Heng Swee Keat
Singapore
“In a world heading towards greater contest and fragmentation, amid rapid advances in science, technology and innovation, Singaporeans can play a valuable part as bridge-builders and connectors, and Singapore can be a trusted and neutral Global-Asia node of technology, innovation and enterprise.”
“The National Quantum Office has identified specific goals under the National Quantum Strategy (NQS), with resources and efforts directed towards specific quantum areas and technologies accordingly.”
“Mr Speaker, Sir, I would like to thank Member Ms Denise Phua for her comments because her comments reminded me of the tagline that I always said when I was in MOE – that you can learn from anyone, anytime, anywhere. In fact, peer learning is a very important aspect of that learning.”
“But I have laid out the strong basis for my optimism that a small and open economy like Singapore can continue to thrive and secure our next bound of growth. By serving as a trusted node and connector, we can create value by facilitating connections and building new linkages in today's fractured global landscape.”
“Secondly, one other very important thing the Member must bear in mind is that AI is a very rapidly developing field and it is something which our researchers are working hard on, to look at the different techniques of AI – it is not just GenAI, but the whole range of different AI systems that are being used – and how that can be used in c…”
“Assoc Prof Jamus Lim, you do not need an invitation. You are free to provide your suggestion. After all, are you not from WP? And by the way, let me make it clear that I have heard MPs on both aisles speaking about workers, and we have a very strong presence of our union MPs here and they will be speaking even more on this.”
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“The scheme is now almost five years old and a review is timely. Silver Support currently provides cash payouts to the bottom 20% of Singaporeans aged 65 and above, with some support for those slightly above the bottom 20%. I will raise the quarterly cash payouts by 20%. For individuals living in smaller flats, this means that the cash payouts will increase from $750 to $900 per quarter. I will also broaden the eligibility criteria of Silver Support. I will expand the threshold for lifetime wages and per capita household income to cover more seniors. There will also be a new payout tier to provide a smaller payout to seniors whose monthly household incomes per person are above $1,300 but not exceeding $1,800. These seniors do not receive Silver Support today. There is no need to apply. Eligible seniors will be notified by CPF Board and start receiving payouts under the enhanced scheme from December 2020. Overall, we expect about 100,000 more seniors to benefit from the enhanced Silver Support in 2021. The cost of Silver Support will nearly double, from today’s $330 million, to around $620 million in 2021. More details are provided in the Annex. [Please refer to Annex C-3.] Here is an illustration of how the matched savings, right-sizing and enhanced Silver Support can add up to help a retired 65-year-old couple to more than double their retirement income. I will pause here for Members to take a look at the example and details are in the Annex. [Please refer to Annex C-4.] These enhancements underscore the Government’s commitment to provide seniors with greater assurance in retirement and reflect the values we hold dear, such as taking care of our parents and seniors.”
“Some may have earned lower wages for most of their working lives. Others may have stopped working early to take care of family members. We are in a fortunate position that most of our seniors have housing assets that they can use to support their retirement, if they wish. We will do more to help Singaporeans tap their housing assets for retirement by enhancing the Silver Housing Bonus and the Lease Buyback Scheme. The Minister for National Development will provide more details. CPF is a good retirement scheme, based on personal savings. It provides Singaporeans with very favourable risk-free interest rates on their savings. Many Singaporeans want to top up their own, their spouse’s or parents’ CPF accounts. In 2019, such voluntary cash top-ups added up to about $1 billion. We would like to encourage more to do so, particularly those whose CPF balances are on the low side. To help those with less CPF savings to save more, I will introduce a Matched Retirement Savings Scheme from 2021 to 2025. Lower- to middle-income Singaporeans aged 55 to 70 who have not been able to set aside the prevailing BRS will be eligible. Under this scheme, the Government will match every dollar of cash top‑up made to their CPF Retirement Account, up to an annual cap of $600. This is a way of encouraging and augmenting family support for our seniors with fewer means in retirement. About 435,000 Singaporeans will be eligible. While CPF is a good scheme, for a small segment of the elderly population, it will not be enough. Some had low incomes during their working years and currently have little or no family support. We created the Silver Support Scheme to complement the CPF for this group and give them more financial security in retirement.”
“This can be achieved through a combination of individual effort, family, community and Government support. Over the years, we have strengthened the four pillars of our social security system of home ownership, CPF, healthcare assurance and income from Workfare and Silver Support. We have also been enhancing the ComCare schemes, which support Singaporeans who are unable to work and have little or no family support. CPF is a major scheme to enable Singaporeans to save enough for their retirement years. We need to keep on updating and improving our CPF policies over time so that they remain appropriate for each cohort. We have been adjusting the Basic Retirement Sum (BRS) regularly, in line with rising income levels. Since 2017, household incomes per capita have risen by an average of 4.1% per year in nominal terms, while BRS has increased by 3% per year. BRS is currently $90,500 for the cohort turning 55 this year. We will continue to adjust BRS by the same 3% per year for the next two cohorts. The BRS will be $93,000 for cohorts turning 55 in 2021 and $96,000 for those turning 55 in 2022. These modest continuing adjustments are necessary for the payouts to keep up with basic retirement expenses. With continuing wage growth, each successive cohort has been able to save more. We expect seven in 10 actively employed persons from these two cohorts to be able to set aside their BRS, significantly more than four in 10 about a decade ago. More details are in the Annex. [Please refer to Annex C-2.] Even as more seniors are prepared for retirement, one group of current seniors may not be able to meet their retirement needs. When they were younger, they earned less than working Singaporeans do today, even after adjusting for inflation.”
“This can be used to pay for groceries, activities and facilities at Community Clubs and more. Those who do not currently have a PAssion Card can get one for free to receive the top-up. Our Self-Help Groups have also been working closely with the community to help needy families and children. To enable them to do more, I will provide a $10 million grant to them over two years so that they can help more families. The Community Development Councils (CDCs) have also played an important role in partnering the community to strengthen bonds and help vulnerable groups. Each CDC has its set of local assistance schemes to meet local needs and programmes that allow community members to help those with extra needs. I will provide $20 million for the CDCs to do more and better meet the needs of their residents through local initiatives. Together, the Care and Support Package will provide a young family with about $1,300. A 3-Generation family can receive more – about $1,800. More details are provided in the slide and in the Annex. [Please refer to Annex C-1.] Let me now move on to the second area, which is to support and enable our seniors. Singaporeans are living longer. Our life expectancy at birth is close to 85 years, the longest in the world. This is a good thing! Singapore will not just be a great place to raise a family, but a great place for seniors to live a life of purpose, dignity and contribution. The Community Networks for Seniors is now a national programme, with 650 active ageing nodes to engage our seniors. We must see ageing as a positive force and turn this phase of life into a time of opportunity. Ageing with confidence includes having financial assurance in retirement.”
“In addition, I will extend the Service and Conservancy Charges Rebate by another year. Eligible HDB households will receive rebates of between one-and-a-half and three-and-a-half months. Lower-income Singaporeans will get additional help with their daily living expenses. In October 2019, we announced the Workfare Transport Concession Scheme and the Public Transport Voucher to help cushion the transport fare increases for lower-income households. To further offset daily living expenses for lower-income workers, I will provide a Workfare Special Payment. Singaporeans on Workfare will receive 20% more for work done in 2019, with a minimum payment of $100. This will be given in cash. I will also help needy Singaporeans more directly. They will receive Grocery Vouchers worth $100 each year in 2020 and 2021, for use at major supermarkets. This directly helps needy households with one of their major cost of living items – food. There will be additional help for families taking care of children and elderly parents. I will provide a further $100 cash payout for every adult Singaporean with at least one Singaporean child aged 20 and below this year. I will provide an additional GST Voucher – U‑Save rebate for larger households with five or more members, to help them with their utilities bills. Together with the U-Save Special Payment I mentioned earlier, larger households can receive a total of 2.5 times their regular U-Save rebates this year. These households can receive up to $1,000 in U-Save rebates, depending on their flat type. I will also provide a $100 top-up to the PAssion Card to all Singaporeans aged 50 and above this year, including the Pioneer Generation and Merdeka Generation seniors.”
“This is a promise that I, as a former Education Minister and now Finance Minister, am committed to keep. When Singaporeans are ready to start a family and own a home, we make sure that there is good access to quality and affordable housing. Last year, the Ministry of National Development consolidated existing housing grants into the Enhanced CPF Housing Grant. With the Enhanced Housing Grant, first-time flat buyers can now enjoy up to $160,000 in housing grants. The monthly household income ceilings for subsidised flats and executive condominiums were raised to $14,000 and $16,000 respectively. We expect around 16,000 HDB households to benefit from these enhancements each year. The Government has made significant moves to help Singaporeans manage major expenditures in life, through structural subsidies in education, healthcare and housing. This year, with the economic slowdown and the uncertainties of the COVID-19 outbreak, we are mindful that many families are facing greater pressures. During my fellow Members of Parliament and my own walkabouts, people often tell us that they are worried about job security and rising expenditures. To help all Singaporeans with their household expenses during this period of uncertainty, I will provide a comprehensive Care and Support Package for households, amounting to about $1.6 billion. All Singaporeans aged 21 and above in 2020, will receive a one‑off cash payout of $300, $200 or $100, depending on their income. The annual GST Voucher – U-Save provides rebates to help HDB households with their utilities expenses. This year, I will double the amount of U-Save rebates through a one-off GST Voucher – U-Save Special Payment to all eligible HDB households. This will help to free up cash for other household expenses.”
“We will also increase transport subsidies for all students and school meal subsidies for secondary school students. The enhanced Financial Assistance Scheme will cost an additional $9 million per year, or a total of $52 million per year. We announced that we would enhance bursaries for diploma and degree holders last year. These bursaries are on top of subsidies that are provided to all Singaporeans. Starting from Academic Year 2020, students from lower- and middle-income families in the polytechnics and autonomous universities can benefit from higher bursaries. We will also enhance bursaries for full-time Institute of Technical Education students from Academic Year 2020. Students from households which qualify under the lowest-income tier for the bursaries will now receive 100% fee subsidy on top of the cash bursary. Students from low- and middle-income households will also benefit from an increase in the cash bursary quantum by up to $200 a year. The cost of bursaries for higher education will rise from $148 million per year to $198 million per year. A good education lays a strong foundation for a better future. This is why this Government has been providing significant education subsidies for each child. A Singaporean child will receive over $180,000 of education subsidies in total by the time he turns 16. This includes about $50,000 in Government subsidies over five years when they enrol in a full-day childcare programme with one of the Anchor Operators. For those who come from less-privileged backgrounds, there are additional subsidies for preschool, bursaries and other financial assistance schemes. This substantial investment is how we maximise every child's potential, regardless of family circumstances.”
“This Budget, we will continue to care for Singaporeans in the following ways: first, we will build on our efforts to support our families; second, we will support and enable our seniors in their retirement years; and third, we will promote a stronger giving culture. I will, first, touch on how we will further support our families. Good education provides a strong foundation for children to grow, realise their aspirations and continue a journey of lifelong learning. We have committed to decisive shifts in the Government’s support for early childhood development. We are determined to give every child, regardless of circumstances, a good start in life. As the Prime Minister announced at the National Day Rally last year, we will step up efforts to improve the affordability, accessibility and quality of preschool services. We have significantly enhanced preschool subsidies and made them available to more families from this year. We will also increase the share of Government-supported preschool places from just over 50% today, to 80% by around 2025. Overall, we are doubling our support for our young in their preschool years. In 2018, the Government spent about $1 billion on the early childhood sector. Within the next few years, this will double to over $2 billion per year. In the primary to pre-university school years, education is already heavily subsidised for Singaporeans. Primary school is free for all Singaporeans, while the secondary school fee is $5 a month. Students pay only a few dollars of miscellaneous fees. For students from lower-income families, we will provide further help. We will enhance the MOE Financial Assistance Scheme by raising the annual bursary quantum for pre-university students, from $900 to $1,000.”
“The respective Ministers will provide more details of the schemes I have mentioned in this section later. Mr Speaker, Sir, a vibrant economy provides good jobs and opportunities for Singaporeans, and allows families to do well. It also gives us the resources to support our people with their needs, to build a caring and inclusive home. Our tax and spending policies reflect our values. Over the past decade, we have significantly increased our social spending. Between 2010 and 2019, we tripled our healthcare expenditure from $4 billion to about $12 billion a year, to meet the growing needs of our seniors and to ensure that every Singaporean has access to affordable and quality healthcare. We increased our investments in education, from $10 billion to about $13 billion, so that all Singaporeans will have the best chance to fulfil their fullest potential. We increased the expenditure on national development from $2.4 billion to $3.6 billion, with the bulk of this going into subsidies on public housing, so that every Singaporean household can have a home to call their own. Last year, we gave out about $1.1 billion in cash to Singaporeans who need more help. The payouts were provided through structural schemes, such as ComCare, for the vulnerable, Workfare Income Supplement for lower-wage workers, GSTV – Cash for lower-income Singaporeans and Silver Support for the vulnerable elderly. This social spending reflects our commitment to invest in our people, to give every citizen a stake in our society, to care for our seniors and to provide more help to those with less.”
“But we do want manufacturing companies to make the effort to recruit local skilled workers and technicians, too. Therefore, when conditions allow, we intend to tighten the S Pass sub-DRC for Manufacturing, too. At the same time, we recognise the potential concerns of enterprises about the availability of skilled manpower in these sectors. To help you find skilled local graduates looking to embark on their careers and older local professionals looking for new careers, SkillsFuture Singapore (SSG) and WSG will work with you to improve matching. Enterprises that have specific needs can continue to apply for additional manpower flexibilities in exceptional cases, through schemes, such as the Lean Enterprise Development Scheme. In view of the economic conditions, I will maintain the foreign worker levy rates for all sectors for 2020. [Please refer to Annex B-2.] Mr Speaker, Sir, the Government appreciates the concerns of our workers and enterprises. In the immediate term, we are facing headwinds with the shocks and uncertainties. But in the medium term, we are facing deep structural shifts in the global economy. We have to tackle both challenges head-on. The Government will support our enterprises and workers with the near-term challenges, through the Stabilisation and Support Package for workers and enterprises. To tackle medium-term challenges, our Transformation and Growth strategy will support efforts to deepen enterprise capabilities, develop our people and forge stronger partnerships, through our tripartite structure. By positioning Singapore as a Global-Asia node of technology, innovation and enterprise, we can ride on the next wave of structural changes resolutely.”
“S Passes enable enterprises to top up their workforce with more skilled workers and to recruit workers with particular skills that locals may lack. But S Passes should not be a means by which enterprises hire low‑cost foreign workers when qualified locals are available. Last year, we announced cuts for the Dependency Ratio Ceiling (DRC) and S Pass sub-DRC thresholds for the Services sector. This was to manage manpower growth and encourage our enterprises to restructure and reskill our local workers. We have been monitoring the manpower growth closely. The number of S Pass holders in the Construction, Manufacturing, Marine Shipyard, and Process sectors is growing by 3.8% per year over the last two years. The number could increase significantly over the next few years, as the Construction and Marine Shipyard sectors recover and the Process sector begins work on projects in the pipeline. However, the growth in S Pass holders must be sustainable. The Government has been working closely with industry and educational institutions to build up a pipeline of local manpower, including mid-career workers. We want them to have fair opportunities to grow, while supporting the manpower needs of enterprises. Therefore, this year, we will take further steps. We will reduce the S Pass sub‑DRCs of the Construction, Marine Shipyard and Process sectors from 20% to 15%. We will phase in the cuts in two steps. The first step from 20% to 18% on 1 January 2021 and subsequently to 15% on 1 January 2023. We are announcing the changes about a year ahead, to give time for enterprises to adapt. Given the economic uncertainties, we will not reduce the S Pass sub-DRC for the Manufacturing sector at this point.”
“Like SEC and ASEC, this Senior Employment Credit will provide employers with wage offsets when they hire Singaporean workers aged 55 and above, with the support levels tapering down over time as the Retirement and Re-employment Ages are gradually raised. Second, when employer CPF contribution rates go up in 2021, we will provide employers with a CPF Transition Offset for the year, to offset half of the increase in employer contributions. Third, we will introduce the Senior Worker Early Adopter Grant to support enterprises that raise their own Retirement and Re-employment ages ahead of the legislated changes. Fourth, we will introduce the Part-Time Re‑employment Grant to support and encourage enterprises to formalise part-time re-employment provisions. [Please refer to Annex B-3.] In short, even as we support workers' aspirations to work longer, we hear employers' concerns. As part of our unique tripartite system, the Government has stepped up to support both our workers and our enterprises. Even for seniors who choose to retire, but wish to continue to learn and stay active, the $500 SkillsFuture Credit top-up that I just announced will support this. Retirees can use this to deepen their interests, or even to explore a whole new area, be it cooking or coding. For many years now, foreign workers have been part of our workforce. With our declining local labour force growth, foreign workers are a necessary complement. But we must regulate the inflow carefully in a way that creates opportunities for our locals. One area of particular concern is S Passes. These are skilled jobs, many of which can be done by locals, such as polytechnic diploma holders. We created the S Pass category because despite our best efforts, we are not producing enough of such skilled locals.”
“This additional credit can be used for selected reskilling programmes at CET centres. Like the broad-based top-up, this additional credit will expire in about five years, to encourage early action. Apart from Government support, we will assemble a group of volunteer Career Advisors from professional communities. These advisors will provide peer-level support and career guidance to local workers in navigating professional pathways. We hope that all these initiatives will provide meaningful support to those in their 40s and 50s to further their careers with confidence. Lifelong learning and contribution does not stop at the 40s and 50s. As the Chinese say, "活到老，学到老". You are never too old to learn. As our people live longer, we will provide more support to help them remain active and contribute to our society and economy. Many seniors have told us that they want to continue working and learning. Besides saving more for retirement, it is about a sense of agency and purpose, and staying active and connected. The Government has strongly supported enterprises that employ our seniors through the Special Employment Credit (SEC), the Additional SEC (ASEC) and WorkPro. For our seniors who wish to work longer, earn more and save more, the Prime Minister had announced at last year’s National Day Rally that we are raising the Retirement and Re-employment Ages. We are also increasing the Central Provident Fund (CPF) contribution rates for workers aged 55 to 70. To ease in these changes for employers and workers, I will introduce a Senior Worker Support Package comprising four measures. First, I will refashion SEC and ASEC into a Senior Employment Credit, which will take effect from 2021.”
“But they are now facing greater competition from younger workers and workers overseas. I understand their anxiety. At the same time, with broader global shifts, exciting jobs will emerge. Our mid-career workers can seize these opportunities and do better for themselves and their families. The Government will do more to support them. We will introduce a new SkillsFuture Mid-Career Support Package for locals in their 40s and 50s to help them stay employable and move on to new jobs or new roles. We aim to double the annual job placement of locals in their 40s and 50s to around 5,500 by the year 2025. To reach this goal, we will increase the capacity of reskilling programmes. These will include the Professional Conversion Programme under the Adapt and Grow initiative, career transition programmes delivered by Continuing Education and Training (CET) centres, like IHLs, and sector-specific programmes like the TechSkills Accelerator Company-Led Training for information and communications technology jobs. In tandem, our employers must step up to recruit, retain and retrain our local mid-career workers. We will support them to do so. I will provide a hiring incentive to employers who hire local jobseekers aged 40 and above through a reskilling programme. For each eligible worker, the Government will provide 20% salary support to the employer for six months, capped at $6,000 in total. In parallel, we will streamline our manpower schemes, including support for hiring and retention, to maximise their impact. To improve access to reskilling programmes, I will also provide a special SkillsFuture Credit top-up of $500 to every Singaporean aged 40 to 60 in 2020. This will be over and above the top-up that I announced earlier.”
“Fourth, our IHLs will work with more enterprises to enable local students to learn in a real work setting, through SkillsFuture Work-Study Programmes. We will now more than double the capacity of these programmes by 2025. Our aim is to make this a mainstream pathway, with 12% of each cohort going through these pathways, up from 3.5% today. Fifth, as more enterprises train their workers, we will deepen workplace learning capabilities. The Ministry of Education (MOE) launched the National Centre of Excellence for Workplace Learning (NACE) at Nanyang Polytechnic in July 2018. MOE will expand NACE to two more IHLs over the next few years and aim to benefit over 1,200 enterprises, especially our SMEs. In line with our focus on the role of industry in SkillsFuture, we will also recalibrate Government funding towards training providers and courses with a stronger link to job and wage outcomes. The third element in the Next Bound of SkillsFuture is a special focus on mid-career workers currently in their 40s and 50s. Born in the 1960s and 1970s, they grew up in a time when our economy was just starting to take off. When they started work, it was normal, even celebrated, to stay with one job, in one company, for life. As enterprises restructure, the nature of jobs has changed. Many have adapted to these changes, picked up new skills, and even switched careers. Ms Ng Lee Chun, 50, is one of them. After leaving her previous job, WSG helped her to secure a logistics role with ST Logistics. Through the Professional Conversion Programme for Supply Chain Professionals, ST Logistics sent her for training for this role. Some workers in their 40s and 50s have not seen any job or career changes since leaving school or had the chance to upskill earlier.”
“For example, the United Workers of Electronics and Electrical Industries and Thales, a French technology leader, have set up a Company Training Committee. Management staff and union members are working together to develop training plans and deepen skills, so that workers can take on better jobs. On my visit to Thales, I was very heartened to hear how its employees are upskilling and contributing to Thales’ transformation. This is a good example of how unions and enterprises can work together to keep workers up to date as enterprises transform. [Please refer to Annex B-4.] Let me outline five measures to enhance the role of our enterprises in the Next Bound of SkillsFuture. First, I will introduce a new SkillsFuture Enterprise Credit to encourage employers to embark on the transformation of their workforce and enterprise in tandem. Employers can use this enterprise credit to defray 90% of out-of-pocket costs of business transformation, job redesign and skills training. The SkillsFuture Enterprise Credit, at $10,000 per enterprise, will benefit over 35,000 enterprises, most of which will be SMEs. Second, we will also provide more support for job redesign. The Productivity Solutions Grant supports enterprises to adopt pre-approved digital solutions and equipment. We will expand the Productivity Solutions Grant to include job redesign consultancy services. Third, we will work with large anchor enterprises to support training for their sectors and value chain partners. Anchor enterprises are supported by many SMEs. By helping to raise the skills of workers in these SMEs, the entire supply chain benefits. We aim to partner up to 40 of such anchor enterprises to benefit 4,000 SMEs over the next five years.”
“[Please refer to Annex B-4.] I am very encouraged by the efforts made by Singaporeans to acquire new skills in the midst of the major structural changes in the global economy. To further support them in this journey, the Government will invest in the Next Bound of SkillsFuture. There will be three elements to this: first, enabling the individual; second, enhancing the role of our enterprises; and third, a special focus on mid-career workers. First, to support Singaporeans to continue learning, I will provide a one-off SkillsFuture Credit top-up of $500 for every Singaporean aged 25 and above. The top-up will be available for use from 1 October 2020. Unlike the earlier $500 credit which had no expiry date, this top-up will expire in about five years, by end-2025. This is to encourage Singaporeans to take action early to learn new skills and to make the best use of this period of economic slowdown. [Please refer to Annex B-2.] Second, we want to enhance the role of enterprises in developing their staff. Enterprises know best the skills needed for their business to transform, and can play a key role in helping their workers learn and apply new skills. By investing in their staff, they build a stronger workforce, which can, in turn, help enterprises succeed. So, we must strive to achieve this virtuous cycle. A good example is Containers Printers, a local food packaging company. It has adopted digital technology and trained its workers to take on higher value-added roles like real-time monitoring of production. In our unique tripartite model, the Labour Movement plays a crucial role. We cannot keep jobs, enterprises or even industries that are no longer viable. Instead, we refresh, retrain and rejuvenate for the long term.”
“To achieve this target, we will introduce a new Asia-Ready Exposure Programme to support local youths' visits to cities in ASEAN, China or India. We will also enhance support for internships under the Global Ready Talent Programme. Beyond pre-employment education, we must also support our people who are already at work. With shorter technology cycles and more intense global competition, skills acquired when we are young need to be constantly refreshed. Career transitions will be more common, even the norm. Our SkillsFuture movement seeks to enable our people to learn, develop new skills and stay employable. Five years after the launch of SkillsFuture, we have made good progress. The training participation rate has risen from 35% in 2015 to 49% in 2019. As of end 2019, the SkillsFuture Credit has helped more than half a million Singaporeans pick up new skills and develop new interests. This includes Mr Koh Wui-Tek, a FinTech executive who applied his learning in project management to serving his clients, as well as Mdm Juriah Jahaya, a certified trainer, who deepened her people development skills. Singaporeans are also upskilling and accessing good jobs in growth sectors with the support of employers. Younger Singaporeans are undergoing on-the-job training while getting a qualification. Singaporeans who have been working for some time have adapted and grown their skills. One good example is Ms Nur Hidayah Binte Abu Bakar, whom I met at Workforce Singapore (WSG) last year. After leaving the electronics industry, Ms Hidayah joined AETOS Holdings as an Auxiliary Police Officer. She went through the tough training as part of the Professional Conversion Programme. Today, she not only earns more and has a clearer career pathway, but she is also helping to keep Singapore safe.”
“The Government's promise to Singaporeans is this: regardless of your starting point, as long as you are willing to learn, we will support you to learn throughout life – in pre-employment, in your working years and as we pursue lifelong learning and employability. We will bring in different partners, including IHLs, enterprises and the Labour Movement to help you do so. Let me begin with the role of our IHLs. Our IHLs provide a strong foundation in learning and have partnerships with industry. IHLs and the industry have distinct roles, and by aligning these to keep learning relevant, students can secure good jobs. Employment rates are high and starting salaries have increased. We develop Singaporean talent in partnership with enterprises under the Singapore-Industry Scholarship scheme. Many of them have graduated and are developing their careers with leading enterprises like ST Engineering and Micron. Our local students are well-prepared to thrive in other countries and cultures, including in Asia. About half of all local IHL students today gain experience abroad through programmes, such as internships, exchanges and service learning or study trips. In my pre-Budget dialogue with youth leaders, I was struck by their understanding of the importance of learning new skills and exploring new opportunities. They look forward to overseas exposure and postings in the region. To support our local students to acquire cross-cultural skills and understand our region better, we will set ourselves a "70-70" target – 70% of local IHL graduates to have an overseas experience, and 70% of this group to have exposure to the Association of Southeast Asian Nations (ASEAN), China or India.”
“Across all 23 ITM sectors, we will have Industry Digital Plans or equivalents, and enable enterprises to access pre-approved digital solutions. Third, to help more enterprises enter new markets, we will enhance the Market Readiness Assistance grant by expanding the funding support and coverage, to include, for example, FTA consultancy. [Please refer to Annex B-1.] We must continue to support the growth of our enterprises and, as they mature, drive deeper transformation. Today, through the Enterprise Development Grant (EDG), Enterprise Singapore provides integrated support for enterprises to innovate and internationalise. For enterprises to transform, they need to strengthen their leadership and management capabilities. This year, we will introduce an Enterprise Transform Package, with a focus on leadership. Enterprise Singapore will launch the Enterprise Leadership for Transformation Programme to support business leaders of promising SMEs in achieving the next bound of growth. Over the next three years, we aim to support business leaders of 900 enterprises in business transformation, with training and mentorship. We will work with institutes of higher learning (IHLs), banks and industry experts and facilitate collaboration. In tandem, we will continue to broaden transformation through EDG by expanding its reach. In FY2020, we expect to support about 3,000 projects through EDG, an increase of more than 10% from the number today. The third thrust of our Transformation and Growth effort is to develop our people, so as to enable our people to access good jobs, earn good wages and stay employable. Economic growth is a means to creating a better life for our people. We must nurture every Singaporean to their fullest potential.”
“Startup SG helps startups get their ideas off the ground. It provides holistic support, including co-investments, mentorship and physical space. Through co-investment schemes like Startup SG Equity, we have catalysed over $560 million in private sector funding over the last four years. This year, we will improve support for deep-tech startups. Deep-tech startups are those in emerging technology areas, such as pharmbio and medtech, advanced manufacturing and agri-food tech. They have high potential to be competitive and stimulate innovation in their sectors. But these startups need larger investments, longer gestation periods and face higher risks. Investors are, hence, less prepared to invest in deep-tech startups. To catalyse investment into deep-tech startups, I will set aside an additional $300 million under the Startup SG Equity. We expect this to draw in more than $800 million of private funding over the next 10 years. This will give deep-tech startups better access to capital, expertise and industry networks. [Please refer to Annex B-1.] Beyond startups, many enterprises, both new and established, are seeking to grow. We have been supporting them through schemes, such as the SMEs Go Digital programme and the Market Readiness Assistance grant. This year, we will enhance support for these enterprises through an Enterprise Grow Package. This Package aims to help enterprises identify business needs, adopt pre-approved digital technologies and take the first steps to enter new markets. First, we will launch the GoBusiness platform, a single touchpoint for enterprises to transact with the Government digitally. Second, we will drive greater adoption of digital technology. We will expand the SMEs Go Digital programme.”
“This year, Enterprise Singapore will launch a new Heartland Enterprise Upgrading Programme to support merchants' associations to drive transformation of heartland enterprises. [Please refer to Annex B-1.] I have covered how we are deepening partnerships. The second thrust of our Transformation and Growth is to deepen capabilities at every stage of an enterprise's growth, from starting up, to growing, to transforming further. Our enterprises must be the incubators of innovation, the crucibles for skills upgrading and the creators of good jobs for our people. Many of our enterprises are deepening their capabilities by innovating, digitalising and venturing overseas. These include smaller companies like Yong Leng Trading Company, a local provider of sealing solutions for industrial customers, and PDS International, a developer and distributor of personal protective equipment. By adopting digital platforms, they have accessed new markets, raised revenues and reduced costs. Larger local companies are also transforming. Goldbell Group, an industrial vehicle leasing company, launched an inhouse accelerator, while Moveon, an optics manufacturer, partnered our research institutes to develop enhanced production technologies for micro-optical systems. More details are in the Annex. [Please refer to Annex B-4.] We will enhance our support to enterprises, at each stage of their growth, to deepen their capabilities in an enterprise-centric way. Let me begin with startups. Our startup ecosystem is vibrant. There are about 3,800 technology startups in Singapore and about 150 venture capital funds investing in startups here and in the region. Our startup ecosystem is ranked in the top 15 globally in the Global Startup Ecosystem report.”
“Many AV players have set up here, testing their technologies with the National University of Singapore (NUS) and Nanyang Technological University (NTU), seeking to win the global race. In the biomedical industry, the number of startups has doubled from 2014. More than 300 biomedical startups are now bringing discoveries from bench to bedside and looking to export them to the region. In fact, our research institutes are part of the global fight against COVID-19, developing diagnostic kits already in use here and sent to China. This is one of the fruits of our long-term investments in research and innovation. Within each industry, we need to strengthen partnerships to deepen industry-wide capabilities. Even as our enterprises compete to differentiate themselves, they must come together to solve common challenges. Trade Associations and Chambers (TACs) play an important role. For example, the Container Depot and Logistics Association (Singapore) is developing an electronic payment system that can help depot operators and transport companies save time and cost. Details are in the Annex. [Please refer to Annex B-4.] To sustain the good progress, we will enhance our support for TACs to scale up and raise the capabilities of their industries. Enterprise Singapore will launch a pilot Executive‑in‑Residence programme to fund more than 10 TACs covering all sectors of the economy to hire experienced executives and provide expert advice to enterprises in their industries. Likewise, merchants’ associations play a critical role in upgrading heartland enterprises, such as what the Chong Pang City Merchant and Hawker's Association has done.”
“As a small, open economy, we must continue to strengthen partnerships with the world. We have an extensive network of economic linkages, including Free Trade Agreements (FTAs), International Investment Agreements and Avoidance of Double Taxation Agreements. For example, Minister Indranee Rajah signed our latest Avoidance of Double Taxation Agreement with Indonesia earlier this month. Beyond economic connectivity, we are enhancing our digital connectivity to create new value. Singapore Customs is connecting our Networked Trade Platform with the customs portals of our trading partners. Just last month, we concluded our first Digital Economy Agreement with Chile and New Zealand. It will foster interoperability, and address frontier issues like artificial intelligence (AI) governance, to enable more trade. The digitalisation of finance will also open up new ways of doing business. Between 2015 and 2019, annual investments in financial technology (FinTech) have risen six-fold to over $1 billion. Players from different domains and around the region are coming together to bid for the Monetary Authority of Singapore's (MAS') digital banking licences. To make the most of our global links, we must strengthen partnerships within Singapore to bring good ideas to global markets. Under our Research, Innovation and Enterprise 2020 Plan, we are sustaining investment into promising ideas. These include AI, industrial robotics, urban solutions and sustainability, and the biomedical sciences, among others. Through partnerships among the Government, industry and the research community, we are turning these ideas into new businesses with global potential. For instance, Singapore was one of the first cities to allow autonomous vehicle (AV) testing on public roads.”
“This is an improvement over the 2.2% per year growth in the preceding three-year period. Our enterprises are entering new markets and doing business globally. The Singapore Business Federation’s 2019 National Business Survey shows that eight in 10 enterprises have an overseas presence, up from seven in 10 the previous year, despite global uncertainties. Their spirit of enterprise augurs well for the future. Overall, these efforts at enterprise transformation have translated into good wage growth. Between 2016 and 2019, real median income for Singaporeans grew by 3.7% per year, up from 3.2% per year in the preceding three years. Two years ago, I set out our vision of Singapore as a Global-Asia node of technology, innovation and enterprise. Our economy will be one driven by innovation and digitalisation. Singapore will serve as a launch pad for multinationals and regional corporates to access Asia, and for Asian enterprises to go global. Our enterprises will compete on value and reach new customers. And these enterprises will be powered by a skilled, adaptable and Asia-ready workforce. To support this vision, in this Budget, I will introduce a set of measures to drive our Transformation and Growth strategy. There are three key thrusts: first, enabling stronger partnerships; second, deepening enterprise capabilities; and third, developing our people. Including sums allocated in previous years, I am allocating a total of $8.3 billion over the next three years to enable Transformation and Growth. Let me begin with the first thrust of our Transformation and Growth effort, which is to enable stronger partnerships: (a) with the world, to expand our economic space, and (b) within Singapore, to build on our work through the FEC and ITMs.”
“We have come together and weathered many past storms, like the Global Financial Crisis, the severe acute respiratory syndrome (SARS), and now, the ongoing COVID-19 outbreak. Budget 2020 is our strategic financial plan to prepare Singapore and Singaporeans to meet these challenges and seize new opportunities. This Budget, I will lay out our plans in four areas. First, to grow our economy, transform our enterprises, to create opportunities for our people. Second, to care for and nurture Singaporeans at every stage of their lives, to build a caring and inclusive society, where no one is left behind. Third, to build a liveable and sustainable Singapore in the face of climate change, secure our sovereignty as an independent nation and ensure our fiscal sustainability. And fourth, to mobilise Singaporeans to work together in this journey to build a nation and a home we will always call our own. Let me start with growing our economy and transforming our enterprises. The structural changes I described earlier bring both opportunities and challenges. Technology and innovation will drive our productivity and our next phase of growth. Amidst declining support for globalisation, most of Asia remains committed to free trade and economic integration. The Asian economies have strong growth drivers and are projected to account for half of global GDP by 2040. Singapore is well-positioned to make the most of these structural changes. We recognised these changes early and made an early start on economic transformation. We set up the Future Economy Council (FEC) in 2017 and we now have 23 Industry Transformation Maps (ITMs). Our restructuring is bearing fruit. In the last three years, overall productivity, as measured by real value‑added per actual hour worked, rose by 2.6% per year.”
“Central banks have lowered interest rates to unprecedented levels. In addition, asset purchases by central banks have resulted in abundant liquidity and raised concerns over the formation of asset bubbles. In fact, with limited fiscal space and ultra-low or even negative interest rates, governments and central banks are much less able to mount stabilisation measures. On the strategic front, the friction in the United States (US)-China relationship is a major source of tension and uncertainty, affecting global economic growth. The recent Phase 1 trade deal between them has headed off an immediate escalation. But it will not resolve the underlying strategic competition. This involves political systems, ideologies and values, and goes beyond trade and technology. On present trends, US-China tensions will recreate geopolitical fault lines and portend a bifurcated global order. I have sketched out the global structural shifts, economic uncertainties and strategic tensions. I trust Members will see that we are entering a very challenging time. But we can, and we will, pull through. To deal with these major shifts, we need a capable government, working closely with our people and a good plan. As a city-state, we are small, but nimble. We are a trusted node for trade and investment between Asia and the world. This is because of our political stability, commitment to rule of law and multilateralism, ease of doing business and strong intellectual property (IP) protection regime, among others. As a multicultural society, we have welcomed diversity and embraced openness. Our diversity has made us stronger and more valuable to the world. Our biggest asset is our exceptional people.”
“Even as we navigate our near-term challenges, we must maintain our focus on the longer term, and on Singapore’s future. I have spoken about the accelerating structural shifts in the world in my previous Budget speeches: first, the decline in support for globalisation; second, the shift in global economic weight towards Asia, which brings new opportunities; third, the rapid advancement of technology, and more recently, the risk of a technologically bifurcated world; and finally, our own transition to an ageing society, which presents challenges and opportunities. We must understand these shifts and their deep implications as we chart our future together as one Singapore. After the Second World War, nations experienced several decades of growth and prosperity. Trade barriers fell, and global trade grew rapidly. Technological advances transformed people’s lives beyond recognition. Prosperity gave governments the resources to establish comprehensive safety nets and welfare programmes. These included unemployment benefits, pensions and healthcare, among others. But at the same time, globalisation and technology created winners and losers, and widened income inequalities between the skilled and unskilled. There are growing sentiments that globalisation and the multilateral system have failed. As a result, nations are turning inwards. Protectionism and nativism are on the rise. An ageing population, disruption to jobs and slowing economic growth are adding to fiscal pressures. Yet, it is politically untenable to cut back on social benefits. When governments issue debt to fund social spending, they impose a growing debt burden on the next generation. This is happening at a time when the global economy is experiencing weaker growth and dampened sentiment.”
“GST is paid by all in Singapore, including foreigners working and visiting here. But the Assurance Package will benefit Singaporeans. The majority of Singaporean households will receive offsets to cover at least five years’ worth of additional GST expenses incurred. So, the majority of Singaporean households will receive offsets to cover at least five years' worth of additional GST expenses incurred. Lower-income households will receive much more. Those living in 1- to 3‑room HDB flats will receive offsets equivalent to about 10 years’ worth of additional GST expenses incurred. Under the Assurance Package for GST, every adult Singaporean will receive a cash payout of $700 to $1,600 over five years. To illustrate, a family of four with a combined income of $6,000 living in a 4‑room HDB flat can receive about $7,000 in offsets over five years in total. This includes cash of about $4,000. Over and above the transitional support, we already have the permanent GST Voucher (GSTV) scheme. It defrays GST for lower- to middle-income Singaporeans. When the GST is raised, I will enhance the permanent GSTV scheme. I will maintain the Government’s public commitment to (a) fully offset the GST for the lower half of retiree households; (b) significantly offset the GST for the upper half of retiree households; and (c) offset about half of the GST for lower-income households with no elderly persons. This is the Government’s way of ensuring our system of taxes and transfers remains progressive and supports Singaporeans through the change, while enabling us to fund our future needs in a sustainable way. To meet this commitment, I will set aside $6 billion for the Assurance Package in the GSTV Fund in this year’s Budget.”
“The COVID-19 outbreak is a stark reminder of the continued importance of maintaining a sound fiscal footing to deal with surprises and unexpected scenarios. In particular, we are able to mount a decisive response to support Singaporeans and workers through uncertain times only because of good long-term planning. I announced in 2018 that we plan to raise the Goods and Services Tax (GST) by two percentage points, to 9%, sometime from 2021 to 2025. This is to raise recurrent revenues to meet our recurrent spending, particularly for healthcare. After reviewing our revenue and expenditure projections and considering the current state of the economy, I have decided that the GST rate increase will not take effect in 2021. In other words, the GST rate will remain at 7% in 2021. However, we will not be able to put off the increase indefinitely. In fact, this outbreak has reinforced the importance of continued investment in our healthcare system, including the capability to deal with outbreaks. And we will still require recurrent sources of revenue to fund our recurrent spending needs in the medium term. Thus, the GST increase will still be needed by 2025. We will assess carefully the appropriate time for the increase. But rest assured we will provide Singaporeans sufficient lead time. I want to assure everyone that when we raise the GST rate, we will ensure that our taxes and transfers system remain progressive. We will continue to absorb GST on publicly-subsidised healthcare and education. And just as we have done in the past, we will provide an Assurance Package when the GST rate is raised. This will be a $6 billion package for Singaporeans, to cushion the increase as we transition to the higher GST rate.”
“This will provide more cash flow on top of the enhanced working capital loan I announced earlier. For the aviation sector, we will implement a suite of measures, comprising rebates on aircraft landing and parking charges, assistance to ground handling agents, and rental rebates for shops and cargo agents at Changi Airport. I will also grant a 15% Property Tax Rebate for Changi Airport. To support commercial establishments in the food services and retail business, the Government will take the lead. The National Environment Agency (NEA) will provide a full month of rental waiver to stallholders in NEA-managed hawker centres and markets. Other Government agencies, like HDB, will provide half a month of rental waiver to its commercial tenants. To support establishments that operate in private property, I will also grant a 15% Property Tax Rebate for qualifying commercial properties. I strongly urge landlords to pass this on to their tenants by reducing rentals. The Ministry of Transport (MOT) has announced a Point-to-Point Support Package. I am heartened to know that many taxi and private hire car operators have come out strongly to support the initiative by matching the Government’s contribution. This spirit of partnership is what we need to weather this challenging period together. Details of the Stabilisation and Support Package are in the Annex. [Please refer to Annex A-1.] The Ministers-in-charge of the various measures will share further details in due course. We will continue to monitor the situation closely. If needed, we can and are prepared to do more. I will speak about the Care and Support Package for households later in my speech.”
“They can approach our agencies to discuss options for more flexible rental payments, such as instalment plans. Each request will be assessed individually, taking into account the enterprise’s circumstances. Sectors directly affected by COVID-19 will get additional support. These five sectors are: tourism, aviation, retail, food services and point-to-point transport services. To help employers in these sectors retain and reskill workers, we will enhance support under the Adapt and Grow initiative for this year, specifically through redeployment programmes in the tourism, aviation, retail and food services sectors. For these sectors, we will extend the funding period for reskilling from three months to a maximum of six months. Together with the Jobs Support Scheme, we will support employers in these sectors to retain and train more than 330,000 local workers. These workers can make full use of the downtime for training and upskilling, to prepare for the recovery. We will also help affected sectors with their operating costs and cash flow. For the tourism sector, I will grant a Property Tax Rebate of 30% for the year 2020, for the accommodation and function room components of licensed hotels and serviced apartments, and prescribed Meetings, Incentives, Conventions and Exhibitions (MICE) venues. International cruise and regional ferry terminals will receive a 15% Property Tax Rebate and the Integrated Resorts will receive a 10% Property Tax Rebate. For enterprises in the tourism sector, we will be working with Participating Financial Institutions to introduce a Temporary Bridging Loan Programme for a year, with a loan quantum of up to $1 million and interest rate capped at 5%. The Government will take on 80% of the risk of the loan.”
“I will also raise the Government co‑funding levels for 2019 and 2020 qualifying wage increases by five-percentage points, to 20% and 15% respectively. With these enhancements, another $1.1 billion will go to about 90,000 enterprises, to benefit more than 700,000 Singaporean employees. The Stabilisation and Support Package will also provide economy-wide support to help enterprises with cash flow. First, I will grant a Corporate Income Tax Rebate for Year of Assessment 2020, at a rate of 25% of tax payable, capped at $15,000 per company. This rebate will benefit all tax-paying companies, and cost about $400 million. I will also enhance several tax treatments under the corporate tax system for one year. For instance, I will allow enterprises a faster write-down of their investments in plant and machinery, and renovation and refurbishment, incurred for Year of Assessment 2021. This will put more cash in the hands of our enterprises. For example, hotels can now take advantage of this lull period to carry out upgrading work, and be better prepared for the upturn. To help enterprises access working capital more easily, I will also enhance the Enterprise Financing Scheme's Working Capital Loan component for one year. I will raise the maximum loan quantum from $300,000 to $600,000, and increase our risk-share on these loans to 80%, from the current 50% to 70%. With the large part of the risks taken up by the Government, I trust that our financial institutions will do their part to support viable small and medium enterprises (SMEs). We will also support tenants and lessees of Government-managed properties, including those under JTC, the Housing and Development Board (HDB), Singapore Land Authority, Singapore Tourism Board and Sentosa Development Corporation.”
“But in view of the current situation, we will have a special Care and Support Package, to provide additional, timely help to more households with cost of living. The less well-off will get more help. First, let me elaborate on how we will help our workers and enterprises to weather the near-term economic uncertainties. Our foremost concern is jobs. We want to help our workers retain their jobs, and use any lull period to upgrade their skills, and be ready when the upturn comes. As the National Trades Union Congress Secretary-General Ng Chee Meng and his union leaders said, "Every worker matters". I will, therefore, provide a Stabilisation and Support Package, amounting to $4 billion. To help our workers stay employed, I will support enterprises by defraying their wage cost, through two schemes. I will introduce a Jobs Support Scheme to help enterprises retain their local workers. For every local worker in employment, I will offset 8% of the wages, up to a monthly wage cap of $3,600, for three months. This payment will be given to employers by the end of July this year. With over 1.9 million local employees in Singapore, this will cost the Government $1.3 billion and benefit all enterprises and their local employees. For enterprises that have invested in raising productivity, I urge them to continue to upgrade and to share the gains with their workers. Hence, I will enhance the Wage Credit Scheme to support wage increases for Singaporean employees. Currently, the Wage Credit Scheme co-funds wage increases for Singaporean employees earning a gross monthly wage of up to $4,000. I will raise the monthly wage ceiling from $4,000 to $5,000, for qualifying wage increases given in 2019 and 2020, so that more Singaporean employees will benefit.”
“5% and 1.5%. However, the duration and severity of this outbreak and the impact on the global economy are still unclear. While MTI's baseline is for GDP growth to come in at 0.5% for the full year, we must be prepared that the economic impact may be worse than we projected. Our immediate concern is to protect you and your families. We will put in every effort to slow down the spread of the virus. Our frontline agencies have been fighting and containing the outbreak. I will set aside an additional $800 million in this Budget to support these efforts. The bulk of this will go to the Ministry of Health. This is on top of the substantial resources already committed each year to public health. Let me, on behalf of the Government, express our gratitude to all our frontline officers who have been working tirelessly, day and night, over weekends, in our fight against the outbreak. [Applause.] You have exemplified the resilience and indomitable spirit of our people. But please take care of yourselves. I am confident that, together, we will stay strong and get through these trying times. With these uncertainties, I know Singaporeans are understandably very concerned about the impact on our businesses and jobs. I will introduce two special packages, with a total budget of $5.6 billion. The first is the Stabilisation and Support Package. This will stabilise the economy and support our workers and enterprises, by helping workers to stay in their jobs and enterprises with cash flow. I will give additional help to sectors more directly affected by the outbreak. Households will be impacted by the slowdown, too. In every Budget, we always provide support to families.”
“Mr Speaker, Sir, before I move the Motion, allow me to share the journey of what Members are about to hear. For the last four Budget speeches, I have used two files and taken up slightly over two hours. Colleagues had been very patient, thank you. This time, the major changes that we have to respond to – economic slowdown, climate change and growing uncertainties – added many pages. Then, the global climate across the world – psychological, economic – was hit by the sudden storm of a virus outbreak. So, over the past few weeks, my colleagues in Cabinet, in the Ministry of Finance (MOF) have been managing various fronts. To support our national efforts, the Budget file grew and grew. So, today, I have three files instead of two. So, please be patient. Mr Speaker, Sir, I beg to move, "That Parliament approves the financial policy of the Government for the financial year (FY) 1 April 2020 to 31 March 2021." This year, we usher in a new decade, one marked by tectonic shifts in our operating environment and major uncertainties. Singapore's economy grew by a modest 0.7% in 2019. This is the weakest growth since the 2008 Financial Crisis. Just as the global economy was beginning to recover, the Coronavirus Disease 2019 (COVID-19) outbreak hit us. The outbreak will certainly impact our economy. The tourism and aviation industries are most directly affected. Visitor arrivals to Singapore and air traffic through Changi have declined, and with it, hotel occupancy rates. The virus outbreak has also disrupted supply chains and created ripple effects on other sectors, especially now that our economy is so much more integrated with China's. The Ministry of Trade and Industry (MTI) has downgraded the gross domestic product (GDP) forecast from between 0.5% and 2.5%, to between -0.”
“We have also done better than many other countries in social mobility: 14% of those with parents who were in the lowest-income quintile when they were growing up, managed to move up to the top quintile of income earners by their early 30s. The Government will continue to review and enhance its programmes to ensure that all Singaporeans, whatever their starting point, have the opportunity to build a better life for themselves and their families.”
“At the same time, we have recently increased the quantum of bursaries for university and polytechnic students from lower-income families. We have also embarked on SkillsFuture to build a culture of lifelong learning and skills mastery. Individuals and companies have stepped forward and training participation rates have increased in recent years. But there is still much more work to be done. We will continue to invest in SkillsFuture to help our workers prepare for the rapid transformations that are taking place across all industries. We are paying closer attention to lower-wage workers and those who are at risk of being displaced. This is why we have ramped up the Adapt and Grow initiative, which helps jobseekers acquire new skills and take on new jobs. For lower-wage workers, we will continue to enhance their skills and productivity through various measures, including the Workfare Income Supplement Scheme and the Progressive Wage Model. Our neighbourhoods are a key pillar of social inclusion and mobility. We have made sure that our public housing estates are not stratified or segregated and built common spaces where residents from all walks of life interact and create shared experiences. We are now stepping up our efforts for families in rental housing, and doing more to help all working Singaporeans own their own homes. Growth, mobility and inequality are key concerns for all advanced economies. In Singapore, we have put in place a holistic set of measures to enable everyone to move up the ladder. We have achieved broad-based income growth. Over the last five years from 2013 to 2018, real income growth averaged 3.3% per annum for our low-income households1 and 3.4% for our middle-income households.”
“The Government is committed to strengthening social mobility in Singapore. This is why our approach has not been to rely narrowly on redistribution to reduce inequality, but also to put in place a broad range of measures to maximise opportunities for all Singaporeans, and enable them to earn their own success. Our first priority is to ensure a strong, dynamic and resilient economy. Only when our firms are increasing productivity can workers find good jobs with sustained wage increases. We are, therefore, continuing to help our businesses restructure and succeed in new markets through innovation and enterprise. Beyond the economy, we are addressing social mobility holistically by intervening upstream. This means investing heavily from the preschool years, enabling multiple pathways to success both in the schooling years and working life, and integrating and rejuvenating our neighbourhoods. We are starting early to give every Singaporean the best possible start in life, regardless of family background, because the first few years of a child's life are critical. That is why we have made major enhancements to preschool subsidies and are expanding the KidSTART programme to provide upstream and integrated support for children from low-income families. We will continue to invest in our education system to enable every individual to pursue their diverse aspirations and realise their full potential. We are broadening and enhancing our learning pathways through new Work-Study Programmes in our polytechnics and Institutes of Technical Education (ITEs). Polytechnic graduates can upgrade their skills and earn more through the SkillsFuture Work-Study Post-Diplomas, while ITE graduates will be able to upgrade beyond a National ITE Certificate (Nitec) over the course of their career.”
“Thank you, Mr Speaker. The integrity of Workers' Party Members, the integrity of Members of Parliament, have been called into question and not addressed. In any reputable organisation, as I have said earlier, individuals who have fallen short would themselves feel a sense of shame and regret, and would themselves do the right thing, unbidden, failing which other town councillors who have done the duty and acted to cleanse their own house, failing which the political party which controls the Town Council would step in to put things right. In the case of AHTC and the Workers' Party, all these multiple levels of personal and Party responsibilities have failed. So, my question is a very simple one. What is the right thing to do? What is the right thing to do for Members of the Workers' Party? I think Members of this House know the answer. Members of the Workers' Party know in their hearts the answers. So, I urge the Workers' Party Members that, despite your recalcitrant stand today, after this debate, the Workers' Party and AHTC will reflect very carefully on what has happened in AHTC and what the House has been discussing. I hope that you will conclude that you should carry out your duty and do what the Motion recommends. I urge Members of this House to take a stand on this Motion in the interest of preserving clean politics in Singapore. Mr Speaker, Sir, I beg to move. [(proc text) Question put. (proc text)]”
“On the second part, the second key question which I have raised, which is to ask the Workers' Party Members whether they would join with the Government Members of Parliament to set out some basic principles for the conduct of Members of Parliament, both inside and outside the House – to be honest in our dealings with our fellow town councillors, to be honest in our statements in Parliament or, indeed, in any forum, including the Courts, to put the interests of the residents we represent above that of ourselves and our friends. None of the Workers' Party Members, unfortunately, raised any point about the basic principles that we have set out. We may differ on where we stand on many issues, but we always assume that we have at least agreed on the nature of politics we should have in Singapore. After all, would the Workers' Party not agree that maintaining high standards of integrity and accountability are at the core of a First-World Parliament or have you forgotten about First-World Parliament?”
“It was the Independent Panel appointed by the Workers' Party and, about which Mr Pritam Singh said they were eminent, consisting of Senior Counsels – two Senior Counsels – and one head of an audit firm. It was also the High Court that characterised their behaviour as dishonest, lacking in integrity, candour and transparency. And it was the Court of Appeal that raised the question of their behaviour was of questionable legality. So, like Mr Desmond Lee, I am very troubled that Mr Faisal Manap – Mr Faisal Manap is back with us – that, essentially, the position that you are going to take was that you would ask your Independent Panel, that you are not prepared to take a decision now. You are not prepared to take a decision. Sadly, Mr Pritam Singh reinforced that and said that you have refused to give your residents the assurance that Ms Sylvia Lim and Mr Low Thia Khiang will no longer be involved in financial matters for AHTC. As I said in my speech earlier, this is a basic step that any company whose officers are embroiled in such a case, more so after a strongly-worded judgment has been passed, would have asked their officers to do, even a company would have done that. They need only to look at the example of Ang Mo Kio Town Council which my colleagues have explained earlier. And that the Government has shown that we will act against any wrongdoing no matter the party. It does not sweep things under the carpet. Mr Faisal Manap also indicated and refused to take steps to protect public funds and to protect their residents' money. You are the Chairman of the Town Council now. Given this position, the Government will be forced to express its concerns to AHTC's own Independent Panel.”
“Let me remind Members of this House and, in particular, Members of the Workers' Party, what Mr Low Thia Khiang said in Parliament in 2015, I quote, "We are for transparency and accountability. We are not shy to support the Motion that is critical of us but will address and remedy the issues raised by the AGO report." So, Mr Low Thia Khiang made it very clear that you are for transparency, the Workers' Party is for transparency and accountability. You are not shy to support the Motion that is critical of the Workers' Party and that you will address and remedy the issues raised by the AGO report. But we just heard something else from Mr Pritam Singh. So, I ask the Workers' Party of today, "Do you stand, still stand for transparency and accountability?" In fact, I was very disappointed that Ms Sylvia Lim, at the initial stage of our Motion earlier today, chose to hide behind the ongoing appeal, despite serious concerns that the judgment has raised. I was even more surprised that Mr Pritam Singh repeated the same point. Now, I want to remind this House that I am asking, all that I am asking this House to do is to ask Ms Sylvia Lim and Mr Low Thia Khiang two very simple questions. Given the severity of the judgment, is the Workers' Party prepared to have Ms Sylvia Lim and Mr Low Thia Khiang recuse themselves from all financial decisions of AHTC? This is the least that they can do, right? There is no admission of guilt involved, simply whether you are prepared to give your residents some reassurance. Assoc Prof Walter Theseira and Ms Anthea Ong earlier on mentioned about your concern of whether this is a partisan debate. Let me remind Members of this House that it was not MND, it was not the HDB that sued the Workers' Party.”
“Mr Speaker, Sir, Mr Pritam Singh earlier mentioned that it is highly unusual for me to raise the Motion at this time. I have raised this Motion because it concerns the integrity of Members of this House. And I have asked Ms Sylvia Lim earlier, "Is this sub judice?" And she said, "No". Affirms that it is not. We cannot stay silent when a Court finds severe lapses among Members of this House, to be characterised as "dishonest", "lacking integrity", "lacking in candour". These are very serious. Parliament is a key foundation of our political system. Its Members set the tone. Members in this House set the tone for politics that we have in Singapore. Singaporeans expect more from their Members of Parliament. If we let things go unanswered, Singaporeans will be right to ask what kind of a system we have today. Whether it is a clean and incorruptible Singapore that we have worked hard to maintain all these years, whether they can trust the people whom they have elected to represent and serve them, whether the political leaders, whether from the Ruling Party or the Opposition, deserve to be trusted. Throughout this entire saga, the Workers' Party has avoided giving any straight answers. They have not explained why they went out of their way to advocate the waiver of tender and the appointment of FMSS, despite claiming that there was nothing wrong with what they did. They have not explained why FMSS was allowed to charge higher MA rates than CPG even though FMSS was run by their friends and was close to the Workers' Party. They have not shown responsibility towards ensuring that payments to FMSS were properly made and that they had done the necessary to protect residents' money.”
“The Member mentioned about what is interim. So, let me repeat myself. I said this Motion is about what is expected of Members of Parliament: integrity, honesty and being truthful in Parliament. This House needs to agree on the principles that all Members of Parliament must adhere to and the standards of probity required of all Members of Parliament in dealing with public funds. There are serious issues of probity, accountability and the handling of public funds that must be addressed now even while the appeal is being dealt with. There is a judgment of the High Court, which stands until the appeal is heard. The question is: what should be done, what should happen between now and the time when the appeal is decided? And that could be some time yet. So, in the interim, my question is: should the Workers' Party town councillors who have been found to have acted dishonestly and have been found to be in breach of their duties, whose conduct was found to be egregious, should they continue to have access to and control of public funds? Members will know that when there are similar findings made in any corporate setting, it is only right and proper that those whose integrity has been impugned to step aside and recuse themselves until they clear their names. So, I welcome the efforts of the Workers' Party Members of Parliament to clear their names but, until they do so, they have to be accountable to this House for the findings that the High Court has made. That must be doubly so when you are dealing with millions of dollars of public funds. So, I would like to ask the Town Council Chairman: what is your view on this matter? You are the Chairman of your Town Council. You have to decide.”
“I want to remind the Members of this House, when I spoke about the Motion, I said that this Motion is about what is to be expected of Members of Parliament: integrity, honesty and being truthful in Parliament. So, can I ask Ms Sylvia Lim: is this a proper subject for debate in this House?”
“I thank Ms Sylvia Lim for her clarification. You confirm that this matter is not sub judice, right, in your view? Do you confirm that this matter is not sub judice, in your view?”
“No single email was given to us for our review, although in our view, such emails ought to exist." So, Mr Png, I hope that you, as one of the town councillors, take your duties seriously and you have gone through all these. Mr Speaker, Sir, if I may revert to our discussions earlier on. I am a little confused because Mr Pritam Singh says, "Let us continue the debate." Ms Sylvia Lim pointed out that it was premature. I would like to clarify with Ms Sylvia Lim whether she meant that this matter is sub judice and, therefore, we should not be discussing this.”
“Mr Speaker, this has been such a long series of events that there are lots of documents. Mr Png Eng Huat asked about details of how you have resisted disclosures. Let me just read a number of reports to you. First, your own auditor Foo Kon Tan Grant Thornton in their FY2012/2013 report, at page 4, says, "The Town Council had not made available to us details of the project management service fees paid to a related party." In the 2015 AGO report, it says, "We note that AHPETC has entered into a number of related party transactions whereby substantial sums were paid to related parties in FY2012/2013. The Town Council, despite repeated requests, did not provide us with all the critical documents relating to these transactions" and "AHPETC did not provide us with all the necessary and relevant accounting documents and information which are essential and critical for our work." These came from your own auditors and the 2015 AGO report. The Auditor-General went to say, "Since the commencement of our review in April 2014, we have made various requests for documents from AHPETC as part of our review of selected transactions. In our view, these documents, such as documents which record the proper disclosure and consideration of related party transactions (RPTs) ought to exist as a matter of record. Notwithstanding numerous requests and reminders, AHPETC did not provide a number of the requested documents." In the 2017 PwC report, and I quote, "Despite repeated requests, no correspondence and/or written correspondence, including, importantly, emails in relation to amongst others, the takeover of the MA and the EMSU services by FMSS, including the termination of CPG, the award of contracts to FMSS and all FMSS performance of works, were given to us.”
“Mr Speaker, may I first respond to a point which Ms Sylvia Lim asked if I said that millions of dollars had been lost. So, I checked my file. The exact words that I have used are, "There are important questions of public interest to consider. I would just mention a few at the outset. Millions of dollars in public funds are involved." Those are the exact words that I have used. I would also like to have two technical clarifications which were raised by Mr Png Eng Huat. I will ask the Member Mr Edwin Tong to take the two questions.”