Hazel Poa
Singapore
“Alright. I would like to seek confirmation that the latest round of tariff is a violation of the FTA between Singapore and the US, and if so, are we contemplating any action on that front? Given that we are a small country, are we exploring joint negotiations with other countries?”
“I urge the Government to set higher outpatient withdrawal limits for older Singaporeans and adjust them annually to keep up with healthcare cost inflation. Chair, in Mandarin, please.”
“I think the Senior Minister of State for her reply. Is the Senior Minister of State able to share what steps NCS has taken to prevent a recurrence? And has there been any impact on the execution of this policy due to the implementation being earlier than planned?”
“First of all, let me clarify that PSP is not displeased with the vouchers, because we believe that they will help Singaporeans in the short term, but not over the long term. The Prime Minister has said that he has concrete plans for the future.”
“I wish to make another pitch to the Prime Minister to consider measures to lower cost of living. Does he not agree that if we lower cost of living, it will benefit all Singaporeans, whereas if we take the approach of investing in education and training, to raise wages, then, not everybody can benefit from that, especially older Singaporea…”
“Can the Minister explain the logic behind this position that it is okay to impose or to specify to EBRC that the average size of GRCs and the proportion of SMCs should be maintained at current levels, but it is overimposing on EBRC to ask them to explain the reasons for their changes?”
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“This can be done through promoting or expanding the ITE General Education course; or providing education grants to those doing so as private candidates. Two, help those who enrolled in diploma courses successfully complete their programme by conducting bridging courses to cover the gaps between ITE programmes and "O" level programmes. A TODAY article in July last year, cited students who expressed the need for such courses in areas, like mathematics and essay writing. The above support measures should also be extended to those who had dropped out of school even before completing ITE, but now wishes to return to the education system to upskill or upgrade themselves. PSP hopes that the Government will consider our suggestions so that together, we can find a more permanent solution to the challenges faced by Singaporeans in coping with the rising cost of living. Sir, the Progress Singapore Party supports Budget 2024.”
“In his Budget speech, Deputy Prime Minister Wong announced his intention to ensure that the wages and career prospects of our ITE graduates should not be too far below their polytechnic- and university-going peers. He then announced a new ITE Progression Award, which provides a $5,000 top-up to the Post-Secondary Education Accounts of ITE graduates who enrol in a diploma programme; and a $10,000 CPF top-up for ITE graduates when they attain polytechnic diplomas. We whole-heartedly support the intention of helping our ITE graduates, but feel that the ITE Progression Award does not quite fully meet that objective. Today, about 4,000 ITE graduates – or about 28% of the annual ITE graduating cohort – qualify for polytechnics each year and about 4,000 ITE graduates enrol in the polytechnics each year. Since most of those who qualified already chose to progress into diploma courses, the Award has limited scope to encourage more to do so. The $5,000 top-up to the education accounts does help to ease the financial burden of ITE graduates enrolling for diploma courses; but the $10,000 CPF top-up less so and, furthermore, is actually going to a group who are no longer just ITE graduates, but a specific group of diploma holders. An issue of parity amongst diploma holders arises here. Giving $10,000 to some diploma holders, but not others, based solely on the route they took to enter polytechnics can get controversial. We are of the view that a better way to help ITE graduates would be: one, help more ITE graduates qualify for polytechnics. Entry requirements can be reviewed to recognise the value of relevant work experience rather than just grade point average (GPA). Those who decide to take the "O" levels in order to qualify for polytechnics should also be supported.”
“As this measure can relieve the tax burden on Singaporeans, I hope the Government will consider it seriously. Apart from containing costs, another way to cope with rising cost of living is through raising wages and ensuring that they keep pace with the rising cost. One major way of doing so is through education and training. Before I talk about education, I wish to declare that I own a private education company. PSP supports the introduction of the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above, which consists of a $4,000 credit, subsidies for another full-time diploma and training allowance for full-time trainees. We believe that full-time training will be more effective in enhancing the employability of our workers. These policies will also enable our middle-aged workers to switch careers more easily and move into areas with better or more job opportunities. We are, however, disappointed that details of the temporary financial support scheme for the involuntarily unemployed are still not ready. Retrenchments are becoming increasingly common. Temporary financial support would be greatly beneficial to retrenched workers seeking a new job. Any delay in the implementation of this scheme has real consequences on the retrenched employees. We hope the Government can finalise the scheme as soon as possible. In addition, if a retrenched worker decides to enter full-time training a few months after they were retrenched, we hope that the size of their training allowance will not be impacted by their period of unemployment. We seek the Government's confirmation that their training allowance would be based on their last drawn pay when they were employed.”
“In any society, there will always be people with different income levels and it is normal for Government to give grants to the lower-income families. But if the bulk of the population need Government handouts to cope with cost of living, then that cannot be a healthy situation. We should also be circumspect about the fact that the bulk of the population is getting used to the idea that it is a norm to receive Government handouts. It may be the easier route to provide handouts to cope with the cost of living, but we must focus on taking steps to keep costs in check. For a start, we ask the Government to reconsider exempting a list of basic necessities from GST. We can list specific products rather than broad categories to minimise classification issues and limit price levels to those generally consumed by lower- and middle-income families. The need for this measure will become more pressing as GST rate increases. The way that the Government currently treats land sales proceeds and prices HDB flats is also adding to taxpayers' burden. HDB must pay Singapore Land Authority (SLA) for the land used to build HDB flats. These land sales proceeds are then locked away in past reserves and are paid for by large Government grants. These Government grants must be paid by taxpayers. So, in effect, taxes are being collected to be locked away in the reserves. Further grants are given to HDB flat buyers in order to make flats more affordable. These grants must also be paid by taxpayers. I have previously proposed that land sales proceeds be treated as revenue divided over the duration of the lease. It is heartening to hear the Prime Minister acknowledge that this is not an unthinkable proposition during the Public Finances debate earlier this month.”
“If it has the political will, it can push outcome in the direction it wants. Another root cause of rising cost of living is home prices. For most of us, buying a house is the single largest expenditure of our lifetime. PSP has proposed the Affordable Home Scheme in which HDB flat prices do not include the land cost component for home buyers upon first purchase, but deferred if and when they sell their flats. This will greatly ease the burden of housing costs on young people and allow them to more easily build up their retirement savings. It might even provide some with the leeway to take risks with their careers and pursue any entrepreneurial dreams without being shackled by large mortgage payments. Government taxes form part of the cost of living, with the most obvious being the Goods and Services Tax (GST). In Budget 2022, Deputy Prime Minister Lawrence Wong said that healthcare expenditure is increasing due to the ageing population and is expected to hit $27 billion in 2030. GST therefore needed to be raised to fund the expected increase in healthcare expenditure. If healthcare expenditure hits $27 billion as expected and the increase is fully funded by GST, then GST would have to be raised by another 3.5% approximately by 2030, to reach about 12.5%. Will the Government share whether there are any further plans to raise taxes to fund the increase in healthcare expenditure? Currently, the Government helps Singaporeans cope with GST increases and cost of living increases by giving cash grants, rebates and vouchers, resulting in a situation whereby the bulk of the population are now in regular receipt of Government handouts.”
“While it is true that rising prices are subject to global forces like oil prices, food prices, disruption to supply chains due to pandemics, wars or climate change, there are also domestic factors driving prices. These domestic factors include our property prices, Certificate of Entitlement (COE) prices, population policy and Government taxes. Today, I will only talk about property prices and Government taxes and leave the discussion on COE and population policy to another day. Suffice to say that COE increases our transportation costs and population policy affects the overall demand for all goods and services, thus putting pressure on all prices. One root cause of the rising cost of living is rising rents. In the retail sector, rent constitutes about 30% of the business costs. This means that when you walk into a shop to buy a product, 30% of the cost of that product is due to the shop's rental and this has not yet taken into account the suppliers' rental costs which had been built into the cost of goods sold. Similarly, in the food and beverage (F&B) sector, rent forms about 27% of business cost. Rent therefore has a big impact on the cost of living of most Singaporeans. PSP once again calls on the Government to take action to moderate excessive commercial rent increases in Singapore. For a start, guidelines on reasonable annual rent increases can be issued, similar to how the National Wage Council (NWC) issues guidelines on wage increases. If the rate of rent increases can be moderated, it will not only be beneficial for Singaporeans but it will benefit businesses as well. In addition, Government is the largest landowner in Singapore and yields significant influence over the property market.”
“Mr Speaker, Sir, perhaps the most noteworthy thing about this year's Budget Statement was the amount of support measures provided to Singaporeans without any additional major tax increases announced. This will come as a great relief to many Singaporeans who are still struggling to cope with the high costs of living and an uncertain job environment. I will first address the support measures and how we can take bolder steps to support Singaporeans in coping with the rising cost of living. I will then discuss Progress Singapore Party's (PSP's) views on the proposals in the Budget to support lifelong learning and develop the full potential of Singaporeans. Sir, those of us who walk the ground will know that the rising cost of living is the number one concern for Singaporeans and we have debated this issue at length in this House last November. Many Singaporeans are feeling that their wages are unable to keep up with rising prices, leading to feelings of anxiety and insecurity. This feeling is borne out in the wage statistics. After taking into account inflation, real wages rose by only 0.4% in 2022, but fell by 4.5% in the first half of 2023. Furthermore, the Consumer Price Index, or CPI, which measures inflation, does not take into account loan repayments. This means that the higher interest rates which resulted in higher mortgage payments and other loan payments are not taken into account in the calculation of inflation and real wage growth. The Government's response has been to provide subsidies and rebates that help households in the short term, for instance, the Assurance Package. While these short-term support measures are welcome, PSP has always maintained that these are not long-term solutions that address the root causes of the rising cost of living.”
“Earlier, the Minister cautioned about relying on land sale proceeds as revenue. She gave two reasons: one is that it provides incentive to keep land price high; and secondly, it is volatile. I would like to ask the Minister whether she agrees that the incentive to keep prices high actually also exist under the current system where land sale proceeds go to beef up the Reserves, which is the source of NIRC as well as our rainy day fund. And secondly, does she not agree that we also have Government revenue sources that are volatile like, for example, stamp duty?”
“I would like to revisit the point about the 99-year lease and the loss of the use of land. Does the Minister agree that in cases where we rent out a property, we also lose the use of that property, but rental is considered as income. Is it not similar to what we are doing here, just that this is rental for over a longer period of time?”
“I think we need to make a distinction for land that is sold on leasehold. In the case of other assets like he mentioned, like shares, once sold is gone forever. But leasehold land returns to Government.”
“I would like to clarify about the land sales proceeds. We did mention that we are proposing land sale proceeds to be treated as revenue to be divided over entire period of the lease. So, for example, if land is sold on a 99-year lease, then that land sale proceeds to be divided over 99 years as revenue and also at the end of the 99 years, the land actually reverts to the Government. So, can Mr Nair explain why that is a depletion of the principal?”
“We keep hearing that the Reserves are for the benefit of our children and grandchildren. But our TFR has fallen to 1.05, which is half the replacement rate of 2.1. This means that the number of our children is halving with each generation. So, who exactly are we leaving our ever-growing Reserves to? If not for the over-20,000 new citizenships granted each year, our citizen population will start shrinking significantly in the coming years. PSP calls on the Government to review our approach towards the Reserves and seek a better balance between the needs of present and future generations.”
“But our birth rate continues to decline and our descendants are becoming fewer and fewer. If not for the annual intake of about 20,000 new citizens, our population will begin to shrink. Whom are we, ultimately, leaving the ever-growing Reserves to? We hope to reconsider how to best utilise Reserves in the current situation for the benefit of Singaporeans. (In English): Sir, our Reserves are built up through collecting more from taxpayers than the Government spends on Singaporeans. As our population ages and the generations that have built up the Reserves enter age groups where higher healthcare expenditures are incurred, it is timely to review our Reserve accumulation policies. For example, should we be funding the higher healthcare expenditures through raising additional taxes, like GST, or should we choose to slow down the building up of Reserves and use land sales proceeds instead? To answer such questions, we need accurate information on the financial status of the Government. I agree it is difficult to specify an amount or level as being enough financial reserves. However, that does not mean that there is nothing to guide us on a suitable pace for Reserve accumulation. For example, we can look at the household savings in relation to the size of our Reserves. According to the OCBC Financial Wellness survey 2023, more than half of Singaporeans have savings of less than six months of salary. When we compare this with the Government’s savings of 12 years of expenditure, does this not tell us where the need is more urgent? Does this tell us that it is appropriate to choose to raise GST now, rather than disrupt the flow of land sales proceeds into the Reserves? PSP does not think so and we have said so before.”
“Since land is no longer sold freehold, it is effectively a renewable source of income for Singapore, as pointed out by my colleague, Mr Leong, earlier. Land sales revenue should be recognised as revenue divided over the lease tenure. This will further reduce the need to raise taxes and impose further financial burden on taxpayers. Mr Speaker, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, Sir, the PSP raised this Motion today to call on the Government to review our country's Reserve accumulation policy to achieve a better balance between elevating the economic burden on present-day Singaporeans and savings for future generations. The benefits of having Reserves are undeniable. In times of crisis, ample reserves allow us to respond calmly. However, the accumulation of Reserves is not without cost. Every additional accumulation of Reserves means an additional tax dollar or a dollar less for the people. With Reserves gradually increasing, while the economic pressure on the people is growing, we feel it is necessary to review the existing policy. According to our estimates, the Government accumulated Reserves have reached $1.2 trillion. This is 12 times the Government's annual expenditure. In other words, even if the Government were to stop collecting taxes, relying solely on Reserves, it will be enough to sustain the Government's operations for 12 years. On the other hand, OCBC's 2023 National Financial Health Survey shows that over half of Singaporean savings are not even equivalent to six months of salary. In light of this comparison, what is more important – accumulating Reserves or helping Singaporeans strengthen their financial situation? We often hear that Reserves are for the benefit of our descendants.”
“Will the Government disclose the average difference between the rate of return it has earned from investing CPF savings and the interest rate paid to CPF members over the last 20 years? How many billions of dollars have Singaporeans contributed into the Reserves through our CPF savings? Could these returns not have been paid out to CPF members? I shall now touch on the costs of excessive Reserves accumulation. If we do not put the excess returns from CPF savings into the Reserves, it can be paid to CPF members to improve their retirement adequacy. A 1.4% difference in returns may not seem like much, but it makes a big difference over a long time. For example, a savings of $50,000 earning an interest of 4% per year, would grow to $162,000 after 30 years. If the interest rate was 5.4%, it would grow to $242,000. Reserve accumulation, thus, comes at the cost of lower retirement adequacy. Reserve accumulation also comes from charging land costs for public housing. As my colleague, Mr Leong Mun Wai, has explained, this is a major expense item for HDB which must be paid from Government revenue. If land cost was not an expenditure item, the need for the Government to raise revenue by raising taxes, like GST, would be reduced. The recent GST hike came at a very bad time and directly added to the cost of living pressures faced by many Singaporeans. Moreover, the prices of HDB flats, even after subsidies and grants, are still considered high by many young couples as the land cost is high. This can have an adverse effect on their decision to have children. PSP also believes that it is excessive to put all land sales proceeds into the Reserves.”
“Hence, we believe that the size of the financial reserves is somewhere between $1.09 trillion and $1.36 trillion. We, therefore, feel that $1.2 trillion is a reasonable estimate. We, then, looked at this $1.2 trillion estimate from a third angle using the NIRC, which is half the long-term expected real investment returns. Using net investment returns of $47 billion divided by $1.2 trillion, we get a real rate of return of 3.9%, which appears to be reasonable. We have given a detailed explanation of the basis of our Reserves estimate of $1.2 trillion. If the Deputy Prime Minister and Finance Minister disputes this figure, I hope that he can explain why. Mr Speaker, my colleague, Mr Leong Mun Wai, has spoken on how land costs contribute to the growth of our Reserves. I will talk about how the higher rate of returns achieved on CPF savings and the lower interest rate paid to CPF members contribute further to the building of the Reserves. As at end-2022, Singaporeans have accumulated $545 billion in CPF savings. These savings are used to buy Government securities and are, then, passed on to be managed by GIC and MAS. GIC has disclosed that its nominal rate of return was 6.9% on average, in the last 20 years, in US dollar terms. If we take into account the depreciation of the US dollar relative to the Singapore dollar over the same period, we can estimate that the rate of return is about 5.4%, in Singapore dollar terms. The Minister for Manpower told us last year that CPF members earned, on average, an interest rate of close to 4%. This difference between the rate of return earned by GIC and that paid to CPF members of 1.4 percentage point goes directly into the Reserves and could now be around $7 billion per year.”
“Mr Speaker, PSP has raised this Motion today, because we believe that it is important for Singaporeans to have a national conversation about our Budget and Reserve accumulation policies. While we agree that there are benefits in having Reserves to cope with unforeseen circumstances, we are of the view that there comes a point, beyond which, continued accumulation of Reserves hurts the welfare of and compromises the quality of life of present-day Singaporeans. First, let me explain how we arrived at the estimate of $1.2 trillion for our financial reserves. We used two different methods. The first method is to add together the assets managed by GIC, Temasek and MAS. This method was used by CNA in the documentary, "Singapore Reserves: The Untold Story" in August 2023. Based on latest available figures, Temasek's net portfolio value is $382 billion. The OFR managed by MAS is $461 billion. However, this figure does not include the $247 billion of Reserves Management Government Securities (RMGS) issued when MAS transferred excess OFR to the Government. The value of the assets managed by GIC is secret. But, even if we only add up, the assets under Temasek and the OFR and RMGS under MAS, we get a minimum estimate of the financial reserves of $1.09 trillion. The second method is to use the latest Government Financial Statements (GFS). The total financial assets are $1.73 trillion, as of end-March 2023. Government borrowings totalled $1.08 trillion. Subtracting Government borrowings from total assets, we arrive at the net financial assets of $0.65 trillion. GFS does not include the assets of Statutory Boards, like MAS. So, by adding up the net assets under GFS, and the OFR and RMGS under MAS, we arrive at a total of $1.36 trillion.”
“Could the Government consider providing wage subsidy to employers to encourage them to hire individuals with mental illness? Mr Speaker, finally, I would like to talk about the importance of kindness. During the pandemic, we have seen many acts of kindness. People gave out masks for free, opened their homes to Malaysian workers stranded in Singapore and made special efforts to support the struggling F&B industry. A few weeks ago, my father had a stroke while he was out alone. He was unable to use his phone to contact us. Fortunately, he received help from a nearby female student. She contacted our family and shared her location with me, allowing me to inform the SCDF. The ambulance arrived at the scene within 10 minutes! I want to express my gratitude to the SCDF for their excellent response. And the student continued to accompany my father until the ambulance arrived. I would like to thank her for her kindness. I hope that even as the pandemic gradually becomes a thing of the past, we will continue to show kindness and compassion to those around us, especially those facing difficulties in life. This will help to improve the collective mental health of our society. (In English): Mr Speaker, the Progress Singapore Party supports the Motion. Our collective commitment to the mental well-being of our citizens will define us as a compassionate and progressive society.”
“He was unable to use his handphone to contact us. Fortunately, a student, who was nearby, came to his assistance. She contacted our family and shared her location with me. With that location, I was able to inform the Singapore Civil Defence Force (SCDF) and the ambulance reached the scene in 10 minutes! To the SCDF officers involved, I wish to thank you for being so excellent at your job. The student continued to stay with my father until the ambulance came, which is a great comfort to us when we could not be there. Her kindness is much appreciated by my family. I am grateful for all the people who shine like silver when the clouds are dark. I hope that as memories of the pandemic recede, we will not forget to continue to be gracious, kind and empathetic to the people around us, especially those who may be facing difficulties in their lives. This will go a long way towards improving the collective mental health of our society. In Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Recently, a teenager who killed a student from River Valley High School was sentenced to 16 years in prison. During the trial, we learnt that his major depressive disorder was one of the contributing factors of the murder. I once again urged the Minister of Education to regularly monitor the mental health of students, just as we monitor their academic performance and physical health every year. This will help us proactively reach out to students in need and prevent such tragedies from happening again. In my conversations with individuals suffering from mental illness, I have found that employment is one of their biggest concerns. In recent years, there have been signs of increasing discrimination against individuals with mental health conditions.”
“Specifically for the students and teachers of River Valley High School who were involved in the tragic incident, I would like to ask the Minister what support had been provided to them over the past few years to monitor their mental well-being and assist them in getting over the incident? Are they still coping well within our education system or has anyone fallen out of the system? How many teacher-counsellors are deployed in River Valley High School today? In my conversations with people with mental health conditions, one of the biggest concerns is jobs – finding a job and keeping it. Both job seekers and employees have reported an increase in discrimination due to mental health conditions. Would the Government consider some form of wage subsidy for employers who recruit staff with mental health conditions, similar to the way we used subsidies to encourage employers to employ older workers in the past? Hopefully, such a subsidy can compensate for the discrimination. Another way is to encourage the option of four-day work week for employees with mental health conditions to reduce their stress levels and make working more manageable and sustainable. This can come with a pro-rated pay, just like other part-time employees. Mr Speaker, in closing, I would like to speak about the importance of being kind. When we were going through very tough times together during the COVID-19 pandemic, we saw many acts of kindness towards one another in the community. People gave out free masks, opened their homes to Malaysian workers who were stranded in Singapore after the Movement Control Order shut down the Causeway and made special efforts to support food and beverage (F&B) businesses that were suffering. A few weeks ago, my father had a stroke when he was out alone.”
“Today, I would like to reiterate this call. This can be in the form of questionnaires that measure stress level, anxiety and depression. Similar tools have also been developed in MindSG and Mindline, which allow users to do self-assessments on their own stress levels and mental health risks. These tools, however, rely on the users themselves taking the initiative. The students who most need help may not take this initiative. Conducting a mental health assessment each year using developed tools will help us identify students who need help and proactively reach out to them so that we can prevent such a tragic incident from happening again. In his Ministerial Statement, the Minister stated that the Ministry of Education (MOE) will strengthen the support network in our schools and ensure that all teachers will receive enhanced professional development on mental health literacy as a baseline. I would like to ask the Minister for an update on the progress and whether all teachers have received adequate training on mental health literacy? The Minister also said that MOE aims to deploy more than 1,000 teacher-counsellors in the next few years. Could I ask how many teacher-counsellors are deployed in schools as of today and what is the counsellor-student ratio? What percentage of schools have two or more school counsellors? Do larger schools have enough counsellors to serve the entire school population? These are crucial metrics that define the effectiveness of mental health support in our educational institutions and should be tracked as part of our national mental health strategy.”
“Owing to concerns over the rise in the number of pregnant women or new mothers with depression, KK Women's and Children's Hospital (KKH) has introduced depression screening for all pregnant women since early last year. Can MOH update us on how effective this measure has been and whether there are plans to expand this to all hospitals and clinics including private ones? In hospitals, patients' historical medical records are at the fingertips of the doctors in charge as these contain critical information for medical decisions. For patients with mental health disorders, are their mental health conditions and history also similarly available to the doctors? Often, doctors need to brief patients on the possible side effects of certain treatments or the risks of surgery or present difficult choices for the patient to make. Patients with mental health issues may not be able to handle such information or choices. If doctors have access to mental health information as well it can help them better know how to handle communication with the patients. Mr Speaker, I would next like to turn our attention to the youths. Recently, the teenager who killed a River Valley High School student was sentenced to 16 years' imprisonment for his actions. We have learnt through the trial proceedings that his major depressive disorder was one of three major factors that contributed to the killing. This underscores the urgency of prioritising the mental well-being of our students. During the Parliamentary Sitting on 27 July 2021, after this tragic incident, I urged the Minister for Education to consider implementing measures to monitor our students' mental well-being regularly and systematically, similar to the way we monitor their academic achievements and physical fitness every year.”
“Mr Speaker, Sir, mental health issues are not only a personal struggle, it is also a challenge to the whole society that demands our collective attention and concerted efforts. It is heartening that the Government has published a National Mental Health and Well-Being Strategy, outlining comprehensive moves to tackle this challenge from multiple angles. I support the measures proposed in the paper and would like to make a few additional suggestions and seek some clarifications. Mental health disorders have been rising over the years to become one of the most common illnesses. Has there been a study to examine what are the possible causes or the common risk factors? If causal effects cannot be determined, can we identify the risk factors that are common in many of the mental health cases? For example, do many of the patients come from dysfunctional families or perhaps parents with a history of mental health issues? Are the cases correlated to socioeconomic status or poor performance in work or school? Do patients have a supportive environment in terms of family members, friends, teachers, bosses or colleagues? If we are able to identify the highest risk factors, it can guide us on where we should focus our efforts. If such a study has been done, can MOH share the results? If not, would MOH consider doing one? Pre-COVID-19, post-natal depression affected one in 14 women, while pre-natal depression affected one in eight women. It is critical that we improve our capacity to care for, treat and support women going through pre- and post-natal depression and anxiety as we make efforts to increase our birth rate.”
“I understood the Minister's explanation about the latency in the ABT because the information has to be retrieved from the server. So, my question is: can the Minister explain why it is not possible to store the balance information on the card as well? By duplicating the information on the card, we will be able to retrieve the information faster. My next clarification is on the focus group consultations. Is the Minister saying that for the more than a thousand users that LTA has consulted, there was no or minimal feedback regarding this desire to have their card balances shown on their cards?”
“Society must ultimately pick up the tab when people lose their life savings to scammers and the ability to live independently and must instead rely on handouts and charity to survive. A recent study by the Global Anti-Scam Alliance revealed that Singapore has the dubious honour of being the country with the highest amount lost to scams per victim. This makes Singaporeans the most attractive targets for scammers. There is much more we can do as a nation to create a safer digital society. Let us all work together to achieve this.”
“Therefore, for many citizens, their savings are the only means to ensure they can live with dignity. Online fraud has seriously affected citizens' confidence in the safety of their savings. The Government can do more to safeguard citizens' savings and protect consumers. Under the Shared Responsibility Framework released by the MAS and IMDA, there is still insufficient incentive for financial institutions to proactively protect consumers and eliminate potential fraud within their systems. The Progress Singapore Party urges the Government to consider implementing a multitiered Shared Responsibility Framework. In this framework, consumers can make trade-offs between security and convenience. For example, consumers can choose to use a banking application with high security features, which may inconvenience them. But in the event of fraud losses, the bank must bear 75% of the losses. If consumers choose an application with lower security features, the losses borne by the bank will be lower. This will give consumers more choices and, at the same time, incentivise banks to provide more secure online transactions, striking a better balance between digitalisation and security in our country. (In English): Mr Speaker, as a nation, we need to adopt a proactive and holistic approach to fight scams and create an inclusive and safe digital society for all. Scams have serious consequences for victims. Beyond financial losses, victims also suffer from mental and emotional trauma, such as the embarrassment of having fallen for a scam. There are also financial implications on their family members, such as a child who may by law be responsible for the maintenance of a parent who has lost their life savings to a scammer.”
“I would like to ask the Government for a confirmation on whether the face verification can be passed by using a photo of the scam victim. Would it strengthen the protection to require CPF members who have activated the CPF Withdrawal Lock to change the withdrawal limits in person at a CPF service centre, similar to the arrangements for the banks' money lock accounts? The same duties that we impose on banks to protect the savings of bank customers should also similarly be imposed on the CPF Board to protect the retirement savings of CPF members. Finally, I would like to talk about Singpass. We have seen examples of how scammers can take control of victims' Singpass. I am concerned about the wealth of information available in Singpass. Information like family members, education background, income and CPF information and so on. If scammers took control of victims' Singpass, would they not gain very comprehensive information about individual victims and their family members, to enable them to device more ways of scamming? Is this wide range of information necessary and would the Government consider re-introducing physical tokens for Singpass? Mr Speaker, in Mandarin please. (In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, the Progress Singapore Party supports today's Motion. It is crucial for our country to establish an inclusive and secure digital society. In recent years, there has been a surge in fraud cases, causing much concern among many citizens. Last year, my parents split half of their savings into my bank account for safekeeping, fearing that they might fall victim to fraud and lose their hard-earned money. I believe many elderly citizens share the same sentiment. Over the years, the Government has advocated self-reliance amongst citizens.”
“Under such a model, both the banks and their customers share the liabilities of any losses due to scams and they both have incentives to be vigilant. Customers can choose the level of security they are comfortable with. Banks will have incentives to push online transactions in line with their ability to provide security, thereby ensuring that the development of digital financial transactions is a more balanced and holistic one. The maximum limit on reimbursement helps to limit the banks' exposure and at the same time, ensure that the most protection is given to the most vulnerable. Another institution to which duties should be assigned to mitigate scams is the Central Provident Fund (CPF) Board, where many Singaporeans' life savings are held. It is very worrying that recently, there has been a trend where CPF accounts were emptied by scammers who had taken control of the user's Singpass and bank accounts. It was only in June 2023 that the CPF Board and GovTech introduced Singpass Face Verification as a step-up authentication challenge for certain CPF e-services. In October 2023, my colleague Mr Leong Mun Wai asked a Parliamentary Question regarding why the CPF website has not implemented security measures commonly implemented by the banks, such as transaction limits and kill switches. It is heartening to know that with effect from 30 November 2023, a default online CPF withdrawal limit of $2,000 a day will be applied to all CPF members aged 55 and above. However, this default daily limit can still be adjusted to any amount up to $200,000 at any time online. This includes those CPF members who have activated the CPF Withdrawal Lock, which instantly sets the daily withdrawal limit to $0. Singpass Face Verification is required for changing the withdrawal limit.”
“It is foreseeable that different customers will have different needs. But there is no need for a one-size-fits-all. I urge the Government to consider a multiple-tiered system with different levels of security versus convenience. Banks can offer different versions of banking apps and processes; for example, one with maximum security features and low convenience, and it comes with a 75% reimbursement of financial losses by the banks in cases of online scams not covered by the SRF. Another with lower security features and comes with a 50% reimbursement for customers who need greater convenience. Banks can adjust the security features in their apps and processes to commensurate with the different level of liabilities. For example, banks might want to re-evaluate the benefits of requiring a separate physical token. The hon Member Ms Sylvia Lim had spoken previously about the difficulties of getting one from the bank. Whilst the token is an additional cost for banks, it provides the added security of requiring a second device for the authorisation of transactions, not just a handphone which can be hijacked by malware. Using again the example of the family involved in the recent egg scam, if a physical token had been required, the family might not have lost their life savings. Banks are private commercial entities. They are expected to conduct cost benefit analysis in evaluating any investments in additional security measures. But the Government can alter their cost benefit analysis by imposing a loss-sharing arrangement, which can lead to a different decision. Reimbursements can be subject to an upper limit of a loss amount equivalent to the basic retirement sum.”
“This would not affect businesses that regularly perform such transactions and would not be difficult to implement given the scale and capacity of the IT infrastructure at financial institutions. In contrast to Singapore's framework, jurisdictions like the UK have moved towards mandating full reimbursement to scam victims by banks, except in cases of fraud or gross negligence by the consumer. This model has also been considered in Australia and the European Union (EU). I acknowledge that there are moral hazard issues with a full reimbursement and would thus like to suggest a co-sharing of liabilities between the bank and the consumer. In assessing the issue of online scams, there is a trade-off between financial security on the one hand and convenience and productivity on the other. If banks are totally not liable for any losses, then they have only financial incentives to move more and more towards digital financial transactions and services due to the savings in manpower costs. The cost of digital financial transactions come in the form of greater ease of losing huge amounts of money, and it is being borne by bank customers, especially the most vulnerable. In addition, banks are in control of the security features in their banking apps and the payment processes, but customers, who have no control over those, pay the price for any inadequacies. This is clearly not balanced and hence not tenable. In considering the trade-off between financial security and convenience and productivity, it may be difficult for the authorities to draw a line for everyone. For example, when OCBC introduced security features in their banking app that prohibited the downloading of suspicious apps, there were complaints from some customers.”
“Its protection is thus rather limited. For example, in the recent case of a family losing their life savings due to downloading malware when they tried to buy organic eggs, the SRF does not help them at all. Secondly, the duties that financial institutions and telcos are required to carry out are extremely limited. For example, under the SRF, financial institutions are directed to perform four duties: One, impose at least a 12-hour cooling period after activation of digital token during which high-risk activities cannot be carried out. Two, send notification alerts for activation of digital token and conduct of high-risk activities. Three, provide outgoing transaction notifications by way of SMS, email or in-app notification selected by the consumer. Four, provide a 24/7 reporting channel and a self-service feature for consumers to promptly block online payment transfers from their accounts. These four duties do not create a sufficient incentive for financial institutions to proactively protect their customers and to remove potential for fraud from their systems. While vigilance and personal responsibility of the consumer are a critical line of defence against scams, the average consumer has less resources to protect themselves against scams as compared to financial institutions. Financial institutions have the capacity to do more to protect consumers against scams with systems to monitor transactions and detect suspicious payment flows. Large overseas transactions by individuals who rarely or never perform them should immediately trigger alarm bells within the systems of financial institutions.”
“Mr Speaker Sir, I rise to speak in support of the Motion. The Progress Singapore Party (PSP) agrees that a whole-of-nation approach to build an inclusive and safe digital society is very much needed. As society digitalised over the past decade, there has been an increase in the prevalence of many varieties of online scams which has lowered the trust level of many Singaporeans in digital tools. Horror stories abound of people losing their life savings in a twinkling of the eye. Last year, my parents gave me half their life savings to put in my bank account, not in theirs, because they are not confident of not losing it to scams. Their trust level in the security of their money in their bank account has never been so low in their entire lives. I am sure that many other Pioneer and Merdeka Generation Singaporeans share my parents' sentiment. Over the years, the Government has been promoting financial self-reliance by Singaporeans. For most of us, our own savings is what we have to rely on to meet our expenses and to live in dignity. Any compromise to the security of our savings is a big deal to us. Given the gravity of the issue, I feel that the Government can do more to safeguard citizens' savings and foster a strong culture of consumer protection. The proposed Shared Responsibility Framework (SRF), which assigns financial institutions and telcos relevant duties to mitigate phishing scams and requires payouts to affected scam victims where these duties are breached, is a step in the right direction, but it is just a baby step. There are two main issues with the SRF. Firstly, the SRF has a limited scope. It only covers phishing scams and does not cover the whole range of other scams including malware scams, Police official scams, investment and love scams.”
“Thank you, Mr Speaker. I like to seek a clarification from Senior Minister of State when he said that the bus services are making losses, can I clarify whether that takes into account advertising revenue from advertising on the bus surface, the panels behind the bus, in the bus, panels at the bus stop, at the bus interchanges, rent from kiosks at the bus stops, at the bus interchanges and so on?”
“I would like to seek two clarifications from the Senior Minister of State. First, the Senior Minister of State mentioned that the bus fare goes to LTA, not to the bus operators. Can I clarify then who proposes the revision in bus fares? Is it LTA? Second, I thank the Senior Minister of State for responding to my suggestions about the points-based system. He mentioned that it would be difficult because there are many families with children and, therefore, a bit difficult to decide. Would he consider a system whereby, say, the bidding price is given a certain number of points, say, every $1,000 is one point, and then every child that the family has is allocated a certain number of points, so that those with more children get more points and those families with people with disabilities (PwDs) also get additional points? And then COEs are allocated based on the total number of points. Would he consider a system like that? The Senior Minister of State mentioned the Disabled Persons Scheme (DPS), which I understand is only for livelihood purposes, not for families with disabled people, and for them to move around.”
“Why do we not increase medical intake more aggressively? Instead, our students end up going to overseas medical schools, incurring huge expenses and we risk unnecessary brain drain when they do not return. The traditional argument about ensuring fair share of talents in various sectors is outdated when we import foreign talents so readily. The same applies to other faculties as well, where Singaporean students are keen to study and that would lead to good paying jobs. Mdm Deputy Speaker, the issue of cost of living is a complex one but one of great importance to many Singaporeans. Many suggestions have been, and will be, made today to address this pressing issue and improve the lives of Singaporeans. I hope the Government can keep an open mind to all suggestions and consider them seriously. Earlier, the hon Member Mr Sitoh Yih Pin commented that the Reserves is for our children and our children's children. I think that it is important for us now to recall that our total fertility rate (TFR) has fallen to 1.05, which is half the replacement rate of 2.1. The number of our children and our children's children is halving with every generation. I think this offers a good reason to review our approach towards our Reserves and how much more do we need to accumulate. If our TFR falls further from cost pressures, who are we accumulating the Reserves for?”
“25%, similar to commercial vehicles; two, adopt a points-based system, where apart from the bidding price, we also consider other factors, like nationality, and needs-based factors, like families with young children or persons with disability (PwDs); three, impose additional levies on multiple vehicle purchases, similar to the implementation of additional buyer stamp duties (ABSD) on those who buy multiple residential properties. The Senior Minister of State for Transport said yesterday that this would not change things much as there are not many households with multiple cars. Can the Senior Minister of State show us the comparison of the number of households with multiple cars versus those with multiple properties, to explain the difference in approach? In any case, imposing levies on second and subsequent cars would either dampen demand for multiple cars and tilt the balance in favour of those buying their first cars, or else raise additional revenue for Government. The most likely outcome is a combination of both. As both outcomes are desirable, I see no reason to reject this suggestion. Another way to cope with rising cost of living is to have higher wages. Today, I will focus on the training and education for higher-paying jobs. The wage gap between graduates and non-graduates has been widening significantly, suggesting that there is demand for more graduates and we should provide more university places for our students. Take the Medical Faculty, for example. The annual intake of the local medical schools is about 500. However, every year, on average, about 800 Singaporean applicants were rejected by the medical schools at the National University of Singapore and Nanyang Technological University, even though they meet the admissions criteria.”
“Can I suggest the Fair Tenancy Industry Committee issue guidelines on the annual rent increase, similar to the way the National Wage Council issues guidelines on wage increase? The intention is not to depress prices to low levels, but to curb excesses. This can serve to stabilise the property market and pre-empt excessive rent increase. In addition, real estate agents are commonly paid a commission based on the rent and, hence, higher rents work to their benefit. It would, therefore, benefit tenants to have an alternative source of information on what constitutes a reasonable rent increase. Another important cost component is transport cost. Record COE prices for private and commercial vehicles, and even motorcycles, are causing pain for both families and businesses. We understand the need to control the vehicle population in Singapore, because we are a small nation and road space is limited, but we must also recognise that mobility and the benefits that it provides are essential for all and should not be the sole province of the rich. Skyrocketing COE prices contribute to the cost of living crisis in many ways. If the cost of a motorcycle doubles because the price of the COE has tripled, the Grab delivery rider is going to have to be paid more for his work. The cost of shipping and delivering goods, or a ride in a private-hire vehicle, will naturally also increase. We urge the Government to consider the following suggestions: one, currently, passenger car and motorcycle COEs are under the zero growth policy, while COEs for commercial vehicles are allowed to grow at a rate of 0.25%. As motorcycles are increasingly used for delivery, we suggest that motorcycle COEs are also be allowed to grow at a rate of 0.”
“So, for each item that we buy from a shop, about 30% of their costs goes towards paying for the rental of the shop. Prices has been rising in food outlets, like coffee shops and food courts. Hawkers spoke of alarming increases in rents imposed by the landlords. Record prices in the transaction of such properties are caused for concern. In 2022, following the announcement of the GST hike, the Committee Against Profiteering (CAP) was reconvened to investigate feedback on unjustified price increases of products and services. I was invited by the Leader of the Opposition to be the representative of the Opposition on the Committee and having attended two meetings, I have learnt how limited the scope is for this Committee to act against profiteering. The Committee acts on complaints received from members of the public. Such complaints are mostly against retailers, especially hawkers. At the retail level, there is much competition. So, I am not surprised that investigation usually reviewed that there are other reasons for the price increase. For example, the increase in price might be due to higher rents. So, the hawker is not profiteering. But is the landlord profiteering? I raise this point at our last meeting and suggested the secretariat look further up the supply chain. I look forward to hearing from MTI on the progress at our next meeting. Price Kaki, an app that compares retail prices from different sellers and seeks to prevent profiteering is also only able to check on vendors at the retail level. Places like Ireland, California, Canada, Scotland, Spain and China impose a cap on the rent increase each year. Austria and Germany are planning to do so as well.”
“Mdm Deputy Speaker, post-pandemic inflation in Singapore has been much higher than it used to be. Announcements of price increases in transport fares, water and utilities came one after another. COE prices rose to record highs and GST is going to be increased by another 1% next year. Property prices and rental continued climbing. All these are adding on to the anxieties of Singaporeans over the ever-rising cost of living that seems endless. These anxieties cannot be alleviated by the various aid packages that the Government has rolled out, because while the packages are for a limited time, the cost increases are here to stay. The growing sense of insecurity, or even depression for some, over their declining ability to meet expenses or maintain previous lifestyles on their own income, can never be addressed with Government handouts. The rising cost in Singapore is not only affecting the people, but businesses too. Whilst our low corporate tax was able to compensate for our high-cost space and attracting foreign investments, this tool would no longer be available with the implementation of Base Erosion and Profit Shifting (BEPS) 2.0, which sets a minimum corporate tax rate. This adds on to the urgency to find ways of containing costs in Singapore. One of our major cost component is cost of property. For most of us, buying a home is the single largest expenditure of our lifetime. Hence, high residential property price has a huge impact on our cost of living. Yet, this cost is not captured in the Consumer Price Index, or CPI, because the CPI does not cover property purchases. This is why the PSP has proposed a scheme to exclude land cost from the price of HDB flats to make them more affordable. In the retail sector, rental accounts for about 30% of the business cost.”
“Thank you, Mr Speaker. I would like to ask the Senior Minister of State again. Just now, there was a question I asked which was not answered and that is when Open category COE is deregistered after being used to register for a certain category, when it is deregistered, does that COE go into Open category again or to the category that it was registered for?”
“Mr Speaker, I would like to seek two clarifications from the Senior Minister of State. Firstly, the Senior Minister of State mentioned that for motorcycles, he recognised that it is used for commercial purposes and for livelihood, but that it is similar to private hire vehicles and, therefore, no special considerations given. Can I ask whether MOT has done a study into what percentage of motorcycles is being used for commercial purposes, compared to private cars? The second clarification is: does the Senior Minister of State have a breakdown of the percentage of COEs in the Open category that is eventually registered to the different categories? And when these COEs are being used to register, say, for Cat B vehicles, when it is deregistered, does the COE go back to the Open category or does it go to the Cat B category?”
“Thank you, Mr Speaker. I would like to seek two clarifications. First, is MAS of the view that our existing penalties imposed on financial institutions for breaches of anti-money laundering measures are sufficiently deterrent and are the financial penalties linked to the amount that is being laundered? Second, what sort of penalties have been imposed on the real estate companies or agents for breaching anti-money laundering measures?”
“Mr Speaker, I beg to move*, "That leave be given to introduce a Bill intituled "An Act to amend the Parliament (Privileges, Immunities and Powers) Act 1962." [(proc text) *The Motion also stood in the name of Mr Leong Mun Wai. (proc text)] We have introduced this Bill to give Parliament the flexibility to authorise the back payment of the allowance of a Member of Parliament (MP) who has been suspended from the service of Parliament by resolution. Without this amendment to allow back payment, we would be unable to suspend any MP until the full process of the law has been completed. It would be unfair if MPs eventually found innocent were to be penalised. This process can take a long time. If the MP were eventually found guilty, it would have been a waste of taxpayers' money and a drain on our resources. Mr Speaker, I beg to move.”
“We are talking about Government financial resources. If it is not paid, it will actually be still within Government coffers that can be redirected elsewhere.”
“If the investigation and prosecution take one year, the amount he continues to receive will be equivalent to what these ComCare recipients get over 38 years. PSP urges the House to suspend Minister Iswaran and to back pay him if and when he is cleared of all wrongdoing. We have explained why our approach leads to better use of taxpayers' money while making sure that Minister Iswaran is not penalised should he be found innocent. This is in line with our idea of being firm and fair. We trust that all who have been following this debate are well able to come to their own conclusions. We will leave it at that.”
“The Leader of the House said that while section 59(5) says Parliament can suspend a Member, we should not be doing something just because we can. I believe I made it very clear why we are asking for this. It is not just because we can. I have also listed the three reasons why I think we have a good case to suspend Minister Iswaran. The Leader of the House proceeded to address them one by one, but she does them in isolation. For example, when I said that he is not performing the duties, she quoted the example of medical leave. But the three conditions are meant to be taken together, not individually. For example, when we say that you can vote if you are a Singapore Citizen and aged 21, you do not tackle the criteria one by one, age 21 separate from Singapore Citizen. Both conditions must be satisfied. PSP feels that adopting a harsher stand against corruption versus other wrongdoing is fair, given the extremely high salaries we are paying Ministers to stay corruption-free. Since we are paying such extraordinarily high salaries, is it not fair for the consequence of corruption and the handling process of its investigation to be correspondingly tougher? Adopting a light touch approach here will only send the wrong signal. The sanguine approach adopted towards Minister Iswaran's MP allowance stands in stark contrast to the approach adopted towards the public. If Minister Iswaran continues to receive over $20,000 per month while not performing any duties and under investigation for corruption, while ComCare recipients who are permanently unable to work due to old age, illness or disability get $640 per month, what does this say about our values? How is it equitable that Minister Iswaran gets in one month what these ComCare recipients get over three years?”
“Let me now address the issues that have been brought up by various Members. I think the common theme that runs throughout is the presumption of innocence. All who spoke – Mr Lim Biow Chuan, Mr Raj Joshua Thomas and Mr Vikram Nair – made the same point that by suspending, we are presuming that he is guilty. That is a point that I dispute. I think that argument is a red herring. If suspension means presumption of guilt, then I am afraid we have been doing that on many, many occasions. Police officers have been suspended from duties and placed on half pay while they are under investigations, as evident in answer to a Parliamentary Question just yesterday and the Ministry of Home Affairs (MHA) has also said that is a standard practice for Police officers. So, the fact of the matter is suspension is not a determination of guilt. It is merely a measure that is commonly used to deal with situations where a person is under investigation. Most of the time the suspension comes in two parts: suspension of duties and an effect on the pay. In this particular case, the Prime Minister has already made the decision to suspend Minister Iswaran from his Ministerial duties and reduced his pay to $8,500. He has also suspended him from performing his MP duties and have his other colleagues cover for him in his constituency. So, the suspension is already done. All that I am asking for in this House is to suspend the allowance as well. In addition, Members Raj Joshua Thomas and Vikram Nair also mentioned that MPs have the mandate of the people and, therefore, suspension of duties should not be lightly done. I would like to seek clarification from them. Does this mean they have an issue with the Prime Minister's decision to suspend Minister Iswaran from his duties as an MP?”
“Mr Speaker, Sir, I would like to thank all who have participated in this debate. All of us share a common desire to maintain high standards of conduct in this House and to treat Members who are under investigation firmly and fairly. These are motherhood statements that few are expected to disagree with. How we apply such standards, however, may not be the same. Such differences will come to the fore when we apply them to specific cases, like in the case of Minister Iswaran. While PSP feels that it is fair to suspend Minister Iswaran for now and to back pay him when he is cleared of all wrongdoing, the Leader of the House does not think so. That is a judgement call and I think we will have to agree to disagree. I have also asked for leave to table an amendment Bill to make it possible for Parliament to back pay Minister Iswaran, if necessary. Under current provisions in the PPIPA, no allowances are to be paid to Members who are suspended from the service of Parliament. We have proposed to amend that provision to allow Parliament to pay such allowances if a resolution is passed. This amendment gives Parliament the flexibility to decide whether suspended Members should be paid their allowance, whether in full or in part. Without this flexibility, Parliament is hampered in taking timely disciplinary actions. If we are unable to back pay and we have to uphold the principle of innocence until proven guilty, it means that we cannot suspend any Member until the entire legal process has been completed. This may be a long period of time. We are, in fact, being held ransom due to the lack of provision to back pay. Regardless of Parliament's decision on Minister Iswaran, we believe that the amendment should still be passed. There is only an upside, no downsides to this amendment.”
“Yes, of course, I do, which is why we are also making the provision to back pay the Minister if he should be found innocent. There is no presumption of guilt here; just how to better use taxpayers' money. And Minister Iswaran will be going through the full process of the law to determine whether or not he is guilty or innocent. [(proc text) Question proposed. (proc text)]”
“Yes, I believe that all disciplinary cases are of that nature.”