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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“As for us jobholders – whether PME or otherwise – we will need to adapt to a new paradigm. No one can promise us a job for life. When Steve Jobs, in his commencement address at Stanford, told his audience to "Stay hungry, stay foolish", he was advising them to take control of their own destinies, to be vigilant and open to new possibilities, to never be complacent, and never too comfortable. I think that is excellent advice. It is an uncertain and fast-changing world that we live in. Hope for the best but plan for the worst. Try and put aside some savings to tide you over tough times. Arm yourselves with marketable skills. Take advantage of SkillsFuture and be ready to seize new opportunities. Stop looking back. Look forward and put yourself out for the new possibilities. Build bridges, cultivate and maintain a strong network of friends and contacts. The future lies in collaboration. Madam, I conclude that this is a Budget for our times – when we urgently seek a path towards new heights for Singapore, to be enabled by reinvention and transformation. This is a significant challenge at the best of times – and these are certainly not the best of times. We should lose no time in taking the first determined steps forward, looking out for perils and pitfalls, ready to make course corrections, and always, always watching out for one another. Madam, I support the Motion.”
“Madam, this Budget contains all the right ingredients to set the foundations for the future economy. However, we also need to help our workers cope with the cyclical headwinds and structural changes that will come their way. I am especially concerned about the plight of PMEs – they will bear the brunt of economic restructuring, impacting those in their 40s and above the hardest. They need our support. I would like to renew my calls for the Government to review policies governing the employment of foreign PMEs. Unlike lower-level jobs where foreigners hired on Work Permits and S Passes are subject to dependency quotas and levies, there is nothing similar in place for PMEs. We need to consider subjecting employers of foreign PMEs to the scrutiny of labour market tests urgently. We should not shy away from actively promoting and championing "Hire Singaporeans First", as the Government's first duty is to its own people. If Singaporean candidates possess the necessary capabilities for the jobs they aspire to do, then they should be given greater consideration than foreign candidates. Page: 50 As for those who have lost or at risk of losing their jobs due to restructuring, we must do everything we can to help them get back into the workforce. We have focused our efforts so far on SkillsFuture to help PMEs learn new skills. But many employers believe that no amount of new knowledge and skills can help displaced PMEs restart if they do not, first, have the right mindset. Employers are concerned about having to deal with the baggage and motivational issues that come with hiring a displaced PME. We must, therefore, provide the necessary emotional and motivational support to reignite passion, and this must be an integral part of Professional Conversion Programmes.”
“Many of these home-grown companies,老招牌 big or small, are ageing family businesses, where longevity depends on conscious and deliberate efforts towards a successful handover of the business. These SME bosses often share the strain on them to continue managing the day-to-day business when age catches up, yet they are unsure how they should go about structuring a smooth transition. For some, their children are either not ready or disinterested to carry on the family business. For many family businesses, succession represents a "make or break" crossroads in the company's history – and many do not make it across. A study done by Prof Joseph Fan of the Chinese University of Hong Kong found that 65% of the value of family businesses is lost as a result of succession issues. We must, therefore, put in place measures to preserve and build on the precious value of these companies accumulated during Singapore's growing years. We should learn from the best practices in Europe, home to some of the world's oldest brands, many of which started as small family enterprises. We should provide counselling services to prepare family businesses for succession, advice in the transfer of ownership between generations and trade-offs to be considered when choosing between future managers from within or outside the family. We should set up a market place and also financing schemes to connect owners, potential successors and investors. Our learning institutes may also offer strategic and business expertise to these family businesses to help them refresh and reinvent themselves. With such support, perhaps we could help the likes of Mrs Kwan of Lana Cake Shop ensure that her amazing chocolate cake remains a treat for generations of Singaporeans to come.”
“Execution will be more complex as success will depend on multiple partners pulling their own weight. The Government agencies will need to work closely with enterprises at the industry level in order to develop transformation maps tailored for each sector. They will need to come up with different support schemes, tailor-made for different industries, and they will need to look afresh at specialised infrastructural development for each key sector. Trade associations will need to proactively step up their outreach to member firms, develop capacity and capability-building in their respective industries and lead the development of industry-wide solutions that address common challenges amongst their members. These are all steps in the right direction but the journey will take time and success is not guaranteed. These initiatives require extensive planning, coordination and execution, but we must not be deterred. I urge all parties to seize this opportunity to embrace a new era of collaborative Page: 49 ventures. If it all sounds familiar, perhaps it is because we hearken back to a time when our Pioneer Generation, faced with great uncertainty in a new land, depended on one another to make what they could of the little they had. They were inventive, determined and they were a team. So, too, it can be with us. Madam, I am encouraged by the increasing number of support schemes available to promote a vibrant startup ecosystem, including SG-Innovate. But even while we foster a healthy environment for startups to succeed, we should not forget to also help long-established companies continue their success and thrive.”
“I would like to ask the Finance Minister what measures have been instituted to track KPIs and outcomes on big-ticket investments, such as the Industry Transformation Programme and SkillsFuture. This is to ensure that these multi-year schemes achieve their policy intent and deliver the expected outcome, namely, the boost that is needed for our capabilities and competitiveness. What lessons have we learnt from our experience of years past, where well-intentioned productivity schemes, costing billions of dollars, ultimately failed to lift productivity levels? We have been on this restructuring journey for some time now and, with each passing year, the urgency to show results grows whilst our margin for error shrinks. Central to this Budget is the $4.5 billion Industry Transformation Programme, packed with measures mostly targeted at helping SMEs scale up, use automation and foster innovation. The introduction of a one-stop Business Grants Portal is timely. And two thumbs up for the shift from the broad-based PIC scheme towards a targeted and sector-focused approach to support schemes. So, perhaps because the new schemes that have been announced have been targeted, many SMEs have the impression that they will not benefit much from this Budget. We should remember that, apart from these new schemes, SMEs can continue to take advantage of many broad-based schemes that were previously introduced, such as the Transition Support Package, Infrastructure Projects and SEC. For example, firms received a total of $1.9 billion under the Wage Credit Scheme this year to help them defray the wage cost increase given to Singaporean employees. Madam, the path that the Finance Minister has chosen is not an easy one.”
“Mdm Speaker, I commend the Finance Minister for a thoughtful Budget, with its sharp focus on transforming our economy to ready ourselves for the future, whilst continuing the efforts of previous years to foster a caring and resilient society. I will focus my speech on our economy and jobs. Madam, what stood out for me was the recurring theme of partnership throughout this Budget, emphasising the need for all parties to work together in new ways to transform our economy and strengthen our society. I fully subscribe to this spirit of collaboration, which is critical in this increasingly complex world where the Government cannot be expected to know all and do all. We Page: 48 are most effective when working together, leveraging one another's strengths. Corporations and individuals alike need to take greater charge of their own destinies, even as they look to the Government to foster a nurturing and enabling environment in which to thrive and grow. We will get to SG100 in better shape if we each focus on our strengths, align our goals and resolve to support one another in the journey there. Madam, it is encouraging to see that we have achieved an overall surplus of $3.4 billion, attributed mainly to contributions from investment returns. But I am concerned about the underlying structural deficit. For four consecutive years, our expenditure has grown faster than operating revenue growth. For the last two years, total expenditure has outstripped operating revenue and this trend may continue, given our ageing population and slowing growth. It is, therefore, crucial that we enter into careful consideration and robust debate over our country's spending plans to ensure that every dollar is well spent.”
“Whether it is to find the cure for cancer, to be the biggest star on Youtube, or to save the planet, the dreams of Singaporeans will light the way to our tomorrows. We must nurture this precious spirit and inspire beliefs, arm Singaporeans with the fortitude to deal with adversity and infect them with the hope of success and then set them free to create and build a better life for others. We must teach them what it means to "play to win". Sir, Singapore finds itself, once again, at a crossroads in its journey. The Singapore of SG100 will depend on the deliberations and decisions of our generation. We will have to take roads less travelled, where the paths will not be easy and the obstacles will not be small. But we have never been in better shape to do so than we are today. We stand on the shoulders of giants, bolstered by strong Government and institutions, a sound financial base and a resourceful people. We can draw inspiration from our history of turning local disadvantage into global advantage. And come what may, we will always have one another. May this House lead the way, with the clear-eyed determination, courage and wisdom of our forebears. With this, Sir, I support the Motion.”
“We should, therefore, develop a set of metrics to track the outcomes of our lifelong learning initiatives, with clear plans to achieve a certain goal or reach a certain level, within a specified time. Furthermore, we need to leverage SkillsFuture to develop a strong Singaporean Core in the workplace, especially amongst PMEs. Companies with unusually high dependence on foreign EP holders should be required to submit a detailed plan on how they intend to train and develop Singaporeans for those jobs. And the success of their EP applications and renewals should be influenced by the extent to which they Page: 61 fulfil their obligations to train and develop locals. Sir, I wish to end with some comments on how we may build a culture of innovation. For innovation to thrive, people must be willing to experiment and explore. But the fear of failure drives Singaporeans to "play safe", rather than "play to win". We must foster a culture that is more tolerant of mistakes, where failure is less stigmatised and missteps are seen as merely learning opportunities. No successful Silicon Valley entrepreneur is ashamed to tell you of his mistakes. Instead, they are proud to tell the tale of how they picked themselves up, dusted themselves off and bounced back from adversity. They are willing to try again because failure is not a "bad word". Beyond the willingness to take risks, most successful entrepreneurs also possess an infectious belief in the cause they pursue. They have a strong sense of purpose and mission in life and will not be easily deterred from chasing their dreams. Many believe they are working for something bigger than themselves. And it is this faith that will lead others to overcome obstacles and drive innovation.”
“I hope the setting up of a new Statutory Board, SkillsFuture Singapore, under MOE, will enable as robust and strong a sector in continuing education as is currently the case with our formative education sector. At this point, I wish to declare my interests as CEO of the Wealth Management Institute and Temasek Management Services Academy, in the interests of transparency. Sir, an important starting point for a robust continuing education sector is knowing what to train for. The Government has announced sectoral manpower strategies to identify medium-term manpower and skills plans for each key sector in order to support industry growth and deepen expertise. But for the sectoral manpower strategies to be successful, we need employers and employees to be fully on board. The skills ladder identified must be owned by the industry, anchoring training efforts. Career and pay prospects must also be commensurate with skill and competency levels. Targeted training solutions should be readily available to enable individuals to advance their career by climbing the skills ladder in their area of interest. I have received feedback that many programmes in the continuing education sector are too generic and not targeted enough. There is an urgent need for training solutions to be aligned to the skills ladder, enabling individuals to achieve mastery and expertise in their jobs. To jump-start the sector, I strongly suggest that SkillsFuture Singapore consider the Swedish HVE model to bring industry and training providers together, in the way I had described earlier in my speech. We have all heard the saying, "What gets measured gets done".”
“For example, companies, large and small, can benefit from collaborating with one another when they Page: 60 venture overseas. Large Singapore corporations which have secured overseas projects should be encouraged, perhaps through tax incentives, to bring along a whole collection of smaller Singapore suppliers as part of their expansion internationally. This will help smaller SMEs kick-start their overseas ventures. Companies can also benefit greatly by collaborating in skills development, jointly uplifting talent for their industries. This is the norm in some of the most competitive and innovative economies in the world, such as Switzerland and Sweden. We should explore incentives for companies to come together to set up shared training facilities and to co-develop training programmes. Under the Swedish Higher Vocational Education (HVE), the system basically has a training provider, together with a steering group of employers, to define the industry's demand for manpower and skills over a specific time horizon. And through a competitive bidding system, the Swedish government funds the programmes that most clearly link industry requirements to training provision. So, Sweden has elegantly built training demand and employer support into the design of continuing education, and HVE programmes have achieved strong outcomes. I hope a similar approach can be adopted by Singapore industries and supported by the SkillsFuture movement. SkillsFuture is a key initiative to sustain Singapore's competitiveness by raising the quality of our workforce and refresh our value proposition in the global marketplace with new skills and capabilities.”
“Some of the more significant government initiatives include lowering entry barriers by providing artists access to many movie-making locations, government seed funding and assistance in market development with the Busan International Film Festival and the encouragement for chaebols, the large Korean groups, to enter the entertainment industry in order to provide the investment needed to produce blockbusters. The government also played an active role to foster talent by promoting majors in entertainment, including pop singing, film making and acting, and even setting up top-quality master's degrees, such as the Hanyang Entertainment Master's degree, for the development of management and leadership skills in the entertainment industry. Another innovative government initiative is the setting up of the Korea Technology Finance Corporation (KOTEC), a special purpose financial institution to provide funds to technology-innovative SMEs with weak collateral capabilities, in the form of credit guarantees for new technology. As part of its credit guarantee programme, KOTEC also developed a sophisticated and patented credit rating system to assess technology level and business feasibility, on very different lending criteria than the traditional banks, thereby enabling emerging technology companies to access funding efficiently. It has played a leading role in supporting technology startups with compelling business cases, in the form of billions of dollars in credit guarantees. Sir, we must develop our own "next big thing" as a key engine of our economy and not be so dependent on foreign intellectual properties. Sir, companies in Singapore can also benefit from better linkages and collaboration.”
“It is time to do away with generic Government support schemes that served more as subsidy schemes to help businesses defray fixed and equipment costs, rather than to address their underlying lack of competitiveness. Future schemes should focus on helping firms create new, innovative and differentiated products and services that are truly competitive internationally. Schemes should also be tailored at the sectoral level and streamlined for easy access. Sir, I hope the Government will reflect on our heavy reliance on MNCs to bring technology and expertise. We must also make a concerted effort to invest in indigenous Singapore technology – innovations made in Singapore. In fact, developing globally competitive local firms was already listed as a key objective of the Economic Review Committee recommendation in 1998, yet we are still far from realising this ambition. To achieve this, we need to take bold steps to create an ecosystem that enables targeted growth clusters to proliferate, multiply and develop depth in capabilities that are competitive internationally. There is much we can learn from South Korea on how the Government can enable growth of new clusters and build indigenous capabilities. The Korean government rolled out a comprehensive strategy to build the movie, drama and music industry as a new cluster, after the Asian Financial Crisis. As many K-Pop and soap opera addicts amongst us will attest, this has also promoted the Korean brand internationally.”
“Sir, whilst we focus our attention on building longer-term competitive advantage, we should also help Singaporeans get there. Help the more vulnerable amongst us to ride out the coming storms. I am particularly concerned about how certain segments, such as the older PMEs, will cope. Once displaced, they often find it hard to rejoin the workforce. Targeted Government interventions can help this group transition to new opportunities. So, I urge the Government to do more to systematically retrain career switchers, to provide mid-career Earn and Learn Programmes to help them secure new jobs. We should explore how IE Singapore can tap the rich experience of older PMEs to help companies expand overseas, especially into emerging markets. Many of these are wizened and street-smart from years of hard knocks. They could represent an invaluable resource for companies trying to internationalise. In fact, mature PMEs, whose children have already grown up, may be raring to find their second wind in foreign lands, flying the flags of both their employer and of Singapore. Page: 59 The Government has announced the setting up of a 30-member Committee for the Future Economy to develop strategies to position Singapore for a vibrant and resilient economy that creates opportunities for all. I have some suggestions for the committee to consider. First, despite the efforts of many in the past few years, productivity growth continues to elude us. Our annualised productivity growth of 0.3% over the 2010 to 2014 period fell far short of the target of 2% to 3%. We must now be prepared to make drastic changes.”
“Mdm Speaker, I rise in support of the Motion to thank our President for his Address. The 13th Parliament commences at a time when Singapore is entering a new phase of its development. SG50 celebrations helped Singaporeans from all walks of life appreciate how far we have come as a nation, but, as the happy year drew to a close, the new one began on a rather grim note. The President is right to recognise that the journey ahead will not be an easy one as we cope with the challenges posed by a slowing mature economy, an ageing population, greater social diversity and continuing threats of terrorism. Amongst the five key aims that the President has laid out for this term of Government, I would like to focus my speech on how we may renew our economy. It is critically important that we transform our economy to meet the needs of the global marketplace of the next 50 years, for only then can we hope to provide for all that Singaporeans wish for, whether it be good jobs, security, housing, healthcare, transport or welfare for the less privileged. The figures are sobering. Our economy grew at a modest 2.1% last year, the weakest rate of growth since the financial crisis of 2009. Analysts have downgraded their growth forecasts for 2016 from 2.8% to 2.2%. Forty-four percent of companies expect a drop in profit margins. The year 2016 has gotten off to a rocky start, with tumbling stock markets, slumping commodity prices and world news dominated by security incidents. [Deputy Speaker (Mr Charles Chong) in the Chair] The International Monetary Fund rated China at the top of their list of concerns in 2016, and the impact of its reduced rate of growth will continue to reverberate through Asian economies, not least in Singapore, because of our open economy.”
“We are fortunate to have the nation's reserves, but must continue on the path of prudence and sustainability, for the sake of future generations. Ultimately, the focus must be on building a strong and globally competitive economy that will continue to generate strong operating revenues to meet increasing demands for expenditure. Mdm Speaker, I support the amendment. 4.26 pm”
“I would like to ask if the financial crisis had any impact on the NIR framework – are there any lessons we can draw from the financial crisis that could shed light on the robustness of our framework and the investment strategies of our state investment Page: 75 organisations? In addition, I would like to ask the Deputy Prime Minister to provide a comparison of the performance of MAS, GIC and Temasek against other sovereign wealth funds or government investment entities, using relevant benchmarks. Madam, during the 2008 Constitutional amendment, the Prime Minister explained how the Government had based their level of spending on 50% of the long-term expected real returns. I quote the Prime Minister: "It is not an exact science why we came to this number, but I think 50% has a certain neatness and feels intuitively acceptable, because it underlines our commitment to continue growing our reserves, while allowing the Government to tap on part of the investment incomes for current spending. In a sense, we have put equal emphasis on both objectives – the present and the future." May I ask the Deputy Prime Minister: under what circumstances would the percentage of 50% be up for review? Whilst a spilt down the middle would have seemed, in 2008, an equitable balance between providing for present and future needs, future circumstances may require the Government to increase their spending, say, for social programmes or other needs. So, what signposts should we be looking out for that might signal a timely review of this percentage? How soon would the Deputy Prime Minister expect us to encounter these signposts? Madam, in closing, as we enter an era of increasing spend and diminished growth, the NIRC will be a welcome source of revenue.”
“Can Deputy Prime Minister Tharman provide more details to the House on how the Ministry is now able to forecast the long-term expected real returns of Temasek, taking into account the nature of its investment portfolio? How has Temasek's portfolio investments evolved since 2008? Are Temasek's investment strategies expected to change in any way, as a result of coming under the NIR framework? How will the country's aggregated NIR be impacted by the inclusion of Temasek's portfolio, given that its portfolio is likely to be more volatile than those of MAS and GIC? Madam, the NIR framework is based on a forward-looking assessment of the overall returns over the long term. The expected returns are based on an investment horizon of 20 years. I would like to ask Deputy Prime Minister Tharman about the challenges in trying to look so far ahead, given such volatile market conditions and investment climate. In today's uncertain world, many find it hard enough to forecast one year in advance, let alone 20 years. As our spending is based on expected real returns, we need some degree of confidence that the forecasting model is robust and time-tested. Since the implementation of the NIR framework in 2008, we have also experienced an unprecedented global financial crisis with economic shocks that much of the world is still recovering from. Singapore fared relatively well, even during the darkest days of the crisis and was even considered a safe haven in the financial world, maintaining its enviable AAA credit rating.”
“On top of that, our ageing population will increase the demand for more resources to care for the elderly. We have entered a new era of financial planning for our country. It is no longer "business as usual". As revenue streams come under pressure, our debates over spending plans should be ever more robust and informed. For example, even as we welcome the addition of Temasek as an additional source of funds under the NIR framework, we should ensure that spending is prioritised towards investments in the country's future, or on items that will boost our capabilities and competitiveness. So, I would like to ask Deputy Prime Minister Tharman, with respect to our planning parameters, what proportion of spending is geared towards investments in national Page: 74 development? How are prospective projects assessed, not just on their financial viability but also on their impact on growing the country's capabilities? What mechanisms, disciplines and KPIs are in place to track "investment returns" of projects and to ensure that we "sweat our assets"? Mdm Speaker, the constitutional amendment in 2008 changed the formula for computing NII, so that the Net Investment Returns (NIR) framework was applied to GIC and MAS only. Back in 2008, then Minister for Finance Tharman explained that the Government had decided not to include Temasek in the NIR framework for two reasons. First, there were no established methodologies for projecting the long-term expected real returns on Temasek's portfolio, given its investment approach of taking concentrated stakes in companies, including direct investments. Second, Temasek's investment strategy was still evolving, having begun a major effort to diversify its investments geographically as well as sectorally in 2002.”
“Mdm Speaker, I wish to declare that I am the CEO of Wealth Management Institute, a wholly-owned subsidiary of the Temasek Group. Madam, I rise in support of the proposed amendment to include Temasek Holdings Limited in the Net Investment Returns (NIR) framework. This amendment will widen the sources of revenue that help to fund expected increases in Singapore's future spending needs. It is tempting to look to the country's reserves whenever we need to support an increase in spending, so it is good to remind ourselves of the strategic importance of these reserves. As our Prime Minister said in 2008, I quote: "We have no natural resources. All Members who enter this House memorise that as a catechism – no timber, no iron, no gas, no gold – just our wits and our strength and our financial reserves which we have built up. These financial reserves give people, Singaporeans and investors alike, confidence that Singapore is sound, strong and able to cope with anything which may come its way." Singapore's reserves help underpin confidence in our country and our ability to weather storms. Any decision to draw on these reserves must be taken with great circumspection, and we must guard against any policy that is financially unsustainable, however popular it may be. Madam, in recent years, we have seen significant increases in spending across many areas, from social programmes, housing, education and healthcare to productivity initiatives. At the same time, the Government is projecting a lower growth trajectory in GDP, due partly to a maturing economy. We have not made enough progress in improving productivity. And an uncertain global economy will make it difficult for our Government investment agencies to sustain returns of the past.”
“Mdm Speaker, I would like to thank the Minister for the slew of enhanced measures announced last week to strengthen the Singaporean Core amongst PMEs, especially the Career Support scheme. Madam, I have two supplementary Page: 21 questions for the Minister. One, with the intention to scrutinise EP applications for whether or not Singaporeans were fairly considered, would the Minister please elaborate how the Ministry will ensure qualified Singaporeans are not passed over for jobs just because foreigners are willing to accept a lower salary and employers do not need to contribute to their CPF? Two, in MOM's announcement, it mentioned an expectation for firms to systematically develop their Singaporean PMEs. So, that was a statement. That was great. Would the Minister please elaborate how MOM intends to achieve this and whether the Minister would consider a system where the approval of selected EPs are tied to a localisation plan, with clear commitments from the firms to invest in the training and development of Singaporeans to fill these jobs in the future? This scheme will be especially helpful in sectors currently dominated by foreigners.”
“Madam, I thank the Minister for his answers. I have one supplementary question for the Minister. As the Minister has explained, currently, the CPF pays a floor rate which is actually very attractive considering the current low interest rate scenario, thereby helping CPF members accumulate savings despite the low interest rate environment. So, I would like to ask the Minister, would the Government consider preserving that positive difference between the current floor rates that they are offering to CPF members as the interest rate changes? Let me ask it again: can CPF consider a guaranteed premium rate over market interest rates to at least preserve the current positive differences? Currently, there is a floor rate that is offered. So, despite a very low interest rate offered in the market, there is a floor rate of 2.5% for Ordinary Account and 4% for the Special Account. But as the interest rate increases, that gap, the positive difference that a CPF member enjoys, is likely to narrow if CPF rates are not adjusted accordingly. So, what I am asking is, given that the people are beginning to understand the attractive interest rates that members are getting on their CPF accounts – but it is a moving target, as things are now, market interest rates are also expected to go up – would the Minister adjust the interest rates of CPF accounts in tandem with the market interest rates so that CPF members can enjoy a guaranteed positive spread?”
“Madam, I have one clarification for the Minister. I would ask the Minister to consider using a longer-term price index, maybe using an average of three years' prices, for schemes like Lease Buyback. This is to take the volatility out of the property market, so that seniors do not have to try and time the market. In this way, whether the price goes up or down, it works both ways for them. The key point is that they do not know how to time the market and they should not try to do that. So, if it is a more moderated price point for them than valuations at a point in time, that should hopefully help them to monetise the flat.”
“For example, with the TDSR framework in place, coupled with the tightening of loan-to-value ratios to encourage financial prudence, could we not consider waiving the ABSD for Singaporeans only at the appropriate time? Madam, property market cycles can never be completely flattened out and we can only hope to moderate the volatility. With this in mind, I would like to ask the Minister if the Government would consider using a long-term index to determine property prices in housing schemes targeted at seniors, such as the Lease Buyback Scheme, instead of using actual valuations at one point in time. Could the Minister consider using, say, average three years' price points so that retirees need not worry so much about timing the sale of their homes, something that many are ill-equipped to do? Page: 125”
“Mdm Chair, home ownership is a key pillar to Singapore's social security. It is integral to retirement adequacy. In fact, we would all recall our Prime Minister explaining during the last National Day Rally how Singaporeans can monetise their HDB flats to enhance their retirement adequacy using various options like rental and right-sizing. Whilst I applaud the Government for imposing a series of cooling measures to rein in the escalating property prices, we must be careful that these well-intentioned corrections are not overdone. I have already met a number of retirees struggling to sell their flats to right-size to fund their retirement. As a large part of Singaporean household finances is tied to property, a loss in confidence in property could trigger a downward spiral in values with dire consequences for many families and their retirement plans. So far, the cooling measures have helped to ease private home prices by 4% and public home prices by 6%. We have seen price corrections over successive quarters. Given that the huge supply of new housing units has yet to hit the market and the impending rise of interest rates, we must be cautious that this downward price trend does not inadvertently get a momentum and reach an unintended pace. Many are relieved that the Minister intends for further price corrections to stay within the single digit and not double-digit range. However, some industry players have told me that this is easier said than done. Their concern is that once a downward momentum begins, the downward pressure on prices may not be so easy to control, as we have seen in previous property cycles. I would like to ask the Minister, at which point should cooling measures be eased in order to cushion any excessive price corrections.”
“Given the potentially large population of borrowers that could be impacted, I would like to ask MAS how it will work with financial institutions to avoid a credit crisis and whether there is sufficient capacity in banks, as well as Credit Counselling Singapore, to deal with a potentially large volume of cases. Would MAS consider a more gradual easing of legacy debt burdens by taking a phased approach, starting with those segments which are most severely indebted, for example, with debts greater than two years' income, before working through less indebted segments, over a more extended timeline? This will also allow the system to be fine-tuned along the way, as we learn lessons from implementation. To help individuals unwind from their excessive debt burdens, I urge the Government to facilitate a debt restructuring programme on lower interest rates, compared, for example, to the 24% that borrowers typically pay on their credit card loans. With the lower interest rate, only then will individuals have a chance to systematically pay down their debts and banks recover their loans. To prevent individuals from turning to moneylenders out of desperation, I would like to ask the Minister if regulations for the moneylending industry will be changed in tandem with implementation of the rule set by MAS, so as to ensure that the unsecured credit market functions in a coordinated way. Madam, we must engineer a soft landing for the heavily-indebted borrowers. With the right level of support, resolve and determination, I am confident that many will be able to Page: 86 overcome their debt problems. Nurturing Singaporeans in Finance Industry”
“Mdm Chair, whilst the overall consumer credit situation in Singapore is in good shape, we should be concerned about the fate of one group of borrowers who are already heavily indebted. By 1 June this year, MAS has announced the imposition of a borrowing limit of one year's income for every individual's aggregated credit card and unsecured debts across banks. I applaud this measure for ensuring fiscal prudence in a pre-emptive way. However, we must ensure that the heavily-indebted borrowers, those who already chalked up debts larger than their annual income, are able to unwind their positions in an orderly manner. This group of borrowers typically borrow from one lender to pay another, constantly revolving their loans in order to keep afloat. Page: 85 In Minister Lawrence Wong's reply to me in Parliament last year, he estimated that this group comprised about 6,000 people, based on the data available to him at that time. However, from sources in the banking industry, I have heard of estimates of 50,000 or 60,000 or even higher. Furthermore, the level of indebtedness of many individuals extends well beyond the one-year income limit. Could the Minister please provide an update on the latest estimated numbers? 3.00 pm Madam, I have witnessed the heartbreaking consequences of credit failure and hardship suffered by individuals, families and society during the credit card crises in Hong Kong, Korea and Taiwan. The Government can play a big role to facilitate orderly deleveraging by both individuals and financial institutions. They can set rules for restructuring loans and ensure sufficient credit counselling capacity to help individuals work through their financial situation and find the path to recovery.”
“Mdm Chair, the Population White Paper sets out a roadmap to steer Singapore away from the path to stagnation and decline, given our low birth rates and ageing population. It painted a vision of how our nation could continue to be a vibrant global city. I would like to ask how the Government is tracking towards its vision of a sustainable population with a strong Singaporean Core and its plans to strengthen our Page: 67 national identity and social cohesion. I was heartened to hear that Singapore's total fertility rate had improved to 1.25 in 2014 and that there were more marriages. I would like to ask the Minister whether the positive trend can be sustained and whether we can attribute it to any Government measures implemented. What can we learn from the Scandinavian countries and France on their reversal of declining birth rates through strong pro-family and work-life balance policies implemented by their governments? Finally, even as we work very hard to build a strong Singaporean Core, we must accept that our children, the product of our excellent education and industry system, will be ever more internationally mobile. There are plenty of opportunities in the region and around the world for the considerable talents and strong brand that Singaporeans bring. I would like to ask the Minister, how can we ensure that Singaporeans feel deeply rooted here and will always consider Singapore their home, no matter where they go? How can we help Singaporeans returning from overseas assignments, assimilate painlessly into Singapore society, especially in the areas of housing and their education for their children? Bringing Overseas Singaporeans Back”
“Thank you, Madam. I would like to seek two clarifications. First, I would like to ask the Minister how we can ensure that members, when they withdraw their CPF, the decision is made in the best interest of the family. I say this in light of the new CPF rules which now allow members the flexibility to withdraw amounts above the basic retirement sum, which is half of the original Minimum Sum. This is only predicated if the member owns a property. So should the spouse not have a say in CPF withdrawals, since withdrawal is predicated on the CPF charge on the family home? That is the first clarification. Second, I would like to ask the Minister, for auto-switch function between spouses' accounts as an option, unless members opt out, so not mandatory, but make it automatic and unless members want to opt out. This option will help make transfer process fuss-free for couples and guide them towards an optimal arrangement for families unless they choose otherwise. Would the Minister not consider this as it helps shift the paradigm on how couples should optimise their CPF accounts for a safe and secure retirement for both parties?”
“For example, if a husband has saved $120,000 at age 55 years, transfers the balance to his non-working wife account after setting aside the Basic Retirement Sum, the $39,500 transferred would have earned over $9,000 more or 16% more savings in the wife's account given the higher effective interest rate for low balances, than if he had kept the full amount in his own account at 65. In addition, introduce a CPF LIFE joint ownership scheme for couples, so that when one spouse dies, the annuity is bequeathed to the surviving spouse, who then continues to Page: 53 receive a lifelong income stream from that policy. Finally, I would like to ask the Minister whether he would allow members greater flexibility to use their CPF savings in the Retirement Account to service their housing loans after they reach 55, as Singaporeans are now working till they are older and may not have planned for the monies to be transferred from Ordinary Account to Retirement Account at 55. Retirement Adequacy at CPF”
“Madam, home ownership and the CPF are two key pillars of every Singaporean's retirement support structure. Unlike home ownership, for which HDB's eligibility criteria requires joint ownership by members of the family nucleus, the CPF account is owned solely by the member, and balances are pegged to employment and the level of wages earned by that person throughout his or her lifetime. Many women "work" at home as the primary caregiver of their families with no paid wages, so they depend entirely on their husbands' CPF. They are, therefore, vulnerable should their husbands pass on before they do and his CPF LIFE payout ceases. With the latest set of CPF enhancements, members are offered more flexibility to withdraw from their CPF – 20% of their savings at 65 and those with properties need only set aside Basic Retirement Sum. How can we ensure that a member's withdrawal decisions are in the best interests of the family? I call on the Government to make joint consent from both spouses a requirement for withdrawal, if the account balance is less than the Full Retirement Sum. This is consistent with the allowance for members to maintain only the Basic Retirement Sum if they have a property with CPF charge, which is usually jointly owned by both spouses. To help stay-at-home mothers boost their retirement adequacy, I would like to ask the Minister to provide "auto sweep" functions for CPF members to transfer their savings to their spouses' account, unless members opt out. This will allow couples to take full advantage of the extra interest rate on lower balances and therefore enjoy a higher effective interest rate overall.”
“Madam, I would, first, like to thank MTI for the enhanced CDG and to know that initiatives, like those pursued by Little Ferry, can now be approved. I just have one point to clarify with the Minister of State. He mentioned that CDG and ICV would be the schemes that people could tap if they want to get advice as to how they can improve support schemes that relate to appealing to the hearts of the employees. Could the Minister of State Page: 31 elaborate exactly how that would work because these are HR and people-related schemes.”
“Page: 15 How will the Capability Development Grant be enhanced, as announced, to enable a broader definition and interpretation of innovation to support such ground-up productivity improvements that help to improve workflow in incremental steps. Business Costs and Entrepreneurship”
“The supplies for this company come in odd-sized wooden crates, so storage is a big challenge as is moving them around in order to access the supplies you want. Doing so also normally involves extensive manpower and space. So, in an effort to raise productivity, the owner, Jason Tan, spent many sleepless nights working with engineers in the marine industry to come up with this: a system of metal crates which are strong, durable, stackable and offers easy access. This Mild Steel Racking system not only improves space efficiency as the crates can be stacked neatly from floor to ceiling. It enables a safer and leaner work environment as his staff can now access the supplies effortlessly through a forklift. But when Jason made a PIC claim for this racking system, it was rejected as it did not "automate or mechanise" his business processes. My appeal to SPRING under the Capability Development Grant was also unsuccessful as the project was deemed not to have involved technological improvements required or meet the value-add requirement. Whilst this racking system did not cost much, Jason and his team felt it was one of the most critical initiatives they had taken to make their business more efficient and manpower-lean. Madam, I would like to ask the Minister whether we should encourage SMEs to pursue these kinds of initiatives, even if they may not involve breakthrough technology or automation. This sort of "low-tech" or "no-tech" productivity efforts is nevertheless innovative and achieves meaningful productivity boost for small companies like Little Ferry.”
“Mdm Chair, during the initial phase of the restructuring efforts, SMEs have benefited from generic productivity schemes, such as PIC, to purchase equipment and train their staff. At this point of the journey, it should be time to shift to a higher gear where help provided becomes more targeted and solutions are tailored to address companies' specific operational issues. Broad frameworks may no longer be adequate to help SMEs find their "next wind". Let me illustrate with an example. Little Ferry Agencies provides valves and other supplies to the shipping and marine industry – this usually involves handling heavy and bulky metal parts. It is a relatively small company with 16 staff, operating out of a 3,000-square feet warehouse. Madam, may I show a couple of slides?”
“For example, restaurant managers are offered 10% profit share incentives and they work hard to inspire their restaurant crew to provide a superior customer experience. I would like to ask the Minister how we can get more bosses to adopt Jimmy's management ethos to spur productivity growth. How can we help businesses to appeal more to the hearts and minds of their employees and motivate them to do their best on the job? How can we help employees feel that they have a stake in the future of the employer's business and can influence the company's outcomes? Mr Chairman, the traditional top-down approach needs to give way to one that is more of a partnership between bosses and their employees, who collaborate for business success. Internationalisation”
“Chairman, the country's F&B sector suffers from negative productivity growth and is plagued by manpower shortages. Singaporeans are not keen to work in this industry, which is associated with low pay, poor career prospects and Page: 157 long working hours. There have been many discussions about how the industry can benefit from manpower-lean restaurants and automated processes, but not enough is being done to address the motivation of employees and the transformative change they can bring to this sector. Please allow me to illustrate this with a real-life example of a "Best Practice". Tender Fresh Group is an F&B group comprising 74 outlets and three restaurants. The owner, Jimmy Soh, has run the company for more than 30 years. He has a simple philosophy – employees must have a meaningful stake in their company's success and be rewarded for their contributions. He shares up to 20% of his profits with employees and an incentive payout is made monthly. I recently spoke to Kelvin Chua, Jimmy's Chief Chef, a 33-year-old Shatec graduate who joined the company two years ago. Since then, his job scope has expanded from that of the Chief Chef to include food research and development and the opening and managing of new restaurants. Kelvin is excited that he is empowered to invent new dishes and restaurant concepts for the Group and has seen his earnings triple as he gets a share of the profits from his contributions to the group. Chairman, every staff in Tender Fresh has a clear set of performance targets. They are rewarded for their individual performance as well as team performance. This principle applies across the group from central kitchen staff who process the chickens, delivery drivers, kitchen crew members to restaurant managers.”
“I urge the Government to be careful when calibrating the cut-off points, to help people understand how eligibility is established and to provide for appeals from deserving cases that fall through the cracks. Whilst I applaud these cash payouts for the elderly poor, it must not erode the strong work ethic and personal responsibility of individuals as well as the role of family in supporting each other. Mr Deputy Speaker, this Budget, coming as it does in the year of Singapore's Jubilee, bears all the hallmarks of our Government's steady hand – continued impetus for economic renewal by lifting up our people, security of livelihoods at all levels of society, boosts for business and infrastructure, strengthening of social safety nets and assurance in retirement. All this comes with a large bill and yet, true to form, it manages to pay its own way and not burden future generations of Singaporeans. It is a Budget writ with great skill and compassion. I support the Budget. 6.05 pm”
“Sir, if this thinking becomes widespread, there is a risk that the Basic Retirement Sum will become the default choice for most Singaporeans, even if they are able to set aside more funds in CPF. Many Singaporeans withdraw whatever they can from CPF only to park the funds in bank deposits, which pay much lower interests. Page: 119 Also the risks of hard-earned savings being squandered away. The Government should explore more incentives for people to keep funds in CPF and allow Singaporeans the flexibility to withdraw the discretionary amounts as and when they need to, after they reach the age of 65. This will encourage more people to leave their funds in CPF if they do not need it immediately; having been assured that it is available to them, as and when they need it. In other words, rather than permit a one-time withdrawal of up to 20% at the age of 65, Singaporeans should be allowed to withdraw multiple times up to 20%, as and when they need it, at 65 and beyond. Third, that waiting till 65 to access your CPF is too late in life, as "life is short". But in fact, we are all living longer and the need to set aside more to maintain the lifestyles we have become accustomed to is important. CPF LIFE offers the peace of mind for the rest of our lives, in the form of a guaranteed monthly income stream, whilst still allowing us to bequeath unused portions to our nominated beneficiaries. Sir, the Silver Support Scheme is a welcome relief to those who have no solutions to abject poverty in the autumn of their lives. The qualifying criteria will be based on lifetime wages as measured by CPF contributions, flat type and household support, with no need for application as assessment for eligibility will be done automatically.”
“Taken together with enhancements proposed by the CPF Advisory Committee, the enhanced CPF scheme is now much more flexible and caters more effectively to the diverse needs of Singaporeans. Last year, I spoke in this House for the flexibility to contribute more than the Minimum Sum, in order to secure a more comfortable retirement. I am delighted the see the launch of the Enhanced Retirement Sum, which will be especially helpful to middle-income retirees. Sir, the CPF enhancements should ease anxieties about retirement adequacy, but will the man-in-the-street comprehend the scheme well enough to fully leverage its benefits? From dialogues and feedback, I am afraid there is still much to be done to debunk persistent myths about CPF. We must launch a comprehensive education campaign to help Singaporeans "reset" their understanding of how CPF works. This should start when they first begin contributing to CPF! The myths that must be busted, include the following. First, that CPF returns are poor and that CPF members can achieve a better rate of return from their own investments outside the CPF scheme. We need to help Singaporeans understand how CPF "risk-return" compares with other financial products. Even financial experts will admit to finding it hard to match CPF returns in retirement accounts and annuity payouts from CPF LIFE. With the latest announcement that Singaporeans 55 years and above can earn up to 6% on the first $30,000 in their retirement account, they will see this amount almost double to $53,725 when they turn 65. Second, that it is better to minimise the amount kept in CPF, so that you can gain easy and flexible access to your retirement savings.”
“There should be no reason for them to reduce their training budgets, rather they should step up and supplement the Government's efforts by enhancing in-house programmes and providing study leave to employees on public programmes. For Singaporean workers to build sufficient bench strength to seize the best job opportunities at mid to senior levels, such as master craftsmen and chief product officer, employers need to equip them with the necessary expertise, gained from industry insights and work exposure. To strengthen SkillsFuture, I urge the Government to add a set of attractive incentives for companies to develop a systematic framework that covers training, work exposure and mentorships to groom Singaporeans for mid-level and top jobs. Incentives should also be offered to global corporations to site their Global Training and Development centres in Singapore. This will not only improve Singaporeans' accessibility to the best learning and development resource centres in the world, but should have a positive rub-off effect on the Page: 118 rest of the training and development industry. Sir, there has been much debate about whether our CPF will be adequate for our retirement. I am pleased to see the slew of enhancements to the CPF scheme in Budget 2015 intended to help more Singaporeans achieve retirement adequacy, such as lifting the monthly CPF salary ceiling to $6,000, restoring CPF contribution rates for workers aged 50-55 years and paying 1% extra interest on the first $30,000 of CPF balances. And for the lowest 20% to 30% of the financial ladder who still do not have enough to retire on, there is the Silver Support Scheme.”
“An important enabler of SkillsFuture is SkillsFuture Credit – a life-long learning account for Singaporeans aged 25 years and above, funded by the Government. This will encourage Singaporeans to take charge of their own career progression or re-invention. I am glad that SkillsFuture begins during the schooling years, with career guidance and internship opportunities. Sir, to ensure that spending on SkillsFuture pays good dividends, Singaporeans need to be guided correctly on how best to spend their SkillsFuture Credits, for example, to take a longer term view of their careers rather than choose impulsively based on short-term interests. Every course they attend should help build a strong marketable "skills base". To help them make the right choices, the Government should implement a robust accreditation process to ensure high standards amongst trainers and programmes, before training and education centres are allowed to proliferate. In addition, an agency should be set up to maintain oversight of all education and training programmes and ensure strong alignment with future growth clusters, so as to shape the pipeline of relevant skills for the marketplace. The implementation of SkillsFuture requires careful planning and coordination amongst all stakeholders – individuals, employers and the Government, to ensure the right set of outcomes. Everyone must pull their own weight. The Government's efforts to encourage individual responsibility for one's own learning and development should not in any way diminish the employers' role in training and developing their employees.”
“But Sir, on the bright side, it is important to note that whilst productivity rates are not up to expectation, local employment and labour force participation rates have reached record levels of 79.7% and 67% respectively. Most advanced economies have raised productivity by reducing overall employment. In contrast, Singapore has created more jobs and opportunities for its citizens, largely by increased participation of older workers and women in domestically oriented sectors that have been laggards in productivity growth. The inclusion of these workers in the workforce may have impacted productivity levels, but the growth in employment opportunities for Singaporeans who would otherwise remain economically inactive is, in itself, a noble social objective worth pursuing. Perhaps we should include growth targets in employment rates and labour participation rates as stated outcomes of our restructuring efforts, as these clearly have a positive impact on household incomes and standards of living. Deputy Speaker, Sir, I commend the Government's launch of the SkillsFuture initiative. Skills upgrading and training have been a key thrust of Government initiatives in recent Budgets, driven the imperative to have Singaporeans develop new capabilities for the future and, with it, new skills and new mindsets for a changing world. If implemented effectively, this will sustain Singapore's competitive advantage by raising the quality of our workforce and refresh our value proposition in the global marketplace. It will also make lifelong learning Page: 117 a national habit – something that few other countries have been able to achieve in a systemic way.”
“Our annualised productivity growth of 0.3% over the period from 2010-2014 is much weaker than the 2% to 3% target set by the Economic Strategies Committee. Page: 116 Government initiatives include a long list of support schemes intended to help companies restructure and raise productivity, but these have not brought about the efficiency gains we hoped for. Fifty-four thousand companies have filed claims under the PIC scheme and 13,000 SMEs have benefited from the Innovation and Capability Voucher (ICV) scheme since its introduction. But I am concerned that these well-intentioned "productivity schemes" have served more as "subsidy schemes" to help companies defray equipment, wage and training costs, rather than to improve competitiveness and raise productivity. How do we know which of the long list of schemes truly lift productivity? As we are now at the halfway mark of our 10-year restructuring journey, we should consider whether changes are needed in the productivity narrative and strategies. SkillsFuture has great potential to drive a major shift in productivity and workforce quality over the long term, but it will take time to see solid results. The goal of making all jobs attractive and all professions respectable in Singapore society is a laudable one, but such a cultural shift will also take time. In the meantime, manpower issues remain the biggest challenge that companies face, especially in sectors shunned by Singaporeans. Even though many business owners appreciate the deferment of foreign worker levy hikes, they were hopeful that more support would be given to address manpower issues.”
“Mr Deputy Speaker, the Jubilee Budget is bold and creative – key measures such as the SkillsFuture Credit and the Silver Support Scheme will induce major shifts in Singapore's economic and social narrative. It sends a clear signal that the Government remains committed to our journey of economic restructuring; that restructuring for leadership in the knowledge economy is not a question of choice for Singapore – it is a matter of survival. It also deepens the Government's commitment to build a more inclusive society, by further broadening our social safety nets. When compared to those of previous years, Budget 2015 also stands out for its massive level of spending on a wide range of social and productivity schemes and critical infrastructure. These are investments in Singapore's future – to develop workers, strengthen businesses and bolster infrastructure development. As a consequence, budgeted expenditures will soar 19% over the previous year and exceed operating revenue by $3.95 billion. Sir, whilst it is assuring to know that these expenditures can be provided for from current reserves accumulated since 2011 by the current Government, it appears that we have come to rely more and more on past reserves to fund our spending and have now resorted to including Temasek in the Net Investment Returns framework in order to make ends meet. How will we know when we have gone too far, when we have crossed the line in fiscal prudence – that tried and tested principle that has seen Singapore through many economic crises? Sir, the Government has invested much money and effort over the last few years on productivity programmes to support the restructuring of the Singapore economy. However, five years into the journey, productivity growth remains elusive.”
“I thank the Minister for sharing the very comprehensive range of initiatives. I have two quick supplementary questions, Madam. First, given the progress we are making in R&D, what is the R&D spend in Singapore as a percentage of GDP? Is there a target that our country aspires to? Second, based on the feedback on the ground from SMEs, they find that the hurdle to qualify for R&D support is quite high. Usually, they think it requires breakthrough technology or major breakthroughs, and their R&D is mainly on a more incremental basis. So, I would like to ask whether there is scope for R&D to be defined in a broader sense so that more companies can qualify and focus on the innovative part of the productivity journey.”
“Yes. And carrying out debt collection activities at disruptive frequency and unreasonable hours of the day.”
“Madam, I thank the Senior Minister of State for her response. I have two supplementary questions. I understand that there are boundaries that debt collectors do not cross over as they can be prosecuted because it becomes criminal. But given that some of the tactics they employ may not cross that line, and given the prevalent use of abusive practices by debt collection agencies or moneylenders, I would like to ask the Senior Minister of State whether she would consider instituting laws that govern fair debt collection practices, such as those that have been implemented in Malaysia, Thailand and the United States. Secondly, will the Senior Minister of State specifically consider prohibiting tactics, such as those that we often hear from our residents, for example, contacting persons other than the debtor in an effort to recover debts, such as harassing family members and relatives; exposing the debtor's indebtedness to other people in an effort to humiliate him, such as faxing demand letters to people's workplaces; carrying out debt collection activities —”
“Studies also show that underage drinkers are five times more likely to become addicted to alcohol and abuse alcohol later in life. We should, therefore, make every effort to keep our youths alcohol-free and aware of the consequences of drinking at an early age. Whilst limiting their access to alcohol, we should encourage our youths to enjoy healthier social activities and get their "highs" from more wholesome pursuits than drinking. Madam, this Bill has made provisions on alcohol consumption from a public order perspective. Our considerations about alcohol consumption should also include its wider impact on public health as there are clearly health and social issues linked to heavy drinking, such as increased risk of heart diseases, alcohol-related domestic violence and negative impact on school performance. Madam, the proposed Bill has been a long time coming. It may not have met everyone's expectations, with some quarters feeling that the Bill imposes disproportionate curbs on their personal liberty. Nevertheless, this Bill is a significant step forward for Singapore and brings us in line with practices of other major cities. It has put the necessary markers and framework in place to help the country move towards a culture of responsible alcohol consumption. I hope my residents can look forward to cleaner, safer and quieter nights when the legislation comes into force. With this, I support the Bill. 2.18 pm”
“Clause 8(2) states that the Licensing Officer must not grant or renew a liquor licence if the applicant is not a fit and proper person or if the premises at which the applicant proposes to supply alcohol is in an unsuitable location. I hope the authorities will also restrict the total number of alcohol licences in any one community in order to prevent the unrestrained proliferation of liquor stores. The Licensing Officer should consider the concentration of alcohol licences in that area, the propensity towards alcohol abuse and actively seek inputs from grassroots leaders and the local community. And if problems from drinking can be traced back to a licensee, his licence should be up for suspension. Alcohol licences should be hard to get hold of and easy Page: 23 to lose. This will help to focus the licensees on compliance and encourage them to play an active role in promoting responsible drinking. Madam, this Bill does not deal with the issue of alcohol advertising and promotion. I am not proposing that we ban particular modes of marketing, but rather that all marketing of alcohol be undertaken in a responsible manner and encourage responsible drinking amongst its customers. Messages contained in alcohol advertisements play an important role in influencing social attitudes about alcohol consumption. It is, therefore, important for the alcohol industry, alcohol retailers and producers to apply a clear set of principles in the promotion, marketing and selling of their products, to encourage responsible drinking. Alcohol abuse and its attendant problems have been well-researched and documented. According to figures from the Health Promotion Board, binge-drinking in Singapore is more common amongst 18- to 29-year-olds and more so in men than in women.”
“Clause 12(2) in the Bill has made a provision for the Minister to prescribe different no-public drinking periods for different public places. Madam, this approach would help manage our law enforcement resources, as officers focus their efforts on hotspots and do a thorough job there. Such a consideration is especially important, given our limited pool of law enforcement officers, who also have to cope with other Home Team initiatives, such as Community Policing and the Safer Roads Singapore programme. An island-wide ban would spread our law enforcement resources thinly across Singapore to guard against all areas, instead of concentrating them effectively where they are needed most. At this point, I would like to ask the Minister the basis on which Little India and Geylang were marked as Liquor Control Zones. What specific criteria and threshold are used to identify them? How can vulnerable areas like Teban Gardens in my division receive a higher degree of protection from problems associated with drinking in public places, particularly if the problems persist in spite of the new laws? At some places at Teban Gardens, foreign workers gather to drink at around 8.00 pm, especially during weekends and public holidays, with the full impact of disamenities, such as littering, noise, vomiting and drunkenness, can be felt well before 10.30 pm. Madam, there is clear evidence linking the availability of alcohol and problems relating to drinking. We, therefore, need robust measures that control accessibility to alcohol. I support fully the proposed measures in this Bill to stop retail shops from selling alcohol from 10.30 pm. We should also oblige licensees to stop selling liquor to individuals who are clearly intoxicated at any time.”