Foo Mee Har
Singapore
“What we need to ensure, therefore, is a better alignment of training and the graduates that we churn out. Loosening the criteria for entry, while simultaneously tightening the conditions for graduation will help keep our tertiary offerings nimble, since we need to worry less about how failing out already small intakes could pre-emptively…”
“Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity.”
“Thank you, Mr Speaker, I have two questions for the Prime Minister. The first question is, with the generous support measures, including the SG60 vouchers, I would like to ask the Prime Minister what impact these measures will have inflation on inflation?”
“So, the Singapore brand has become so exceptional that it is well worth faking, much like a Rolex watch or a Louis Vuitton handbag. And, like these global brands, you know you have made it when imitation becomes the greatest form of flattery.”
“Thank you, Speaker. I thank the Minister of State for the details. I am encouraged to hear the usage but I would like to ask the Minister of State two follow-up questions.”
“Thank you, Speaker. I thank the Minister for his response. I have two supplementary questions for the Minister. First, how does the Ministry plan to leverage the insights from the PIAAC findings, to refine the SkillsFuture programme, particularly in identifying critical skills gaps and developing targeted interventions that enhance the re…”
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Every one of 530 lines we hold for Foo Mee Har, in date order, each linked to its source. Free to read, in full, without an account. Page 7 of 11.
“Mr Deputy Speaker, Sir, I rise in support of the Massage Establishments Bill. It is timely that a robust set of licensing rules is enacted, given the rapid growth of the massage industry. I support the increase in penalties for unlicensed massage establishments, strengthening of the Police’s levers to take firm actions, whilst taking a calibrated approach to reducing the regulatory burden for low-risk activities. The proliferation of massage outlets in our HDB and residential estates is of significant concern for many residents. For example, one can spot five massage establishments in a row at just one block in an HDB neighbourhood. Quite a common sight. The Urban Redevelopment Authority (URA) and the Police licensing regime should regulate the growth of such massage establishments operating in housing estates. I urge the Minister of State to consider limiting the number of massage establishments, how many can be set up within a particular trade radius, really limit it, do not let so many operate. I really cannot see the basis for such concentration of massage establishments in our HDB estates. Residents are concerned that such outlets can be used as fronts for illicit vice activities, resulting in law and order and social problems. There have also been complaints about the suitability of advertising materials featuring half-naked women displayed prominently on shop fronts, which operate 24 hours a day. Many outlets make misleading claims about the efficacy of their massage treatments, with the "menu of services" offering lymphoma detox, kidney-care treatment, ovary-care treatment and so on. Some go on to promote "special services". For example, one spa promotes their "Royal Prostate Package", offering customers two hours of "Prostate Care therapy".”
“Mr Speaker, just a quick clarification. In terms of the 10,000 PMETs who were successfully helped, again, I just want to have a sense of the dimension of the problem on the ground. What was the proportion helped, compared to the overall base? How many more do we need to help? We have successfully helped 10,000. How many out there do we need to find good careers for?”
“Mr Speaker, I thank the Minister for a very comprehensive set of replies. I am sure the Minister would agree with me that one of the most urgent priorities is to help displaced mid-career persons. Many of them still have mortgages to pay, children still going to school and they have 20 to 25 years more of productive working life. The Minister did share some encouraging updates in terms of numbers. On the ground, the sense is that there are still a lot of challenges and hardship faced by many of these families. Please give us some sense of what that 1,500 successful cases represent, what is this as a percentage of the total population that the Ministry is still helping? Specifically, as we see the Government rolling out the ITMs, I would like to ask the Minister, how is the PCP aligned to the ITMs so as to support career-switch efforts towards growth sectors, so that it is very targeted, and also, with the close involvement of prospective employers in the design and delivery of internship and training programmes?”
“Madam, CFE has recommended the pervasive adoption of digital technologies across all sectors of the Singapore economy to transform our economy and create new growth and job opportunities. For a start, the Government should lead the way to transform the delivery of Government services with digitalisation. I would like to ask the Minister for an update on efforts invested by the Government, as part of the Smart Nation initiative, to transform the public sector and make it more innovative and effective. How pervasive is the use of technology in making it easier and more efficient for businesses and citizens to interact with the Government? Is there a master plan for the deployment of digitalisation and innovative technology across Government agencies, with clear targets and key performance indicators (KPIs)? My residents often share the frustrations of having to provide and submit the same data and documents for different Ministries to verify. The Government should really adopt a whole-of-Government approach in data collection and leverage technology to improve efficiency and service delivery by eliminating the need for citizens to provide the same data repeatedly. So, I would like to ask the Minister what constraints the Government agencies face in sharing information among themselves and how digitalisation can contribute to the solution. Finally, the Government is in a good position to develop frameworks and infrastructure to lay the foundations for smart digital platforms that businesses can leverage and build upon. For example, data has been recognised as the most important asset for business success. So, how can businesses leverage data captured by the Government to build deep insights, new capabilities and solutions? Improving Service Delivery Digitalisation”
“Perhaps, the inflexion point will come with the first batches of managers who are themselves beneficiaries of the work-study programmes. Mdm Chairman, to give this relatively new concept a much-needed boost, I urge the Minister to help employers develop the necessary human resource (HR) and training infrastructure and, most importantly, the right mindset to embrace the widespread adoption of work-study programmes. Could the Government, Singapore's largest employer, set a shining example in its own ranks? SkillsFuture Earn and Learn Programme”
“Madam, I had the opportunity to learn about systemic skills training in Switzerland, where two-thirds of school leavers enrol in vocational training. I heard inspiring personal stories about the strength of this system from chief executive officers (CEOs) of Swiss multinational companies to SME owners who came up through the ranks of vocational apprenticeship. One striking example was a young 16-year-old engineer employed in robotics design in a leading Swiss company whilst pursuing his engineering studies. 12.45 pm Having seen how Swiss students are trained from an early age to master practical skills in a real-life work environment, I am convinced that this is the key competitive advantage that has helped Switzerland to become one of the most competitive economies in the world. There are many advantages in blending work and study into degree programmes, such as better employment prospects, better job matching and better preparation to embrace lifelong learning. I am encouraged by the emergence of work-study degree programmes in Singapore, with different models being piloted by our local universities. How can our universities accelerate their efforts and develop the necessary infrastructure, which must include career offices and linkages to industry to expand and support work-study programmes? Work-study degree programmes can only be successful with the active involvement of employers and their management teams. Apart from the lack of know-how, such willingness to nurture talent is not yet, unfortunately, ingrained in the corporate culture of most local companies. Managers tend not to see it as their responsibility or understand how it benefits everyone in the ecosystem.”
“For a start, people need to know what the future growth clusters are, where future jobs will flourish and what kind of vacancies exist and will emerge. How can we better help our citizens position themselves for careers in growth areas and the transition paths, step by step, on what they should do to get there? There should be clear linkages from training courses to skills and jobs. The range of training courses available in SkillsFuture is wide and the quality is uneven. Will the Government consider setting up a national registry to grade, rank and publish the effectiveness of different training programmes so that workers can make an informed choice? Programmes with positive employment outcomes may be listed as such and may even offer more generous subsidies. There is also the possibility of allowing those who have been trained to add their own rating, so, feedback rating. SkillsFuture should also provide tools for career guidance that will help direct people's training efforts towards growth clusters. Lastly, SkillsFuture is most effective when it is closely linked to specific job requirements. Companies and trade associations and chambers (TACs) should be encouraged to play a very active role in customising training especially suited to their respective industries. The Government should support TACs on training infrastructure, training design and learning pedagogy that are relevant to their industry to support learning in a modularised fashion, strengthening learning and on the job utilisation. The SkillsFuture movement should accelerate the building of competency standards within each industry and key families to ensure that curriculum development and training efforts are closely aligned with current and future job requirements.”
“Madam, SkillsFuture was launched in 2014 as Singapore's movement to help our people embrace lifelong learning, a critical skill to master in this era of rapid technological change and shortened innovation cycle. If implemented effectively, it will sustain Singapore's competitive advantage and help our people ride the waves of significant shifts in jobs and skills throughout their careers. It will enable them to be reskilled multiple times in their working life to keep pace with technological advancement. However, more must be done to shift the focus of SkillsFuture away from the long list of SkillsFuture courses available and how one can spend the $500 SkillsFuture Credit. I have spoken often about the use of SkillsFuture to help retrenched professionals find their feet, rebuild their confidence, guide them to acquire new skills and, most importantly, to get employers to provide job opportunities. There should be a strong connection between training and employability, a direct line of sight between the efforts that one puts into retraining and the hope of re-employment. 12.30 pm I would like to ask the Minister how successful have programmes, such as the Professional Conversion Programme (PCP) and Place and Train initiative been, in helping workers transition to new jobs. What has the impact been so far and how can they be scaled up to support more workers? Of course, Madam, it is far better if our workforce uses SkillsFuture in a proactive manner to prepare, retrain and reskill themselves for industries of the future, rather than wait until their jobs are affected. However, I continue to receive feedback that the SkillsFuture system does not lay out a clear path to follow.”
“Madam, I congratulate the Minister for encouraging the retirement adequacy trends shared with the House, and also the CPF "1,2,3" schemes he has nicely coined. I would like to ask the Minister about LRIS. I think one of the things that the Minister mentioned made a lot of sense, that is, low cost. But I would like to ask the Minister to clarify that when he mentioned "passive", I think it has raised concerns among people in the industry because no retirement scheme, if it is an investment, can be passive. At the least, it needs to be able to meet the needs of members at different life stages. So, for younger people, you can take a little bit more risk; nearer to your retirement, you have to make sure you preserve. Of course, the system can do that, but it cannot be passive. If I can ask the Minister to make sure that that is accounted for.”
“Retirement Adequacy Chairman, the slew of enhancements made in 2015 to CPF has made it more attractive and flexible. I am encouraged by the improved outreach efforts by CPF Board to increase members' awareness and understanding so they can receive the full benefits of the CPF scheme at different stages of their lives. Enhancements include newly designed statements with bold graphics to aid comprehension, so they look very nice in multi-media outreach programmes and CPF Mobile Service Centres. I hope these have helped members better optimise their savings and those of their family members. So, I would like to ask the Minister to share the recent trends the CPF board has observed, including how enquiries and transaction patterns of CPF accounts have changed, the topping up of members' accounts or those of unemployed family members, and how members choose between the various CPF LIFE Plans, that is, Basic, Full and Enhanced retirement sums. Twenty-four billion dollars have already been invested in the CPF Investment Scheme (CPFIS), yet it is deemed to be "unfit for purpose". Eighty-four percent of CPFIS investors did not realise higher returns from their investments than they would have received had they left it in their CPF Ordinary Account, risk-free, whilst a substantial number actually suffered losses. Can the Minister give us an update on how CPFIS will be revamped to make it serve members better? What is the design and timeline for the launch of LRIS so that members can benefit from a simpler investment option? Broaden CPF Education Scheme”
“Mdm Chairman, I have long been a strong advocate of flexi-work. In the new economy, the "gig economy" is gaining momentum and the attention of policymakers. Gig workers are those who perform contract-based, on-demand work. The McKinsey Global Institute reported that this segment of independent workers is growing fast, at 30% a year. 3.00 pm Many reports on "gig workers" have focused on job insecurity and significant social safety risks to a rapidly growing segment of workers, as we just heard from my colleagues. But, with the right set of policy interventions, I believe it can also be the formula for higher workforce participation because of the benefits this FWA brings to both employers and employees. The gig economy may offer women with caregiving responsibilities and older workers who need more flexible work schedules the balance they are looking for. If we expect the gig economy to prevail in Singapore' future, then the Government must take urgent action to rethink labour laws in order to accord freelance, self-employed individuals an appropriate level of support and rights. I offer the Minister four suggestions. First, establish CPF contribution obligations for parties entering into a contract for service. Second, organise a marketplace that enables gig workers to access pooled medical coverage, also a marketplace that enables efficient job matching, where workers and employers rate each other. Third, provide a special track in SkillsFuture for gig workers, so that they, too, can stay relevant and future-proof their skills. Fourth, quite importantly, prevent tax leakages arising from informal work arrangements and the creation of an underground economy. With the right set of policy measures, we can make this unstoppable trend of gig economy work for Singapore.”
“Could the Minister share some good examples of how selected TACs have been successful in leading the development of industry-wide transformation and helping their members to make inroads overseas? We really need to learn from countries with strong trade associations, such as Germany, Korea and Taiwan, on how their TACs have helped their industries raise productivity, invest in jobs and skills, leverage research and development (R&D), promote the adoption of technology and form formidable consortiums to capture overseas business. During my Budget speech, I highlighted the pivotal role, the great example that MAS has played in creating the enabling environment for the finance sector. I would like to ask the Minister what other sectors in the pipeline have similar plans to boost productivity, competitiveness and enable growth and innovation. Industry Transformation Maps (ITMs) and Their Effectiveness”
“Chairman, ITMs were part of the $4.5 billion programme announced in the 2016 Budget aimed at promoting growth, helping companies become more competitive and creating good jobs in 23 industries. ITMs integrate planning and implementation, bringing together industry partners, TACs, unions and public agencies. Six ITMs have been launched so far, with 17 more expected to be launched this year. What results have been achieved and what lessons have we learnt? How can we fast-track the implementation of the other ITMs and ensure that they are implemented successfully? The Minister for Finance shared that ITMs are "live" plans that will be adjusted along the way. We are in uncharted waters, with no blueprint or map to lead the way forward. And, together, we will feel our way through. It is encouraging that, rather than pick winners, MTI has chosen to build industry-level capabilities for all 23 sectors concurrently. But given our limited resources and the executional complexity in implementing these ITMs, would it not be more prudent to prioritise our efforts on industries with high-growth potential and well-established sector partnership structures? TACs have been identified as playing a pivotal role in helping their respective sectors transform and scale up. During last year's Committee of Supply (COS) debate, I pointed out that TACs need to step up to their role and there is much that is expected of them. So, what impact, I would like to ask the Minister, the new Local Enterprise and Association Development-Plus (LEAD+) programme had in helping TACs improve their outreach, attract talent, develop their capabilities and strengthen their processes and services?”
“Notwithstanding the comprehensive set of recommendations by CFE, there is no silver bullet and many of the proposed initiatives take time to take effect, requiring significant efforts from all stakeholders. So, I would like to ask the Minister about his assessment of the outlook of Singapore's economy for the next two to three years? Managing Retail Rental Cost”
“Chairman, the Singapore economy grew by 2% in 2016, boosted by a better than expected fourth quarter performance from a rebound in the electronics and biomedical manufacturing clusters. However, growth in other sectors remained weak. The Ministry of Trade and Industry (MTI) has forecasted that the economy is likely to grow between 1% and 3% and global growth is expected to pick up slightly in 2017. Faced with a modest outlook for the coming year, I am concerned about the risks to growth from the rise of anti-globalisation sentiment, Brexit, uncertainties about the Trump administration's economic policies and the possibility of a sharper than expected slowdown in China. However, we do see that Asia remains to be a bright spot, driven by infrastructure development and e-commerce. What challenges and opportunities does the Minister see for Singapore and Singaporeans, amidst these developments? What measures are being rolled out by our Government to help the nation navigate the external uncertainties, including trade policies? How can our firms and individuals position themselves to thrive under these conditions? Should we be hopeful, Minister, that the pickup in the fourth quarter will endure and that Singapore has turned the corner? On the ground, people are worried about their job security. Many businesses are struggling with the effects of globalisation. Labour market constraints and high cost of doing business remain key challenges. The business community complains about the rising compliance costs and that Singapore has grown less flexible and competitive. They also hear about the ambitious developments in neighbouring countries and worry that Singapore risks being marginalised. Some economists have gone as far as labelling Singapore as the "new sick man of Asia".”
“Thank you, Mdm Speaker. I would like to ask the Minister on two suggestions that I made to support businesses and individuals during this difficult period. One is: there has been a lot of questions about the use of state land or vacant properties − about 1,000 of them − whether the SMEs or operating businesses that find rentals high could use the spaces as public offices, low-rent public offices, borrowing the idea of JTC LaunchPad. There has been quite a lot of calls on that, so I would like to hear the Minister's response. Second, Mdm Speaker, is whether the Minister will also consider suspending income tax payment when someone is unemployed, as well as more flexible use of the CPF in order to tide them over to pay mortgage.”
“Singapore had the foresight to launch the SkillsFuture movement nationwide in 2014 as our next wave of development, and we must make sure our approach is an inclusive one, benefiting all Singaporeans along the journey. Mdm Speaker, even as we work to continuously enhance the SkillsFuture system, it is critical for Singaporeans to expect that their current full-time jobs may be disrupted, and take ownership of preparing for their next careers well before their current ones becomes obsolete. My worry is that not enough of us accept this as a personal risk and do not proactively seek to future-proof ourselves. Some of those who lost their jobs may have found relief as Uber drivers − itself a fortuitous result of industry disruption − but I fear this too could be a short-lived job, with the advancement of self-driving technologies. Jobs are hybridising. With longer life expectancy and unending shifts in the jobs market, the ability to learn will be the key skill to nurture, along with the willingness to do so. Madam, Budget 2017 has drawn us a map to reposition Singapore strongly. The path ahead will not be easy, there are mountains to climb and rivers to cross, whilst the weather changes constantly. But we will not travel alone. Our firms and our people must be the agents of change, taking greater charge of our own destinies, learning and improving, whilst the Government fosters enabling environments in which to grow and thrive. Whether we succeed in reaching our destination depends on how we prepare together, support each other and keep pace with one another as we stay the path. I support the Budget.”
“Through ITMs, industries with good growth prospects can take advantage of global opportunities and technology whilst domestically-focused industries, such as food services, will get support to increase productivity and upgrade jobs. So, regardless of which sector it is in, every business has a fighting chance of realising their fullest potential and reposition themselves for a brighter future. Madam, our people will need to move in lockstep with these changes, if they are to thrive in this new economy. It is heart-breaking to encounter stories of families impacted by retrenchments, and my sense is that increasing numbers of PMEs, especially older ones, are being displaced. Whilst I appreciate that Adapt and Grow has launched an extensive set of programmes to help workers take on new jobs, I call on the Government to consider some short-term measures to help families cope during this transition. For example, during periods of unemployment, would the Government consider suspending the retrenched workers' payment of income tax instalments and allow some flexible use of CPF to pay mortgages, so as to help them keep their homes? The Economist magazine published a special report in January on the need for lifelong learning. It is apparent that if 21st century economies are not to create a massive underclass, policymakers need to urgently work out how to help their citizens learn while they earn. The need for new and constantly updated skills in the new economy is universal, and many countries are ill-equipped to do so. Unfortunately, lifelong learning in most societies is undertaken by those who are already doing well, and is therefore likely to widen the gap of inequality rather than narrow it.”
“The high cost of rentals is often quoted as prohibiting the setting up of new businesses and the survival of businesses. Is there a way for entrepreneurs to be offered affordable premises to kick-start their businesses, in the same way that the Government actively intervenes to keep housing affordable with HDB flats, and food prices affordable using hawker centres? JTC Launch Pads is a great initiative, but we need more platforms where businesses can operate in low-rent spaces acting as public offices located across Singapore. I would like to ask the Government to consider deploying some of their vacant properties for this purpose. From a recent Parliamentary Question, I understand there are as many as 1,000 Government properties that are vacant, pending lease, redevelopment or demolition, some of which stay vacant for extended periods of time. State lands that have been earmarked for medium-to-long-term use could also be leased out on short leases with temporary built-up structures. Making some of these premises accessible as public offices, at nominal rent for a limited period of time, will help businesses bootstrap their operations and develop the critical mass needed before they transition to private market rentals. In this year's Budget, there are many initiatives to help businesses scale their operations, go international, go digital and innovate. With the development of ITMs for 23 sectors, covering 80% of our economy, the Government has offered support to all sectors, not just selected ones, to seize growth opportunities and make the necessary transition.”
“A common theme in the CFE's recommendations is for the Government to create enabling environments, within which companies become nimbler and more innovative, to cope with the rapid pace of innovation and increasing competition around the world. In this context, I commend the Monetary Authority of Singapore (MAS) for leading the way. To meet their ambition of building a Smart Financial Centre, MAS instituted the concept of "regulatory sandboxes" to enable fintech experiments and trials of promising innovations, to be tested in the market with appropriate safeguards. The sweeping reforms announced recently by MAS have made it easier for smaller firms and budding entrepreneurs to secure financing for their businesses. MAS intends to simplify the venture capital regime, introduce dual-class share structures, strengthen the role of finance companies and develop private market platforms. It is also actively laying down technology infrastructure to drive innovation, including an electronic trade finance platform, infrastructure to enable the pervasive use of e-payments and an industry know-your-customer utility, the first of its kind that I know of, that will greatly improve productivity of banks when on-boarding clients and managing money laundering risks. These wide-ranging policy measures set a great example of forward-looking regulations which creates a dynamic ecosystem that enables growth and innovation. If more sectors adopt a similar approach, it will go a long way towards enhancing Singapore's vibrancy and competitiveness, and accelerate our pivot towards the future economy. Madam, the Government should critically review how it can help businesses manage operating costs.”
“On expenditure front, I applaud the Finance Minister for sending out a strong signal of fiscal prudence, with the permanent 2% downward adjustment from the budget caps of all Ministries and Organs of State. I would like to ask the Minister what other budget mechanisms are in place to encourage savings across the Ministries, including rationalising roles and functions of agencies as well as extracting cost synergies from cross-agency collaboration. Madam, even as the Government continues to enhance the social safety net, we must keep up the disciplines of means-testing, targeted supported and co-payment, to preserve the value of personal responsibility. Madam, a healthy and growing economy is the only sure way to sustain a healthy revenue stream. I am encouraged by the efforts of the CFE. The seven strategies put forward by CFE form a comprehensive plan to capture the opportunities of the future economic landscape. But it is one thing to strategise, but quite another to execute. The 22 sets, I counted, of recommendations spelt out in the CFE report all seem to be the right things to do. But, taken together, I cannot help but felt a little overwhelm with the long list of tasks ahead to reposition Singapore. From deepening our knowledge of markets, acquiring better skills, strengthening innovation ecosystems, to developing and implementing 23 Industry Transformation Maps (ITMs). These lofty objectives demand significant change and adaptation involving Government agencies, companies and people, working in unison. How Singapore executes as a team, with each pulling its own weight, will make the difference.”
“Mdm Speaker, Budget 2017 strikes a delicate balance between providing sufficient support to bridge near-term challenges and taking bold steps to invest in new capabilities in our firms and workers for a brighter future. Businesses had expected more help in this Budget to ride out the challenging operating environment. Support is promised, but in a targeted manner, instead of being as broad-based as in the past − I support that this is a more efficient approach. When studying the Budget financials, we should all be concerned about our weakening fiscal position. For five consecutive years, total growth in revenue has outstripped growth in operating revenue, and our Budget is getting tighter every year. This is the third consecutive Budget that reflects a basic deficit. We expect only a modest overall surplus of $1.9 billion after taking into account the significant Net Investment Returns Contribution (NIRC) of $14.1 billion from past reserves. Additional funds that were afforded by the inclusion of Temasek in the NIRC starting year 2016, not too long ago, appears to have been exhausted quickly − this is worrying. The Finance Minister spoke about the implications of rising long-term expenditures, particularly in healthcare and infrastructure, and the need to prepare options to strengthen the revenue base. This has rekindled fears of new and higher taxes, including GST hikes. There are those who would advocate tapping our reserves further and others like myself who would call for a cap on how much we should take from NIRC to fund our expenses. Clearly, Singapore must find a sustainable fiscal footing for our future generations and we need a thorough review of both expenditure and revenue.”
“Madam, I thank the Minister for his comprehensive response. I have two supplementary questions. The first question is: I acknowledge the great efforts that the Government is making in investing directly in employees' training but there is a lot of sense on the ground that because the Government is doing so much, the part of the employer is missing. Whilst the statistics do show that they are having programmes, but the ground sense is that employers can do a lot of more. Would the Minister consider requiring companies to set aside specific amounts of funds towards training? Their funds, not Government funds. For example, having a target of 2% of payroll towards training which some countries do, failing which they will need to contribute the same amount towards the SkillsFuture account of the Government. The second question is: whilst SkillsFuture is a national movement for all Singaporeans 25 years and above to pursue lifelong learning, so understandably, it is very wide. But could the Government prioritise SkillsFuture efforts towards helping Singaporeans build new skills necessary for new jobs and prepare for alternative careers by providing differentiated funding and extensive internship opportunities, as well as Place and Train schemes? So, very, very targeted schemes towards getting new jobs and building new skills. Whilst there are other important things, but prioritise towards getting new skills for new jobs.”
“For offshore clients, the exercise could prove challenging, given access to information on clients' liability is limited in Singapore. Similarly, categorisation of joint accounts as AI can be complex, with varying degrees of sophistication amongst accounts holders. So, the avalanche of regulatory changes is also distracting banks from serving their clients. In the midst of a challenging business environment, they should instead be focusing their efforts on innovation and providing better service, enabled by smarter but not more regulation. Would the Minister please elaborate on what drives the priority of implementation of new rules? In conclusion, I believe the proposed amendments to improve market conduct are in line with standards set in other leading financial centres. However, we must be careful to take a balanced approach to regulation, so as not to stymie growth and impact Singapore's competitiveness. Mdm Speaker, I support the Bill.”
“This is especially key to helping our fast-ageing population preserve precious savings that provide the safety net they need in their retirement. Madam, I commend MAS for the slew of regulatory changes that it put in place recently, with the aim of improving access to products and capital whilst strengthening disclosure and accountability. However, this aim must be balanced with the equally important goal of keeping Singapore competitive as a world-class financial centre. There is much concern in the industry about the overwhelming number and rate of regulatory changes taking place, just when the financial industry is facing significant headwinds of lower growth and squeezed margins. Some players actually feel that their very survival is being threatened by escalating compliance costs as a result of the heavier regulatory burden. There is a sense that jobs are being threatened, as are employment prospects of Singaporeans in this sector. With this in mind, I am concerned about the timing to amend rules around AIs. Whilst I agree with the intent of these proposed changes, which will enable high net worth individuals to benefit from the full range of safeguards for retail investors, I am worried about the capacity of banks to take action with yet another set of new regulations. Madam, many relationship managers and their banks are already struggling to cope with the increased paperwork and operating procedures required to comply with the new rules implemented earlier. These include enhanced anti-money laundering measures as well as common reporting standards. The changes proposed for the AI framework would involve private banks going through the extensive exercise of re-segmenting their business, reviewing every client account, with client calls to do more reviews.”
“I was saddened by the heart-breaking experience of many Singaporeans, including several of my residents, who have lost their life savings in unregulated buy-back arrangements involving instruments, such as gold. I am comforted that MAS is now extending the regulatory safeguards to investors in two types of unconventional investment products. These include debentures involving buy-back arrangements involving gold, silver and platinum as well as CIS, such as land-banking. Madam, whilst I understand regulations cannot cover every type of investment instrument, I do wish that the law had covered these products sooner, so that many Singaporean families could have avoided becoming hurt. Many people wondered why it took so long to bring these products under MAS' oversight. As the investment landscape evolves and the new "creative" financial instruments emerge to prey on unsuspecting investors, I urge the authorities to prioritise regulatory oversight in order to protect retail investors. Many consumers are particularly vulnerable in the current environment of low returns; they may be easily tempted by products that promise higher yields to make their hard-earned savings work harder. Of course, individual investors must also protect themselves by doing their own homework, being responsible for their own investment decisions, and managing their financial assets in a manner appropriate to their stage in life. In the world of investments, there is no free lunch. Much more can be done to promote financial education in a systematic way, making financial literacy pervasive in our community and strengthening our immunity against mis-selling and fraud.”
“In 2013, MAS punished 20 banks and revealed that 133 traders had tried to manipulate three interest rate and foreign exchange benchmarks. The revelation affected trust and confidence in Singapore's financial institutions. There was widespread public outrage at the extent of bankers' misconduct, the flawed benchmark setting mechanisms that provided ample room for manipulation, and how the perpetrators got away with punishments that appeared light in comparison to the severity of their crimes. I therefore support the new regulatory framework proposed to instil better governance in the setting of financial benchmarks and transparency in the listed securities markets. My question to the Minister is whether the proposed enforcement regime is punitive enough to guard against capital market misconduct, to deter future offenders and to regain investor confidence. Would the Minister also illustrate how the proposed criminal and civil penalties for capital market misconduct compare to those implemented in other international financial markets? Madam, in light of the millions of dollars that banks and their traders stand to gain from manipulation, I am concerned about the adequacy of capping the maximum civil penalty quantum to the greater of $2 million, or three times the amount of benefits gained or losses avoided. I urge the authorities to arm ourselves with a sufficiently "big stick" to weed out temptations to manipulate and use the full extent of the law to punish offenders. Madam, I also welcome the enhanced regulatory safeguards for retail investors provided under this Bill.”
“Mdm Speaker, first, I wish to declare my interest as the Chief Executive Officer of the Wealth Management Institute. I speak in support of the Bill. The Securities and Futures (Amendment) Bill introduces extensive changes and keeps standards in Singapore on par with international capital markets and best practices and ensures our capital markets regulatory framework keeps pace with market developments. It is important that we strengthen regulation of OTC derivatives markets in the wake of the Global Financial Crisis. The proposed amendments are in line with the recommendations made by FSB and the G20. Madam, I welcome the long-awaited amendments aimed at enhancing the credibility and transparency of capital markets, including better governance in the setting of financial benchmarks, strengthening MAS' ability to take enforcement action against market misconduct and strengthening safeguards for retail investors. Malpractice in the market can be very damaging. Members of this House may recall when news broke of the extent of the LIBOR fixing in 2012, that scandal sent shock waves around the world. As many as 20 big banks were named in various investigations or lawsuits alleging that LIBOR was rigged. To many, the pervasive misconduct amongst traders felt like "daylight robbery", and served to further corrode what little remained of public trust in banks and those who run them. Their manipulation of the LIBOR rate impacted the man-in-the-street as well as corporations around the world, because it affected what was paid for loans and earned for savings. It is estimated to involve up to US$800 trillion worth of financial instruments, ranging from complex interest rate derivatives to simple mortgages. Singapore has not been immune to financial malpractice.”
“Madam, the pain and anxiety felt by individuals and families affected by job losses are palpable. Disruptions in the current job market are intensifying, impacting even the highly trained and younger PMEs. I urge the Minister to put in place measures that give Singaporeans a leg up. Specifically, two supplementary questions for the Minister. First, will the Minister adjust the Employment Pass (EP) scheme such that Singaporeans with the necessary skills and experience are provided with the opportunities to be considered first for vacancies? Second, will the Minister consider providing incentives to employers to retain Singaporeans over EP holders during a retrenchment exercise, for example, widening the Career Support Programme so that employers can access them to keep Singaporeans employed, rather than wait for them to be retrenched, that is, keep them employed as they restructure their businesses?”
“I have two supplementary questions for the Minister of the Environment and Water Resources. I would like to ask the Minister what additional measures would the Ministry contemplate implementing to prevent mosquito breeding in vulnerable locations, such as construction sites and workers' dormitories. For example, would the Minister consider more stringent measures, such as introducing a new regime requiring all construction contractors, large and small, to engage authorised pest controllers to conduct independent checks and treatments at the construction sites? Under this arrangement, the Government could spell out specific maintenance and housekeeping standards that all contractors must abide by or risk suspension of their operations until they comply. All construction sites would need to display clearance reports by these independent pest controllers at the construction sites so that the public can see that they have got a very systematic regime, and it is conducted by independent controllers, something like what was implemented by the Building and Construction Authority (BCA) on the lift maintenance scheme.”
“Yes, Madam. I would like to ask the Minister with respect to the double weak companies – those with weak Singaporean Core and a weak commitment to nurture a Singaporean Core – would the Minister please give an update on how these companies have strengthened their Singaporean Core as a result of the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) interventions and some of the things the Minister said they would do during the Committee of Supply speech?”
“How will FI clients regard the rigour with which we safeguard the integrity of their tax information and the individual's right to privacy? Mdm Speaker, in conclusion, I support Singapore's role in the vanguard of international cooperation to facilitate tax compliance. However, we need to guard against regulatory arbitrage, implementation complexity and systemic leakage and misuse of information exchange. FI clients must ready themselves for a new age of unprecedented transparency and big changes to tax regimes, as governments work hard to get what is due their peoples. In this, wealth managers can be the authorities' greatest allies in educating and advising their clients, to bring them on board, and we should work together towards a common cause.”
“Even if we do all this well, it is still important for us to communicate skillfully and clearly to international clients who bank in Singapore how rigorously we will safeguard their interests, so that they are assured that their information will not fall into the wrong hands. To this end, I would like to ask the Minister to lay out clearly how Singapore will prioritise the countries that we sign CAAs with, together with estimated timelines. One input that the Government may consider referencing is published corruption indices by independent international organisations, such as Transparency International, which will be well-known to all stakeholders. Last but not least, Madam, with the advent of information exchanges for tax compliance, we need clarity on an individual's right to privacy protection under our laws. In my speech in 2013, I spoke on the amendment that gives IRAS the right to access information protected under the Banking Act and the Trust Companies Act for Exchange of Information, without having to first obtain a Court Order. Madam, at the time, I voiced concerns that this amendment may undermine the confidence that clients and investors have in Singapore's banking privacy laws. I was assured by the then Senior Minister of State Josephine Teo that robust safeguards have been put in place by IRAS, including the need for foreign jurisdictions to explain why the request is being made, identify the taxpayer under investigation or assessment, and declare that it has pursued all available means in its own jurisdiction to obtain the information. Yet, in less than three years, we are asked to consider a regime that automates the exchange of sensitive information.”
“Another example is how will information that Singapore receives on offshore income of Singapore resident taxpayers be used, collected and shared? Different FIs may hold differing reading of the same individual's tax status. So, I would like to ask the Minister how we could take a more nuanced approach that would provide greater clarity for industry players to deal with issues of tax residency. FIs should be expected to do the necessary due diligence to establish the clients' tax residency. But, to a large extent, FIs will have to rely on their clients' declarations or what their clients declare to them. Is that good enough, or will the FIs be expected to corroborate those declarations, and how far are they expected to go to do so? To what extent will FIs be culpable for inaccurate declarations? Third, we must ensure that a robust process is in place to determine the readiness of bilateral partners of CAAs before bilateral information exchanges commence. Not every country is as ready as we are to deal with transparency, and we have a duty to the clients we serve to safeguard their privacy against abuse. Tax information can be misused for a variety of nefarious ends, including criminal enterprise, political corruption and social chaos. We have heard of cases where tax information is misused to achieve political objectives or leaked to criminals. I would like to ask the Minister to provide assurance that our authorities are, indeed, in a strong position to determine that our CRS partners have strong rule of law, the ability to ensure the confidentiality of information exchanged and prevent its unauthorised use before signing CAAs for information exchanges. Also, how do we ensure there is full reciprocity with AEOI partners in terms of information exchanged?”
“Many industry participants are concerned that an overly enthusiastic response at this early implementation stage, imposing more than the required obligations on Financial Institutions (FIs) may hurt the competitiveness and growth of our wealth management industry. It is important to observe the pace adopted by other jurisdictions and consider a measured approach at a prudent pace. Not all countries have signed up, and those which have signed may implement Competent Authority Agreements (CAAs) at a different pace. Could the Minister share the impact on Singapore's competitiveness if other financial centres adopt a different approach? How can we ensure a level playing field among all major financial centres, including Dubai, Hong Kong, Luxembourg and Switzerland, to minimise regulatory arbitrage? Second, the implementation of CRS and AEOI will add significant compliance costs to FIs. To avoid FIs being overwhelmed by the administrative burden of CRS implementation and the complexity of system enhancements, they will need clear guidance to enable a consistent interpretation of requirements. The industry expects the Monetary Authority of Singapore (MAS) to issue guidance notes that set a reasonable industry standard that strives to balance responsible global compliance with reasonable expectations of responses from FIs. Burdensome complexity brings with it the risk of non-compliance and its accompanying cost of penalties. Madam, the guidance must be sufficiently meaningful so as to enable FIs to determine tax residency consistently across banks. For example, it is common for FI clients to maintain multiple residences or they may travel so frequently that they have no tax residency status.”
“Mdm Speaker, I wish to declare my interest as the Chief Executive Officer of the Wealth Management Institute. According to Oxfam International, lost tax revenue from money salted away offshore costs governments more than $150 billion a year. This is estimated to be enough to eliminate extreme poverty across the globe twice over. I commend the Singapore Government for its strong efforts in the anti-money laundering regime and its active cooperation with other jurisdictions through the exchange of information for tax purposes to facilitate tax compliance. International clients should choose to bank in Singapore on the strengths of our broad and deep capabilities in financial products and services, strong regulatory regime and rule of law, and not because they think they can abuse our laws to evade paying tax. I support the proposed amendments to the Income Tax (Amendment No 2) Bill to allow Singapore to implement the Common Reporting Standard (CRS) with effect from 1 January 2017, a move that improves our international tax compliance. This is in line with Singapore's commitment to commence automatic exchange of financial account information (AEOI) in 2018. Madam, whilst this remains the goal that Singapore must pursue, we should be under no illusions about the complexity of CRS implementation. The way forward will be difficult and will require us to navigate obstacles with great skill, cleverness and caution. I would like to highlight four areas of concern. First, we should be mindful of the impact of CRS on Singapore's competitiveness as an international financial centre.”
“Expertise built up in this sector can help Singapore develop yet another global centre of excellence, this time, in a field that connects those who cannot help themselves with those who can and want to help them. And we will do well by doing good.”
“However, if they wished to set up a charitable trust in Singapore, they would be subject to greater administrative burdens and more onerous governance structures than FCPT, just because they are Singapore Citizens or residents. While these philanthropists have the option to register their charities as "Qualifying Grant Makers", ostensibly subject to "lighter touch" supervision by the Commissioner of Charities, but even this "lighter touch" option is comparatively unattractive, because traditional offshore jurisdictions, such as the Channel Islands and the Caribbean, do not impose such requirements that incur additional administrative costs which eat into the net proceeds which were intended for their beneficiaries. Whilst I do not have actual figures, anecdotal evidence from my interactions with the private trust industry suggests this "shrinkage" is quite significant. Sir, I call on the Minister to consider applying the same set of rules under FCPT to trusts set up by Singapore Citizens and residents, so long as the necessary safeguards are in place. This includes being prohibited from soliciting public funds and ensuring that all gains and income are reserved for charitable causes only. To qualify, the charitable trust must be administered by a Singapore-licensed trust company to ensure strict governance and regulatory oversight by the Monetary Authority of Singapore. The harmonisation of treatment for charities set up by foreigners with those set up by locals will encourage more charitable trusts to be set up in Singapore. The assets of local trusts are likely to be held and managed in Singapore, and likely to benefit more needy Singaporeans.”
“Chairman, Sir, I applaud the Government for its continuing efforts to promote a spirit of charity and volunteerism in our society. The introduction of the Business and Institution of a Public Character (IPC) Partnership Scheme in this Budget is likely to spur more corporations to encourage volunteerism amongst their employees and to contribute to the community. To encourage giving by wealthy individuals in Singapore, we should review the laws governing the setting up of charitable trusts by Singapore Citizens and residents. Sir, Singapore is well-positioned to become an international hub for philanthropy, because of our robust legal system, strong governance and a trusted and stable Government. To this end, we have launched such initiatives as the Economic Development Board's (EDB's) International Organisations Programme Office (IOPO) for the setting up of International Non-Profit Organisations (INPOs) in Singapore, and the Commissioner of Charities' Foreign Charitable Purpose Trust (FCPT), under which charitable trusts set up by non-Singapore citizens or residents are exempted from registration and eligible for tax exemption. Sir, we should also cater to Singapore-based high net worth individuals, served by the private wealth industry, who want to give back to their country of residence by setting up charitable trusts. Often, these persons do not wish to be associated with any conspicuous, high-profile foundation. All they want is giving and preferring their contributions to be discreet, they just want to leave behind a legacy or satisfy some personal and private sense of duty and gratitude.”
“MOM should study carefully the patterns of transaction of CPF members and take a very proactive role to help members to fully optimise the benefits of the CPF scheme. For example, since January 2016, CPF members can transfer CPF savings above the Basic Retirement Sum to their spouse's Special Retirement Account instead of the previous Full Retirement Sum. This change means couples stand to benefit significantly if they have varying levels of CPF savings between them. The savings enhancement for a couple can be substantial if the husband transfers, for example, some of his eligible CPF funds to top up the low balance Page: 108 retirement account of his wife, which now attracts 6% for the first $30,000, and 5% for the next $30,000. Overall, in Singapore, we are still seeing a gap of 14% in CPF balances between male and female members. But I believe that even though it is still early days, as it was just implemented, thus far, very few CPF members whom I have spoken to have thought about this, let alone take action to enhance their savings in this way. I would like to repeat a request that I had raised during last year's COS, that the Minister consider providing "auto sweep" functions for CPF members to transfer their savings to their spouse's account to top up the Basic Retirement Sum. CPF members who do not wish to participate can opt out. But they should be helped by a statement explaining how much less they will get as a couple if they do so. This approach may help result in more couples benefiting from the extra interest rates, which will be particularly welcome for lower balances. Sir, CPF is a great savings scheme. We must do our very best to ensure all Singaporeans can take full advantage of it. Silver Support”
“Mr Chairman, I thank the Government for the Silver Support Scheme, which is a major new feature of our social security system. This will be especially helpful to many women who "work" at home as the primary caregiver of their families, with no paid wages and little retirement savings. So, this is going to be very helpful to them. Taken together with the slew of enhancements made to CPF in 2015, the scheme is now more attractive, more comprehensive and better catered to the diverse needs of Singaporeans. However, how much does the average Singaporean understand of the CPF scheme in order to fully leverage its benefits? Other than a small group of financially-savvy individuals, it is not easy for most of us to remember the different tiers of interest rates offered in the different accounts, as well as the different rules that apply, so that we can optimise our own savings and those of our family members. Sir, I think the instinctive solution to this problem is to recommend that the Government launch a comprehensive education campaign. But I would admit that this will not be an easy task, given the complexity of the system. Furthermore, we should consider some learnings from the field of behavioural finance. Drawing on the research of psychology of decision-making, behavioural finance argues that many financial phenomena are the result of less than fully rational thinking on the part of the participants. Behavioural finance helps explain sub-optimal trading and investment behaviours. The science of behavioural finance is already applied to understand asset pricing, investor behaviour and corporate finance. Sir, I urge the CPF Advisory Panel to consider applying behavioural finance in Part II of their work to help guide optimisation of CPF savings.”
“Madam, I would like to thank the Acting Minister for bringing up the subject of aptitude admissions. Clearly, the Acting Minister did not open a can of worms but really open up a window of opportunity for many young people. So, Madam, I would like to ask the Acting Minister on real cases. For example, a resident who met me last night, for five years, he has tried to go into polytechnic, having completed his Higher Nitec. In that period, he has taken on roles working in McDonald's, Sushi Express, human resource, doing sales in a bank, all wanting to pursue a diploma in polytechnic to do business studies. He is articulate. He is positive. He has lots of energy. He participated in the Youth Wing. These are all the qualities you would want. So, my clarification, Madam, is whether, for an individual like that who has attempted three times, the Ministry would consider his case for this year's admission rather than wait till next year where he has to wait yet another year.”
“Presently, the most urgent need for SkillsFuture is to really help the retrenched professionals find their feet, rebuild confidence, guide them to acquire new skills and, more importantly, find ways to get employers on board to provide job opportunities. There must be significantly more effort invested on "place and train". The connection between training and employability must be more direct and stronger, so as to provide a line of sight between the efforts that one puts into retraining and the hope for re-employment. Displaced professionals, managers and executives (PMEs) should also be supported through "mid-career" Earn and Learn Programmes, so that, for "senior interns", there is a "bridge" to permanent jobs. And I fully support initiatives, such as TechSkills Accelerator, and would like to ask the Acting Minister when similar programmes will be launched for other sectors. SkillsFuture will only succeed with careful planning and coordination among all key stakeholders – individuals, employers and the Government − to ensure the right set of outcomes. The Government's active involvement should in no way diminish the employers' critical role in training and developing their employees. So, I would like to ask the Acting Minister how companies are complementing the efforts of SkillsFuture to develop their staff, including the provision of annual leave. SkillsFuture”
“For a segment of the less-educated older Singaporeans who will have difficulty going online to search for courses, we must have an alternative ready for them. To fully leverage SkillsFuture, we should start with better career guidance for school leavers to choose their future vocation well, so that they are well-guided in their choice of post-secondary education. We should learn from the best practices in Switzerland where about two-thirds of 15- to 16-year-old students leave school to start their vocational training. Before leaving school, students should have the opportunity to have "look-see" experiences at vocations that may interest them, carried out in a very systematic way, whether they are curious about being a doctor, a chef or a computer programmer. Companies and trade associations should work with MOE to conduct "open house" exercises to provide insights to jobs, working environments and career prospects in their industry. 1.45 pm Page: 42 Madam, I was happy to hear Acting Minister Ng Chee Meng speaking about nurturing interests and passion in students in his speech. I have received many appeals from young people who are disappointed that they have missed the entrance marks to the study of their choice despite a very clear interest and passion for their area of study. Therefore, I would like to appeal that IHLs consider providing places to prospective students who have demonstrated a passion for the field of study they are applying for, in addition to being assessed purely on academic results. Madam, mastery can only be nurtured starting with a passion.”
“Mdm Chair, SkillsFuture has great potential to help Singaporeans develop new capabilities and achieve their fullest potential. If implemented effectively, it will sustain Singapore's competitive advantage and help our people get good jobs and have fulfilling careers. This is especially critical at a time when many workers have to keep pace with rapid technological changes whilst others, affected by economic restructuring, have to be reskilled, possibly multiple times, throughout their working life. SkillsFuture can provide that lifeline for Singaporeans to ride the waves of change, rather than be dragged down and crushed by disruptive forces in the marketplace. I, therefore, applaud the Government for this visionary initiative. It is a significant investment in our people, costing S$1 billion a year for the next few years, and we must fully capitalise on it. Madam, I would like to start by highlighting some feedback from my constituents on aspects of the SkillsFuture system that need to be addressed for it to really work for us. The current system is more useful to workers who know what they want to do, but less helpful to those who are thinking about a career change or who have been made redundant. The system does not lay out a clear path to build new skills for new careers. There must be clear linkages from training courses, to skills, to jobs. And I repeat: there must be clear linkages from training courses, to skills, to jobs. Equally important is the information on industry growth clusters where vacancies exist and where future jobs will flourish. There should be a simple tool to help people narrow down their options, to focus their efforts.”
“With the great initiative to second public officers to TACs to help them deepen their knowledge and to support TACs, I would like to ask the Minister whether the decision-making and empowerment of these officers would be enhanced, so that they can truly do something meaningful, for example, to tailor-make schemes for these sectors? Also, if they are empowered, what is the decision-making process so that they can get things through quite quickly, so that the TACs which have got a good plan, can get on with it?”
“How can we be sure that the additional funding this round that has been announced for TACs will, indeed, add value to the ground? How can TACs start to position themselves for the pivotal role demanded of them in this Budget, which calls for development of transformation roadmaps for over 20 sectors, in order to help companies lift productivity and drive innovation? Sir, I am pleased to hear that the Government is planning to second up to 20 officers to TACs to improve partnership with the sector and facilitate better understanding of the needs of our companies. Like the hon Member Mr Thomas Chua, I urge the Government to consider having a larger number of such officers as there is a large number of TACs. Secondment of public officers will enable the much needed depth of understanding of specific needs of the industries and will empower them to be in a better position to design tailor-made support schemes and specialised infrastructural developments to spearhead transformation and innovation of the industries. Sir, there is no better time for TACs to reinvent their role as sector leaders. I hope that all will rise to the challenge and that we will all do our best to support them. Business Space and Rental”
“Chairman, it has been announced in this Budget of the increased role for TACs in helping their respective sectors transform and scale up. The pivotal roles that TAs play in supporting their industries have a long history dating back to the Middle Ages. Today, in some of the most competitive economies, such as the US and Germany, TAs fulfil wide-ranging functions, including lobbying and guiding Government regulations, setting standards and best practices, R&D, upgrading processes and products in their industry, education and professional development for those employed in their industries and, often, they also act as a watchdog and develop codes of practice to increase stakeholders' confidence. In Korea and Taiwan, TACs act as formidable consortiums to capture overseas business. In contrast, Sir, SMEs in Singapore tell me that TACs here have much room to step up to the role expected of them. With a few exceptions, most TACs have weak capabilities and few resources despite being most sincere about the intentions to support their industries. Most companies I spoke to are sceptical of TACs' abilities to lead the development of industry-wide transformation projects. Sir, Minister Lim Hng Kiang just shared several new schemes to support TACs, such as the new LEAD+ programme to help TACs improve their outreach, attract talent, develop their capabilities, and strengthen their processes and services. But, Sir, the LEAD programme has already been in operation for over 10 years. In fact, just last year, Minister Lim Hng Kiang awarded further funding totalling $7 million to six TACs. So, I would like to ask the Minister what impact has this support had over the last 10 years in helping TACs contribute meaningfully to the industries?”
“Mdm Chair, the Government recently announced the new plans for our $19 billion Research, Innovation and Enterprise (RIE)2020 effort. It is vital that we maximise our returns from our R&D spend, a critical investment that takes a significant share of our budget expenditure even as our fiscal position gets tighter. I support the Government's sharpened focus on growing our capabilities in research translation, innovation and facilitating startups, so that research and innovation can be applied to our economic and social needs. Germany has a robust system of applying R&D to drive innovations in their businesses. One factor that facilitates this is the practice where professors at German universities often hold concurrent appointments overseeing R&D at industry groups, allowing for seamless testing and implementation of research initiatives. I would like to ask the Minister how our future approach to R&D will differ from those of the past. How will the Government support linkages across R&D value chains to bring technology inventions from the laboratories into our industries and grow strong industry clusters? Madam, I am heartened to read in The Business Times that SMEs' 2014 R&D expenditure surged 38% to $800 million. I would like to ask the Minister what percentage of the $800 million is a function of Government support and whether such expenditure translates to an increase in competitiveness and productivity. I would also like to ask the Minister for his insights on the performance of R&D in the various sectors and how such insights will help guide future Government funding support, including how SMEs can tap on the RIE2020 to drive innovation and scale up their businesses. Research and Innovation”
“Mdm Speaker, I would like to ask the Minister whether KPIs and performance standards have been set to track the returns on our investments for the various productivity schemes, as the Minister had explained that it would get tougher with expenditure. I think it is absolutely critical that the productivity schemes we put in place will bear returns. Clearly, this road that we are charting is a new road but how are we going to do this next journey in a much more deliberate, much more proactive way, so that when we are down the path and we think that we need to change course, we have KPIs to guide us to do so?”