we should review our foreign manpower policy to introduce a differentiated intake approach to enable acquisition of capability in new domains critical to Singapore's future growth, such as expertise in data analytics, artificial intelligence and cybersecurity, whilst balancing this with reduced intakes in other areas. So, rather than adopting a one-size-fits-all approach, foreign manpower policy should evolve to include skill-based factors that prioritises certain types of skills and expertise over others, within a quota system. The system should provide transparency and predictability in order to help companies plan their growth strategies in Singapore. Mr Speaker, we are confronted with formidable challenges that require new ways of thinking about education and training, not just for a season, but for a lifetime. But we have been here before. In 1974, Mr Lee Kuan Yew said, “Our lives and our children’s future must be built on a solid infrastructure of education and skills, tuned to high performance by efficient management, always able to respond quickly to sudden changes in the world.” Just as we were called upon in the country’s early years to take our fledgling nation of poorly-skilled factory labourers to one that served up world-class manufacturing and top-flight services, so we are now called upon, once again, to shape Singapore’s "future of work". This will be an undertaking for all Singaporeans – Government leaders, corporations and individuals – everyone playing their part and aligned towards the same vision. We must be equal to the task, for the sake of our future. I support the Motion. 3.15 pm”
“Trade associations and industry task forces in the respective ITMs should play an active role with training providers in defining competency-based credentialing and recognition systems, as well as creating a continuous feedback loop between labour market needs and training requirements. They should collaborate to develop robust and scalable training interventions to benefit the whole industry cluster, lifting skill levels in the sector through systematic accreditation of workers. Mr Speaker, despite our best efforts, the rate of technological disruption will probably result in some degree of job displacement. For some workers, it may even occur multiple times during their careers. We must, therefore, strengthen the support systems for dislocated workers. The key is to ensure that they are re-employed quickly to avoid sticky unemployment or under-employment. Based on feedback from residents who have tried finding jobs through current employment services centres, it is evident that the operating model will have to evolve to include new partnerships and mechanisms that better connect workers to jobs, and jobs to workers. Job-matching efforts should be integrated with SkillsFuture and ITMs as well as income safety nets during periods of displacement. There should be early warning systems for possible lay-offs and rapid response mechanisms for career counselling and job placement tightly coordinated. Even as we work on positioning Singaporeans favorably in the global marketplace for talent, Singapore must remain a magnet for expertise that our industries need but cannot fill locally. We must deal squarely with calls for help from businesses struggling with manpower shortages.”
“The movement needs to evolve from one that prides itself on offering thousands of courses in a plethora of fields catering to individuals’ interests, to a system that lays out a clear path linking lifelong learning to skills and jobs dynamically. It needs to become the new engine of education that drives Singapore’s growth and development, in much the same way that educating and training our children and young adults have helped propel our growth over the last 50 years. We need to move from front-loading our citizens’ education in the earlier part of their lives to helping them learn at all stages of their lives. We need to develop lifelong learning institutions, as well as the necessary discipline and comprehensive infrastructure, to ensure that a strong culture of learning and an ecosystem of continuing education take root. The World Economic Forum’s report on the Future of Jobs estimates that 35% of core skills required to perform today’s jobs will change or be wholly new by the year 2020. SkillsFuture must be capable of providing the adult learning that is vital to ensure today’s entire workforce can cope with the disruptions to come and be prepared for new skills requirements in both existing and new roles. To achieve this, SkillsFuture needs to partner academic institutions, vocational training providers, trade associations and employers to develop and incentivise customised training solutions capable of lifting skill levels of the whole workforce, industry by industry. With our economic transformation efforts focused around the 23 ITMs, I urge the Government to consider launching SkillsFuture for ITMs, in order to ensure strong alignment of training efforts with industry needs and future growth.”
“Automation promises great gains for higher skilled workers who can innovate, create and apply new developments, whilst mid- to low-skilled workers will be at greatest risk of being replaced by technology. And here, we must guard against the increasing polarisation of employability, which will exacerbate income inequality. Job families expecting the highest employment growth – in science, technology, engineering and mathematics – currently have some of the lowest female participation rates and continue to find it much harder to recruit women. Yet, at the same time, women are over-represented in other job families, such as office and administrative roles – the ones that are expected to experience heavy disruptions. Seniors will be more adversely affected than younger workers. The Government must put in place the necessary measures to ensure equal opportunities for all and avoid inequality being exacerbated by the digital divide. Mr Speaker, if it is any consolation at all, Singapore is not alone in facing this digital challenge. Nations the world over are struggling to deal with the social and political implications of impact on jobs and society brought on by information technology, artificial intelligence and robotics. In fact, the World Economic Forum’s White Paper on Realising Human Potential in the Fourth Industrial Revolution actually highlights Singapore’s SkillsFuture movement as a global best practice and role model. I applaud the Government for launching this visionary initiative as far back as 2015. I think it is time that we step on the accelerator for SkillsFuture, if it is to go the distance that we expect, at the speed it needs to.”
“Growth in our local workforce is expected to slow further, unfortunately. A recent study by Korn Ferry Futurestep predicted that Singapore will be one of the countries with the highest risks of a severe talent crunch, estimating that we will be short of more than one million skilled workers by 2030. This issue of talent and jobs is closely linked to the accelerating pace of technological disruption in transforming industries, business models and jobs. The future of work is now one of the hottest topics in many industries, provoking much debate and predictions about the impact of automation technology like artificial intelligence and robotics on jobs, skills and wages. I, for one, think we need not surrender to the nightmare scenario where we would all be replaced by robots. The most significant disruption will come from an increasing rate of change in job destruction and job creation, including new forms of work, as well as skills churn within existing occupations. Machine learning and robotics will replace specific tasks previously performed by humans, freeing them to focus on new tasks and leading to rapidly-changing core skillsets in various occupations. Workers will have to learn new skills to work alongside increasingly capable machines. Therefore, in order to avoid having a class of people becoming unemployed and under-employed, it is imperative that we develop effective strategies to help Singaporeans make the transition, have them retrained, reskilled and capable of performing new kinds of work. As the Fourth Industrial Revolution takes hold in different industries and job families, it, unfortunately, will affect different segments of society differently.”
“Mr Speaker, I rise in support of the Motion to thank our President for her Address. The Thirteenth Parliament is re-opening in rosier times. Measures which the Government put in place over the last few years are beginning to show green shoots. Last year, our economy grew at 3.6%, exceeding forecasts. Overall, labour productivity grew at 4.5%, marking the highest productivity growth since 2010, fewer workers were retrenched for the first time in seven years and real wages rose steadily for all income groups. Yet, the President reminded us that our long-term challenges remain broadly unchanged. Our economy needs to restructure towards higher value-added activities and stay dynamic, we need to secure Singapore’s place in the world, we need to stay focused on upgrading skills and we need to forge a caring and inclusive society. And we must keep up our efforts to make Singapore an exceptional nation. I am encouraged by the determination and resolve of the fourth-generation (4G) leadership that I sense through the President’s Address. I am excited by their appetite to undertake the "bold changes" needed to navigate the unchartered waters that lie ahead for Singapore. These attributes are necessary to take Singapore forward through our next phase of development. Mr Speaker, I would like to focus my speech on Singapore’s priority to develop a vibrant economy with good jobs and opportunities for workers. In order to sustain a vibrant economy despite an ageing population, a tight labour market and the changing nature of work brought on by technological disruptions, we really need fresh perspectives, breakthrough ideas and decisive action to lead us there. The current tight labour market is really a key constraint for business growth.”
“Chairman, Sir, I join many of my colleagues who spoke before me about the proliferation of bicycles and PMDs. I am actually standing here to speak even though I have lost my voice because I promised my residents that I will speak for them. Many important points have already been highlighted by my colleagues, including the nightmare that hon Member Er Dr Lee Bee Wah shared. My residents, too, have nightmares with cyclists and PMDs. So, I would not repeat the long list of things that I intend to speak on. Instead, I would like to highlight to the Minister that the law and order for the co-habitation of PMD riders and cyclists with pedestrians and other road users have not kept up. I am very happy to see the announcement of the licensing regime for dockless shared bicycles under the Parking Places Act yesterday. But what other measures can the Government take to facilitate a safer and more pleasant shared use of our public spaces between pedestrians and riders? And how can errant cyclists and PMD riders be dealt with promptly? Silver Zone Programme”
“How will public officers be rewarded for cost savings they manage to secure against the allocated Budget for projects? There should be incentives to recognise public officers' efforts and cost savings. We do hear of stories of public sector officers rushing to spend allocated funds toward the end of the financial year, about this time, often on programmes they could have done without. The understanding is that they fear being penalised in future Budgets if they under-utilise the current Budget. Third, with increasingly complex challenges facing the Government, it is critical that the public sector agencies adopt a coordinated whole-of-Government response and work collaboratively to avoid duplication of efforts and costs. I am pleased that the recent Public Sector (Governance) Bill sends a strong signal on the importance of cross-agency coordination. With the new Bill in place, Chief Executives of Statutory Boards will be obliged by law to cooperate and collaborate with other public sector agencies to deliver value to the public. I believe that much cost synergies may be realised from cross-agency collaboration and interagency sharing of data. Temasek Holdings as Shareholder”
“Chairman, Sir, my apology for the hoarseness in my voice. For Budget 2018, total spending by the Government is estimated to be $80 billion, representing an increase of 8.3% year-on-year, mainly on the back of increased spending in transport, trade and industry and home security. Even though Government spending at 19% of GDP is considered lean when compared to other developed countries, the expenditure growth has been on the rise and cost management discipline is more important now than ever. It is critical that we consider our expenditure growth very carefully and take every step to ensure we get the best value for the money we spend. In the private sector, it is a common strategy to consider cost cutting in other areas to fund new investments and increases in expenditures. I call on the Government to take a bottom-up analysis of each Ministry's expenditure needs and scrutinise and prioritise cost items. The Finance Minister has introduced the discipline of moderating the pace of the Ministries' Budget growth in the last two Budgets. What more can the Government do to work smarter and more efficiently? First, I would like to ask the Minister if the operations of Ministries and Statutory Boards are subject to productivity reviews to establish their operational efficiency and goals for improvement. Given the vast number of agencies in operation, Ministries can leverage off such reviews to establish best practices and improve their processes to become leaner. 11.30 pm Second, with significant infrastructure spending and Government programmes yet to come, I would like to ask the Minister what mechanisms are in place to evaluate and monitor spending to ensure value-for-money and accountability on outcomes and spending.”
“Singapore’s corresponding rankings for numeracy skills and reading skills are also high, at 6th and 7th respectively. Sir, at the same time, Singapore workers also have some of the strongest relationships between proficiency in literacy, numeracy and wages among the countries in the study. What this implies is that workers who have skills deficiencies could be expected to perform significantly poorer in the labour market. This raises some specific areas of concern. My interpretation of the results of the PIAAC survey is that the proportion of workers in Singapore who may be at risk of skills deficiency is not insignificant. While the results of surveys must be looked at in perspective, the areas of concern they point to in Singapore’s case suggest that lack of basic literacy and ICT skills appears to affect skills performance in other areas. So, there is a significant knock-on effect. This could imply those without foundation in literacy and ICT skills will not be able to make further progress in the labour market. I would like to ask the Minister how this challenge is addressed in the national skills training framework. In particular, the same study shows much more variability in skills among Singapore workers than those in the other countries in the survey, with our older workers clearly performing poorer compared to their younger counterparts. This higher variance in skills proficiency suggests that training has to be much more carefully tailored to individual needs. How is this dealt with? Developing High Quality Human Resources”
“We know there are 42,000 new information and communications technology (ICT) professionals needed over the next three years in industries like finance, healthcare and logistics. We should really consider setting up a national institute of ICT for professionals to provide a comprehensive set of training programmes that facilitate aspiring professionals’ entry to the industry, while offering seasoned professionals skills for them to master and apply in this particularly attractive industry. Sir, companies also have a critical role to play in the SkillsFuture movement and the workplace is undoubtedly the best place for job-specific training. I would like to ask the Minister what strategies will be deployed to get companies engaged in SkillsFuture, and how SkillsFuture can support trade associations to accelerate the implementation of ITMs. Addressing Skills Deficiency Assoc Prof Randolph Tan (Nominated Member): Sir, international comparisons, such as those in the PISA and PIAAC studies, provide valuable opportunities for improving our understanding of the gaps in education and in training. We are all familiar with PISA, and PIAAC stands for the Programme for International Assessment of Adult Competencies. Singapore’s inclusion in such studies would not have been possible without the Ministry's progressive efforts and support. By highlighting potential gaps in policy, the findings from such surveys are useful in guiding early intervention strategies. In addition, the information they provide can improve the efficiency with which intervention is applied. In particular, the survey on adult skills conducted under the PIAAC study had found that among the 34 economies surveyed, Singapore ranked first for the use of ICT skills at work.”
“Chairman, I would like to declare my interest as the Chief Executive Officer (CEO) of Wealth Management Institute, a SkillsFuture training provider. SkillsFuture was launched four years ago at a cost of about $1 billion a year. It was driven by the imperative to have Singaporeans develop new capabilities for the future and embrace a culture of lifelong learning in order to ride the waves of change brought about by rapid technological disruptions and economic restructuring. It is unclear to me how successful we have been on this journey. Deputy Prime Minister Tharman said in a recent interview with The Straits Times that we are no more than one-third of the way. For the movement to gather more traction with both employers and employees, there must be clear linkages between training courses to skills acquisition and improving career prospects. We can be justifiably proud of the capabilities of public sector IHLs in producing graduates with strong employment prospects, as evidenced by employment surveys and low youth unemployment rates. But the ecosystem for continuing education and training is not endowed with the same scale, resources and infrastructure. As more and more learning is expected to take place after one joins the workforce, adult learning will become an increasingly important part of our education system. I would like to ask the Minister what plans are in place to nurture a vibrant and scalable continuing education ecosystem capable of responding rapidly to the evolving needs of industry. Let me give an example. In the areas where there are significant job opportunities, I would like to suggest to the Government to invest and develop such training infrastructure to provide the economies of scale needed to develop strong capabilities.”
“I believe our education system may prove to be Singapore's greatest strategic asset. We are blessed with highly-engaged parents, well-trained educators and generously-funded education institutions. We are well-poised to take the lead and make the necessary transformations to position Singaporeans strongly in the new economy, by making education a key pillar of our economic transformation efforts. Chairman, I would like to ask the Minister what steps MOE is taking to transform our education system to strongly position our future generations for Industry 4.0. NIEC and the Preschool Sector”
“Chairman, there is much to admire about the Singapore education system. Singaporean students consistently achieve top rankings in various international benchmarking exercises, such as the Programme for International Student Assessment (PISA) test in Maths, Science and Reading. Yet, it is just as common to hear dissatisfaction from many quarters about this supposedly high-achieving education system of producing stressed-out, book-smart and exam-focused students who can do with more creativity, life skills, critical thinking and interpersonal skills. Parents often feel trapped, together with their kids, in a desperate six-year race to safeguard their children's destinies by the tender age of 12. Policymakers have acknowledged the need for change. Steps are being taken to adjust the PSLE system, provide multiple pathways and applied learning in schools, internships and aptitude-based admissions to IHLs. However, so far, steps taken are merely incremental. The question is, what more needs to be done to keep Singapore ahead of the game in a new era of global talent? With Industry 4.0, we need to move faster and bolder and continue to make education a strategic advantage to stay ahead globally. The successful reinvention of our educational system depends on transforming pedagogy and redesigning learning tasks. How can we spend less time in high-stakes exam preparations and more time in the joy of learning? How can we spend less time memorising facts and concepts and more time applying these to solve real-life problems? How can we nurture creative thinking, manage complex problems through collaboration and expose our students to a diversity of cultures, languages and practices in order to prepare them to be truly global citizens?”
“With automation, they are now better able to keep long service senior staff as manual work is kept to a minimal. The modernisation of their business has also enabled them to attract an amazing team of younger leaders passionate about inventing new food products, opening new retail outlets and striking new partnerships to capture more market share. I would like to call on more SMEs to join the journey of this food company. The Government schemes can always be better, but there are many programmes already out there that can make a difference to your business. Helping SMEs”
“Chairman, even as I often speak up to champion more support for SMEs, I would like to acknowledge the significant efforts on the part of the Government and call on SMEs to seize the support provided to transform their businesses. A slew of programmes has been launched over successive Budgets in the last few years to help SMEs. Some are very generous indeed, such as PIC and WCS. This year, we continue to see more Budget measures targeted at SMEs. A long list – Corporate Income Tax Rebate (CITR), EDG, DTDI, OIP, PSG, SME Digital Tech Hub, tax reduction for IP registration and the list goes on. So, I am making the point that the Government is really making an effort. The Government is also making the effort to make structural change in its lead agencies, to merge SPRING Singapore and IE Singapore to form a dedicated agency for enterprise development – ESG. This is with the aim of providing better support to industries and enterprises in their new phase of growth to build capabilities, innovate and go international. The Government efforts have born fruits. I am heartened to see many traditional businesses transform as they tap on Government schemes and embrace new technology, automate, innovate and internationalise. Let me share an example of one food company which did it. Despite being a 40-year-old business, the transformation journey started about five years ago when the attractive PIC provided great incentives for them to upgrade their kitchen equipment. The company received support from SPRING Singapore to automate their kitchen processes, while JTC provided the much-needed central kitchen space to consolidate eight sub-scale kitchens operating across Singapore. With a more efficient operation, the company has reinvented itself and seen unprecedented growth.”
“Furthermore, MNCs, large local companies (LLCs), SMEs as well as startups have different needs and capacities for engaging in R&D and research output. We, therefore, must foster a flexible partnership ecosystem that caters to companies’ diverse circumstances such that all types of enterprises in Singapore may benefit from R&D. With innovation at the centre of Singapore’s next phase of economic development, the urgency of investments in R&D to deliver value and support industry transformation efforts is more critical than ever. There should be clear KPIs set for research projects to measure how they contribute to value creation in terms of economic and societal outcomes for Singaporeans. I would like to ask the Minister what mechanisms have been put in place to measure value creation and how we have fared so far. Open Electricity Market”
“The development of Singapore's R&D and innovation capabilities has been a key economic strategy for Singapore. A series of plans had been implemented over the last three decades to position Singapore as an innovation-driven, knowledge-based economy. Investments in R&D have been significant and sustained, increasing steadily from S$2 billion under the 1991 five-year National Technology Plan to S$19 billion under the Research, Innovation and Enterprise (RIE) 2020 Plan. Singapore continues to maintain public sector R&D spending at 1% of GDP annually. With Singapore's investments in R&D rooted in the need to upgrade and strengthen the competitiveness and growth of the economy, it is critical that such investments translate into tangible economic outcomes and impact. Although public-sector research at our universities and the Agency for Science, Technology and Research (A*STAR) institutes has grown in intensity and excellence, it is less clear how these national research capabilities have translated into business innovation that will yield economic competitiveness. There have been various measures, including this Budget, aimed at translating our public sector research efforts into commercially viable applications. I would like to ask the Minister to provide an update on the impact of such measures to catalyse growth and innovation, and the strategy going forward. MNCs seem to dominate many R&D-intensive industry clusters, such as electronics, pharmaceuticals and biomedical sciences. It is critical that we institute a framework for the transfer of capabilities and expertise from MNCs to the local ecosystem, while creating good jobs in the local economy.”
“Mr Speaker, Budget 2018 addresses many issues, some of which confront us now and others which are on the horizon of the next decade, but all of them are of consequence. It lays out a roadmap for a fiscally sustainable and secure future for Singapore in the face of considerable challenges, including an ageing population and infrastructure. It calls on us to face down these challenges today, so that when we deal with them, we do so from a position of strength. As the old Chinese proverb goes, "The best time to plant a tree was 20 years ago. The second best time is now." Mr Speaker, I support the Budget. 12.00 pm”
“ITMs were supposed to be a joint effort between industry partners, trade associations and public agencies, all coming together to support the sector’s transformation. The Government’s role was to bring industry stakeholders together to catalyse action, yet industry players feel that the private sector has not been adequately involved in the process. Given the pivotal role ITMs are meant to play in the future economy, all stakeholders, including the companies themselves, must start pulling its own weight for this important venture to succeed. Third, the Budget does not address measures to deal with Singapore’s shrinking workforce nor offer guidance on foreign manpower policy, despite calls for help by businesses struggling to deal with manpower shortages. Many firms complain that they are not able to embrace the push for companies to go digital and adopt new technologies, amidst a severe tech talent crunch. While we must continue our manpower-lean approach as the way for firms to grow and maintain the overall ratio of local-to-foreign talents in our workforce, I call on the Government to consider some adjustments to the mix of foreign manpower to support growth areas earmarked in the future economy, such as expertise in data analytics, artificial intelligence and cybersecurity. Shortage of skilled talent will constrain our efforts to transform our economy, with the problem becoming more acute as economic growth gains pace. In order to capitalise on the growth momentum, foreign manpower policies may need to evolve to include skill-based factors to prioritise types of foreign skills and expertise, like those adopted in other countries.”
“This is a much better way to tap on the strength of our reserves without having to draw directly on them. While I support this approach, I would like to ask the Minister how these borrowings against reserves can be structured and operationalised. What is the expected difference in borrowing costs versus investment returns from the reserves? Mr Speaker, the Wage Credit Scheme and corporate income tax rebate will help companies to overcome near-term challenges. I am pleased to see broad-based schemes such as the Productivity and Innovation (PIC) Scheme, replaced by targeted measures to foster innovation and R&D, go international, build capabilities and forge partnerships. There are, however, three critical areas we need to address. First, companies are still very concerned that Government regulations have not kept up with the times. I spoke in the last Budget about the need for the Government to create enabling environments, within which companies can become nimbler and more innovative, in order to cope with the rapid pace of innovation and increasing competition, even from within the ASEAN region. Companies do recognise that selected agencies have tried to do things differently, but they often voice their frustration of being tripped up by "last-mile" regulations. A whole-of-Government approach is needed to create a dynamic ecosystem, with coordinated efforts across agencies to update related rules and regulations. Second, the impact of the $4.5 billion Industry Transformation Programme announced in Budget 2016 has yet to be realised. The Industry Transformation Maps (ITMs) are still a work-in-progress. This effort will need to speed up, their implementation is urgent.”
“When GST hike becomes inevitable, I call on the Government to offer more in the Offset Package, to help lower- and middle-income households and seniors cope with increases in the cost of living. The new package should help people understand how support provided actually "offsets" taxes they pay on their expenses. The Government must do a better job to assure Singaporeans that a GST increase will be implemented in a progressive manner and that the authorities will moderate the impact of this increase on those who struggle to make ends meet. Mr Speaker, I support the Minister’s decision not to tap our reserves any more than we currently do. Under the existing NIRC framework, 50% of expected net investment returns is already contributing the single largest source of funds for Government expenditure. Its contribution has risen steadily over the years, such that $1 in $5 of Government spending now comes from NIRC. This high dependency on NIRC, I think, represents a significant vulnerability for Singapore, given the volatility that comes naturally with any investment portfolio. Even the best investment managers will admit that they can only manage risks, not returns. To ensure a sustainable fiscal position, there may be a need, some time in the future, to consider a limit upon which Government spending can tap NIRC to avoid over dependency, over and above the current NIRC framework. Sir, Singapore's reserves were built up because our pioneering leaders were financially prudent and this has strengthened Singapore’s footing on many fronts. The latest being the Government's consideration of using reserves to provide guarantees against long-term borrowings to build critical national infrastructure at lower financing costs.”
“Under these happy circumstances, we should review the need for a GST rate hike. Second, I would like to call on the Government to continue studying all other possible streams of revenue. For example, expanding the scope of GST to cover the rapidly growing e-commerce market will plug tax leakage to online sales and level the playing field for offline companies that have struggled to compete. Indeed, with cross-border transactions expected to account for more than half of online sales, the plan to levy GST on all imported digital services by 2020 represents a significant step in broadening the Government’s tax revenue streams. I hope that the tax on imported digital services will pave the way for a broader e- commerce tax on goods and services when complexities of an effective tax collection mechanism for low-value imported goods can be resolved. Given the projected exponential growth of e-commerce, its potential for GST contribution must be worth the effort to get it right. Sir, I would also ask that, in line with the announcement of increased tobacco taxes, the Government also consider reviewing taxes on liquor and gambling. By bringing Singapore's low gambling tax rates of 5% to 15% closer in line with Macau's rate of 39% and Australia’s rate of up to 45% in some states, the authorities can collect much of the $3 billion intended to be drawn from a two-percentage point GST hike. The Government should also consider introducing sugar tax in the light of growing concerns over diabetes. Other tax avenues could include introduction of a capital gains tax or increase in property tax for non-resident property owners, as imposed by countries, such as the UK, Australia and New Zealand.”
“Mr Speaker, Budget 2018 is a far-sighted plan with targeted measures that build on the momentum to reform our economy and care for our people. It is prudent yet aspirational, as it plots a path to a visionary and sustainable future for our country. It is also a bitter-sweet Budget. Singapore’s economy grew at a faster than expected pace, with encouraging growth in productivity, real wages and output. Last year’s Budget recorded a healthy surplus of $9.6 billion, thanks to exceptional items. Seven hundred million dollars was set aside to share with Singaporeans via SG Bonus. When looking beyond short-term headline numbers into the longer-term outlook, Finance Minister Heng Swee Keat prescribed the bitter pill of a GST hike to come. This is to cater for expected expenditures in the next decade for infrastructure developments and an ageing population. Even though it would have been more convenient to do otherwise, I appreciate the Minister's courage to be upfront and begin the uncomfortable conversation of "money not enough" now, in order to give Singaporeans plenty of time to prepare. It is understandable that no one likes a GST hike. We can take comfort that this increase is not immediate with the exact timing of between 2021 and 2025, depending on the state of the Singapore economy, how much expenditures grow and how buoyant existing taxes will be. As a principle, I urge the Minister to try and delay the need to raise the GST rate. First, with the recovering Singapore and world economies and the shift in global economic weight towards Asia, these shifts represent significant opportunities for our firms and people. One optimistic scenario sees Singapore’s economy continuing to outperform our forecasts over the next few years, with recurring Budget surpluses.”
“I thank the Second Minister for very, very comprehensively addressing many of the clarifications and concerns we have. So, I thank the Minister. I have two outstanding queries for the Second Minister. On the concern about concentration, why do we find eight massage establishments in HDB estates within, like three minutes' walk? The Second Minister did say that MHA will consider that in the licensing, but she was not explicit on whether there will be a quota or a limit that will be set within a particular trade radius so that the HDB estate can be more diverse in shops, so that MHA does not approve every massage establishment licence that comes through as long as it is a not a problem. I hope the Ministry would encourage that diversity and limit the number of establishments per HDB precinct, just like Minister Khaw Boon Wan had done for foreign workers renting HDB flats. I think that was a very effective measure. So, if the Second Minister could consider that. And that is the common complaint that comes from residents. The second one is that the Second Minister clarified that it is by law that the massage establishments must display their licence. So, that is understood. But my reference is actually the approved employees themselves must wear an identification to say that "I am an approved employee" because that will easily identify them and prevent those who are not approved from working illegally in that massage establishment.”
“Sir, I believe with the appropriate set of regulations and enforcement actions, vice activities that hide behind massage establishments can be eradicated. The industry can be repositioned with a more positive image and realise their potential to provide good and meaningful jobs for Singaporeans, including the visually handicapped. I support the Bill.”
“Given the risk of massage establishments being used as fronts for vice activities, which often involve foreign therapists, I would like to ask the authorities to carefully calibrate the fit and proper criteria for granting approval for massage establishment employees. To ensure transparency of such licensing, all approved employees should be issued with an identification (ID) or certificate that should be prominently displayed at the outlet. This will help identify "approved" employees more easily and help prevent unlicensed masseuses from working illegally. For approval to be granted, employees must meet minimum qualifications for the services they are licensed to provide, including passing a therapist code of conduct that clearly spells out the "dos" and "don'ts" with clients and the penalties for breaches. Mr Deputy Speaker, it is well and good that the latest set of amendments strengthens the Police’s levers to take unlicensed massage establishments to task. However, this will only be effective through determined enforcement of the new powers. So, I urge the authorities to take decisive action to eradicate unlawful activities. Robust enforcement plans must be put in place to deal with the alarming increase of 40% in the number of unlicensed massage establishments, as mentioned in the Minister's speech. Mr Deputy Speaker, whilst the Bill increases scrutiny for "higher risk activities", such as massage parlours, it should concurrently keep an eye on "low-risk activities" that will receive a lighter touch from the regulations. The authorities should monitor these low-risk outlets and ensure that the vice operations are not simply conducted under a different banner.”
“The advertisement boasts “comfortable and serene environment, exquisite and professional technique will bring your health to new heights”. It also adds: “Let our young, pretty and experienced masseuses bring back your energy, vitality and loosen up your pressure!!” I think that doctors in this House may agree that the implied service is probably not to treat urological disorders. I would like to ask that massage establishments be subject to an advertising code of practice that prohibit claims of services that cannot be substantiated and disallow the suggested offer of seductive services. Massage establishments should follow clearly prescribed guidelines on the use of suitable promotional images and messages. This is especially important where the outlets are located near schools and in residential areas. Therapists should not be scantily clad when working, but instead be clothed in proper attire, including uniforms, in order to promote a healthy image for the industry. The Government should also consider banning hard-sell tactics and touting of massage services outside massage establishments. Passers-by should not be harassed by such practices, especially in busy HDB town centres and tourist sites. I would also like to ask the Minister what is the rationale for allowing massage establishments to operate 24 hours a day. I recognise that some individuals may like a massage as a stress-reliever after a long day at work, but round-the-clock operating hours may bring disamenities to the local community and temptations for illicit activities in the quiet of the night. I urge the Minister to consider limiting the operating hours to more reasonable timings, especially if the massage establishments are in housing estates.”